The great reading: vital economic pillar, the tourism sector of S’pore faces brutal bravery amid the consequences of COVID-19

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SINGAPORE: Last year, civil service company Joanne Loh took a break for a few months, which she spent traveling to places like Australia, Taiwan and Europe. Travelling has given him a much-needed respite from his routine, the 30-year-old woman said.

“It’s fun to see the global and take a break from work. “

This year, I was looking ahead to visit Switzerland and Australia. Unfortunately, COVID-19 has implemented its plans, as well as those of thousands of other travel-hungry Singaporeans, as border closures and floor flights have made air travel, especially leisure trips, almost since February.

EXPLORING SINGAPORE

Ms. Loh is now looking to figure out how to explore Singapore instead. Her circle of relatives makes weekly trips to parks like the Botanical Garden and Admiralty Park. Last month, she went to the Gardens Across the Bay resort, her first stop there in about a year.

Like Ms. Loh, many in Singapore have a repressed preference for: other people are eager to leave the country even if there is no destination. Less than a week after the Singapore Tourism Board (STB) announced this month that it would allow cruise ships to pass anywhere, Royal Caribbean International said its first cruise on December 1 was almost exhausted.

Genting Cruise Lines, the operator offering these cruise ships, has also won more than 6,000 bookings for its cruises nowhere in just five days, The Straits Times reported.

In the absence of other options, other people have flocked to local attractions, giant and small to satisfy their preference for Array. For example, families have flocked to see the Changi Jurassic Mile dinosaur exhibit between Changi Airport and East Coast Park since it opened on October 11. , which led Changi Airport Group to put in place a booking formula for weekend visitors.

REFINING THE INDUSTRY

However, the madness of “internal tourism” will be enough in the long run to revive a kneeling industry, industry experts and stakeholders said.

The tourism industry is a pillar of Singapore’s economy and contributes 4% of its gross domestic product (GDP).

And with the number of foreign visitors falling from 1. 69 million in January to just 8912 in August, the negative economic effect is felt not only through the tourism sector, but also through similar industries such as retail and food and beverages.

There are already doubts about the lifespan of the tourism industry, with several attractive ones already throwing in the towel.

STA Travel, a popular student company, closed its doors last month, while KidZania Singapore, a theme park in Sentosa, canceled it in June.

For the suffering industry, the government presented the SingaporeRediscovers crusade of S$45 million in July to inspire locals to tour business here and explore the various aspects of the island.

Next month, the government is expected to announce the highlights of the S $ 100 vouchers that will be issued at the end of the year to each and every Singaporean over 18, to be used on tickets to tourist attractions and tours, as well as for reservations of accommodation in authorized hotels until June of next year.

INDUSTRY CHANGES HERE

In a virtual discussion with actors from the tourism industry in July, Trade and Industry Minister Chan Chun Sing noted that Singapore has an “important domestic market in search of new experiences. “He added: “If we are able to capture some of what we spend on the domestic market, I think it will be a significant seasoning for our local tourism industry.

While this will alleviate the disevial situation, domestic market revenues in a small country like Singapore are not enough to compensate for the loss of foreign visitors, especially when normality is expected to resume only in 3 to five years, according to industry experts.

They also anticipate that Singapore’s tourism industry will reshape this difficult time as companies abandon or recalibrate their plans.

In the end, the industry will see primary adjustments here in a post-COVID-19 world. Even if normal air resumed, the tourism sector is unlikely to contribute to Singapore’s economy at the same point before the pandemic, some experts said.

CHALLENGES REMAIN IN THE FUTURE

While tour operators said the boost of national hiking would give them a break, they mentioned several challenges, such as a limited number of products, and Singapore’s interest in offers.

Toh Thiam Wei, founder of the walking tour company Indie Singapore Tours, said the SingaporeRediscovers crusade had helped pique the interest of Singaporeans who in the past were not looking for local excursions.

He said almost all of his clients before the pandemic were foreign hikers. While the absolute number of excursion consultations had dropped the circuit breaker that ended on 1 June, there has been a triple increase in citizens’ requests over the more than two months. .

However, Mr. Toh was quick to note that these figures might not have been a transparent image because the starting point of local surveys was low at first.

Robin Loh, founder of Let’s Go Tour Singapore, said the company’s revenue was now part of what they were before the pandemic.

