Speech by Mr S Iswaran, Minister for Trade and Industry (Industry), at the Tourism Industry Conference 2017, 13 April 2017 (Thursday), 9.15am
Chairman and members of the STB Board
Partners and friends from the tourism industry
Colleagues from STB
Ladies and gentlemen
Good morning
1. It is my pleasure to join you at the annual Tourism Industry Conference – a yearly platform for us to take stock of our progress, and to consider how to chart our way forward amidst the opportunities and challenges.
2. The tourism sector performed well in 2016 and emerged as one of the bright spots in our economy. Singapore welcomed a record 16.4 million international visitor arrivals, a 7.7 per cent increase from 2015. Tourism spending also grew by 13.9 per cent to reach $24.8 billion.
3. This positive outcome was achieved despite weakness in some of our source markets (like Malaysia and Hong Kong), as well as the Zika outbreak which affected travel sentiments (in Japan and South Korea). It would not have been possible without the STB team’s intensified marketing initiatives, as well as the strong support of our in-market and local travel trade stakeholders.
4. Looking ahead, we face a more volatile global environment and growing regional competition. Political, economic and social developments across the world can also affect our tourism sector. In other words, continued success is not a given.
5. Against this backdrop, STB expects international visitor arrivals growth of 0 to 2 per cent in 2017, and tourism receipts to grow between 1 to 4 per cent. We are off to a promising start with international visitor arrivals reaching 2.8 million as of February this year, a 3.4% increase from the same period last year.
6. To sustain our competitiveness and growth we must improve our tourism products and continue to attract increasingly discerning travellers. To achieve this, industry and government must work closely together, and coordinate our efforts in two broad areas:
a. First, to develop new products and visitor experiences that are unique and differentiated.
b. Second, to enhance our industry competitiveness by (i) raising productivity, (ii) investing in our people; and (iii) embracing innovation.
Developing a Vibrant City
7. Let me start with tourism products and visitor experiences. Over the past decade, Singapore has grown as a vibrant global city with a thriving tourism landscape. This evolution must continue by rejuvenating our tourism hardware and enhancing our software.
‘Hardware’ / Infrastructure
8. One example of tourism hardware is Orchard Road – our premier shopping precinct that is well-known to both locals and tourists. However, as consumer preferences change and retail trends evolve, so too must Orchard Road to sustain its appeal.
9. Hence, together with URA, LTA and private sector partners, STB is looking at ways to remake Orchard Road. The vision is to transform the precinct into a distinctive and vibrant shopping and lifestyle destination, that offers a signature street experience within a city garden.
10. In the near term, we will explore ways to refresh the Orchard Road streetscape, to make it more pedestrian-friendly and conducive for street-level activities. For instance, we will activate existing parcels of State land and consider introducing a progressive road reduction programme to expand the pedestrian mall. For the longer term, we can explore the possibility of a fully pedestrianised Orchard Road to serve as a multi-purpose space where diverse and larger-scale experiential concepts can be introduced. Our government agencies will work closely with the stakeholders to further develop the ideas and assess the costs and benefits.
11. We also want new and unique offerings along Orchard Road, like the KEEPERS Singapore Design Collective pop-up at Orchard Road which was well-received. To build on its success, STB, SPRING and JTC will launch a Design Incubator at Orchard Green by end 2018. Located at the heart of the precinct, the Design Incubator will house a retail showcase and incubation space for local design talents. WOHA, a local architectural firm and recipient of the President’s Design Award, will design the building; and Naiise Pte Ltd, one of our home-grown retailers and a strong advocate of local design, will manage the retail showcase. This will be an exciting addition to the Orchard Road precinct in a prominent location that will allow visitors to discover and purchase locally designed products that we are proud of.
12. The private sector has a key role in this effort to remake Orchard Road, by refreshing the experiences within malls, and identifying opportunities for transformative redevelopment. The Government will continue to work closely with private sector stakeholders to make Orchard Road a distinctive retail and lifestyle destination, for locals and tourists alike.
‘Software’ / Event Pipeline
13. STB will also continue to enhance our tourism ‘software’, by refreshing and diversifying our events calendar, to ensure there is something to pique the interest of visitors throughout the year.
14. This year, Singapore will be the exclusive Southeast Asian destination for two new sporting events. The Ultimate Fighting Championship (or UFC) Fight Night will be held in Singapore in June. In July, top European football clubs Chelsea, Bayern Munich and Inter Milan will face off at the National Stadium in the inaugural edition of the International Champions Cup Singapore. Both mixed martial arts and football should attract a large audience from their strong fan base in Singapore and the region.
15.
STB and The Walt Disney Company (Southeast
Asia) have also signed a three-year collaboration to co-conceptualise marquee
events that build on Disney’s distinctive brands and memorable characters. The theme for this year is Star Wars, followed
by Marvel in 2018 and Disney Animation/Disney Pixar in 2019. Lionel will share more details later. This partnership with Disney is another
exciting step in our efforts to anchor world-class entertainment events, and make
Singapore the key leisure destination for visitors from Southeast Asia and
beyond.
16. Singapore continues to be an attractive destination for business events. From Rotorcraft Asia – the region’s first dedicated civil helicopter show for the industry’s top manufacturers, suppliers, and innovators – to The Speciality and Fine Food Fair Asia – the world famous gourmet trade show from London – the presence of world-class trade events bears testimony to our appeal as a platform for global industry players to convene, network, exchange ideas and source new business prospects.
