FEATURE: Singapore leads regional recovery - Oct 00

Looking to the Asia Pacific, one country in particular has been prolific in investing and developing its business and leisure tourism since the financial crisis two years ago, Singapore is holding its head high. The government and private investors have thrown themselves wholeheartedly into developing this lucrative sector. Hotels, convention facilities and attractions have sprung up throughout the island-state. Yet, considering some countries have still not fully recovered from the financial crisis and when compared with other less expensive destinations in the Asia Pacific, whether Singapore is a viable, cost-effective option is likely to be a question on corporate buyers' minds. Singapore-based destination management company (DMC) East West chief executive officer Ms Janet Tan-Collis believes that when comparing prices with the rest of the region, Singapore does err on the expensive side. Incentive agency Caribiner Hong Kong director of operations Mr Ashley Redsell admits that the price deters him from taking more conference and incentive (C&I) groups to Singapore. "It has a good location, but it is no nearer than other, more cost-effective locations," he says. Ms Tan-Collis responds that: "For what a C&I group receives in terms of infrastructure and service in Singapore, I would say it is value for money." Singapore Tourism Board (STB) assistant director conventions and exhibitions Ms Elaine Ang argues a similar case. Indeed, Singapore is seeing a steady rise in C&I business from Asia Pacific and the STB is nurturing this growth. "Over the past two years, the Asia Pacific market has been picking up and Japan now accounts for 30% of the business into Singapore," she says. Adding that interest from Taiwan and Malaysia is also growing, Ms Ang reiterates that Australia and China are important for Singapore. "We're developing business from Australia and also targeting China. With more foreign companies investing there and the growth of multinationals, China has more spending power," adds Ms Ang. STB statistics up to May show total visitor arrivals rose by 9.8% from Oceania and 4.2% from Asia. The top visitor-generating markets were Indonesia, Japan, Malaysia, India and Australia with China coming in sixth, higher than the UK or the US. Further evidence is the growth in business traffic. Business arrivals from India rose by 29.8% and business from China rose by 25.6%. For one of the region's largest DMCs, Pacific World, inbound C&I traffic from Asia Pacific has always been relatively stable, according to C&I manager Ms Helen Lim. "Australia is one of the bigger players," she says. "Its incentive agencies are really switched on to what is on offer in Singapore and we can assist them in developing their programmes." Pacific World recently organised two back-to-back incentives, each for four nights for Australian beauty products company Amway. Regardless of Singapore's size, it is just 647sqkm, including its 60 small islands, there is plenty to recommend it as an incentive destination. While DMC The Event Company (TEC) business development manager Mr Andrew Lian acknowledges that, occasionally, Singapore can be a more expensive city than others in Asia Pacific, he points out several facts in its favour. "Singapore is efficient in all it does, practically everyone is able to communicate in English and everything works," says Mr Lian. STB's Ms Ang admits that incentive programmes for Asia Pacific are not as sophisticated as those for Europe. However, the DMCs are working hard to change this. Some, such as Pacific World, East West and Tour East, enhance their promotion by attending global trade shows, such as Geneva's EIBTM and London's WTM. Meeting organisers have already taken advantage of GlobalMeet Singapore, the Singapore Exhibition and Convention Bureau's (SECB) three-year campaign to increase awareness and strengthen its position as a C&I destination. Up until the end of this year, if all conventions were previously confirmed, they benefit from price incentives. The SECB is already working on its next campaign. One of Singapore's strengths lies in its variety of venues suitable for group dinners - not surprising for a country where one of the great passions is eating. The "dining with wildlife" theme is offered by all DMCs. The Zoological Gardens, long a popular tourist attraction, has recognised the potential from the C&I market and offers its Fragile Forest for cocktail receptions before dinner. The largest function space is the Reservoir Picnic Ground, which accommodates 400. Following dinner, groups can travel around the 40 hectares of jungle on the "Night Safari" and see 100 species of nocturnal wildlife. If a group prefers marine life to mammals, Sentosa - Singapore's largest island - invites incentive groups exclusively to "dine with the sharks" at Underwater World. For the bird-lovers, Jurong Bird Park offers 8,000 birds and the Flamingo Lake lodge is a popular choice for a cocktail reception. In addition, the attraction has built a catering facility to cope with group demand. Singapore is also well-furnished with more formal venues. Chijmes Square, formerly a convent, now caters for groups up to 500 for cocktails or 280 for a banquet. "There is also Alkaff Mansion, built in the 1920s, which is the only stately home in Singapore," says STB London marketing manager Ms Christina Nedovich. "Part of it has been converted into a restaurant and has spectacular views over the harbour and its gardens. Surprisingly for Singapore, you are allowed to smoke in the lounge upstairs." Its garden accommodates 1,000 for a cocktail reception and 600 for a dinner, usually a Dutch-Indonesian Rijstaffel. Aside from eating, DMCs encourage groups to experience the cultural side of Singapore. Associated Tours business development manager Ms Joon Liang cites specialised tours as one of best ways to achieve this. "We can take groups to the main historical sites and take in a tea ceremony, give them lessons in feng shui and tai chi, shopping for antiques in Holland Village or take them for cocktails on the bumboats," she suggests. "Singapore is a city destination, so we also try to