There is little interest in the main pillar of the company, motorcycle rides; instead, he had to think further and offer tours that attracted locals, such as a kelong boat and kampung walking tours.

Loh said the company had been “rewarded with a smart subscription fee” for its new products. It organizes 4 to five walking tours per week of kampung from its inception in mid-August. It also makes six to eight boat trips consistent with the week. since its launch at the end of July.

However, I didn’t know how long the business could simply be founded only on the domestic market.

“This is a completely new ground for us and (the tourist scene) is very dynamic. We don’t have a concept of when everything will be back to normal,” he said.

The tourist teams welcomed the government’s most recent initiative to the industry by doubling the number of others who can participate in hiking, cycling and kayaking to 20 starting next month.

However, there are still restrictions, they said. For example, Mr. Toh said his teams of tourists will still be restricted to five at the moment so as not to violate safe distance regulations by visiting safe places such as restaurants, which restrict tables to five consumers each and prohibit mixing between visitors from other tables.

Other tour operators have reaffirmed that it is easy to woo locals. Stanley Foo, owner of Oriental Travel and Tours, said Singaporeans are sensitive.

Foreign tourists are willing to spend more as they are on vacation and the company sells them packages adding accommodation and transportation.

However, citizens are seduced through exciting and reasonable routes, Fooo said. As a result, it offers a 30% reduction on its “Creepy Tales of Singapore” tour, which is typically sold for S$150. The tour takes visitors to a cemetery and World War II sites.

Mr. Loh lamented Singapore’s general lack of interest in local tours: “The first thing other people (their coupons) will spend is stays, and nothing for us,” he said.

Unlike hotels that offer stays, tours and attractions also attract many normal national visitors.

Ms. Loh, the civilist, said her circle of relatives probably wouldn’t return to attractions like Gardens through the Bay or River Safari, as the exhibits will be largely the same.

Sivakumar Rajendran, a 31-year-old communications officer, recommended that SingaporeRediscovers combine with promotions to inspire more citizens to explore the city. Unique experiences, such as the inner workings of the zoo presented through a caregiver, can also be presented to inspire citizens to know the main attractions, he added.

However, a Singaporean in his early sixties, who sought to be known only as M. Tham, claimed that in the end, it was practically to update the pleasure of traveling abroad.

“(Traveling abroad) is a holistic thing. It’s the total mood, being in culture and listening to another language,” said Tham, who works at a monetary institution.

Local tour operators interviewed said they relied on air bubbles, which would exempt visitors from quarantines or home notices, to gradually attract foreign visitors. Singapore and Hong Kong have recently reached such an agreement, which will allow for the entire bureaucracy between the two cities. , with the main points announced at a later date.

THE INTERNAL MARKET “CANNOT SUPPORT INDUSTRY BEYOND MID-2021”

Despite all efforts, the sector is unlikely to boost domestic tourism beyond the next few months, industry observers said.

Last year, Singapore received a record 19. 1 million and tourism revenue totaled S$27. 7 billion.

It would be for S$320 million of Singapore CouponsRediscovers to update the lost tourist gain for this year, said James Walton, head of transportation, hospitality and facilities at Deloitte Singapore.

Bonds are a short-term measure to “get Singaporeans out of grocery malls and domestic tourism,” and are only meant to last the holiday season in December, he added.

Similarly, Dr. Kevin Cheong, president of the Singapore Attractions Association (ASA), said coupons will only bring domestic tourism to life until June next year at best.

Chew Kian Beng, who holds a bachelor’s degree in hospitality and tourism control at Temasek Polytechnic, said coupons will have a domino effect on other industries such as food and beverage, and provide a respite for companies to control their overheads.

With coupons valid until next June, Chew said he would give enough time for the air bubbles to resume.

Keith Tan, managing director of STB, also identified the limitations of the domestic tourism crusade when the crusade was introduced in July.

“This year, we expect the national entrance to fill the void left by declining trips abroad,” he said.

“But what we hope to do is create cushions . . . save as much time as imaginable (for) businesses. “

STB President Chaly Mah said outside the Singapore summit last month that the government’s purpose was to capture one-tenth of Singapore’s $34 billion spent on tourism in 2018.

Christopher Khoo, managing director of foreign tourism consultancy MasterConsult Services, said it is a realistic goal, assuming that each and every Singaporean receives a smart additional expense of $900.