17. We also want to encourage more ground-up efforts from the industry to test-bed innovative event concepts. This is why we initiated the Kickstart Fund in 2013. To date, the Kickstart Fund has supported the launch of interesting new events such as Neon Lights Festival, Spartan Race, and the Singapore Cocktail Festival.
18. I am pleased to announce that a further $10 million has been allocated for the next tranche of the Kickstart Fund, with a higher level of funding support of up to 70%, and a higher grant ceiling of $200,000 per project. I encourage our industry partners to make the most of the Kickstart Fund to try out new ideas and event concepts, which can augment our colourful events calendar.
Enhancing Industry Competitiveness
19. Let me now focus on enhancing our industry competitiveness. This is why we have been developing the Industry Transformation Maps (ITMs) – to integrate and implement strategies for productivity, people development, and innovation.
Productivity
20. STB has been collaborating with the industry to raise productivity by adopting technology and changing business processes. And we have already seen some good progress. For example, the nominal value-add (or VA) per worker in the hotel industry increased at a compounded annual growth rate (or CAGR) of 4.14%, from 2011 to 2015, exceeding the national average of 0.95%. This was achieved through public-private partnerships, as well as industry-led initiatives to share best practices.
21. Companies in the tourism sector can also tap on STB’s Business Improvement Fund (or BIF) for measures to further improve productivity including technology adoption. The fund has supported 93 projects over the past two years, and we must build on this good momentum, and continue to push for productivity growth across the tourism sector.
People Development
22. Another important strategy is to invest in the training and development of our people. STB will continue to support the growth of a quality tourism workforce by up-skilling Singaporeans across different industries, through SkillsFuture and other manpower initiatives.
23. Last year, the Skills Framework for the hotel industry was jointly launched by STB, SkillsFuture Singapore (SSG) and Workforce Singapore (WSG). This year, we will develop the Skills Framework for the travel agent, MICE and attractions industries. These frameworks will serve as a common reference point for the purpose of education and training, career planning, lifelong learning and people development.
24. STB will continue to support tourism associations who are well-placed to identify learning needs within the industry, and develop customised plans to address them. For instance, STB supported the Singapore Association of Convention and Exhibition Organisers and Suppliers (SACEOS) to develop internationally accredited courses that meet the training needs of the MICE industry, as well as to launch a MICE Sustainability Certification programme to help organisations with limited resources.
25. We must also build a strong pipeline of talent to ensure the long term viability of the industry. The hotel industry is a good example with more stakeholders participating in the SkillsFuture Earn and Learn Programme, where students can gain work experience and get a head-start in their careers. A three-year Hotel Career Campaign will also be launched in June this year to raise awareness of the full range of opportunities available, and job-seekers can look forward to a wide range of good jobs available – from guest relations and F&B, to revenue management and data science. Looking at PMET jobs alone, the Hotel ITM initiatives will create 800 new jobs by 2020.
26. Collectively, such efforts will help build a quality workforce, and create good opportunities for Singaporeans.
Innovation
27. Finally, we need to embrace innovation, and unlock the immense potential of technology. The travel agent arm of the Society of Tourist Guides Singapore (STGS) has done so by tapping on STB’s Experience Step Up Fund to develop ‘Page A Guide’ – a portal and mobile app to connect visitors and tourist guides. This empowers tourist guides by providing a platform to profile themselves according to their areas of expertise. Visitors can then connect with guides who meet their interests and needs, and enjoy a customised and immersive travel experience.
28. As emphasised in the recent CFE report, we must embrace innovation and build up our digital capabilities, because technology continues to disrupt the operating environment in every industry. At last year’s TIC, I mentioned that big data and predictive analytics present significant opportunities for the tourism sector. STB has since embarked on significant initiatives in this regard, and our tourism enterprises have also begun to tap on digital solutions to transform the tourism experience.
29. As an example, Sentosa Development Corporation (SDC) is enhancing its mobile app and will be introducing a new interface, MySentosa 2.0. The app will use data analytics to provide personalised information and services. Visitors will be able to view real-time transport information for Sentosa, and receive location-based notifications on attractions, events, and on-going promotions. There will also be gamification features to increase the level of engagement and interactivity with users.
30. These are just some examples of how we can harness data and technology to innovate, build up our capabilities, and deliver a superior travel experience for our visitors. I strongly encourage all our industry partners to think about how we can do things better with technology, and be bold in trying out new and creative ideas.
31. At the national level, our ITMs have outlined measures to enhance industry competitiveness through skills development, productivity improvement and innovation. These strategies are applicable to all sectors in the tourism industry. The key now lies in the execution of these strategies so as to create good opportunities for our people and businesses. And this will require the collective and coordinated efforts of Government, industry stakeholders, associations and unions.
Conclusion
32. Let me close by stating that the tourism industry will remain an important component of our economy, and allow us to create many good jobs for Singaporeans and opportunities for our businesses. Developing quality tourism products and visitor experiences, while strengthening the productivity and competitiveness of the tourism sector, will help ensure the vitality and sustained growth of the industry.
33. Together, the government and industry stakeholders must identify and seize new opportunities to enhance the tourism sector, and co-create solutions to meet the challenges that lie ahead. This requires us to have open and productive conversations. I believe that this conference will serve that purpose well as a good platform for us to exchange ideas, share feedback, and identify opportunities or strategies for the future.
34. I wish everyone a fruitful Tourism Industry Conference, and all the very best for the year ahead. Thank you.