Singapore Tourism Report Q1 2010 - new market report released

Singapore's tourism industry experienced a difficult H109 Visitor arrivals were down by 11.5%, to just 4.51mn in January-June. The Singapore Tourist Board (STB) attributed the poor performance primarily to the global economic crisis, but arrivals from North Asia were also reduced due to the effects of the H1N1 virus (swine flu) pandemic.

From the halfway point of the year, tourist
arrivals resumed an upwards trend. In December 2009, the STB said visitor arrivals stood at 8.71mn for January-November. Strong increases were recorded in arrivals from Indonesia, Malaysia and China over October and November. That said, we believe the most likely outcome for the year as a whole is a slight fall in arrivals from 2008’s 10.12mn arrivals, mainly as a result of the very poor first half.

…But The Longer-Term Prognosis Remains Positive
Although 2009 was difficult for the Singaporean tourism industry, there are reasons to be positive about the medium-to-long term as the global economy recovers. In particular, the opening of the two integrated resorts, at Marina Bay and Sentosa, in 2010 should help the island attract new tourists. Also in 2010, Singapore will host the first Youth Olympics and open the International Cruise Terminal.

Tiger Airways Announces IPO

In January 2010, Singapore's Tiger Airways unveiled its long awaited initial public offering (IPO) of stock in the company. The airline hopes to raise SGD273mn via the IPO, which it will use to fund aircraft purchases and pay down debt.

Some media reports said Tiger Airways had initially hoped to raise more money via the IPO, but an uncertain outlook for global investment markets and the challenging outlook for the airline industry may have both played a part in the downsizing of the offer.

Integrated Resorts

Opening Soon Four of the new hotels at the Sentosa integrated resort – Maxims Tower, Hotel Michael, Festive Hotel and the Hard Rock Hotel Singapore –start phased opening in late January 2010. The other two hotels at the resort are the Equarius Hotel and Spa Villas. Bookings for the hotels opened in H209. Other attractions at Sentosa will include a Universal Studios theme park, a casino and the world’s largest oceanarium. We believe Sentosa and other new resorts will do much to significantly boost Singapore’s tourism industry from 2010 onwards. We expect to report on the opening of the resort and its prospects in Q210.


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Singapore Tourism Report Q1 2010 - New Market Report Published

LONDON, ENGLAND

Singapore's tourism industry experienced a difficult H109 Visitor arrivals were down by 11.5%, to just 4.51mn in January-June. The Singapore Tourist Board (STB) attributed the poor performance primarily to the global economic crisis, but arrivals from North Asia were also reduced due to the effects of the H1N1 virus (swine flu) pandemic.

From the halfway point of the year, tourist arrivals resumed an upwards trend. In December 2009, the STB said visitor arrivals stood at 8.71mn for January-November. Strong increases were recorded in arrivals from Indonesia, Malaysia and China over October and November. That said, we believe the most likely outcome for the year as a whole is a slight fall in arrivals from 2008's 10.12mn arrivals, mainly as a result of the very poor first half.

...But The Longer-Term Prognosis Remains Positive
Although 2009 was difficult for the Singaporean tourism industry, there are reasons to be positive about the medium-to-long term as the global economy recovers. In particular, the opening of the two integrated resorts, at Marina Bay and Sentosa, in 2010 should help the island attract new tourists. Also in 2010, Singapore will host the first Youth Olympics and open the International Cruise Terminal.

Tiger Airways Announces IPO

In January 2010, Singapore's Tiger Airways unveiled its long awaited initial public offering (IPO) of stock in the company. The airline hopes to raise SGD273mn via the IPO, which it will use to fund aircraft purchases and pay down debt.

Some media reports said Tiger Airways had initially hoped to raise more money via the IPO, but an uncertain outlook for global investment markets and the challenging outlook for the airline industry may have both played a part in the downsizing of the offer.

