Singapore sees tourism revenue down 19 percent

The Jakarta Post, Alex Kennedy, The Associated Press, Singapore | Wed, 02/11/2009 6:18 PM  

BOOSTING TOURISM: People mingle under a poster showcasing Singapore's efforts to boost its tourism industry Wednesday in Singapore. Singapore's Tourism Board has reported plans to roll out a monetary initiative to stimulate its city-state's tourism sector during this time where Singapore's visitor arrivals is expected to fall as the global recession is affecting holiday plans. (AP Photo/Wong Maye-E)

Singapore expects tourism revenue to plunge as much as 19 percent this year as a global economic slowdown undermines spending on travel. 

Tourist income will likely fall to between 12 billion Singapore dollars ($8 billion) and SG$12.5 billion this year from SG$14.8 billion last year, the Singapore Tourism Board said Wednesday. The board expects tourist arrivals to drop to between 9 million and 9.5 million in 2009 from 10.1 million in 2008. 

The government plans to spend $90 million this year on marketing, training and lower fees for travel agents in a bid to attract visitors, more than the SG$30 million spent on advertising in 2003, when an outbreak of the SARS virus slowed tourist arrivals to 6.1 million. 

"The year ahead will be difficult and challenging," said Aw Kah Peng, the board's chief executive. "But it's not a complete closure as in SARS. People are still traveling." 

Singapore is counting on the tourism sector - highlighted by the Marina Bay Sands hotel and casino resort - to create 12,000 new jobs this year. The resort, which is being built by casino operator Las Vegas Sands, was expected to open in the fourth quarter, but Aw declined to confirm the project was still on schedule. 

"We're still working with them," Aw said. "Even as the fourth quarter gets nearer, I think it's premature to say how it will happen." 

Arrivals fell 1.6 percent in 2008, and while tourist revenue rose to a record last year, it fell short of the government's goal of SG$15.5 billion. 

Singapore's tourism industry is being hit hard along with the country's manufacturing and financial sectors. The government expects the economy to contract as much as 5 percent this year after gross domestic product shrank 12.5 percent in the fourth quarter from the previous quarter. 

The government has tried to ease the country's dependence on manufacturing, but non-oil exports still account for about two-thirds of GDP while tourism is just 6 percent. 

About 17 percent of visitors to Singapore last year came from Indonesia, followed by China, Australia, India and Malaysia.

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