Innovations in Singapore Tourism - Assignment Example

?Innovations in Singapore Tourism: Strategic Policies and Planning Framework In the modern world, with the advent of technology and fastestmeans of transportation, tourism has become a major pleasure seeking activity for most of the people across the world. Thus, tourism has emerged as the most lucrative business, especially for countries that have a lot of tourist attractions such as Singapore. On the other hand, the economic downturn of the recent past has forced nations to innovate new and emerging areas in travel and tourism industries for generating more revenues, which has increased the competition in this field. Tourism is a labour intensive industry and expansions in this business will create immense potential for employment in the host country. Though Singapore is small in size, the country has been a hot favourite for tourists and shoppers from across the globe since a long time. The country currently ranks as the third richest nation in the world and though it does not have much in terms of natural resources, due to tourism and other businesses, Singapore has been able to fare quite well in the economic front in the past. However, in order to make the best use of the future prospects, the country has to harness its resources and align its capabilities for improvement and innovation in the travel and tourism industries so that it can sustain the steady economic growth. This paper develops a fictional tourism strategic policy for Singapore on the premise of a situation where the three nearby airports of Bangkok, Kuala Lumpur and Bali are closed down due to natural disasters, which makes the country the only gateway to other South East Asian countries. It will dwell on various policies that need to be implemented so that the country can optimise its potential as a tourist destination, to cater to the extra demand, over the next five years, in a sustainable manner. Innovations in Singapore Tourism: Strategic Policies and Planning Framework Introduction: Singapore is one of the top ranking economies in Asia Pacific region, with sophisticated infrastructures both in ground and air transport, which rank respectively “2nd and 14th” as well as a high quality human resources that ranks “2nd” in the region (Blanke & Chiesa, 2013, p.xxi). In addition, the country ranks as first among all economies for its “policy environment” that is most supportive with its rules and regulations encouraging travel and tourism industries (p.xxi). Data relating to visiting tourists shows a rising trend with “11.6 million in 2010 and 13.2 million in 2011” with revenue earnings of “S$ 18.9 billion in 2010” and “$ 22.4 billion” in 2011 (Annual Report of Tourism Statistics, 2012, p.1). Therefore, it transpires that despite the economic down trend across the world, tourism industry in Singapore has been growing in a fast paced manner. The hotel industry in the country also has remained in a strong position over the years with the rates of occupancy up to “85%” in 2010 and “86%” in 2011 (Table-34, p.77). Currently, the country has a total of “154” gazetted hotels with “40,759” rooms available for letting out (p.83). The land transport system here comprises road and rail services with Express Ways of 161 km, Arterial Roads of 645 km, Collector Roads of 557 km and Local Access Roads of 2,048 km (Singapore Land Transport Statistics as at End of 2011, p.58). In addition, they have Rapid Transit Systems (RTS) with MRT of 146.5 and LRT of 28.8 km, with 97 MRT stations and 34 LRT stations, catering to a resident population of 5,184,000 and 13,171,000 visitors (p.58). Air traffic system in the country has accounted for the arrival of “150,827” aircrafts during the year 2011, carrying 22,778,000 passengers while sea transport has registered the arrival of “127,998” vessels in 2011 (Year Book of Statistics Singapore, 2012, p.181). This study envisages the development of a new tourism strategic policy and planning framework for Singapore to cater to an extra demand arising from a scenario where the airports of Bangkok, Kuala Lumpur and Bali have been closed due to natural disasters. It will consider the present situation in Singapore as well as the other three countries and make an estimation of the likely increase over the course of next five years and prepare the plan accordingly to meet the additional demand in terms of resources and infrastructure in transport, accommodation, leisure activities etc to optimise the travel and tourism and the resultant revenue generation potential that the situation offers. Formulation of Economic Policies for Singapore by the MTI: The Ministry of Trade and Industry (MTI) is the regulatory authority responsible for the formulation of economic policies for Singapore for attaining and sustaining its economic growth and development. They envisage the vision of making Singapore a “Globalised, Entrepreneurial and Diversified Economy” through the implementation of various policies and strategies (Vision, Mission and Values, 2010). To realise these objectives, Singapore has constituted the Economic Strategies Committee in 2010, which focuses on three main strategies for attaining their goals such as boosting “Skills in Every Job,” deepening “Corporate Capabilities to Seize Opportunities in Asia” and making the country a “Distinctive Global and an Endearing Home” (Economic Vision and Strategies, 2011). These strategies further encompass various policies that include upgrading the skills and innovation in domestic human resources, reducing foreign workforce, encouraging MNCs as well as local businesses and SMEs by developing “market based facilities” to enhancing financing through banks and promoting technology besides facilitating “best quality life” to its citizens” (2011). The MTI’s mission mainly incorporates the concept of promoting “economic growth” and creating job opportunities to facilitate “higher standards of living for all” (Vision, Mission and Values, 2010). In order to achieve their mission they encourage industry sectors and protect the country’s “international trade interests” to easily enable access to global markets and also by facilitating an understanding of their economic status (2010). Tourism 2015, the latest and most ambitious strategic