Strategic Planning in Tourism

Strategic Planning in Tourism

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Crtical Analysis of the Strategic Planning in Singapore Tourism Industry


1.    Introduction

Tremendous growth potential exists for tourism industry based in Asia as the Asian Millennials' expenditure on the international travel is expected to increase by nearly six times so as to reach USD 340 billion by the year 2020 (TravelRave, 2013). With the increase in the travel, the employment, travelers, flights and revenues all are expected to increase in the coming years (TravelRave, 2013). Singapore's tourism industry has tapped this potential and the success of the industry can be judged from the fact that Singapore tourism industry at present contributes nearly 4 % to the Gross Domestic product figures for Singapore (TravelRave, 2013).

Singapore is recognized as one of the most popular tourist destinatoons in the world. The country is a preferred choice for global business investors and international travelers alike. The geographic location of the country between the countries of India and China and Asean countries, the country plays a strategic role in the global business environment (MTI, 2011). The tourism industry of Singapore targets to triple the tourism revenue to $30 billion and increase visitor arrivals to 17 million by the year 2015 (MTI, 2011). Singapore Tourism Board is working in close association with international level investors so as to develop world class tourist attractions in Singapore and attract strategic business and leisure events to Singapore (MTI, 2011).

Some of the long term strategic plans of Singapore Tourism Board include the remaking of the Orchard Road to one of the most happening shopping streets in the world, the development of Singapore Flyer, the revitalization of the Sentosa beach resort, enhancement of the Singapore river, China Town and Little India and the development of resorts (MTI, 2011). These initiatives are expected to increase the entertainment options provided by the tourism industry of Singapore and shall contribute in its future growth and development.

The current paper provides insight about the various strategic initiatives of the tourism industry in Singapore and its performance in the past few years. The various factors that may have contributed to the success of the Singapore tourism industry have been discussed in detail. The recommendations to enhance the performance of the Singapore tourism industry in the long run have also been proposed.

2.    Literature Review

2.1 Singapore Tourism Board

The Singapore Tourism Board has the long term vision of being a leading economic development agency in tourism that is recognized for partnership, innovation and excellence (STB, 2014). The mission of Singapore Tourism is to develop Singapore tourism as an economic driver in Singapore (STB, 2014). The Singapore Tourism Board is a statuary body that functions under the Ministry of Trade and Industry of Singapore (STB, 2014). STB is involved in the development of the tourism industry of Singapore and the marketing and promotion of Singapore as a global tourist destination (STB, 2014). The tourism industry of Singapore currently contributes 4 per cent to the gross domestic product of Singapore and provides employment to 160,000 people (STB, 2014). Singapore tourism board promotes Singapore as an international tourism destination for business, health care, education and leisure through 'Your Singapore' initiative (STB, 2014). Singapore Tourism Board leads in the development of tourism industry of Singapore but the collaboration and support from various industry players in the Singapore tourism sector along with contributions from Singapre residents is quintessential for the development of tourism industry of Singapore (STB, 2014).

The first quarter of 2014 witnessed a growth in the tourism receipts (TR) at 5 per cent rate for year on year basis amounting to S$ 6 billion (STB, 2014). The International Visitor Arrivals (IVA) remained constant at 3.9 million (STB, 2014). The main factors that have contributed towards the growth of tourism receipts are sightseeing, entertainment and gaming, accommodation and other components (STB, 2014). The international visitor arrivals in 2014 have been greatly affected due to a 14 percent decline in visitors from China due to the formulation and implementation of tourism law in October, 2013 (STB, 2014).


The top ten markets for tourism receipts include China, Indonesia, India, Australia, Japan, Malaysia, Thailand, UK, USA and Phillippines………..

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