While foreigners are likely to return to prepandemic grades in 3 to five years, Khoo said that in the short term, the tourism industry would go through a transformation, with hotels, agencies and some attractions likely to abandon its activities forever.

“There will be a lot of reconfiguration and the agencies will close, but I can tell you that when the markets are changing, the ones around them will be agile and restart the engine,” he said.

In reaction to Mediacorp’s questions, Tan of STB said the firm had used various measures for the industry in the long term.

In the short term, economic measures, such as the employment programme and the company tax relief regime, will facilitate the flow of money from companies. The STB will also promote local tourism companies through investment education courses for workers in the sector.

The Tourism Recovery Action Working Group, formed in February and composed of representatives of industry and government, is working with industry to expand and recovery plans for tourism in Singapore, Tan said.

StB will also assist companies in their efforts to reshape their business models and adopt virtual solutions, StB. Tan said.

This includes the progression of AR (augmented reality) content, such as Singapore icons, cultural and heritage objects, to allow others around the world to virtually realize Singapore. STB has also developed teams and platforms to help tourism corporations drive their virtual transformation. said Mr. Tan.

Companies want to act now and the opportunity to exercise staff in emerging skills and new features to be sought in the new COVID-19 environment. By adapting to new realities and accelerating their transformation, they will be better placed to capitalize on opportunities. on the occasion of a recovery, ” he added.

OPERATORS CUT COSTS, TRY TO ADAPT

Several industry players have said TODAY that they plan to adapt to the existing scenario as well as long-term industry adjustments, as well as fine-tune their business models and provide state-of-the-art supplies, they had to keep their prices viable.

Wildlife Reserves Singapore (WRS), which manages Singapore Zoo, Night Safari, Jurong Bird Park and River Safari, said that with recreation still a long way off, it is focusing on developing its club community, which provides unlimited tours to a singles park or all of its parks year-round.

In response to Mediacorp’s questions, WRS Deputy Managing Director Cheng Wen-Haur said cost-cutting exercises, such as voluntary pay cuts through senior managers, had been implemented early.

“Since the reopening of the parks, we have recovered to some extent. The recent ease of measures consistent with allowing attractions to operate at a capacity greater than 50 cents has also helped, especially with the holidays just around the corner,” Dr. Alvarez added. Cheng.

It noted that while there was a “prolonged uncertainty” similar to the disruption of foreign tourism, WRS was encouraged through the slow opening of Singapore’s borders and was “ready as (may) be” to operate in a conversion environment.

In addition to creating virtual means to interact with a wider audience, for example through live camera interactions with animals and their care teams, WRS also seeks to update its exhibits to attract regular visitors.

Felix Loh, managing director of Gardens through the Bay, said that while many attractions want to focus on the position of the domestic market in this recession, this is not “a radical replenishment in the approach” of the gardens, which began as a public position for Singaporeans to meet.

The gardens have seen a steady increase per month in local attendance, from 360,000 visitors in July to more than 600,000 this month. Local assistance in September and October also exceeded attendance in the same months last year, he said.

“However, despite positive local assistance, monetary pressures remain very real, as tourists represented some of our assistance before the pandemic,” he added. “As such, we have taken decisive steps to lower our prices and expenses. , for example, reducing the use of external contractors and informal staff, and leveraging our primary staff for the operation of Gardens through the Bay. “

The gardens are also reviewing their offerings to satisfy the domestic market, for example, recovering iconic occasions and floral displays in a careful manner. His mid-autumn festival event, for example, saw relief on the number of lantern presentations and more. staff on site to make sure the crowds meet the measures away.

“This is a tricky time for attractions and we don’t know if we’re going to reduce our monetary burden with those new initiatives,” Loh said.

He added: “We hope that these adjustments will last even beyond the pandemic, so what we have put in place in the short term will remain applicable and exciting for tourists on their return. “

Dr. Cheong, president of the ASA, noted that the most important attractions here will struggle to target local visitors as they will have tactics to inspire repeated visits.

For example, if at least 70% of visitors of a charm are foreign tourists, you will now need to locate tactics to bring a local resident to charm 3 times to update the loss of a foreigner or, said Dr. Cheong, who is also the ceo of sentosa 4D AdventureLand high-tech theme park.

To do this, attractions will have to invest cash for the range of their products, however, this can be tricky, as they would have already invested a lot of capital to satisfy the wishes of foreign visitors, he added.

