Singapore Tourism Industry Update Quarter 4 2010

• Publication date: October 2011

Improved Performance in 2010 Arrivals to Singapore have been on an upwards trend throughout 2010 so far. In July, the city-state welcomed 1,095,000 visitors, a record for the month and the first time Singapore has ever welcomed 1mn tourists in a calendar month. Cumulative arrivals for the first seven months of 2010 came to 6.63mn. This strong performance reflects the improving global economic environment, as well as the positive impac...

Improved Performance in 2010
Arrivals to Singapore have been on an upwards trend throughout 2010 so far. In July, the city-state
welcomed 1,095,000 visitors, a record for the month and the first time Singapore has ever welcomed 1mn
tourists in a calendar month. Cumulative arrivals for the first seven months of 2010 came to 6.63mn. This
strong performance reflects the improving global economic environment, as well as the positive impact of
Singapore’s new integrated resorts. The Singapore Tourism Board (STB) also identified improved tourist
sentiment and tactical promotions by airlines and hotels as other key growth drivers.
BMI made upwards revisions to our 2010 projections for tourist arrivals in Q310. Consequently, we will
maintain our current projection in Q410. We believe that a projection increase of 16% for total arrivals is
appropriate, but with risks to the upside if the trends seen so far in 2010 carry on into Q3 and Q4. The
new integrated resorts at Sentosa have been successful in attracting tourists to Singapore. Further
bolstering arrival numbers in 2010 has been Singapore’s hosting of the first Youth Olympic Games in
August and the Singapore Grand Prix, held on the final weekend of September.
MICE industry remains buoyant
Encouragingly for Singapore’s MICE industry , it appears that the opening of conference facilities at the
two new integrated resorts at Sentosa and Marina Bay Sands has not taken business away from other
conferencing venues in the Lion state. In August 2010, the Channelnewsasia website reported that the
Suntec Convention Centre has booked a total of 102 new events during June, while the Singapore Expo
has attracted 15 new events in recent months.
This comes despite Marina Bay Sands having booked more than 180 events since its opening in April,
with Resorts World having already welcomed in excess of 100,000 delegates since its own opening in
February, according to Channelnewsasia.
Industry observers believe that the greatest threat to Singapore’s pre-eminence in the MICE industry in
future years will come from other cities in the region, in particular Hong Kong and Shanghai..
First Integrated Resorts Open For Business
Four of the hotels at Resorts World Sentosa – Crockfords Tower, Hotel Michael, Festive Hotel and the
Hard Rock Hotel Singapore – opened for business in January 2010. These were joined by the city-state’s
first casino in February 2010, with the resort holding a soft opening of its Universal Studios theme park
in March 2010. Two more hotels, Equarius and Spa Villas, are scheduled to open in early 2011. The
resort’s developer, Genting International, expects around 13mn visitors during the first year of full
operation, according to local media reports.
Another integrated resort, Marina Bay Sands, opened its first phase of development in April 2010,
offering 963 out of its total of 2,560 hotel rooms, as well as part of its shopping mall, restaurants and
convention centre. The grand opening for the resort took place in June.
BMI believes the Sentosa and Marina Bay resorts will do much to significantly boost Singapore’s
tourism market from 2010 onwards as they offer a wide range of entertainment aimed at complementary
markets. The government has estimated that each resort could contribute SGD2.7bn to Singaporean Gross Domestic Product
by 2015.

Hotel And Lodging Industry in Singapore

Executive Summary . 5
Industry SWOT Analysis .... 7
Singapore Tourism SWOT 7
Singapore Political Environment and Risk Analysis 8
Singapore Economic Environment and Risk Analysis ... 9
Singapore Business Environment SWOT . 10

Market Projection Scenario ... 11
Arrivals .. 11
Data : Arrivals Data, from 2007 to 2014 ... 12
Accommodation .... 12
Data : Accommodation Data, from 2007 to 2014 13
Expenditure . 13
Data : Expenditure Data. 13
Inbound Tourism ... 14
Data : Tourist Arrivals By Region, from 2007 to 2014 .. 15
Data : Tourist Arrivals By Country, from 2007 to 2014 (‘000) 15
Outbound Tourism 16
Data : Tourism: Departures By Destination Region, from 2007 to 2014 . 16
Data : Resident Departures By Destination Country, from 2007 to 2014 (‘000) .... 17
Market Overview – Travel . 19
Commercial Airlines .. 19
Budget Airlines 19
Data : Low-Cost Airlines – Key Players, 2010 .. 20
Cruises ... 21
World Oil Products Price Outlook (to be updated) 22
Data : Oil Product Price Data & Projections , 2010 (US$/bbl) . 24
Data : Oil Product Price Data & Projections , from 2007 to 2014 (US$/bbl) .. 25
Market Overview – Hospitality ... 26
Accommodation .... 26
Key Players . 26
Integrated Resorts . 27
H1N1 And H5N1 Update ... 29

Environment Overview Outlook . 31
Data : Asia Travel And Tourism Business Environment Ratings . 31
BMI’s Security Ratings ... 31
Data : Asia Pacific Regional Security Ratings ... 32
Data : Asia Pacific State Vulnerability To Terrorism Index .. 33
Singapore’s Security Risk Rating ... 33
City Terrorism Rating 34
Data : BMI Asia City Terrorism Index 35
South East Asia Security Overview 36
World Assumptions ... 40
Data : World Assumptions, from 2009 to 2014 ... 40
Data : World & Regional Real Gross Domestic Product Growth, from 2009 to 2012 .... 41
Data : BMI And Consensus Projections , from 2010 to 2011 (%) .... 42
Data : Developed States Real Gross Domestic Product Growth Projections , from 2009 to 2012 (%) 43
Data : Emerging Industry s Aggregate Growth, from 2009 to 2012 (%) .... 44
Company Profiles ... 45
Singapore Airlines 45
Tiger Airways .. 47
BMI Methodology ... 49
How We Generate Our Market Projections ... 49
Tourism Market ... 49
Tourism Ratings – Methodology .... 50
Data : Tourism Business Environment Indicators .. 51
Data : Weighting of Components ... 52
City Terrorism Rating 52
Data : City Terrorism Rating Methodology .. 54
Sources .. 54