Factors that make Singapore an attractive tourism destination

Question:

Critical Analysis of Tourism Destination: Singapore. 

This case study is all about performing a critical assessment of the target destination Singapore. Singapore is known as a tourism destination and the focus of this study is aimed at analysing different aspects related to the performance of tourism industry across the country. In performing such analysis, the important aspects that would be considered for discussion includes the identification of factors that makes tourism attractive to visitors, major issues that are evident within the Singapore tourism industry and an assessment of the positive and negative aspects as prevalent within Australian tourism. Finally, the ways in which sustainability in the tourism can be achieved will be identified.

An analysis of Singapore economy indicates that it is identified as a favourite tourism destination for tourists from across the world. Singapore has accomplished the position as highly favourable tourism spot for couples. The tourism industry of Singapore is identified as a mega industry and the statistics shows that there are 15231469 international tourists that have visited across Singapore in 2015 (Hui & Wan, 2009). This number represent more than three times of the entire Singapore population. The important factor that is noted especially in respect to the performance of Singapore tourism industry indicates that the tourism destination has been highly efficient in terms of attracting tourists from across the world. It includes tourists from Asia, America, Europe, Oceania, Africa and other parts of the world and this signifies that there have been tourists from across the world that is attracted in Singapore (Hui & Wan, 2009). The growth in the number of tourists visiting the destination is increasing over years, and the trend is identified from the table as indicated below:

The growth above shows that there has been increasing number of tourists visiting across the country but the recent years have shown a relative smaller growth as compared to previous year. A critical assessment of the Singapore as a tourism destination shows there are various major attractive points and factors that attract tourists from across the world to visit the country. Some of these important features as identified are good shopping orientation to people, experience of island resort to visitors, distinctive cultural and historical landmarks across the nation, beautiful nature sightseeing, good dinning opportunity and different types of tourist events that are being carried out throughout the year (Joan 2015). This shows that majority of the tourism attributes are present across the Singapore tourism, which is the principle factor that leads to rising in the tourists visiting across the country. Overall Singapore is identified as a favourable tourism destination among tourists because of a wide range of facilities and opportunities as available for tourists.

Singapore is identified as a highly attractive destination among tourists from across the world. The most significant are the high-class infrastructure across the country, which mainly includes high-class building and shopping malls (Joan 2015). Shopping is an important feature of Singapore tourism, as branded goods from all major brands are easily available to visitors (Joan 2015). Secondly, the natural beauty is an important feature of Singapore as an attractive stop for tourism, and this mainly includes islands, beaches that that have become the attractive factor to tourists, Lavishing accommodation with luxury class stay, cleanliness, good accommodation opportunities and a higher level of safety and security. These are considered as the major attractiveness that attracts people to visit Singapore (Joan 2015). Multiculturalism is also identified as a leisure tourism spot, and there has been higher level of emphasis of the Singapore government. The Singapore government has contributed towards attracting tourists from across the world and it has various marketing plans and actions that act as a major attractive factor to tourists because the governmental support is a major factor altering the decisions of tourists in selecting a tourism destination (Joan 2015). Leisure, as well as business support, is adequately provided as Singapore economy is lashed with the advanced technological system. Thus, it caters to the needs and requirements of diverse visitors, and this is, therefore, a major motivational factor for both the leisure class and the business class people to travel to Singapore. 

Growth in tourism arrivals in recent years

An analysis of the tourism destination Singapore indicated that the economy is identified as a popular tourism destination. There have been visitors from world that visits Singapore and over years, it has been able to manage significant number of visitors from worldwide. Despite being highly advanced and developed region, there are challenges that are faced currently by Singapore with respect to its tourism development and growth (Tan & Tan, 2013). The major challenge to Singapore is mainly its strong dollar performance and it is a major discouraging factor to tourists from across the world in selecting Singapore over others (Henderson et al., 2011). The prediction further indicates that Singapore currency is also identified to perform strongly and this leaves the tourism industry of the economy at a major disadvantageous point and act as a major barrier to its growth and development (Teo & Chang, 2012). The costly factor is, therefore, a challenging factor to Singapore regarding accomplishing enhanced performance levels (Chaney & Ryan, 2012).

