STB INJECTS $13 MILLION INTO TOURISM INDUSTRY

A S$13 million assistance package was unveiled by the Singapore Tourism Board (STB) today (November 1) to ensure critical growth strategies in the tourism industry in Singapore are maintained even as the industry is being threatened by the current global economic and political climate.

STB Chairman, Mr Edmund W Cheng announced the package at the 16th Annual Tourism Awards on November 1.

Mr Cheng said that Singapore’s tourism industry would be “severely affected” over the next few months due to the prevailing international crisis and the global economic slowdown.

“There is no sector left untouched – from airlines to attractions and hotels to travel agencies,” said Mr Cheng. “Total visitor arrivals for the whole year are projected to decrease by three to five per cent and tourism receipts by 10 per cent.”

The assistance package drawn up by the STB is the result of close consultation with various segments of the tourism industry to determine the levels and areas of aid required. The intention is to meet the most important challenge of helping companies ride out this crisis period, and enable them to be ready for the next spurt of growth.

The measures range from marketing initiatives, to direct assistance and increased support.

To encourage companies to continue developing new products and services, the STB will raise the level of support under the Tourism Development Assistance Scheme to 50 per cent of qualifying costs incurred between November 1 this year and December 31, 2002, for all projects, including those that have already been approved.

To assist companies with their cash flow, schedules will be revised to allow for more disbursements during the project period. The emphasis will be on encouraging companies to continue investing in good tourism products and helping them contribute positively to Singapore’s economy during this economic downturn.

The STB has also developed a Celebration Singapore Value Pack for free distribution to foreign visitors. This is to assist inbound travel agents and add further value to Singapore as a tourism destination. Valid from November 1 this year, until the end of February 2002, this package offers visitors attractive deals such as complimentary admissions to attractions as well as various lifestyle experiences. It will be available to visitors from selected regional markets via tour operators in Singapore.

To maintain Singapore’s visibility in the international markets, STB will offer all industry members rebates of 75 per cent on participation fees to all STB-led foreign missions, travel marts and trade shows. The rebates start this month with the World Travel Mart in London, and will be applicable until the end of next year.

Another stimulus is an additional injection of sponsorship and marketing funds to encourage more organisers of meetings, incentives, conventions, exhibitions and events to choose Singapore as a venue. This will also help to maintain an active calendar of events throughout the year.

To push incremental demand for business for the tourism industry, the STB will make available discount vouchers to Singapore residents to encourage them to experience local tourism products such as hotel stays, tours and attractions. These vouchers are valid from December 1 this year to February 28 next year, and will also help to increase awareness of the various tourism products and cultivate tourism ambassadors among the local population.

Mr Cheng said that the assistance package was designed to stimulate key growth areas for the industry, and to address the immediate problems faced by many companies as well as to help them tide over the bad times. While comprehensive, the intention was not to entirely shield the industry from the pressures of the downturn.

Mr Cheng explained: “The tourism industry is very competitive internationally and has thrived on that competition. However, it makes sense to guard against the possibility that this downturn could cause distortions that would harm the industry’s future prospects.

“This assistance package is about investing in our future. The Singapore tourism industry has contributed significantly to the prosperity of this country and it can continue to do so. Despite the decline in visitor arrivals, the industry would still be welcoming over seven million visitors to Singapore. We therefore need to pay attention to issues that determine the industry’s continued survival and contribution to the national economy.”