Importance of Tourism to Singapore's Economy

✅ Paper Type: Free Essay	✅ Subject: Economics
✅ Wordcount: 2332 words	✅ Published: 25th Jul 2023

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Wang Meng

– Introduction

1.1 – Definition of tourism industry

Tourism industry is a service for the domestic and foreign tourists in a series of interrelated industries. The tourism industry covers anything that satisfied with tourists, from aboard or event more locally. Tourism associated with all aspects of passengers’ travelling, it is include hotel, tour guide of city, leisure facilities, unique restaurant, even the publication of maps and so on. It forms a comprehensive concept that relating to the six elements: food, accommodation, transportation, travelling, shopping, and entertainment (2014).

1.2 – Singapore tourism industry

With the world globalization, the tourism industry became a vital sector in most of the countries. Many people travel a lot in a year; it makes some countries start attracted most interested investors. A symbolic country as we can see that is Singapore, tourism plays a quite important role in Singapore for most few of years, it brings million of tourists every years and also make a huge revenue for Singapore government. It helps Singapore to reinforce their infrastructure development and attain a higher living standard. However, when tourism become stronger in Singapore, it may lead some environmental destruction, the more tourist come to Singapore must lead more pollution locally. Next, the report will show most details about how tourism affected Singapore.

2.0 – Economic impact Analysis

In the introduction, we discussed tourism industry important to Singapore generally. Now, there is some details show what is the contribution of tourism activity to Singapore economic. Many investors would like to investment some activities in Singapore with Singapore become more and more popular in Asia. Like Casino which is investment by Las Vegas Sands, Marina Bay Sands, Universal Studios, Singapore Zoo and so many tourists attractions.

2.1 – Job opportunity

The primary important things the tourism contributes to Singapore economic is employment rates, with invest subject set up in Singapore more, it need to developing more tourism services and more infrastructure like building, hotel, leisure facilities. As the same time, more job opportunities created in Singapore, the average living standard are improved a lot; also the unemployment rates will be decreased. Based on 1998 input-output tables, tourism created 11.9% to Singapore’s GDP in 1992, while employment accounted for 13.4% of the labor force. Every additional S$1million spend by tourists, it will creative 25 additional new jobs. The results indicate that every dollar of tourist spending would generate S$1.97 of output and S$1.05 in income. At the end of 2008, employment in Singapore reached at almost 2.96 million. Be honest, the main employers in Singapore are work in services industry that occupy 67.3 percent (2014).

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Also, when government figures out people who do not have any job that it will support a higher standard live to them, people got more revenue, the government got more income. So, obviously, we cannot deny tourism have some positive impact to Singapore local economic.

2.2 – Medical tourism

With Singapore tourism become well in the world, in 2005, Singapore government implements Singapore Medical tourism. Singapore has the best health system in the world. The Singapore medicine is a government comprehensive plan, the goals is to provide 1 million foreign patients for each year by 2012, and produce $3 million in annual revenue fist. However, only in 2011, medical tourism already makes $900 million. Many people come to Singapore holiday with healthcare. Medical tourism revenue projected increasing at 8.8% p.a. from 2007 to 2016. The STB analysis that people who come to Singapore for medical care or related reason raised 30% to 725K in 2010 compared to 2007 (2012). This policy brought large revenue into Singapore government. Now, Medical tourism as Singapore huge income areas, it still increase stable, still growth Singapore economic very well.

3.0 – Demand Analysis

Tourism industry as a majority income in Singapore, Singapore Tourism Board is an agency to responsibility for develop tourism, they try to attracted more tourists, increase higher tourists demand in Singapore.

3.1 – Medical tourism

As we know, the medicine tourism is totally popular in Singapore, use advanced medical technology. Medical surgery, plastic surgery, alternative medicine, dental tourism and health spa are all developed in the best surgeons, they all primary training in U.S. it attracted nearly 200,000 overseas patients. The huge economic policy set up in Singapore that all because of world – class medical utility, general English and the best infrastructure which the western very familiars. Because of those different aspects compared with other countries, Singapore can satisfied their tourists very well, attract them desire to visit (2014).

