JUNE 19, 2004 The Straits Times

INSIGHT: VYING FOR A BIGGER PIECE OF THE TOURISM PIE, THE SEDUCTION GAME

Sentosa is being touted as the jewel in Singapore's tourism crown as the country launches a renewed drive for the tourism dollar. But is it a case of too little too late? Insight looks at the tourism sector's attempts to remake itself. By Serene Goh

GET them to stay longer, spend more and come back again. That, in a nutshell, is the mantra for tourism businesses in Singapore looking to entice travellers here. And now, all eyes are on developments in Sentosa and the Southern Islands, which at $7 billion, are tipped to be the come-hither icon that the country needs. The 10-year undertaking, however, begs the question: If we build it, will they come?

Although the islands are being positioned as the jewel in the crown that will give tourism here a much-needed fillip, their potential alone does not remove the hurdles facing the sector, which employs over 150,000 people and contributes about $4.7 billion to the economy annually.

First, the good news. Industry operators point out that the tourism market is about to see an explosion with the arrival of budget carriers and the growing affluence of people in Asia, especially in China and India. Together, these two trends will mean millions of new travellers. Travellers themselves are becoming an increasingly diverse group, with stereotypical leisure tourists - those armed with passport pouches and digital cameras - forming just one slice of a huge pie.

Now, the troubling news. Repeatedly, tourist insiders say holidaymakers could be hard pressed to find anything unique in Singapore - getting them to come, stay long and spend much is difficult. After all, look at the competition - and their campaigns. Travellers would find hard to resist the film-worthy beaches of 'Amazing Thailand', 'A Different Light' of Australia, the tropical rainforests in 'Malaysia, Truly Asia' and the 'Live it! Love it!' shopping in Hong Kong.

There is the other downer for Singapore: Its strong dollar makes it a more expensive playground compared to these regional options. Meanwhile, visitors from bigger cities find nothing here they cannot otherwise get at home. As it is, there is already scepticism about a better, brighter Sentosa. Some say it has languished too long under government management. Others recall its failed water park and high charges previously.

With Sentosa slow off the mark, critics are keen to point out, other places have surged ahead with their tourism offerings. They note, for example, Dubai's offshore, man-made luxury development, the Palm Islands, for the rich and famous. Then there is the old bugbear that detractors always cite: Singapore's small size - and equally modest attractions - is the reason visitors stay for such a short time, an average of two days.

Mr Lim Neo Chian, head of the Singapore Tourism Board (STB), has pointed out that fixed asset investment in Singapore attractions had dropped to an average of $63 million a year between 1995 and 2001, compared to an annual $168 million in the early 1990s. Sentosa's development will at least change that.

But if Sentosa takes a while to morph into an object of great seduction, and regional competition is heating up and the Singapore dollar is too strong, what else can the tourism sector bank on?

All is not lost, say those who are more optimistic. Their argument is that while leisure tourism brings in the bucks, the smart money is really on a different type of tourism. Travellers with a purpose other than just leisure are the key that will unlock more tourism earnings. Some of these tourists will even end up staying here for longer spells by buying property or sending their children here or starting businesses here, thus spending more money than leisure tourists and even making investments here. This new set of tourists may not be immediately obvious to the average Singaporean more accustomed to lamenting that this place is too dull for tourists.

But international hospitality groups here, among them The Ascott and Raffles International, the STB and other private operators have divided these travellers into three groups: the business-convention set, the education traveller and the medical tourist. To accommodate them, no piling will be required. Singapore already has a sophisticated infrastructure ready and waiting.

Mr William Tan, president of the National Association of Travel Agents Singapore (Natas), said money would be 'well spent' if invested into gearing such establishments as medical and educational institutions to target tourists. But, he pointed out: 'The change of mindset from top management to the lowest ranking staff must be there before this can be successful.'

The benefits of targeting this set of travellers are twofold: businesses will cater to their needs; they will be playing to Singapore's strengths.