Integrated Resorts

Opening Soon Four of the new hotels at the Sentosa integrated resort - Maxims Tower, Hotel Michael, Festive Hotel and the Hard Rock Hotel Singapore -start phased opening in late January 2010. The other two hotels at the resort are the Equarius Hotel and Spa Villas. Bookings for the hotels opened in H209. Other attractions at Sentosa will include a Universal Studios theme park, a casino and the world's largest oceanarium. We believe Sentosa and other new resorts will do much to significantly boost Singapore's tourism industry from 2010 onwards. We expect to report on the opening of the resort and its prospects in Q210.


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Singapore's economy likely to be buoyed by global recovery in 2010

SINGAPORE: Singapore's economy is expected to revert to positive growth next year, thanks to the global recovery.

According to some economists, growth could even surpass the government's estimates for 2010. They are looking at GDP growth of more than 5 per cent, compared to the government's current forecast of a 3 to 5 per cent growth.

This follows 2009's roller coaster ride, where the economy took a beating in the early part of the year before recovering in the second half.

Export-dependent Singapore was among the first in Asia to fall into recession towards the end of 2008. The economy contracted by 14.6 per cent on-quarter in the first quarter of 2009, following a decline of 16.4 per cent in the previous three months. Then it took a sharp turn upwards, catching the markets by surprise.

David Cohen, director of Asian economic forecasting, Action Economics, said: "The rebound has been better than expected. The strong growth in the second and third quarter GDP in Singapore was better, at a double-digit quarter-on-quarter annualised rate.

"It was a reflection of the turnaround. It was more or less in line with the pattern around the region where many of the Asian exporting economies, after the sharp fall-off in their production and exports in the beginning of the year, rebounded as global demand started to recover."

Song Seng Wun, CEO & regional economist, CIMB-GK Research, said: "After a fairly weak start to the year in the aftermath of the collapse of global demand, we saw things improving in subsequent quarters...

"Aggressive intervention by the Singapore government and others around the world stabilised an uncertain environment. When you have heavy government intervention in the economy, it gives confidence back to businesses and consumers as well."

While the outlook for 2010 appears to be brightening, some said much depends on the United States and when global central banks will cut liquidity.

"Which is why there is much debate on whether governments should withdraw liquidity, withdraw from the economy. It's probably a bit premature. The risk really is that the number one engine, the US, continues to see patchy recovery," said Mr Song.

Sector-wise, manufacturing was the worst hit by the downturn in 2009, but it is looking up.

The manufacturing sector, which accounts for about a quarter of the country's GDP, is expected to grow by about 8 per cent in the fourth quarter this year, after a surprise rebound in the third quarter. This performance is expected to continue into 2010.

Mr Cohen said: "Assuming the global economy remains on recovery trajectory, that should support continued recovery in manufacturing sector and this, including the electronics sector globally, should turn around.

"Perhaps Singapore will still be feeling some drag from the closing of some disk drive production sites, but that should be balanced by the continued uptrend in the pharmaceutical area, where Singapore continues to enjoy an expansion in the global industry that is expected to continue into next year."

Meanwhile, all eyes will also be on the much-anticipated opening of Singapore's two integrated resorts. They are expected to add about 0.5 per cent to GDP growth next year, through a boost to tourist arrivals and retail sales.


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Tourist attractions in Singapore gearing up for 2010

SINGAPORE : Tourist attractions in Singapore are pulling out all the stops to draw in visitors this festive season.

And they are not stopping there. Many of them said visitors can expect more promotions and events in 2010. For example, visitors can feed flamingos at the Jurong Bird Park, as part of the attraction's Latin Fiesta-themed year-end celebrations.

Its sister attractions, the Night Safari and the Singapore Zoo, are also planning similar activities, including appearances by Wild Tarzan Santa and an elephant showcase.

Meanwhile, Sentosa is hosting a range of family-friendly activities, including sand sculpting, playing of percussions and puppet storytelling. And they are not the only ones hoping to cash in on the tourist dollar this festive period.

Wendy Leong, general manager, City Tours, said: "We have the Christmas light-up tour. In the past, we did it just for 40 minutes, so that is why with the three-hour tour this year, we have an increase in the number of tourists coming into Singapore to join up with us."

