SPEECH BY TEO SER LUCK, MINISTER OF STATE FOR TRADE AND INDUSTRY AT CRUISE SHIPPING ASIA 2011 ON WEDNESDAY, 16 NOVEMBER 2011, 8.40AM AT SANDS Expo and Convention Center, Exhibition Hall B

Distinguished guests,

Ladies and gentlemen,

Good morning

Introduction

It gives me great pleasure to join you at the inaugural Cruise Shipping Asia. Let me also take the opportunity to extend a warm welcome to all our overseas visitors to Singapore.

Cruise Shipping Asia is a key business event for the cruise industry, an industry that has been identified as one of the fastest growing within the travel and leisure sector. The number of global cruise passengers has increased by about 32%, from 13.6 million in 2005 to 18 million in 2010. By 2015, the total number of cruise passengers is projected to reach almost 23 million[1]. This is phenomenal growth indeed.

The Cruise Market in Asia

Asia, driven by its sustained economic growth and a growing middle class, is an attractive region for cruise lines looking to extend their networks and tap on new growth opportunities. According to the United Nations World Tourism Organisation (UNWTO), Asia is envisaged to be the fastest growing region for tourism in the next two decades. Although Asia currently makes up only 9% of the total global cruise market share by revenue[2], it has vast potential both as a new source of cruise passengers and a cruise destination with a concentration of exotic and variegated ports.

Development of Singapore’s Cruise Industry

From Singapore’s perspective, we see cruise as an engine of growth for the tourism sector that will diversify our product offerings, and promote tourism flows. Attributes such as extensive air links, good cruise infrastructure and calm waters for year-round cruising make us a suitable homeport for cruise ships. Our strategy to further Singapore’s appeal is three-pronged.

Infrastructure Development

First, we are investing heavily in infrastructure and upgrading our facilities. The opening of the International Cruise Terminal (ICT) in the second quarter of 2012 will double the number of berths in Singapore. It will also allow us to accommodate the largest cruise ships today. Besides an enhanced experience, the ICT’s prime location near the Marina Bay precinct, Singapore’s new downtown and financial hub, will afford cruise passengers easy access to a full slate of lifestyle options as well as iconic tourist attractions like Gardens by the Bay and the Marina Bay SandsIntegrated Resort. At the same time, the existing Singapore Cruise Centre is undergoing rejuvenation to better serve passengers.

Robust Local Ecosystem to Support Industry

Second, we are committed to developing a robust ecosystem to support the local cruise industry. This includes working with stakeholders to ensure that ships enjoy high service standards and access to ancillary services when they call in Singapore. We have also been partnering the industry to work out solutions for seamless transfers between our air and sea ports so as to facilitate connections. To grow international passenger throughput, the Singapore Tourism Board will continue its efforts alongside cruise lines and travel agents to discover and develop source markets for the next phase of cruise development.

These efforts have yielded good results.Between 2006 and 2010, cruise passenger throughput has achieved a compounded growth rate of more than 4% in Singapore[3]. I am pleased to share that we should welcome a total of 10 maiden calls in 2012 alone, including one in May by Royal Caribbean’s Voyager of the Seas, which will be the largest cruise ship ever to call in Asia.

Regional Cooperation

Third, recognising that cruise is a product which relies heavily on attractiveness of itineraries and destination ports, we will continue to champion regional cooperation.At the G-to-G level, Singapore is a member of the ASEAN Product Development Working Group and has been working closely with other ASEAN partners to spur investments into infrastructure and to string together cruise itineraries.The intent is to create a ‘cruise playground’ in this region that takes advantage of our varied landscapes, tropical climate and multi-cultural appeal.Efforts are also on-going to promote the region under the banner of “Cruise Southeast Asia” to consumers and cruise lines.

I am also heartened to learn that the Asia Cruise Association, an organisation dedicated to the development and promotion of the cruise industry in the Asia-Pacific region, is anchored in Singapore and paving the way for greater collaboration. These partnerships allow members to share resources and achieve the scale needed to capitalise on market opportunities in Asia.

Cruise Shipping Asia as a Platform for Collaboration

With a representation of over 24 countries, the presence of the world’s top cruise lines and a conference line-up focusing strongly on issues and challenges unique to the Asian cruise industry, Cruise Shipping Asia will be an invaluable platform to exchange ideas and forge partnerships.

It is also continued collaboration with event organisers like UBM Asia that allows us to bring in such representative business forums.Our reliable infrastructure, strong business fundamentals, and an established value chain of products and services have built Singapore into both a global shipping hub and one of Asia’s top cities for Meetings, Incentives, Conventions and Exhibitions (MICE). We welcome any investment or ideas that can help us advance our position as gateway to the region.

Conclusion

Let me conclude by wishing all of you a very successful and fruitful conference. Thank you.