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SINGAPORE TOURISM BOARD ANNUAL REPORT 2011/2012

SINGAPORETOURISM BOARDANNUAL REPORT 2011/2012

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Vision and Mission 3

Chairmans Message 4

Chie Executives Message 5

Board o Directors 7

Management Team 11

Corporate Governance 12

Singapore Tourism: Competing at a New Level 17

Tourism Sector Perormance: Another Outstanding Year in Singapore Tourism 18

Greater Value Creation 22

Understanding Our Visitors Better 39

Closer Industry Collaboration 53

Awards and Accolades 62

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VISION

To be a leading economic development agency in tourism,known or partnership, innovation and excellence

VALUES

Integrity Do the Right Thing!

We are air, honest and trustworthy, inspiring trust and condence.Team Succeed Together

United in purpose, we accomplish more together.

Courage 3D Dare, Dream, Do!

We dare to dream, experiment and boldly execute our ideas.

Care Appreciate One Another

We respect, nurture and have compassion or one another. We care or ourselves and our community.

Passion Love it!

We are energetic and driven, believing in our purpose and loving what we do.

Fun Its Our Attitude

We seize each day with enthusiasm. We are optimistic about our uture.

MISSION

We champion tourism and build it into a key economicdriver or Singapore

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Te volatility in te lobal eonomy uin te ast

yea as eaebate by a numbe o untoa

events, inluin te tsunami tat evastate a

lae at o te Toou eion in Jaan, te sevee

oos in Tailan tat sut on inustial lants

an eate suly ain isutions, te on-oinisis in te Euo-zone, an te sloin on o

emein eonomies. Tou it all, intenational

tavel an touism as emaably esilient an

ontinue to o.

Asia, in particular, reinorced its placing on the world tourism

stage. For 2011, outbound travel rom Asia recorded a six per cent

increase, on top o the ourteen per cent growth in 20101 . Two key

actors accounted or this perormance: a growing middle-class

with greater disposable income and the increasing aordability o

air travel within Asia. The trend is set to continue into 2012, with

the key markets o China and India still going strong.

Condence in Singapores tourism sector remains buoyant. In

2011, the sector registered S$22.3 billion in tourism receipts

and saw 13.2 million visitor arrivals, increases o 18 and 13 per

cent respectively rom 2010. This healthy growth demonstrates

Singapores transormation into one o Asias top business and

leisure destinations. At the same time, all o us at STB recognise

that sustaining this momentum in the coming years will be

challenging, given the uncertainties around the world, keencompetition rom other destinations, and not least, Singapores

own limitations in land area and manpower resources.

We have to look beyond mere numbers and make a strategic shit

towards quality tourism. This will emphasise hospitality, service

standards, innovative developments and rejuvenation o older

CHAIRMANSMESSAGE

attractions, with the aim o oering visitors an experience that will

commensurate with higher expectations. The shit will be the rst

step o a journey that will require time, eort and investment.

Ms Aw Kah Peng completed her term as Chie Executive at the

end o May 2012, having led STB since January 2009. Under herstewardship, STB successully executed a series o initiatives,

including the YourSingaporebranding campaign, the enlivenment

o Orchard Road, the Asia Fashion Exchange, as well as the

completion and inauguration o the Marina Bay Cruise Centre

Singapore. She also had oversight o two years o record growth in

tourism receipts and visitor arrivals in 2010 and 2011. On behal

o the Board o Directors, I record appreciation and thanks to Kah

Peng and wish her all the best in her uture endeavours.

At t he same time, I extend a wa rm we lcome to Mr Li onel Yeo,

who took over as Chie Executive eective June 2012. Lionel

comes with excellent credentials, and we look orward to

working with him.

Finally, and not least, I thank my ellow directors, members o

the STB team, and our industry partners or their participation,

cooperation, support and commitment.

Chew Choon SengChairman, Singapore Tourism Board

1 ITB World Travel Trends Report 2011/2012, page 10, New record for Asian outbound travel in 2011

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I joine te Sinaoe Touism Boa on 1 June

2012. In looin ba on FY2011/2012 o Sinaoe

touism, I teeoe o so it objetive amiation

o its ston aievements.

Singapore is maturing and growing in stature as a global city.In the past year, more sophisticated oeringsrom unique

attractions to celebrity restaurants and exciting eventscontinue

to add weight to Singapores position as a key leisure and business

destination o global signicance.

ANOThEr YEAr OF rEcOrd-hIghSThe tourism gures or 2011 are impressive; Singapore notched

up an 18 and 13 per cent increase rom 2010s tourism receipts

and visitor arrivals with S$22.3 billion and 13.2 million respectively.

Double-digit growth was also experienced across many industries,

with the hotel industry reporting the highest revenue per available

room (RevPAR) ever in a decade. These gures point to Singapores

deepening appeal as a travel destination, and mark the tourism

industrys growing role as key economic driver, with contribution to

Singapores gross domestic product exceeding 4 per cent in 2011.

While much o this growth resulted rom inrastructural

developments such as the unveiling o new additions at the

Marina Bay Sands and Resorts World Sentosa Integrated Resorts,

innovative initiatives by way o industry collaborations have also hada signicant hand in improving the overall quality and experience

o Singapore tourism. Noteworthy mentions include TicketCube,

our rst integrated ticketing platorm and personalised concierge

or arts and entertainment events, and the Singapore International

Culinary Exchange (SPICE) programme that has turned the

international spotlight on the citys culinary talents.

CHIEFEXECUTIVES

MESSAGE

Returning world-class events such as TravelRave, Formula 1

SingTel Singapore Grand Prix and Asia Fashion Exchange have

also played a part, incorporating new elements such as thought

leadership seminars and invaluable networking sessions.

NEw OppOrTUNITIES, NEw chALLENgESSingapore is well-placed to benet rom the boom in Asian travel

and tourism. China and India continue to lead in the thirst or

outbound travel, uelled by their growing mass afuent consumer

(MAC) segments as well as improved connectivity within the region

with increased low cost carrier services. This trend is set to surge,

with the MAC segment set to grow 20 per cent each year to

account or an annual tourism spending o approximately US$430

billion by 2020, the highest contributor o tourism spending2.

While this portends well or Singapore, experience has taught us to

remain prudent and alert, especially with the European debt crisis,

increasing oil prices and a struggling US economy continuing to be

potential actors aecting Asias growth in the oreseeable uture.

Singapore itsel is also acing new challenges in the orm o sti

regional competition, space constraints and manpower shortage.

There is a clear need to maximise existing resources; i the tourism

industry is to grow sustainably in the long run, we need to look or

innovative alternatives that go beyond hardware development and

chasing ater the next million in visitor arrivals.