3.2 – The great Singapore sale

As a wealth country, the great Singapore Sale, or GSS or Singapore as this event is also known for (2014). In Singapore, sales are in everywhere, as we can see there is a lot of shopping mall from Orchard Road to Marina Bay and also the suburds, business support a big discount, warehouse sales, clearance and all other kind of sales and promotional activities. It is a day or night shopping. Most of tourists come to Singapore because of the strongly buying desire and more fashion shopping, especially female groups. So, when Singapore supports more sales promotion and discounts compared with tourists’ local country, it must as a majority reason to attract most tourists.

3.3 – International cruise center

With a strategic location between major international maritime routes, Singapore is already being a number of the world’s top cruise such as Star Cruises, Royal Caribbean International, Silversea Cruises and P & O Princess. International cruise terminal capable of handling more than 6,000 passengers at any time and to accommodate the biggest cruise ships in the world (2013). With built the biggest cruise center, passengers who want to travel in Singapore can enjoy the convenient transport. It also increasing the Singapore tourism industry attracts a part of new tourists as a busy cruise center.

– Environmental impact Analysis

4.1 – Environment

Public health is a high priority in Singapore, with high public standards equivalent to get a high quality of life. It is a value which is increase to attract foreign talent and social assets of international tourists. In 1990s, the Singapore government to built of the number of modern infrastructure and established an effective environmental management system. With both the government and public work together and active participation, the Singapore environment become more successful in most of areas like clean land, clean air and clean water (YuChen, X, 2010). Singapore support the best quality life, it increase people higher life satisfaction and appeal to overseas tourists.

4.2 – Culture

Singapore is a multicultural country, due to the natural geography position and success commercial; it attracted many foreign people immigration to their country. In Singapore, there are 74.2% Chinese of the Singapore population, Malaysia as the original inhabitants occupied 13.3%, India has 9.2% in Singapore, and Eurasians and Asians and different origins make up with 3.3%. In addition, Singapore has some foreign national people which form North American, Australia, Europe, Japan and Korea (2013). It make Singapore became a diversity country. Most tourists come to Singapore that cause they want to see what the different between that variety culture and how they make together. Tourism can taste amount of different countries’ food, like Singapore chicken rice, India mee goreng, Kaya toast and some Koran and Japanese food, people who travel to Singapore can absorb different culture. That the important reason why so many people want to travel in Singapore.

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5.0 – conclusion

5.1- Boost tourism industry

Singapore Tourism Board’s goal is to triple by 2015, tourism revenue $30 billion and double visitor arrivals to 17million visitors, it is working with international investors to progress a new world – class attractions, attract business investment and leisure activities to Singapore. Singapore set up some exciting plans include remodeling the Orchard Road shopping street that make it become one of the best in the world, rely on the world biggest wheel that we called Singapore Flyer, revival of Sentosa Island as a tropical island in the resorts to enhance the main precincts development like the Singapore River, Chinatown and Little Indian, and development the iconic integrated resort. These spots will expand our product range of entertainment options to enhance the vitality of the tourism industry. STB focus on quality tourism and deepening understanding tourists’ needs and reinforce industry capability (2011).

5.2 – Challenges in the future

The tourism of Singapore will not so good in the future that because of expensive expenditure everywhere. In neighboring countries, Singapore is the most expensive city and it will let Singapore lose. But beyond that, the biggest challenge for Singapore is less resource and small land, which limited Singapore to development more tourism, objects which going to attract large group of tourists. So, they always try to use the less resource to achieve their economic arrangement.

In the conclusion, Singapore development cannot leave away from their tourism industry, most income all from tourism industry, government must set up most policy to boost Singapore tourism industry, keep their economic stay growth and growth.

6.0 – Referencing