Apart from the costly factor, another major factor that is identified as challenging to the efficient performance of the Singapore economy is mainly the competition level posed by the other major tourism destinations nearby to it (Horng & Tsai, 2012). The other major destinations such as Malaysia, Thailand, and Australia poses significant such challenges to the efficient performance of Singapore tourism, as these economies are relatively cheaper as compared to that of Singapore economy (Challenging year ahead for tourism industry 2016). These competitive market forces have significant impact over the performance of Singapore tourism industry (Challenging year ahead for tourism industry, 2016). It is not only the competition from other destination, but a major issue has been identified that can affect the performance of Singapore tourism destination. This major issue is mainly the labour shortages (Challenging year ahead for tourism industry 2016).

Labour is needed on every major sector, and this is essential for the Singapore tourism industry because Singapore portrays itself as a clean and safe tourism destination County (Joan 2014). In order to maintain its position, the role of labour is crucial, but there have shortages predicted, and this is likely to have an adverse impact on its performance (Joan, 2014). Another major challenge ahead of Singapore tourism industry is to pace itself better as compared to the changes that are taking place in the external environment. According to Prime Minister Lee HsienLoong, it is essential for the Singapore to grow its tourism industry by way of raising the quality level of experience to customers and by way of valuing every tourist visiting country (Joan 2014). Prime Minister said that simply focusing on increasing number of tourist will not work for the Australian tourism industry.

Another major significant challenge as noted in respect to the efficient performance of tourism industry of Singapore is the weakness in the global economy. This particular factor is also having a severe level of threat to the efficient growth and development of the Singapore tourism industry (Joan, 2014). For example- the decline in the Chinese and US markets and the uncertainties with respect to ongoing reforms in China and monetary condition normalisation in the USA has been a major contributing factor to inefficiencies with respect to the tourism sector performance in Singapore (Joan 2014). Thus, the performance across the global arena is also adversely affecting the performance of Singapore tourism industry in a direct manner.

Challenges faced by Singapore’s tourism industry

The trend in respect to Singapore tourism also shows that there has been little overall emphasis being placed especially respect to attracting business class travellers (Joan 2014). This is also identified as a major factor that has acted as a challenge to achieving development with respect to the tourism industry at large as business sector represent a major sector to the efficient performance of the tourism industry in Singapore. (Joan 2014). Analysis indicates that Singapore presents itself as a destination for business class travellers as well, through incorporating the advanced technological support and assistance to the business class people. Despite this, there has been decreasing level of business class people travelling to Singapore and this is regarded as a major challenging factor to the efficient performance and growth of Singapore Tourism (Joan 2014).

Overall, the analysis as carried out above signifies that there are various such challenges and problems that have been identified in respect to the growth and development of Singapore tourism sector. It is, therefore, essential that there should be significant such measure that should be considered to achieve effectiveness in respect to this particular area of tourism to achieve a further level of effectiveness and efficiency in its performance.  

As Singapore is identified to have been a tourism destination, there are people from all across the world that are visiting the economy as a part of their tourism country. However, an analysis indicates that there is both the positive as well as negative impact faced by the local community people because of such tourism development. The important positive, as well as negative impact on the local community, are discussed as follows

Positive Effect: The positive effect on the local community groups across Singapore from the tourism development across the country is identified in terms of increasing opportunities to earn higher by selling their products and services to the international visitors. Since shopping is identified as an important feature of Singapore tourism, the international tourism positively involves in the purchasing process, and this is a favourable factor for the community groups in achieving higher growth and success (PawitraKay& Tan, 2003). Apart from this, there are significant such governmental initiatives in the form of local economy development that have been considered. Singapore government is positively engaged in enhancing the brand image and reputation of Singapore economy as a favourable tourism destination because this sector accounts for significant contribution to the economy’s GDP growth and performance (PawitraKay & Tan 2003). Such government initiatives have become a positive or supportive factor to ensuring positive development of the local community group as well.