TOUrISM cOMpASS: pOINTINg ThE wAY TOQUALITY TOUrISMLeveraging the industrys experience as well as our own insights,

the Tourism Compass was a collaborative exercise to divine a

strategy direction or the Singapore tourism sector. In essence, it2 Data sources: Department of Statistics Singapore, Economist Intelligence Unit household income data and

Boston Consulting Group analysis. Report was presented at TravelRaves Asia Travel Leaders Summit 2011.

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points the way towards a vision o quality tourism, with strategies

that draw on a better market understanding, deeper industry

engagement and partnerships, value creation, and product

innovation and rejuvenation.

At STB, we have already embarked on this journey towardsquality tourism. Our targeted marketing campaigns have kicked

o in China, Australia and India, with dierentiated approaches

based on the market knowledge amassed over the years. These

insights have enabled us to collaborate with stakeholders to curate

resonant experiences or each market.

We have also begun tapping on Asias tremendous potential

through the development o Singapores cruise industry; six

maiden calls have been made by large liners the likes o Royal

Caribbean and Silver Sea in 2011, while works or the Marina

Bay Cruise Centre Singapore have already been completed.

The S$905 million Tourism Development Fund will go towards

improving workorce capabilities and innovating original products

and events that will set Singapore apart in the years to come.

You will nd all these and more in our 2011/12 Annual Report.

Through the sharing o our motivations and experiences behind

the various projects, we hope to give you a sense o how we have

worked with the industry, and how we intend to collaborate urther

or the betterment o all in this vibrant sector.

I would like to join Chairman in thanking Kah Peng or her oresight

and leadership in setting the oundation on which we can now

build a orward-looking industry that is both innovative and

competitive. Quality tourism is a goal which is in itsel a work-in-

progress. In partnership with industry, and with public support and

participation, we will make this journey a meaningul and ruitul

one or all o us.

Lionel Yeo

Chie Executive, Singapore Tourism Board

At STB, we havealready embarked on

this journey towardsquality tourism.

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Mr chEw chOON SENg

Mr Chew Choon Seng was appointed Chairman o STB with eect

rom 1st January 2011, the same date as when he took oce as

Chairman o the Singapore Exchange o which he had been an

independent Director since December 2004. Mr Chew is also a

member o the Board o Directors at the Government o Singapore

Investment Corporation since January 2004. He retired at the end

o 2010 rom Singapore Airlines, where he was Chie Executive

Ocer rom June 2003. Mr Chew was a member o the Board

o Governors o the International Air Transport Association rom

2003 to 2010. He was named Outstanding CEO or 2007 in the

Singapore Business Awards, March 2008.

BOARD OFDIRECTORS

Mr LIONEL YEO

Lionel Yeo is the Chie Executive o the Singapore Tourism Board.

He was ormerly the Dean and CEO o Singapores Civil Service

College, and Deputy Secretary (Development) in the Public Service

Division o the Prime Ministers Oce.

Lionel has been an ocer o the Singapore Administrative Service

since 1996. He has previously served in the Ministry o Trade &

Industry, the Ministry o Finance, the Ministry o Inormation and

The Arts, and the Ministry o Community Development. Lionel

also serves on the boards o the Urban Redevelopment Authority,

Sentosa Development Corporation, National Healthcare Group Pte

Ltd, Singapore Grand Prix Pte Ltd, Wildlie Reserves Singapore Pte

Ltd and on the Board o Governors o Rafes Institution.

He has a BSc in Economics rom the London School o Economics

and an MBA rom the Massachusetts Institute o Technologys

Sloan Fellows Program.

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Mr AUBEck kAM

Mr Aubeck Kam is the Chie Executive o the Media Development

Authority, an appointment he has held since 1 November 2010. Mr

Kam has held senior appointments at the Singapore Police Force

rom 1989 to 2002 and 2004 to 2006, as well as at the Ministry o

Trade and Industry rom 2002 to 2004 where he was Singapores

deputy chie negotiator or the Singapore-India Comprehensive

Economic Cooperation Agreement and the chie negotiator in the

ASEAN-Singapore Free Trade Agreement. As the Deputy Secretary

o the Ministry o Manpower rom 2006 to 2010, Mr Kam helped

ormulate and implement national manpower policies, ranging

rom workorce development, labour and occupational saety

standards and the entry o oreign workers, to income security andretirement adequacy or workers

MrS dEBOrAh ONg

Mrs Deborah Ong is a partner with the Assurance Business in

PricewaterhouseCoopers Singapore and was recently also

appointed as the rms Risk & Quality Partner. She was previously

the rms Human Capital Partner.

Mrs Ong has over 20 years o public accounting experience

providing audit and advisory services to local and US-listed,

multinational companies and Singapore statutory boards. She

has been involved in special investigations and capital market

oerings. She is currently the lead partner or a portolio o the

rms largest clients.

She is Deputy Chairman o the National Parks Board and NgeeAnn Polytechnic Council, Member o Lee Kong Chian School o

Medicine Pro-Tem Governing Board and Director o Gardens by

the Bay, as well as a council member o Girl Guides Singapore

and President o the Singapore Division o Certied Practicing

Accountants Australia.

Mr AArON BOEY

As Executive Vice President and President, Commercial Operations

Asia Pacic or Levi Strauss & Co., Mr Aaron Boey is responsible

or the commercial operations o all the companys brands in the

region. In addition, he is President, Global Denizen brand and

a member o the companys worldwide leadership team. Mr Boey

joined Levi Strauss & Co. in September 2005 as vice president and

regional managing director responsible or Levi Strauss and Co.s

local businesses in Asia, excluding Japan. In September 2010, he

was named president o Denizen and oversaw the launch o the

companys newest brand.

Prior to joining Levi Strauss & Co., Mr Boey was managing director

or Asia o Jacuzzi Inc., a global leader in spa and hydrotherapy-

related products. Beore joining Jacuzzi, Inc., he held senior-level

positions in large Asian and oreign multinational companies in

the consumer goods and retail industries including Asia Pacic

Breweries and Philips Electronics.

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MS JESSIcA TAN

As Managing Director o Microsot Singapore, Ms Jessica Tan

is responsible or developing and driving growth strategies orthe Microsots business in Singapore, as well as deepening

relationships with partners, customers and employees. She also

ocuses on leading Microsots ongoing corporate citizenship eorts

in the country, which includes Microsots eorts to becoming a

trusted industry partner who works with businesses, communities

and governments to help advance social and economic well-being.

In May 2006, Ms Tan was elected as Member o Parliament in

Singapore or the East Coast Group Representation Constituency.

