Formula One Singtel Singapore Grand Prix: Boosting Singapore's Tourism Essay.

Singapore's Tourism Landscape Transformation

Question:

Discuss About The Formula One Singtel Singapore Grand Prix?

The tourism landscape of Singapore has undergone a significant transformation during recent times. Several international events like Formula One Singtel Singapore Grand Prinx (Since 2008) along with new tourism platter like Integrated Resorts (IRs) have cemented the position of Singapore as one of the top tourism’s destination round the world (Lee 2012). Singapore, a small island is majorly inclined on international tourists than that of domestic tourisms to earn their major economy. The number of tourists who are paying a visit to Singapore annually and the amount of money they spend on shopping and availing the services are extremely sensitive to external factors and events (Henderson 2012). The mirroring trends of tourism in Singapore showed that amount of visitor’s arrival in Singapore rose in during 2007 and 2008 and this lead to the increase in Gross Domestic Profit (GDP) by 3% ($8.0 billion) (Lee 2012). However, by the end of 2008, due to global financial crisis, this GDP experienced a steep drop of 19% ($6.5 billion or 2.4% of nominal GDP). However, during the first three quarters of 2010, GDP experienced a steep increase by 3.5% of the nominal GDP. This increase in GDP is attributed to tourist expenditure like accommodation, cuisines and shopping (Lee 2012). Keeping these economic benefits in mind, government of Singapore started investing on the tourism department. The lead to the foundation of theme park, gaming zones to the Singapore’s tourism landscape. All these not only contributed to increase in the GDP but also lead the 111,500 new jobs and this amounts to 3.5% of total employment in Singapore (Tsai 2012).

According to the latest report (2017) of Singapore Tourism Board (STB), during 2016, the visitors footfall increased by 7.75 to 16.4 million while the tourism receipts increased even higher, reaching the notch of 13.9% to $24.8 billion. This strong tourism receipt came from visitor’s investment on food, beverages, shopping and accommodation. According to the chief executive of STB, Mr. Lionel Yeo, "We are heartened by the strong tourism sector performance in 2016. Despite challenges such as weaker economic performance in some of Singapore's top source markets and a Zika virus outbreak, Singapore has managed to attract more quality visitors to contribute to economic growth." (Singapore Tourism Board 2016)

Some of the significant investment by government in the tourism sector of Singapore include: Singapore Flyer (2008) and Singapore IR (integrated resorts). These two notable investments increased the attractiveness of Singapore in the global scenario with high tourist yield. In addition to diversify tourism offerings of Singapore, efforts have also been undertaken to expand the capacities of existing tourism set-up. For example, Singapore’s second cruise terminal at Marina South enhanced the ability of Singapore to give a tough competition to the global cruise industry. Efforts have also been given in the field of developing tourism software in order to enhance the tourism experience in Singapore. In the year 2008, Singapore launched the first ISP 25639 standard for the global exhibition industry under the collaboration of SPRING Singapore, Singapore Tourism Board (STB) and Singapore Association of Convection and Exhibition Organisers (SACEOS) (Chang 2014). Government also took initiatives to increase the Singapore visibility in the world map under the Tourism plan 2015. STB further attracted and inaugurated a chain of iconic events in order to showcase Singapore as a prime destination for foreign visitors like Asia Fashion Exchange, The Formula One Singtel Singapore Grand Prix and The World Gourmet Summit (Lee Yi Chen and Ng 2012).

Economic Benefits of Tourism in Singapore

In 2016, STB further took some revolutionary steps in order to increase the demand of Singapore as a tourist spot in the global market and thereby increasing the revenue for this island. In order to target international tourist, mostly from China, STB extended its hand to garland the digital partnership with China. This digital marketing campaign with Tuniu and Ctrip helped Singapore to promote longer mono-Singapore package that enabled Chinese citizens to enjoy Singapore in diverse ways. STB also enabled easy access on numerous digital platform of China like WeChat, Tencent, Mafengwo and Dianping.  STB also support 52 technology-related projects via Business Improveent Fund and the Experience step-up Fund. This helped the stakeholders to use the technology to improve their productivity in business-to-business (B2B) collaboration and this further enhanced visitor’s experience. STB also took initiative to promote Hotel Industry Transformation Map along with vibrant tourism. Some of the examples of vibrant tourism initiatives include permanent digital art gallery, HSBC World Rugby Seven Series and Future World at ArtScience Museum at Marina Bay Sands (Singapore Tourism Board 2016).

According to STB, in 2017-2018 outlook, political and economic uncertainties will persist along with increase in regional competition for tourism dollars. Nevertheless, Singapore will gain from the projected tourism growth coming from the Asia-Pacific region (Singapore Tourism Board 2016).

Singapore Tourism Board (STB), is the main destination management organisation (DMO) for tourism (Singapore Tourism Board 2017). It has four different division namely tourism, corporate service, tourism marketing, regional marketing and tourism business. All these divisions are included under the ministry of industry and trade. Tourist promotion is the main role of STB. However, STB is also engaged in economic development of tourism industry in Singapore. The principal aim of Singapore is to make tourism the main economic pillar of the country via implementation of the well-thought out strategy in collaboration with private and public sector stakeholders. STB also strives for innovative and exciting experience for the visitors in close partnership with medium and large enterprises. The prime focus area of STB is uplifting the position of Singapore as one of the leading exhibition cities in Asia while developing Singapore as the leading leisure destination in Asia. The main function of management of STB includes promotion and development of Singapore as an exciting tourist destination via giving effective advice to government in regards to tourism promotion. STB also encourage investments in tourism infrastructure while developing innovative tourism product and destination marketing campaign (Singapore Tourism Board 2017).