Mr Ho Kwon Ping, executive chairman of Banyan Tree Holdings, said rather than compare itself with countries blessed with natural attractions, 'Singapore needs to position itself like a Sydney, an Auckland, a San Francisco or Hong Kong - cities with exciting harbours and harbour-related attractions'. 'Singapore cannot try to be all things to all people - an exciting harbour front city and a pristine resort like Bali or Phuket, at the same time. It is essentially a city-state, and has to accept this fact.'

MEETINGS AND INCENTIVES

DOLLARS generated from meetings, incentives, conventions and exhibition (Mice) are nothing to be sniffed at. Such events have a multiplier effect on any economy - promising a return of up to 12 times of what it costs to host them. Business travellers are a resilient market too. STB's statistics for visitor arrivals showed that while the number of holidaymakers dropped by 2 per cent last year because of Sars, the number of business visitors remained constant.  Besides, Singapore can already boast several venues fit for Mice purposes.

Mr Sonu Shivdasani, chairman and chief executive officer of the Six Senses chain of resorts and spas, pointed out that while Singapore may have no spectacular sights suitable for beach resorts, 'conventions marketing makes a lot of sense because the infrastructure is here'.

Mrs Diana Ee-Tan, Raffles International's senior vice-president of marketing, illustrates that point. Picture it, she said, an international businessman walks into Suntec City for a convention. His wife and two children are in town with him, and the whole family is staying at the Westin Swissotel. The kids would prefer to be outside, say, swimming at Sentosa. In the evenings, dad takes his potential clients to any number of reputable restaurants. Indeed, he has an expense account for this purpose. All four arrive two days before the convention so dad can set up his booth. All four will stay one day after his three-day convention is over, so he can wrap up work. While he's at it, mum might treat herself to an afternoon at the hotel's Amrita Spa. Voila! A three-night stay for a family of four just became six.

Citing numbers from the Statistics Singapore Newsletter, Mrs Ee-Tan pointed out that the country is facing intense competition from the region. 'If you look at our development in the last 10 years, what's very sad is that our industry's revenue per available room has actually consistently fallen. 'But when you look at the years from 1989 to 1995, when our revenues were higher, those were during the time that conventions marketing overseas was actively being undertaken.'

GET WELL HERE

SINGAPORE'S reputation as the region's hub for health-care services is an area that has opened up opportunities for integrated groups, such as CapitaLand. Under its hospitality arm, Raffles Hospital and Raffles Swissotel together offer packages that combine hotel stays with health and magnetic resonance imaging screens and even botox treatments, ranging from $390 to $1,995 per person. The Ascott's serviced apartments, meanwhile, are being marketed as ideal accommodations for medical tourists who need anywhere from a week to months to recuperate after major surgery. The group's chief executive officer, Mr Eugene Lai, said serviced apartments could ensure their privacy, allow caregivers to stay with and watch over them, while giving them a sense of being at home.

THE EDUCATED CHOICE

REGIONAL travellers considering pursuing government-accredited educational programmes here will not only bring in their dollars, but also those of their visitors. What's more, the major issue underscoring all on-going developments in tourism, that of safety, becomes even more acute when one is considering staying longer.

It cannot just be a surety at the airport or over a weekend. Experts say that national safety is the backbone of confidence among travellers, especially if, like students, they could take up to several years to obtain a degree or diploma. Natas president Mr Tan says Singapore's qualities - 'Clean! Safe! Efficient!' - are not wasted on tourists whose travel plans are not entirely leisure-seeking. Singapore's security measures are not only good, but they are also unobtrusive. 'Tourists do not find it an issue, so the confidence level is there,' he added.

Indeed, experts say that the future of travel and tourism in a post-9/11 world depends very much on the safety element. Now, critics who have long regarded Singapore as being a too-safe environment could find those very attributes becoming more attractive and valuable. Sentosa or no, that alone may just keep Singapore on the tourism map for awhile yet.