This is quite a significant factor in assisting the local community people, as economy’s development in terms of enhanced healthcare system is beneficial to them, as they also get access to better quality care and support in the economy. As suggested by Hui and Wan (2009) there has been significant healthcare reform that has been identified with respect to the performance of health sector across Singapore, and this is quite a significant factor affecting the performance and development of local people across the country. Thus, the developments that are possible because of promoting tourism destination by the local government are positively affecting the performance of local community in terms of better accessibility to different areas of their business activity and processes (Hui and Wan 2009)

Competition from other tourism destinations

Negative Factor: Apart from the positive level of impact noted in respect to the performance of local community from the developments that are taking place, there are negative factors that are also witnessed in respect to it (Holiday 2013). The negative factor to the local community group people in Singapore because of tourism development is identified in terms of increasing pollution levels across the country and this is identified, as a negative factor affecting the performance of local’s heath condition (Holiday, 2013). The increasing number of visitors to the country has resulted in increased overall usage of vehicles and transportation, which in turn has negatively contributed towards the environmental performance. The resulting impact of increasing pollution level is negative in the local community people in terms of their adverse health performance condition (Holiday, 2013). It is crucial that there must be initiatives considered aimed at accomplishing better management of the health condition of the local community. Another major factor that has adversely affected the local community people across Singapore from the development of tourism sector across the economy is mainly the loss of local customs, values, and beliefs (Joan 2014). These local cultural values are highly diluted because of the involvement of diverse cultural people from diverse backgrounds. Apart from this, the growth in the tourism industry in Singapore has resulted in increasing consumption of resources (Joan 2014). These include all kinds of resources such as water resources, electricity consumption and there has been rise in the overall pollution from the tourists polluting the country environment. The local community people sustain the resulting impact of all these factors. These can be regarded as the major negative aspects noted in respect to the Singapore economy and the local community people from the development of tourism sectors in the economy (Joan, 2014).

The analysis above indicated that the growth in the tourism in Singapore has contributed in a positive as well as the negative manner and the impact has been profound on the performance of local community group across the country.  

It is essential that there must be higher level of sustainability that must be accomplished in respect to the performance of overall tourism industry across the economy. This requires proper policies aimed at encouraging sustainability throughout the industry concerned. There are four different policies considered appropriate in this context and these are:

• Higher tax on Hotels: This sustainability policy is crucial from the point of view of assisting the performance of tourism industry in a sustainable manner. This is mainly because hotels account for direct level of implication in terms of consumption of higher overall resources. Hence putting a double or higher taxation system could be useful in encouraging hotels to consumer less power and resource (Joan, 2014).
• Penalties on Polluting Environment: There can be penalties on the polluting environment for the tourists so that they can be restricted from taking such actions aimed at polluting the environment. This is an important policy requirement that is essential to consider from the point of view of achieving efficient and sustainable performance (Henderson, Hermesm&Yip, 2010).
• Promotion of Recycling Strategies: There can be the positive application of this particular strategy of recycling that can be encouraged so that sustainability can be achieved in operations. The hospitality and other businesses that are directly engaged in serving the needs and expectation of tourists should be required to adapt recycling strategy and must try to recycle the processes and activities that allow for such application of recycling strategy (PawitraKay& Tan, 2003).
• Fuel Efficient or Electric Energy Efficient Cars: It is essential that there should be the application of fuel-efficient cars that must be performed in achieving minimal or no impact on the environment. This is quite a significant factor aimed at accomplishing enhanced performance levels towards the environment so that it can be restricted from being polluted (Joan, 2014).

These are some major policies and initiatives that are essential from the point of view of encouraging a positive level of performance aimed at accomplishing a higher level of effectiveness and sustainability.  

References

Challenging year ahead for tourism industry, 2016 [Online]. 

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Henderson, J.C., Hermesm, K.F. &Yip, L.S. 2010, Sports events and tourism: the Singapore Formula One Grand Prix,International Journal of Event and Festival Management, Vol. 1Iss 1 pp. 60 – 73

Henderson, J. C., Chee, L., Mun, C. N., & Lee, C. (2011). Shopping, tourism and retailing in Singapore. Managing Leisure, 16(1), 36-48.

Holiday, K. 2013. Singapore Air Pollution Hits All-Time High [Online].

Horng, J. S., & Tsai, C. T. (2012). Exploring marketing strategies for culinary tourism in Hong Kong and Singapore. Asia Pacific Journal of Tourism Research, 17(3), 277-300.

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PawitraKay, T.A. & Tan, C. 2003 Tourist satisfaction in Singapore – a perspective from Indonesian tourists,Managing Service Quality: An International Journal, Vol. 13Iss 5 pp. 399 – 411

Tan, S. H., & Tan, S. K. (2013). Research note: Are Singapore’s tourism markets converging with structural breaks?. Tourism Economics, 19(1), 209-216.

Teo, P., & Chang, T. C. (2012). Singapore: tourism development in. Tourism in south and southeast Asia, 117.