She was again elected as Member o Parliament or the East Coast

Group Representation Constituency in the May 2011 elections. She

is Chairman o the Finance, Trade and Industry Group Parliamentary

Committee (GPC) as well as a member o the Manpower GPC. She

is also Chairman o the East Coast Town Council.

Mr MIchAEL kOh

Mr Michael Koh is the Chie Executive o the National Heritage

Board, which manages the national museums and heritageinstitutions in Singapore, and enhances Singapores standing as

a vibrant global city o the arts and culture.

In 2010, Mr Koh was conerred the Ocier de lOrdre des Arts

et des Lettres by the Ministry o Culture and Communication o

France, an international recognition to honour his contributions to

the arts and France-Singapore cultural relations. Mr. Koh is also a

Board member o the National Art Gallery, Singapore, an Advisory

Panel member o the Art Science Museum and a member o Urban

Redevelopment Authoritys Conservation Advisory Panel.

Mr MIkE BArcLAY

Mr Mike Barclay joined the Sentosa Development Corporation

as Chie Executive Ocer in August 2008 where he oversees allaspects o business or Sentosa Leisure Group. Beore joining

Sentosa, Mr Barclay was Regional Vice President o the Asia

Pacic region with the International Air Transport Association. Prior

to IATA, Mr Barclay was CEO o SilkAir. He also spent 13 years with

Singapore Airlines Ltd.

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MrS dIANA EE-TAN

Mrs Diana Ee-Tan has over 25 years o experience in hospitality

and tourism. She was ormerly President o Rafes Hotels andResorts where she was responsible or the operating and nancial

perormance o its hotels worldwide and the brands growth strategy.

Under her leadership, Rafes expanded its portolio to cities in

China, Indonesia, the Middle East and Europe. Besides overseeing

international operations, Mrs Tan was instrumental in building the

global sales, brand marketing, revenue management, customer

relationship management and e-commerce capabilities o the

Rafes management company during its early years o growth.

Active in supporting the industry, Mrs Tan is presently Chairman

o the Academic & Examination Council o SHATEC Institutes, the

educational arm o Singapore Hotel Association, and serves as

a Member o the Advisory Council o the School o Hospitality at

the Republic Polytechnic.

Mrs Tan is an Advisor at Straits Trading Co Limited and a Board

Director o Orchard Parade Holdings Limited.

Mr VINOdh cOOMArASwAMY

Mr Vinodh Coomaraswamy is Senior Counsel and a senior litigation

partner in the law rm Shook Lin & Bok LLP. Mr Coomaraswamysspecialty is complex commercial litigation, international arbitration

and insolvency. He is a Fellow o the Singapore Academy o Law,

a Senior Proessorial Fellow o the Singapore Institute o Legal

Education, a Fellow o the Chartered Institute o Arbitrators and a

Fellow o the Singapore Institute o Arbitrators.

Mr STEVEN LIM

Mr Steven Lim is currently an audit committee member o the

Agency or Science Technology & Research and a board membero several public-listed companies in Singapore. With more than

32 years o audit experience, Mr Lim was ormerly a Managing

Partner o Arthur Andersen Singapore till July 2002 and then a

Senior Partner with Ernst & Young beore retiring in June 2003.

He has extensive regional business experience in Singapore,

Malaysia, Indonesia, Thailand, the Philippines and Vietnam.

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MANAGEMENTTEAM

1 MS chIANg hAI YIN

Executive Director,Human Resources & Finance,

Corporate Development Group

2 MS MELISSA Ow

Assistant Chie Executive,

Sector Planning & Development Group

and Destination Experience Group

3 Mr EdwArd kOh

Executive Director,

Strategy, Planning,

Research & Incentives,Sector Planning & Development Group

4 Mr LIONEL YEO

Chie Executive

5 MS SOphIA Ng

Assistant Chie Executive,Marketing Group

6 Mr JOhN grEgOrY cONcEIcAO

Executive Director,

Capability & Innovation and Visitor

Inormation & Feedback,

Sector Planning & Development Group

7 MS NEETA LAchMANdAS

Assistant Chie Executive,

Industry Development (II) Group

8 MS LYNETTE pANg

Executive Director,

Arts & Entertainment and

F1 & Sports,

Industry Development (I) Group

9 Mr LEONg YUE khEONg

Assistant Chie Executive,International Group and Corporate

Development Group

10 Mr chEw TIONg hENg

Executive Director,

Destination Experience Group

11 MS cArrIE kwIk

Executive Director,

Integrated Resorts and Business

Tourism Development,

Industry Development (II) Group

12 MS JEANNIE LIM

Executive Director,

Conventions & Meetings and

Exhibitions & Conerences, Industry

Development (II) Group

Absent With Apologies:

Mr chANg chEE pEY

Executive Director,

SAMEA (South Asia, Middle East and Arica) and

Planning Projects International Group

1

3

24

5 6 7 8 9

10

11

12

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CORPORATEGOVERNANCE

BOARD MATTERS

rESpONSIBILITIES OF ThE BOArdThe Board oversees and monitors organisational perormance and

the achievement o the Singapore Tourism Boards (STB) strategic

goals and objectives. It assumes the responsibility o reviewingand approving corporate strategies, budgets and nancial plans.

BOArd cOMpOSITION ANd MEMBErShIpFrom 1 Apr 2011 to 31 Mar 2012, there were eleven Directors on

the Board, including Ms Aw Kah Peng, the STBs Chie Executive

and the only non-independent Director. Mr Benson Puah and Mr

Patrick Pitcher retired rom the Board with eect 31 Dec 2011 and

Mr Aaron Boey and Mr Michael Koh were appointed to the Board

eective 1 Jan 2012.

The size and composition o the Board are guided by the clauses

stated in the STB Act, with the eventual composition subject to

approval by the Cabinet. The desired outcome is the provision o

a conducive environment or eective discussions and decision-

making to happen.

The process or the appointment o Directors to the Board is kept

ormal and transparent as this is critical to the role that corporate

governance plays. A review o the Directors membership on the

Board is done as and when their ocial term o appointment is up.

The Board is given the mandate to act independently and exercise

objective judgment on the STBs corporate aairs. This is to

ensure that there are checks and balances instituted. Apart rom

Ms Aw, the other ten Directors on the Board are Independent

Directors. A Directors independence is re-assessed at the point

o each re-appointment.

cONdUcT OF BOArd AFFAIrSThe Board approves nancial transactions above a certain nancial

limit. A regular review o the nancial authorisation and approval

limits is perormed to ensure that the authorisation and approval

limits are kept up-to-date and relevant.

