Coronavirus: Singapore turns to domestic tourism in US$32 million campaign

Singapore is launching a S$45 million (US$32.4 million) domestic tourism campaign to persuade its people to look at the island nation with fresh eyes, as it looks to boost the local economy as the Covid-19 pandemic keeps borders closed.

The hope is that Singaporeans will inject a fraction of the S$34 billion they spent on international travel in 2018 into the domestic market.

In launching the campaign, the country's largest so far aimed at the local audience, Singapore follows the likes of Vietnam, Thailand and Japan who have looked inward in an attempt to resuscitate their tourism industries while global travel remains at a standstill.

At the campaign's launch, Minister of Trade and Industry Chan Chun Sing said the industry had to be realistic and realise mass market tourism was unlikely to recover in the near term without the discovery of a vaccine, or the availability of rapid and affordable test kits.

But there was opportunity in the local market, Chan said, contrasting Singaporeans' expenditure on overseas travel in 2018 with the S$27 billion the country made in tourism receipts in the same year.

"Now, of course, we will not be able to translate all the overseas spending into domestic [spending]," he said. "But even then, if you are able to capture a slice of what we used to spend overseas for the domestic market, then I think it will be a significant boost to our local tourism industry."

Japan is offering more than US$12 billion in travel subsidies to boost tourism, although Tokyo residents have been barred from the "Go To Travel" scheme thanks to a resurgence of infections in the capital, where local businesses are also set to miss out on tourists.

Thailand has just launched a US$641 million scheme to boost domestic tourism through subsidies on accommodation, transport and e-vouchers that can be used for food and other services, and Vietnam has since April been encouraging locals to explore their own country with discounted fares and increased domestic flights.

The obvious limitation for Singapore's domestic tourism bid is the island nation's size. While residents of Japan, Vietnam and Thailand can hop on planes and trains or drive across the country to beach resorts, mountain towns or big cities, Singapore's land area is just 721.5 square kilometres. By comparison, Vietnam is 331,212 square kilometres.

Keith Tan, chief executive of the Singapore Tourism Board, recognises this. "It's not uncommon to hear Singaporeans say that there's nothing to do here, or that they've seen and done all that Singapore has to offer," he said " adding that the campaign, called "SingapoRediscovers", "will encourage locals to discover different sides of Singapore".

"We hope to channel the spirit of adventure and discovery towards Singapore inward," Tan said.

For a start, the tourism board, together with statutory board Enterprise Singapore and the Sentosa Development Corporation, have come up with hotel deal bundles and curated itineraries in different neighbourhoods.

Some 80 hotels across the island have been approved to start operations, with more to be added to the list. The campaign will also involve collaborations with photographers and foodies to spark interest in Singaporean cuisine and destinations among locals. The idea is to package precincts as mini-holiday destinations, where locals can embark on a "Singapoliday", the tourism board said.

The city state is progressively opening up as the number of infections within the community stabilises, with the national total currently standing at more than 48,000 cases. Singapore lifted its eight-week partial lockdown " or so-called circuit-breaker measures " in June. Retail outlets and restaurants have reopened, but must enforce safe-distancing measures and adhere to a limit of five people per table for those dining in. Cinemas and staycations have also been added to the list of permitted activities as the authorities look to kick-start the economy.

Tourists admire Singapore's skyline from the observatory of the Supertree Grove at Gardens by the Bay. Photo: EPA alt=Tourists admire Singapore's skyline from the observatory of the Supertree Grove at Gardens by the Bay. Photo: EPA

With the near-term prognosis for international travel remaining "very weak", OCBC economist Selena Ling said focusing on domestic tourism was a logical and rational policy response, albeit relatively new to Singapore.

"While domestic tourism is unlikely to fully compensate for the absence of international tourism, it will at least provide some support and drive the recovery of the hospitality sector for now," she said.

According to brokerage Maybank Kim Eng, the tourism sector accounted for 5.5 per cent of Singapore's gross domestic product in 2018. That figure was 11.5 per cent in Thailand and 11.2 per cent in Vietnam.

Singapore Hotel Association president Kwee Wei-Lin said it had been a tough period for the industry, and before international travel returned, hotels in Singapore would pivot to focus on the domestic audience.

Retailers were also affected by the two-month partial lockdown in Singapore and the nosedive in tourist spending, according to the Singapore Retailers Association. The Department of Statistics earlier this month reported that retail sales for May had plunged 52.1 per cent year on year " the biggest fall since 1986.

Tourism board chief Tan said without the support of local consumers, many of the businesses that Singaporeans enjoyed would be lost. He also noted that job losses would go up in the coming months.

"There's a lot that we love about Singapore that I suspect Singaporeans take for granted," he said. "Your favourite chicken rice shop, your favourite shop [or] favourite mall in Orchard Road, your favourite attraction ... these will disappear if Singaporeans don't step up and support these businesses."

Previous local tourism campaigns include Step Out Singapore after the Sars (severe acute respiratory syndrome) outbreak in 2003, and the BOOST (Building on Opportunities to Strengthen Tourism) campaign in 2009 after the global financial crisis.

This article originally appeared on the South China Morning Post (SCMP).

Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.