The hotels here are also tactics for exploiting the domestic market.

Accor, Singapore’s largest hotel operator, said that while its hotels have noticed a strong repressed call from others looking to celebrate missed opportunities for more than six months, this will not be enough for the long-term industry.

An Accor spokesman said that, as such, he seeks to create “incredible experiences” to give other people reasons to make repeated stays.

For example, the Fairmont Hotel, a component of its chain, offers a spa consultation for mothers in relation to cosmetics company Lush and clothing company Uniqlo.

Similarly, Pan Pacific Hotels Group has also sought to attract local citizens with reports that provide “more than a night’s sleep. “For example, the group’s Parkroyal Collection Marina Bay, which opens in December, will provide packages that will allow visitors to grow at the hotel.

The organization also offers “pictures in a hotel” packages that allow others to paint on their premises. So far, home vacation sales have doubled from last year.

It is rolling out a virtual meeting service, where firms can hold virtual meetings with clients at hotels with meeting amenities and coffee breaks included.

With social estating still in place, these “hybrid meetings” will allow corporations to hold meetings in other reception rooms within a singles hotel or at other hotels in Singapore or around the world, said Cinn Tan, Panif Pacc’s director of sales and marketing. Hotel Group.

Like other players in the tourism sector, food and beverage establishments with tourists are also retiring to the activity.

Bhandari Rajender Kumar, director of Saffronfoods and Consultants, who runs an Indian restaurant in Singapore Flyer, said revenues had fallen by 80% since the outbreak of the pandemic.

While its dining position was once a popular stall for corporate dinners organized through foreign companies, it will now advertise it as a dining and party area for locals.

As Singapore gradually rehouses its borders with special agreements signed with other locations, at least one tour operator told Mediacorp that it planned to seize the opportunity by targeting incoming visitors, even if the number is small.

Michael Lee, director of luxury travel and travel, highlighted the challenge of competing with other tour operators in a small national market; Instead, his company is taking the opportunity to make a hole by offering facilities and excursions to entrepreneurs entering Singapore through green canals, as he expects this segment of visitors to grow faster than recreational readers.

LONG-TERM IMPLICATIONS

With general uncertainty, industry observers were divided over singapore’s tourism prospects, as the foreigner gradually returns to the general levels.

Walton, of Deloitte Singapore, called himself “optimistic” and said he expects foreigners to return to pre-COVID grades as soon as a year and a half.

While businesses may resume more slowly than recreational ones due to a greater shift towards virtual meetings, he said that some segments, such as industry exhibitions and exhibitions, will eventually be restored because their reports are virtually difficult to reflect.

However, Mr. Khoo of MasterConsult Services presented a darker picture.

“There will be a hurry to get the numbers back, but I doubt we’ll see what kind of arrivals we’ve made before, at least not in the next decade,” Khoo said.

He said the tourism industry in the long run will be motivated by the quality and delight presented to tourists in accordance with standards and protocols for their physical condition and safety.

For example, he noted how tourist teams in Singapore provided feedback to their equipment through wireless microphones, a generation that not only met the measures away, but also provided greater delight to tourists, as they no longer have to tire to pay attention. the guide, he noted.

The pandemic will also have a lasting effect on the workforce and the capacity of the industry, which is expected to go through a difficult period.

Chew, of Temasek Polytechnic, said corporations are unlikely to make new hires in the existing climate. As a result, internships will continue to play a vital role as a skill group.

Meanwhile, new positions have emerged, as manufacturers of occasions in the meeting space, incentives, conventions and exhibitions (MICE), he added.

However, the tourism crisis would lead to the departure of others with applicable skills as companies decline or recoil. his feet.

The historically labor-intensive industry is also probably more digitized to decrease its dependence on foreign labor, he added.

With less labor, the provision of services in the tourism sector would be affected, said DR Cheong of the ASA. He advised that the service workers’ body be temporarily reassigned to similar roles in other industries due to the existing crisis.

This will maintain skill in the service sector, he added.

Tan of STB said the company expects more jobs and that it will be affected in the months and even years to come.

“STB will continue to work hard with the tourism sector and help companies in these difficult times by expanding internal demand, building confidence through our fitness and hygiene criteria, and encouraging them to innovate with new products and marketing,” he said.

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