During the nancial year, the Directors were requested to complete

an annual Board Evaluation Questionnaire that allows us to assess

the overall administration o Board matters and engagements with

the Board.

Under the year in review, there were a total o ve scheduled Board

meetings and a one-day Board Workshop to discuss key strategic

issues that may impact the achievement o the Boards targets. A

record o the Directors attendance at Board meetings during the

nancial year, which ended on 31 March 2012, is set out in Table 1.

Directors are given access to STBs records and inormation,

senior management, or any other sta o the agency as is deemed

necessary or them to eectively discharge their responsibilities and

deliberate meaningully on issues raised at Board meetings.

The ollowing Board Committees assist the Board in executing

its duties:

Audit Committee

Finance and Investment Committee

Governance Committee

Human Resource Management Committee

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A record o each Directors Board Committee memberships and attendance at Board Committee meetings during the nancial year, which

ended on 31 March 2012, is set out in Table 2.

Table 1: Directors Attendance at Board Meetings in FY 1 April 2011 to 31 March 2012

Name o dieto Seule Boa Meetins Boa woso

Numbe hel Numbe Attene Numbe hel Numbe Attene

Mr Chew Choon Seng^ 5 5 1 1

Ms Aw Kah Peng 5 5 1 1

Mr Aubeck Kam 5 2 1 1

Mr Mike Barclay 5 4 1 1

Ms Jessica Tan 5 4 1 1

Mr Steven Lim 5 5 1 1

Mrs Deborah Ong 5 3 1 1

Mrs Diana Ee-Tan 5 5 1 1Mr Vinodh Coomaraswamy 5 5 1 1

Mr Patrick Pitcher^ 5 3 1 0

Mr Benson Puah^ 5 4 1 1

Mr Aaron Boey# 5 1 1 0

Mr Michael Koh# 5 1 1 0

^ Directors who retired rom the Board with eect rom 31 December 2011 were scheduled to attend our Board meetings.

# Newly-appointed Directors to the Board with eect rom 1 January 2012 were scheduled to attend one Board meeting.

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Table 2: Directors Board Committee Memberships and Attendance at Board Committee Meetings in FY 1 April 2011 to 31 March 2012

Name o dieto Finane & Investment

committee Meetins

Auit committee

Meetins

govenane

committee Meetins

human resoue

Manaement

committee Meetins

Numbe

hel

Numbe

Attene

Numbe

hel

Numbe

Attene

Numbe

hel

Numbe

Attene

Numbe

hel

Numbe

Attene

Mr Chew Choon Seng 0 0 3 3

Ms Aw Kah Peng 3 2 0 0 3 1

Mr Aubeck Kam1 3 2 4 1

Mr Mike Barclay 4 3

Mr Benson Puah 0 0

Mr Steven Lim 4 4

Mr Patrick Pitcher2 3 2

Mrs Diana Ee-Tan3 4 2 3 1

Mr Vinodh Coomaraswamy 3 3

Mrs Deborah Ong4 4 1 3 2

Ms Jessica Tan 3 3

Mr Aaron Boey5 3 1

Mr Michael Koh 0 0

1 Mr Aubeck Kam was a member o the Finance & Investment Committee (FIC) until 6 February 2012, when he ceased to be a member

o the FIC and was appointed to be a member o the Audit Committee (AC) eective 7 February 2012.

2 Mr Patrick Pitcher retired rom the Board with eect rom 31 December 2011 and was scheduled to attend two Human Resource

Management Committee (HRMC) meetings.3 Mrs Diana Ee-Tan was a member o the AC until 6 February 2012, when she ceased to be a member o the AC and was appointed to

be a member o the HRMC eective 7 February 2012.

4 Mrs Deborah Ong was a member o the HRMC until 6 February 2012, when she ceased to be a member o the HRMC and was

appointed to be a member o the AC eective 7 February 2012.

5 Mr Aaron Boey was appointed to the Board with eect rom 1 January 2012 and was scheduled to attend one FIC meeting.

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AUDIT AND ACCOUNTABILITY

AUdIT cOMMITTEE

The Audit Committee (AC) comprised three independent and non-

executive Directors until 7 February 2012 when it comprised our

Directors. It is mandatory that at least two members o the AC have

requisite accounting or related nancial management expertise

and experience to discharge their responsibilities and duties.

During the nancial year, a total o our meetings were convened

or the AC. The responsibilities o the AC are stated in the terms

o reerence which include ensuring the adequacy o internal

controls and reviewing the audit plans, audit reports and audited

STB Financial Statements or the nancial year.

The AC has the explicit authority to investigate any matter within

its terms o reerence and has ull access to, and co-operation

o, the Management. It has direct access to the Internal Audit

and external auditors as well as ull discretion to invite any Board

member or Management sta to attend its meetings. In addition,

during the nancial year, the AC has met both the external auditors

and sta o Internal Audit without the presence o Management.

For the proper discharge o its unction and duties, reasonable

resources have been made available to the AC.

INTErNAL cONTrOLS

The Board has ensured that the Management maintains a sound

system o internal controls to saeguard the interests o stakeholders

and the assets o the STB. The AC has ensured that a review o

the eectiveness o the STBs internal controls, including nancial,

operational and compliance controls, and risk management, takes

place annually through the various audits perormed and related

reports issued to the AC. For certain projects or areas where

independent expertise is specially required in connection with the

review o controls, external proessionals and service providers

have been appointed accordingly.

ExTErNAL AUdIT

As part o the annual nancial statements audit, the external

auditors carried out a review o the signicant internal controls.

Such controls are mainly determined by the purpose o the audit

and the scope o works under the audit plan. Any material non-

compliance and/or internal control weaknesses, together with the

external auditors recommendations, were addressed and made

known to the AC.

To maintain the independence o the external auditors, the AC

reviewed the scope and results o the external audit including the

volume o non-audit services, i any, duly perormed by them.

INTErNAL AUdIT

The Internal Audit reports to the AC unctionally and to the Chie

Executive administratively. As part o its auditing, the Internal

Audit is guided by the current International Proessional Practices

Framework issued by the Institute o Internal Auditors. The

adequacy o unding and stang o the Internal Audit and itsappropriate standing within the STB have been ensured by the AC.

The Internal Audit adopts risk-based auditing as its key audit

assurance practice. It provides reasonable assurance on the

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eectiveness o control and governance processes in managing

risks and accomplishing objectives to various regional oces,

major process owners and policy-makers o the STB.

FINANcE ANd INVESTMENT cOMMITTEE

The Finance and Investment Committee comprises our Directors.

Its responsibilities are broadly categorised into three areas:

Finance, Fund Management and Risk Advisory.