team this with a beach resort," adds Liang. "We take groups to the Indonesian island of Bintan but, on other occasions, Sentosa Island, linked to Singapore by cable car, is used." Ms Liang does feel, however, that there is a lack of air-conditioned venues for larger groups. "Apart from the facilities on Sentosa, you're looking at hosting a large-scale gala dinner at one of the convention centres," she says. Nevertheless, it is these convention facilities that have made an impression on conference industry associations. The International Convention and Congress Association (ICCA) places Singapore as 19th most popular city for meetings in 1999. The Union des Associations Internationales ranked Singapore as the number one convention city in Asia in 1999. TEC's Mr Lian agrees that Singapore is ideal for meetings. "Singapore is the hub for major meetings so the organisers bring staff from their Asia Pacific offices into Singapore and incorporate incentive elements with these meetings," admits Mr Lian. "Most Asia Pacific countries tend to combine incentives with meetings." Certainly Singapore meets the criteria to accommodate a large global event and Singapore Expo proves the government's dedication to the meetings market. The S$220million (US$130million) facility, funded by the government and managed by the Port of Singapore Authority (PSA), is proving to be popular. Its official opening took place in April this year and the site will have hosted 90 events by the end of 2000. Only five minutes drive from Changi Airport, there are plans to make access from the city centre to Expo simpler, with plans to extend the underground rail system to the site and to the airport. Its official opening was set for early 2001 but work may well be completed by this December. While the venue is the largest exhibition site in Asia outside of Japan, offering 60,000sqm of continuous exhibition space, conference demand is met in the form of ten conference halls and nine meeting rooms, accommodating up to 1,100 delegates. "There are plans to extend these conference facilities on-site in the future," adds Ms Ang. The PSA also manages the World Trade Centre (WTC) complex, a mixed-use development, comprising exhibition and conference, cruise, office and retail services, plus food outlets. For groups wishing to combine incentives on Sentosa, the WTC is close to the cable car. It holds 4,717 theatre-style and 10,000 for banquets. The PSA plans to expand its cruise centre and add an office park and hotel. The Singpore International Conference and Exhibition Centre (SICEC) is situated in Suntec City, the largest integrated commercial landmark in Singapore. It spans 100,000sqm of floor space and provides a 12,000sqm column-free convention hall, offering seat capacity of up to 12,000 theatre-style. In addition to the 12,000sqm exhibition hall, which divides into three smaller halls for meetings, 31 meeting rooms cater for groups ranging in size from ten to 400. Add a 596-auditorium and a ballroom seating 1,800 theatre-style and SICEC is one of the largest purpose-built convention centres in the Asia Pacific. While Singapore's convention industry is growing, there are few hotels opening in 2000. Nevertheless, refurbishment programmes in existing hotels and the quality of these properties means there is ample accommodation. One thing in these hotels' favour is their locations. The main shopping district, Orchard Road, is peppered with five-star properties, as is the cosmopolitan Marina Bay. Room rates for a five-star hotel are similar to Hong Kong and Sydney. The Grand Copthorne Waterfront starts at US$100 and the Ritz-Carlton at US$181. The Grand Fullerton is the sole luxury property opening at the end of this year. Located in what was the GPO building, the hotel will offer up to 400 rooms, plus a ballroom. The newest hotel is the 539-room Grand Copthorne Waterfront on the Singapore River, which opened in October 1999. Overlooking a landscaped garden, its grand ballroom seats 1,000 theatre-style and the hotel boasts two levels of meeting facilities; six conference rooms on one level and four function rooms on the second. A property undergoing refurbishment is the 477-room Carlton hotel. Its lobby's renovation will be completed in November 2000 and an annexe will provide an additional 159 rooms and suites that will be ready in August 2001. Other hotels renovating include The Mandarin. "We are refurbishing our main tower guest rooms and function rooms," says Mandarin director of catering & conventions Mr Kenneth Loi. "The hotel offers 19 conference rooms and room capacity ranges between ten and 1,000 people." Singapore's Marriott, Concorde and Amara properties are also refurbishing. The Shangri-La property underwent a S$95million (US$55million) refurbishment recently. While the 693-room Grand Hyatt does not plan to renovate in the near future, it recently underwent a US$70m investment to convert a whole tower's accommodation into regency suites. This was followed by extensive renovations to its Terrace Wing, lobby and health club. Its 20 function rooms were also refurbished and have a maximum seating capacity of 700 for a banquet. Conference groups staying at the Westin Stamford and Westin Plaza hotels have the added the bonus of being part of the Raffles City Convention complex. The complex's Raffles ballroom can accommodate up to 3,500, yet can be divided into separate rooms for conventions of up to 200. Alongside its 18 meeting rooms, its two other ballrooms hold up to 1,000 and 500 respectively. For top-end incentives, the ultimate is the colonial-style Raffles Hotel; its 103 suites start at US$399. Also catering for the meetings market, its Jubilee Hall seats 388 theatre-style and the hotel provides three function spaces for banquets, the largest seating 140. Receptions take place on its lawn, which comfortably holds 350. Singapore has the know-how and facilities to ensure it grows as a leader in the Asia Pacific C&I industry. Its dedicated DMCs, hotel and convention centre investment and a wealth of unusual venues will augment this fact. As the Asia Pacific economy returns to its former glory, the island-state is likely to see its business traffic soar.