plan, “worth 1.6 billion” cherishes a vision of transforming the country into a leading city of “leisure, convention and exhibition” (Henderson, 2012, p.77). This plan envisages upgrading the shopping belt, releasing more space for shopping malls, integrated resorts that will combine casinos, hotels, “meetings and convention facilities” (p.77). The tourism policies of the nation, overall, are “moulded by the dialogic interaction” between the local and global trends and tourism will continue to flourish as a lucrative business for Singapore (Chang, 1999, p.101). Likely Impacts of Closure of Airports in Kuala Lumpur, Bangkok and Bali: The closure of the airports in Kuala Lumpur, Bangkok and Bali will have far reaching impacts on Singapore and its economy. The primary effect is that the visitors to these countries will no divert to Singapore necessitating a huge demand for infrastructural developments in the areas of accommodation, entertainment, transportation, bank, health, communication, technology and other services. Statistics indicate that Malaysia has an inflow of “131.0 million” in the year 2011 (Domestic Tourism Survey, n.d., p.21). Thailand registers a tourist inflow of 10,083,400 in 2009 while Indonesia accounts for 4,869,600 visitors during the same year (Harun, 2012, Table-II, p.91). Thus, the closure of airports in Kuala Lumpur, Bangkok and Bali will entail in a huge influx of visitors to Singapore and in order to cope with the emerging situation, the country will have to actively implement strategic plans for the development of its infrastructure in the areas of accommodation, transport, food and beverages, entertainment and human resources. Present Economic Status of Singapore: Revenue earning for 2012 has been substantial for the Singapore government, which mainly derives from “income tax collections and property related revenue,” while expenditure also has increased due to its commitment in the areas of healthcare and “transport infrastructure” (Economic Survey of Singapore, 2013, p.17). The country has adopted a policy stance of maintaining the exchange rate band at a “modest and gradual appreciation” level, which is deemed adequate for stabilising the economy on a path of sustainable growth (p.17). The country expects a surge to between “$14 billion and 17 billion” in public sector construction, which also includes the proposed “Thomson MRT line” that will also enhance the transport facilities (p.39). On the other hand, hotel room rates registered an increase by “5.7 per cent” pushing the average cost of a room to “$261” and the growth in the number of visitors has increased from “13 per cent in 2011” to “9.1 percent” in 2012, which accounted for “14 million visitor arrivals” and the overall trend suggests that the nation can easily afford expansion of infrastructure (p.42). Strategic Plans for Catering to the Additional Demand in the Next Five Years: Strategic plans must consider the devising of policy instruments, are the basic “means to achieve the objectives” of implementing such plans (Week 5, 2013, Slide 7). These include various laws, rules and regulations as well as policies for aiding and assisting the tourism industry to cater to the surge in demand. The policies being implemented need to consider the “values, belief and ideas” of the policies and also must consider the cohesive alignment of private and public sectors to achieve the best outcomes (Week 6, 2013, Slide 8). The emerging situation does offer Singapore an immense potential for economic growth and vast increase in employment opportunities and, therefore, the policies will also consider the industry’s need to sustain the growth over a long period of time. The policies so being implemented will also have to consider a “strategic direction” and identify the key issues that may emerge as well as the initiatives for attaining “competitive position in the global market” (Slide 11). In this context, the strategic direction for Singapore will be to pool its resources to develop maximum infrastructure to optimise the potential of increased tourism activities. The country the capabilities to invest for this purpose and there is also excellent potential for revenue accrual. Accommodation: The most significant area that needs attention in the given scenario is accommodation for the visitors and to avoid congestion in hotels. The country, as stated earlier, has kept provision for an increase in public sector construction and releasing more land for this activity. Thus, the public sector may consider launching new hotel chain, under the MTI through the formation of a separate board for governing it. Since expected influx of visitors will be quite high, public sector alone may not be able to operate enough hotels to cater to the extra demand. Therefore, private sector will also be encouraged to open new hotels through exploring the possibilities of leasing government owned property to them on a long term basis. Hotels that currently operate business in Singapore will be encouraged for additions into their infrastructure, where possible and they will be provided loans through banks as well as other financial institutions. To attain long term sustainability, high quality will be ensured and corporate entities will be encouraged to maintain a high level of social responsibility. The aspects security and fire safety etc will be accorded top priority and ample guidelines issued in this regard. Similarly, stringent policy guidelines will be issued relating to ethical practices so that misuse or compromise of quality does not occur. The building of additional accommodation will be done in a phased manner, covering all major areas of the island. A major concern in this context is the protection of the country from the “adverse environmental and social effects of international tourism” and to achieve this, focus will be given to creating awareness in the industry as well as among citizens about tourism and environment and also implement strict policies (Tourism Policy and Administration, p.304). Transport Infrastructure: The massive influx of visitors within the next five years will call for major improvement in the transport infrastructure of Singapore. In order to meet the additional surge in the demand of transportation, policies will envisage