It endorses the STB Workplans and Budget beore submission

to the STB Board or approval. The Committee also approves

tenders, expenditures and proposed changes to the STBs

Financial Regulations.

It approves the STBs investment policy and strategies, ensures

that nancial investments are conducted in compliance with

statutory legislation and government directives and urnishes an

investment report to the Board on a semi-annual basis.

It perorms the risk advisory role or projects above S$5 million or

with high reputational risks through provision o input and opinion

on the risk assessment and risk response measures put orth by

the STB, and elevates any critical project risks to the attention o

the Board.

gOVErNANcE cOMMITTEE

The Governance Committee comprises three Directors, including

the Chairman o the Board. While there were no physical meetings

held, approval o new appointments and renewal o Directors were

sought via email.

hUMAN rESOUrcE MANAgEMENT cOMMITTEE

The Human Resource Management Committee comprised our

Directors until 7 February 2012 when it comprised three Directors,

including the Chairman o the Board. The Human Resource

Management Committees responsibilities include providing

guidance on leadership development and talent management

matters; reviewing compensation policies and structures to

ensure competitiveness; approving salary grade changes o

ocers to Superscale Grades, and reviewing and approving

recommendations on disciplinary matters pertaining to senior

management members.

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The Singapore tourism industry is at a crossroads. Ater

the unprecedented growth o the past ew years, the time

is upon us to ask ourselves: should we continue in the

same vein that has given the country its current success?

Or perhaps consider how we should create value that

will help grow the fourishing tourism landscape in a

sustainable manner?

We are competing in interesting times, as internal and

external constraints pose real and urgent concerns or the

uture o Singapore tourism. Exponential tourism growth

driven by a rapidly developing Asia, the countrys small

size, inrastructure constraints and limited manpower

resources are all major pressure points bearing down

SINGAPORE TOURISM:

COMPETING AT A NEW LEVELon the industry. At the same time, travellers are becomingmuch more discerning. Increasingly, they come with greater

expectations and demands as increasing global connectivity

and an ever-expanding array o choices open doors to new

and diverse experiences.

In response, we have started exploring the road less

travelled towards quality tourism. To this end, STB has

begun gearing up or a shit towards a visitor-centric

approach to developing the tourism sector, and become

more targeted in our marketing approach. As part o this

shit, we go deeper in understanding their needs so that we

can engage them with dierentiated quality experiences

which are customised to the markets and deliver greater

resonance among new and repeat visitors. At the same

time, we oster deeper industry collaboration with our

stakeholders to strengthen our core competencies and

raise overall industry capabil ities. This is with the eventual

aim to unlock greater value or the industry.

Striving or quality tourism is a bold but crucial step. It

is aimed at sustaining our dynamism and appeal in the

long run while taking into account our challenges and

binding constraints. The journey has already begun, as

new approaches and mindsets took root in many o the

activities and initiatives o the past year.

17

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Another outstAnding

YeAr in singAporetourismS$22.3 billion in touism eeits an 13.2 million in intenational visito aivals mae 2011 yet anote outstanin yea

in Sinaoes touism eomane. Te momentum om 2010s eomane as oelle Sinaoe touism to even

eate eits an loos set to ontinue as te ounty ositions esel as a omellin business an leisue estination

o visitos.

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OVErVIEw

Singapores tourism perormance scaled new heights in 2011. Cumulative tourism receipts grew year-on-year by 18 per cent to hit a

record high o S$22.3 billion.

Touism eeits o te ast 5 yeas

2007

S$14.1 bil

S$15.2 bil

S$12.8 bil

S$18.9 bil

S$22.3 bil

0

5

10

15

20

25

2008 2009 2010 2011

TOURISMSECTOR

PERFORMANCE

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Indonesia (S$2,853 million), P R China (S$2,110 million), India (S$1,103 million), Australia (S$1,095 million) and Malaysia (S$893

million) were Singapores top ve tourism receipts generating markets rom January to December 2011.

The Philippines and Japan saw the highest percentage change in tourism receipts over 2010. The tourism receipts or the Philippines

(+34%) grew due to a strong increase in visitor arrivals and hotel accommodation expenditure.

Aected by weakened economic conditions, USA and UK saw a decline in their respective shares o tourism receipts. Nevertheless, as awhole, Europes tourism receipts still grew at 4 per cent.

Touism reeits by Majo comonents, To 10 Maets, Januay to deemebe 2011

Toursim Receipts: S$22.3 billion (+18% vs Jan-Dec 2010)

Expenditure is estimated rom Overseas Vistor Survey

Other TR components include expenditure on airares, port taxes, local transportation, business, medical, education and transit visitors.

*Sightseeing & entertainment has been excluded in the country analysis due to commercial sensitvity o inormation.

Overall

% canevs 2010

2011 Tr *(S$ mil)

27% 26% 13% 34%

30% 16% 9% 45%

51% 18% 8% 24%

33% 15% 30%22%

17% 26% 14% 42%

29% 25% 11% 35%

24% 35% 18% 23%

17% 31% 13% 40%

11% 41% 19% 30%

24% 35% 15% 25%

12%

0%

-1% 538

4% 570

-4% 618

31% 796

34% 840

17% 893

9% 1,095

21% 1,103

28% 2,110

10% 2,853

13% 16,887

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

33% 17% 39%

Shopping Accomodat ion Food & Beverage Other TR Components

Indonesia

P R China

India

Australia

Malaysia

Philippines

Japan

USA

Thailand

UK

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International visitor arrivals to Singapore increased by 13 per cent rom the previous year to a new record o 13.2 million in 2011.

Intenational visito aivals o te ast 5 yeas

2007 2008 2009 2010 2011

13.2 mil

11.6 mil

9.7 mil10.1 mil10.3 mil

0

2

4

6

8

10

12

14

Asia remained a strong visitor source market or 2011, contributing 76 per cent o total international visitor arrivals. The international

visitor arrivals was also well diversied across the region, with Indonesia (2,592,000), P R China (1,578,000), Malaysia (1,141,000),

Australia (956,000) and India (869,000) being Singapores top ve international visitor-generating markets or the period o January to

December 2011. These markets accounted or 54 per cent o total international visitor arrivals or the period.

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greAter VALueCreAtionTe tansomation o ou touism lansae, oule it ston unamentals, an ol-lass oessionalism, asestablise ou eutation as one o te eions most sout-ate leisue an business estinations. To ontinue on a ot

tajetoy an maintain ou ee o te oeseeable utue, e must loo o ootunities itin an beyon Sinaoe.Moe itially, it is also about ou sustaine ability to eate value ontinuously o ou visitos. To tis en, STB is oin

toete it inusty staeoles to stay te ouse o tansomation an aise oveall aabilities to oe an even moe

inelible Sinaoe Eeiene.