Significant Investments in Singapore's Tourism Sector

STB, DMO of Singapore is aware of total system definition of the island as a tourist destination since its destination and this is quite evident from the dynamic tourism policies of Singapore. The tourism management of Singapore has undergone an assorted change over decade and present tourism strategies are dependent on three pillars namely uplifting its position as - leading convection and exhibition city in Asia with firm and flexible business environment, dominating Asian leisure destination and the service centre of Asia (Singapore Tourism Board 2017).

Under the brand and marketing strategy, STB has deployed the brand “Uniquely Singapore” to represent the unique identity of the country which has now evolved as “yoursingapore” (Singapore Tourism Board 2017). STB has also taken initiatives to communicate the brand image to all overseas and domestic stakeholders along with the political travellers. Singapore has also recognised the potential value of Singapore as a brand and has accordingly solved the matter via implementing professional marketing strategies. It also utilises potential mega events in order to promote the brand and attract international tourist like staging formulae one race and youth Olympic (Singapore Tourism Board 2017). In order to promote brand Singapore as a tourist destination in the virtual world, STB has taken initiatives via disseminating broachers, media advertisements and other online initiatives.  For instance, it has promoted Sir Stamford Raffles Statue, People of the River sculptures along with Merlion statute at Merlion Park as famous photo clicking destination. In order to project Singapore as an approachable destination among the political dignitaries, STB has announced to organise Rotary International Convection on 2024 and this would be one of the largest associations Congress till date (Singapore Tourism Board 2017).

In order to transform and promote the hotel industry, STB has come forward to take new initiatives. Under the banner of Hotel Industry Transformation Map, STB introduced four key strategies namely building new business model based in man-power, growing business via internationalization and strong quality pipeline talent and innovation through developing new solutions. This new initiative has led to the 15 awarded solutions along with agreement of 30 new participating hotels to pilot these solutions. 3-year hotel careers campaign increase new job opportunity in the field of hotel management and abroad and this lead to fresh infiltration of multiple young aspiring blood in to Singapore tourism business, paving the way for new development. STB has also host “Open Hotel Weekends”, it was an open house event in which 22 hotels participated for over 2 week in October 2017 and this fresh participation opened channels for new investment in hotel industry in Singapore from few of the notable hotel tycoons. STB has also taken new initiatives to transform the travel agents operating in Singapore. The Business Information Playbook served as a resource for the travel agents who are planning to adopt new business model based on the tourism footfall in Singapore. In order to further support the travel agents, STB has also led to the foundation of an online portal for sharing of information. STB has also proposed new plan, “green lane”, for funding and approval of the travel agents willing to invest in Singapore tourism (Singapore Tourism Board 2017).

Thus overall, STB is the main public sector body operating as DMO in Singapore. Its contribution towards Singapore tourism is unparalleled as it projects Singapore as one of the global tourist destination via bringing in effective collaboration from hotels, travel agents, business tycoons and international tourists. 

References

Chang, I.Y., 2014. Critical success factors for international travel fairs, using the Taipei International Travel Fair as an example. Acta Oeconomica, 64(Supplement 2), pp.165-176.

Henderson, J.C., 2012. Planning for Success: Singapore, the Model City-State?. Journal of International Affairs, pp.69-83.

Lee Yi Chen, L. and Ng, W.K., 2012. Formula One Singtel Singapore Grand Prix and the City. In 6th Conference of the International Forum on Urbanism (IFoU): TOURBANISM, Barcelona, 25-27 gener (pp. 1-10). International Forum on Urbanism.

Lee, C.G., 2012. Tourism, trade, and income: Evidence from Singapore. Anatolia, 23(3), pp.348-358.

Singapore Tourism Board., 2017. New Initiatives To Advance Transformation across Hotel Industry. [online] Available at: https://www.stb.gov.sg/news-and-publications/lists/newsroom/dispform.aspx?ID=734 [Accessed 21 Jan. 2018].

Singapore Tourism Board., 2017. New Initiatives To Help Travel Agents Transform. [online] Available at: https://www.stb.gov.sg/news-and-publications/lists/newsroom/dispform.aspx?ID=733 [Accessed 21 Jan. 2018].

Singapore Tourism Board., 2017. Singapore Set to Host Rotary International Convention 2024, its Largest Association Congress to Date. [online] Available at: https://www.stb.gov.sg/news-and-publications/lists/newsroom/dispform.aspx?ID=735 [Accessed 21 Jan. 2018].

Singapore Tourism Board., 2017. Sir Stamford Raffles Statue and the People of The River sculptures to undergo routine cleaning from 25-26 January 2018. [online] Available at: https://www.stb.gov.sg/news-and-publications/lists/newsroom/dispform.aspx?ID=738 [Accessed 21 Jan. 2018].

Stb.gov.sg. 2016. Singapore Achieves Record Tourism Sector Performance in 2016. [online] Available at: https://www.stb.gov.sg/news-and-publications/lists/newsroom/dispform.aspx?ID=696 [Accessed 21 Jan. 2018].

Tsai, S.P., 2012. Place attachment and tourism marketing: Investigating international tourists in Singapore. International Journal of Tourism Research, 14(2), pp.139-152.