an increase in the number of MRTs, LRTs, buses as well as taxi services. The Thomson MRT Line will be expeditiously completed, which will go a long way in meeting some of the extra demand. Similarly better roads and infrastructure will be planned for new constructions where hotels are being considered. Similarly, private participation will be encouraged in running taxi and rent a car services. MRT and LRT, as the case may be, will be also extended to target locations where construction of new accommodation is being done and new stations will also be established. Policies will also consider the establishment of new “regional tourism organisations” to coordinate the activities of specific locations and they may also be encouraged in providing car rental services (Slide 7). Introduction of a new brand of luxury bus services will be considered, which can cater to the emerging needs. Policies will be issued to enact regulation for participation of the private sector for this purpose and the system of giving rights to run buses on specific routes will be given to bidders through auction. Ensuring the quality of services will be a primary consideration and regulations will be passed to ensure that overcrowding is not allowed in the buses and they keep the time strictly. The new areas of construction activities will be properly linked with by constructing express way, link road and railways and adequate stoppages and stations will also be provided. Employment Opportunities and Human Resources: The massive expansion in tourism activities, the entailing construction initiatives and infrastructure development will necessitate the requirement of human resources on a large scale. In order to meet this emerging and urgent requirement, both domestic and international labour markets will be explored. Simultaneously, the scope for enhancing the skill levels of existing labour force will also have to be considered. Singapore is multi cultural in its outlook and the tourists from all over the globe come to this destination, and, therefore, it is necessary to include a diverse group of people in the hospitality and tourism industries. Intensive recruitment through university campuses and international markets will be carried out to meet the additional demand of work force. The strategic plans will include provision for benefits such as provident fund, insurance and other welfare schemes to the employees to attract talent. Entertainment and Shopping Facilities: With the increase in the number of visitors there also emerges the demand for additional recreational facilities. Therefore, the tourism department will implement various policies for the opening of new entertainment and shopping facilities in the country. Policies will incorporate the promotion of new shopping malls, multiplexes and other entertainment avenues. The feasibility of tie up with large corporations such as Disney etc will be explored. Similarly, policies will also aim at promoting cultural specific events and celebrations. Singapore currently lacks adequate casinos and, therefore, new regulations would be sought to provide for more casinos in the state. In addition, new cruise ship services will be launched as a special tourist attraction. In order to meet the additional demand of food and beverages, the policies will seek further relaxation on import and opening of new multi cuisine restaurants that can cater to the needs of a wide range of consumers. New bars and pubs, including high luxury, will also be encouraged. Other Infrastructure: With the increase in the number of visitors there will be a huge increase in the demand for other infrastructures such as healthcare, communication, technology, sports activities etc. The policies will also cover such areas and promote additional investment in these areas. Conclusion: Tourism industry is a major source of revenue for Singapore and the given scenario will enormously increase the tourist inflow to the country. Therefore, the policies being implemented need to encourage tourism by garnering the resources of private and public sectors and aligning them properly to tap the best benefits. Vast expansion initiatives are called for in the areas of accommodation, transport, entertainment, food and beverage and other infrastructures. Through the implementation of policies for meeting the additional demand and by providing additional infrastructure, the country can potentially enhance its earnings and further solidify its economy. References Annual Report on Tourism Statistics 2010/2011. 2012. Singapore Tourism Board. Retrieved May 23, 2013, from Blanke, J. & Chiesa, T. 2013. The Travel & Tourism Competitiveness Report: Reducing Barriers to Economic Growth and Job Creation. World Economic Forum. Retrieved May 23, 2013, from Chang, T. C. Local Uniqueness in the Global Village: Heritage Tourism in Singapore. Professional Geographer, Vol.51 (1): pp.91-103. Chapter 5: Policy Instrumentation and Evaluation. 2013. Tourism Policy & Planning. Lecture Slides for Tour 13001. Domestic Tourism Survey. n.d. Department of Statistics, Malaysia. Retrieved May 23, 2013, from Economic Survey of Singapore 2012. 2013. Ministry of Trade and Industry, Singapore. Retrieved May 23, 2013, from Economic Vision and Strategies. 2011. Ministry of Trade and Industry, Singapore. Retrieved May 23, 2013, from Henderson, J. C. 2012. Planning for Success: Singapore, the Model City-State? Journal of International Affairs, Vol.65 (2): pp.69-83. Singapore Land Transport Statistics as at End 2011. 2012. Journeys, May 2012. Retrieved May 23, 2013, from Harun, A. 2012. Thailand Tourism Industry: The Impact of Tourism Sector to Thai’s Gross Domestic Product. 2nd International Conference on Business, Economics, Management and Behavioral Sciences, Bali, Indonesia. Retrieved May 23, 2013, from Tourism Policy and Administration. Vision, Mission and Values. 2010. Ministry of Trade and Industry, Singapore. Retrieved May 23, 2013 from Week 6: Tourism Policy and Planning Process. 2013. Tourism Policy & Planning. Lecture Slides for Tour 13001. Week 8: Regional Tourism Planning and Policy. 2013. Tourism Policy & Planning. Lecture Slides for Tour 13001. Yearbook of Statistics Singapore 2012. 2012. Department of Statistics, Singapore. Retrieved May 23, 2013, from Read More