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SERVICE THATGOES BEyOND

THE SMILE

World-classservice is centralto the success oquality tourism..

goin eee into te sevie inusty, te seon

ase o te go te Eta Mile o Sevie (gEMS

U) movement etune it a ous on te ental

ole o sevie in oviin te omlete eeiene.

With SPRING Singapore, the Singapore Workorce Development

Agency, the Institute o Service Excellence at the Singapore

Management University and the National Trades Union Congress,

STB launched initiatives under GEMS Up on service research and

thought leadership, capability development, and promotion and

recognition to promote a customer-centric culture in Singapore.

Building on the rst seasons showcase o proessionalism,

skills, and pride that sum up the service industry, the GEMS

Up movement saw the return o reality show Can You Serve or

a second season. In addition to the usual skills component, the

second season adopted a decidedly educational slant and invited

industry proessionals to share the various career paths that service

The second season o Can You Serve gave viewers an up-close-and-personal look at the various cha llenges and opportunities the service industry

aces through the eyes o the reality shows contestants.

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personnel could embark on. A ocus on lesser known occupations

such as the medical concierge, guest relations ocers to VIPs

and even service in a hawker centre also portrayed how service is

integral to all aspects o the tourism industry.

To recognise businesses that demonstrate service excellence,

GEMS Up also established its most prestigious accolade, the

inaugural Singapore Service Excellence Medallion (SSEM) in

2011. The Medallion acknowledges organisations and individuals

who have demonstrated the highest levels o service. Shortlisted

businesses were assessed on their customer satisaction

measurement scores, service systems, processes, key business

results and how they have enhanced the overall customer

experience. Nominated individuals were evaluated on their

commitment to quality service and how they have exemplied the

organisations vision, mission and values.

Similarly, the Best o Singapore Service Star (SSS) 2011 ceremony

was held as part o STBs SSS accreditation scheme to acknowledge

excellent service. The event proled 36 retail, ood and beverage,

and nightspot businesses that had rated highest in their mystery

shopping assessments, with the aim o inspiring other industry

players to raise service standards amid evolving customer

expectations. Building on the growing awareness o the importance

o good service, the accreditation scheme also launched an

interactive e-learning module or SSS companies to gain access to

practical insights and knowledge. This platorm allows members to

learn at their own pace and seek advice rom service expert Bentley

Williams, making the goal o achieving stellar and yet personable

service an accessible, user-riendly process.

Alongside service, innovation plays a key role in creating a

memorable experience. With businesses looking or solutions to

better cater to consumers needs and stay ahead o the game,

the Singapore Experience Awards 2011 became the platorm to

acknowledge these eorts with its stronger ocus on innovation,

revitalisation and productivity. Star power was ratcheted up a

notch when the co-owner o multi-award winning restaurant Noma

and chie evangelist o the New Nordic Cuisine Movement, Claus

Meyer, came to speak at the Singapore Experience Conversation

on the need or reinvention and sustainability.

World-class service is central to the notion o quality tourism.

The collective drive o STB and industry stakeholders to close

the service gap via the sharing o best practices and exploration

o new methods will give our tourism industry a critical boost in

the right direction.

(From Let) Bentley Williams o WOW! Academy, moderating a discussion panel with representatives rom Celine, Oriton Ca and Zouk; Pankaj Tandon o Go India, Singapore Service Star Best Perormer 2011 or the F&B

industry category.

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LICENSED TOGUIDE: DELIVERING

QUALITy ASSUREDEXPERIENCES

To el liense uies stay aea o te ame,STB atively enaes te Soiety o Touistguies Sinaoe an te nely launeNTUc Tou guie cate to ientiy an o-eate solutions to ommon allenes in teseto su as oessional uain anenoement es. wit tese measuesin lae, visitos an est assue tat eauie tou ill be a oessional, inomativean unoettable eeiene.

As ambassadors on the g round, our licensed tour guides a re the

very conduit through which our visitors gain an insightul and

enriching experience o Singapores diverse oerings. To ensure

the quality o the guided experience, STB revamped the tourist

guide badge to allow or improved enorcement and to instill

visitor condence in the services o licensed tourist guides. Thenew tour guide badge is now larger, with key verication areas

such as the tour guide license number, photo and authorised

guiding languages, enlarged, watermarked and colour-coded

to prevent countereiting.

To ensure the

quality o the guidedexperience, STBrevamped the touristguide badge toallow or improvedenorcement and

to instill visitorcondence in theservices o licensedtourist guides.

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One aely eeienes Sinaoe te same ay

tie, an tis is attibutable to te ountys eve

tansomin touism lansae.

The latest attractions launched in 2011/2012 stand out not only

or their ability to oer quality experiences that have injected

diversity and new-ound excitement to the industry, but also or

their uniqueness in Asia.

SPICINGUP THE

ATTRACTIONSLANDSCAPE

Architectural landmarks such as the Marina Bay Sands have been a constant draw or tourists coming to Singapore.

As a start, both the Marina Bay Sands (MBS) and Resor ts World

Sentosa (RWS) Integrated Resorts (IRs) added to their stable o

attractions. In September 2011, MBS unveiled the two stunning

crystal pavilions that house the worlds rst Louis Vuitton Island

Maison and world-renowned clubs Avalon and Pangaea. Its

ArtScience Museum hosted several blockbuster exhibitions,

such as Van Gogh Alive the Exhibition, Dal: Mind of a Genius

The Exhibition, the Cartier Time Art exhibition and Titanic: The

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Artifact Exhibiti on. Many o these shows were showcased or the

rst time in the region, raising the calibre o touring exhibitions

in Singapore to a new level. Lovers o show tunes were also

spoilt or choice with the staging o top-notch musicals at the

MBS theatres, rom the likes o The Lion Kingand The Music of

Andrew Lloyd Webber, to Wicked.

RWS was also under the international spotlight with the world

premiere o TRANSFORMERS: The Ride at Universal Studios

Singapore (USS). The hyper-realistic 3D thrill ride literally

launches visitors into the midst o a Transormer battle, and

has garnered much international acclaim since it opened in

December 2011. In the same month, USS visitors also got to

mingle with their avourite movie characters or the rst time with

the staging o the Hollywood Dreams Parade, a weekly street

perormance that eatures over 100 perormers rom well-loved

lms such as Madagascar, Shrek and Jurassic Park dancing

and singing their way through the theme park. Drawing on

Singapores rich maritime history, RWS expanded the countrys

museum oerings with the opening o the Maritime Experiential

Museum. With a ocus on educating visitors on the history o

ancient maritime trade through interactive displays, the museum

Get swept away with Universal Studios Singapores TRANSFORMERS: The Ride and the Hollywood Dreams Parade.

