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Tourism is a major and highly profitable sector of the economies of many Asian countries, especially those in South East Asia. We have already reported on the success of the Amazing Thailand promotion, based on a mix of a strong campaign, a generally false perception on the part of travel agents and tourists that the exchange rate advantages of two years ago have been sustained (in reality, the Baht has recovered strongly in the last 18 months and extra taxes and price rises have neutralized all the earlier advantages), and another sensationalist media-fed perception that neighboring countries such as Indonesia and Malaysia were unsafe.Singapore has for many years retained the highest awareness with international tourists among Asia-Pacific destinations with a family-oriented, safe, modern, and exotic image. Backed by the most convenient, efficient airport in the region and perhaps the world, a national airline with a strong image of reliability and service, a position as the tourist "hub", a massive tourism promotion budget, Singapore is indeed hard to beat, despite the negative impressions of its small size, expense, and boring nature. Attractions such as Underwater World and the Night Safari at the national zoo have made up some what for the negatives however. ..And only in the past year has Thailand made significant inroads into Singapore's market share. The greatest revenue earner from tourism to these nations is not, as one would expect, accommodation and hotels, but by far retail and shopping. And even Blanchard knows that it was a very long time ago that you could last pick up a real bargain in a city where commercial rentals are amongst the highest in the world and simple Keynesian supply and demand means that prices are often inflated. Like Thailand last year which took advantage of increasing Tourist traffic by raising the airport tax by 150%, (on the basis that "not many Thai's use the airport" and that it was mainly used by foreigners who were suddenly twice as rich due to the currency plunge), doubling over-stay fines, and imposing a new consumption tax that means suddenly with all the taxes you may end up paying over 20% in the +++'s. Singapore introduced these taxes several years back. Don't be fooled by the advertising that non-residents can claim back consumption taxes on departure,... in both places accommodation and dining is not covered, and among even further restrictions are included a minimum purchase value per item, the filling out of forms usually at both the retailer and the airport, which in Thailand's case and the language problems makes the whole exercise more inconvenience than it is worth. And it is in shopping and accomodation revenues that Singapore is now feeling the crunch... The latest Singapore Tourism Board survey of 12,000 visitors in 1998 has un-earthed findings that local tourism officials are describing as "..a wake-up call to the industry...". Tourism Boards in other Asian countries may do well to pay attention as well... According to the survey, only 55.4% of visitors rated Singapore as a "good place to shop", down from 82.6% in 1997. 15.9% saw Singapore as above average or excellent value for their shopping dollar/yen/pound etc,, compared to over half (53.5%) in 1997. The good news is that of the over $1 billion $US spent by tourists in the island republic, over half went on shopping, with 69% of tourists unable to resist the impulse to "Shop till they drop".. as the Singaporeans often proffer as a response to the question on what their spare time hobbies and interests are... Clothes top the list, which may just give you a clue on what sex actually did most for the profits of Singapore retailers... Not surprisingly, souvenirs and handicrafts attracted only around US$40M last year, compared to well over US$100M in 1997, suggesting that there is just one too many Merlion coasters or key-rings propped up on Grandma's living room top shelf, and maybe foreigners have lost their taste for tacky kitsch... Visitors from the motherland, (China), liked shopping the most with 92% doing the deed, followed by Indians (85%), South Koreans (76%), the Swiss (75%). Lone travelers accounted for only 34% of visitors, down from 40% in 1997. Makes sense... Singapore is a very "Family place".. It is a very expensive and lonely place for single travelers, where communalism and the group reigns supreme not only in business and society but also in tourist facilities and attractions. Almost everything from restaurant seating to family rates at tourist attractions, and single/double/family rates at hotels favour groups, rather than the dangerous Western individualist. In fact people are coming to Singapore in bigger groups now, with average family traveling size at 1.75 persons, compared to 1.59 persons previously. Th second largest tourism revenue generator - accomodation, was also as badly hit as retail last year. 5.4% less tourists stayed in hotels last year, though his could possibly be explained by neighboring nationals (in particular Malaysians) plumping to bunk down in Uncle Wan's living room every night, despite his superiority complex, to save on hotel rates, now ill affordable, after taking into account currency drops against the Sing dollar. Not only Singapore but Asia is at the tourism crossroads. Most destinations now are modern, familiar and expensive. Gone are the cheap bargains of yester-year and the appeal of the unknown. To Westerners, most Asian cities resemble their own, meaning they lose their attraction as "something different", the intra-regional middle class tourism sector has slumped due to lower discretionary income region-wide, and places like Singapore seem as exotic as Gran'ma Rat's old cardigan. The paradox is of course, that as most of Asia went through its 10 years of rapid growth and development, Asia lost most of it's exotic, natural, inexpensive and "different" appeal. Business won, but tourism is (though only recently), starting to lose. Simultaneously, previously pristine destinations such as Koh Samui, Penang, Phuket and Kota Beach fell victim to pollution, over development, and greed. Expect a massive bun fight from the competing tourist boards over the next few years as they look jealously at how Thailand, almost singlehandedly, took advantage of the "Asian crisis" in one of those spell-binding but rare bursts of Thai ingenuity we all look on with... well.... amazement.... Friends of the Rat are saying that Singapore's new image is being built as "The New Asia", and South Korea's as "Asia's best kept secret". Of course we are already growing increasingly weary with the Amazing epithet for Thailand, with every entrepreneur from the multi-national hotelier to your local noodle-hawker branding their products as Amazing whatevers. Look out for some surprising and innovative moves from Malaysia soon too, perhaps Asia's most misunderstood and under-estimated destination, where friends of the Rat are working out how to let everyone know about it...
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The views expressed here may not necessarily reflect those of Orient Pacific Century or partners of the Asia Pacific Management Forum
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