Others are hoping the opening of the two integrated resorts will help boost business by helping to attract tourists here.

Patsy Ong, managing director, Adval Brand Group, said: "We are pretty much affected by the global economic crisis - we have seen a 25 per cent drop in visitorship, largely from the corporates and from overseas visitors... We are optimistic about it, but we are (also) cautious."

Between April and November 2009, Sentosa saw an increase in visitorship as compared to the same period last year. And it expects visitorship to the island to more than double to 15 million to 20 million over the next few years when Resorts World opens.

While some operators remain unsure about what the year ahead will bring, most are already gearing up for 2010, with new packages, promotions and new attractions ready to draw in the tourists.

Noel Hawkes, vice president, Resort Operations, Resorts World Sentosa, said: "We are going to open with a bang. It is going to be 20 attractions within Universal Studios, which includes the fabulous duelling roller coaster, the Madagascar, Revenge of the Mummy... Jurassic Park and many, many more.

"Of course, (there are also) the retail options and F&B. Four hotels... we have got Hotel Michael, Crockfords Tower, Festive Hotel and Hard Rock. Plus we have got the casino and that is going to occupy 150,000 square feet and it is really beautiful; it has got a lot of restaurants in there. We have got a mass gaming floor, plus the VIP gaming area on the second level."

The Singapore Tourism Board said it is hopeful that tourists arrivals in 2010 will surpass the 9 million to 9.5 million visitors expected this year. - CNA/ms


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STB optimistic that tourist arrivals will be better in 2010

SINGAPORE: The Singapore Tourism Board (STB) expects more holiday makers and business travellers to come to Singapore next year.

STB said it is cautiously optimistic that tourist arrivals in 2010 will surpass this year's 9 to 9.5 million visitors.

Among its trump cards will be the two integrated resorts and the Formula One Grand Prix.

High octane events like the F1 race have revved up the tourism scene in Singapore. It has also spiced up the nightlife, with F1 Rocks concerts attracting some 30,000 party goers in September.

In view of the good response, the Singapore Tourism Board aims to do more next year.

Aw Kah Peng, chief executive, Singapore Tourism Board, said: "It broadens the market and opens it up. Will we do a bit more in terms of art, whether it's photo exhibition, sculptures and so on? Yes, it's possible.

"Will we have things that involve the drivers and the cars? Possible too. We are working a lot of ideas on the ground."

Apart from the leisure events, there will also be a strong pipeline of conferences in 2010, including the Singapore International Water Week.

The event attracted more than 10,000 participants and saw S$2.2 billion worth of deals sealed this year.

STB added: "We are seeing some interesting trends. Next year, you will see about three times as many business events that are newly created compared to this year and it's because people see the opportunity for growth in Asia."

Asia is likely to be where most of the visitors will be coming from. STB said currently, almost all of its top 10 markets are Asian, making up 70 per cent of total arrivals to Singapore.

And what's a visit to Singapore without visiting the two aces in the pack - the integrated resorts? Each attraction is expected to contribute a value add of S$2.7 billion or 0.8 per cent to Singapore's GDP.

With economic recovery underway, their prospects look bright. But some observers said it is too early to tell if they will live up to expectations.

Neo Boon Siong, director, Asia Competitiveness Institute, said: "We have a lot more competition now in Macau and elsewhere. So I think you have some positive effects, but it may take a while for us to learn how to reach those new tourist markets.

"It will not be an immediate big bang, I suspect. There will be incremental activities, but it will be largely an experimental market for the next couple of years."

And Singapore being plugged into the world could be exposed to some downside risks ahead.

Song Seng Wun, regional economist, CIMB-GK Research, said: "It could be US unemployment rising far more sharply then expected. Unemployment rate is already 10 per cent and it could go higher and for longer as well.

"That certainly means that one engine of global growth - the US economy - will be a big drag; others can be, say, asset bubble bursting."

Despite the uncertainties, STB is cautiously optimistic about 2010. One key challenge though is manpower training and raising service standards. - CNA/vm


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