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is also home to the Jewel o Muscat, a lie-sized replica o a 9th-

century dhow gited by the Government o Oman. The opening o

RWS Equarius Hotel and Beach Villas also added diversity to the

hospitality scene with their touch o exclusive luxury amid lush

greenery and glimmering seascapes.

The action on the attractions scene was not just limited to the

IRs; existing attractions also took the opportunity to enhance

and rejuvenate their products in the past year. Sentosa saw the

introduction o the iFly, which gave thrill seekers a chance to sky

The action onthe attractions

scene was not justlimited to the IRs;

existing attractionsalso took the

opportunity toenhance and

rejuvenate their

products in thepast year.

Resorts World Sentosas latest hospitality oerings Equarius Hotel and Beach Villas take island luxury to another level.

dive within an 18-eet acrylic glass wind tunnel while looking

out to unhindered views o the South China Sea. Leveraging its

popularity among amilies, Jurong Bird Park introduced its new

Birdz o Play themed play area, complete with wet and dry play

zones and an arcade room to cater to children o all ages.

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The STB-ASA masterclass on storytelling conducted in 2011 helped the

attractions industry to understand how the art o eective story telling

- a mixture o scholarship and showmanship - can deliver an emotional

experience or guests. Tailoring the training and interaction o sta, as wellas interweaving retail, merchandise and ood and beverage options within

the story creates that unorgettable, experiential visitor journey that will

not only improve the nancial sustainability o attractions, but also truly

dierentiate Singapore attractions rom our competitors.

For 2012, we look orward to collaborating on more initiatives to augment

the industrys growth.

M kevin ceon, caiman, Assoiation o Sinaoe Attations (ASA)

ASA has driven several initiatives to aid the attractions industry in strengthening its capabilities. These include acilitating discussions with

stakeholders to strengthen attractions capabilities, as well as initiating discussions with educational institutions to build up the industrys

talent pool.

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Sinaoes stanin as a tivin fnanial ente

sa te ounty ostin 21 ol onesses in

2011/12.

These included the 11th World Chinese Entrepreneur Convention

and the 20th World Orchid Conerence, The Currency

Conerence and the high-prole World Conerence on Tobacco

or Health. All these helped the country to retain its ranking

under the International Congress and Convention Association

as Asias Top Convention City or the 10th consecutive year.

In addition, Singapore was also rated as the top international

meeting country and city or 2011 in the Union o International

Associations G lobal Rankings.

BRINGING THEWORLD TOGETHER:

A HUB FORBUSINESS AND

LEISURE EVENTS

Secured in 2011 as part o our pipeline o association events

are 17 prestigious world congresses, including the World

Diamond Congress 2014, the International Congress o the World

Conederation or Physical Therapy 2015 and the World Federation

o Mental Health Biennial Congress 2015.

Key to Singapores ongoing success in the Business Travel,

Meetings, Incentives, Conventions and Exhibitions (BTMICE) sector

is the citys knack or reinvention and innovation. For businesses

keen to leverage Asias untapped potential, TravelRave, Asias

mega travel and tourism estival continued to be the key platorm

to exchange ideas, network and gain inspiration rom. Four new

quality events, namely the UNWTO High Level Meeting in Asia; the

As part o TravelRave, Cond Nast Traveler World Savers Congress Keynote speaker Kristin Davis, Actor and Ambassador o Oxam International

and patron o the David Sheldrick Wildlie Trust, ocused on issues such as wildlie conservation and environmental and cultural preservation.

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Asia Pacic Hotel and Tourism Investment Conerence 2011; the

Cornell Hotel Society Asia Pacic Regional Meeting; and Asia or

Asia a high level meeting o Asias MICE industry Leaders, were

added to the estival.

As part o TravelRave, ITB Asia, a major trade show or the Asian

travel market, also became the springboard or launching original

content. Travel + Leisures Luxury Travel Research and the World

Travel and Tourism Councils latest ndings on the economic

impact o business travel in Asia were presented or the rst time

to give attendees candid insights into the opportunities available

or investment in the regions new tourism products, services and

capabilities. Anchor events such as the Asia Travel Leaders Summit

returned or a second edition to give leading minds and voices o

the Asian travel and tourism industry the invaluable opportunity to

engage in purposeul dialogue on key issues such as the pressing

talent crunch and the multiple opportunities presented by Asias

burgeoning middle afuent consumer segment. The continued

Music Matters, Asias only premier music conerence, combined a valuable platorm or networking between major music players with an explosive live music showcase o Asias emerging stars.

success o the Summit has enabled Singapore to lead the regional

dialogue and shape the regions growth together with key private

sector industry players.

The entrance o new liestyle-oriented conerences and events

such as Music Matters, Asias only premier music conerence,

underscored the countrys appeal as a fourishing business and

liestyle destination. Making the move to Singapore ater being

held in Hong Kong or ve years, the event brought major music

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players together to network, exchange ideas and get a preview

o some o Asias most promising stars during Music Matters

Live, the live showcase platorm at Clarke Quay. As an extension

to Music Matters, Digital Matters was created as an original

conerence to cater to the regions rapidly developing digital

entertainment landscape.

Leveraging the rich opportunities or entertainment in Asia, STB

also collaborated with South Korean entertainment conglomerate

CJ Entertainment & Media in November 2011 to stage the 13th

edition o the Mnet Asian Music Awards in Singapore or the

rst time, an initiative that saw the gathering o over 100 Asian

and international artistes, 1,200 industry veterans and close to

7,000 ans in Singapore pulsating to the uniying language o

Asian popular music. The presence o such conerences and

events cements Singapores reputation as a key platorm or the

celebration o Asian music and entertainment.

In tandem with Singapores rising position as a premier liestyle

hub, liestyle events have also begun to enhance the value o their

oerings. Art collectors were given a taste o Singapores potential

as a growing arts hub, with events such as the Singapore Biennale

Rising Korean pop acts TigerJK, Yoon Mi Rae and M.I.B brought the house down at Music Matters Live 2012; Tourism icon Merlion was transormed into a temporary hotel suite as part o the Singapore Biennale 2012.

eaturing contemporary works by 60 artists rom 30 countries.

As part o Singapore Biennale 2011, STB collaborated with the

Singapore Art Museum to invite infuential art collectors to attend

a specially curated VIP itinerary. This collector hosting programme

served as a platorm to garner interest in the countrys vibrant

arts scene and eventually anchor them in Singapore through arts

and other businesses. Highlights included an opportunity to stay

at the Merlion Hotel, a unique art installation cum ve-star hotel

suite designed by Japanese artist Tatzu Nishi that was temporarily

constructed around the iconic sculpture.

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Singapore really understands the MICE business. The country truly oers

some o the best acilities in the world and makes Meetings & Events its

core-business. There are not only rst class acilities like Resorts World

Sentosa, Marina Bay Sands, MaxAtria@SingExpo and soon the brandnew Suntec, but also many other unique venues like Gardens by the Bay,

Singapore Zoo, Singapore Arts Museum and the SportsHub, which oer

custom designed unction spaces to stage exceptional events.

I call Singapore the Madonna o the Destinations, as the country

re-invents itsel every ew years and oers an enhanced visitor experience

every time. The Singapore Tourism Board is a very strong partner or MCIand we will continue to work together to attract association and corporate

meetings to Singapore.

robin Loeman, pesient Asia paif & Ameias, cEO Institutional division,McI gou

MCI Singapore is the Regional Headquarters o MCI Group in Asia Pacic. MCI is a global thought leader that provides strategic consulting,

perormance and operational solutions to associations and companies. It has worked with STB to organise quality business events such

as the Million Dollar Roundtable, Asia Pacic Digestive Week and the Google JAPAC Sales Conerence.

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25,000 islans, yea-oun sunsine an alm azue

ates ae just some o te toial ams tat

an oel Souteast Asia into te net uisinlayoun. Ae to tis is te eions isaate

eoay, i is ome to a ivese ane o

attative estinations it a i taesty o

ultues all aitin to be isovee itin a sot

sailin istane.

CRUISING ONSOUTHEAST

ASIASHORIzONS

Favourably located at the crossroads o major international

maritime routes and home to excellent land, air and sea connectivity

to the world, Singapore is thus poised to tap into this emerging

market and play a pivotal role inthe regional development o this

burgeoning industry.

Already, Singapores own cruise market is showing signs o promise.

Passenger throughput and ship calls or 2011 were pegged at

The MBCCS will cater to more large cruise liners as Singapore becomes a premier cruise destination.

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942,000 cruise passengers and 394 ship calls respectively.

While the gures refected a decline in cruise throughput in

2011, the decrease was a result o the cessation o gaming ship

operations rather than a all in bona de cruise passengers. In

act, the cruise industry experienced an increase in sailings and

capacity by seasonally home-ported cruise ships in Singapore.

Cruise oerings in Southeast Asia have also been enhanced with

newer and bigger ships calling on Singapore; maiden calls rom

Aida CruisesAidadivaand Cunards Queen Elizabeth, and luxury

ships like the Orion Expedition Cruises Orion II, Seabourn Cruises

Seabourn Sojournand Silversea Cruises Silver Spirithighlighted

the international cruise industrys growing condence in the Asian

cruise market.

Critical groundwork has also been laid to boost Singapores eorts

to become a premier cruise destination. On 22 Dec 2011, SATS-

Creuers Cruise Services Pte Ltd, a joint venture between SATS

Ltd. (SATS) and Creuers del Port de Barcelona S.A. (Creuers),

was appointed as operator or Singapores newly built Marina

Bay Cruise Centre Singapore (MBCCS). The operator, whose

joint venture partners are well regarded or their considerable

experience in providing aviation gateway and cruise operations,

684

2002 2003

No. of Ship Cal ls Cru ise Throughput Linear Cruise Throughput

2004 2005 2006 2007 2008 2009 2010 2011

741

514

439

635

392

624

454

857

787

943

717

920

1,018

1,139

926

1,014

640

942

394

ShIp cALLS ANd crUISE ThrOUghpUT2002-2011

Source: Singapore Cruise Centre

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will be running MBCCS or a 10-year term. The MBCCS will

complement the Singapore Cruise Centre (SCC) at HarbourFront,

which garnered the Most Ecient Port Services and Best

Turnaround Port Operations awards at the Cruise Insights Awards

2011. The SCC has embarked on a S$14 million rejuvenation

programme. Together, both terminals will oer an enhanced

passenger experience and usher in an exciting era o cruise travel

to Singapore and her neighbours.

As a region, cruise tourism was given a strong boost when

ASEAN Tourism Ministers endorsed closer collaboration eorts

at the Fiteenth Meeting o ASEAN Tourism Ministers in Manado,

Indonesia, on 11 Jan 2012. At the orum, ASEANs Tourism

Ministers agreed to build on the regions cruise potential through

the creation o new itineraries and routes, joint marketing and

data collation. All these initiatives are expected to help catalyse

the growth o cruise tourism in the region.

Together with the Singapore Cruise Centre, MBCCS will oer an enhanced passenger experience and usher in an exciting era o cruise travel to

Singapore and her neighbours.

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Singapore oers Royal Caribbean International proximity to key Asian

destinations and source markets. Also, her modern cruise, land and air

inrastructure and iconic attractions enhance our airport transers, terminal

operations and shore excursions. Both the new Marina Bay Cruise Centreand the renovated Singapore Cruise Centre are valuable contributors

to Singapores regional cruise capacity. For all o these reasons, Royal

Caribbean International has established Singapore as one o its key

homeports in Asia. We are condent that with Singapores attributes

and our close partnership with STB, our ships will continue to operate

successully rom Singapore or many years. Aam golstein, pesient an cEO, royal caibbean Intenational (rcI)

Recognising the potential o the regional cruise industry, RCI has been expanding their business with the home porting o Voyager of the

Seasand Mariner of the Seas, Asias largest cruise ships, within the region.

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Even as Singapore tourism turns in an impressive perormance,

stakeholders have also been exploring ways to tackle internal

and external challenges such as limited resources, an uncertain

world economy and rising regional competition. To this end, a

productivity plan was mapped out or the hotel industry. The hotel

industry will look at increasing its core capabilities with initiatives

aimed at raising the value and appeal o hotel-related jobs,

improve service quality, and ensure continuous improvements to

ROADMAPS FORINDUSTRy

SUSTAINABILITy

sustain the industrys development in the long run. Engagement

processes with industry stakeholders and studies have also begun

to ormulate productivity roadmaps or the attractions and MICE

industries to identiy current challenges as well as best practices

and possible solutions to address issues on protability, manpower,

operations and service.

The Southern Ridges showcase the unique charm o Singapore as a city in a garden.

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understAnding ourVisitors BetterSinaoes status as a to tavel estination as been on te asenane in te ast tee yeas. But e annot ao to eston ou lauels. Te tavelles o toay ae ineasinly emanin an isenin in tei tastes an inteests. To ontinue to

attat visitos to ou soes, e nee to evelo an elive bette quality eeienes to ate to tei nees. To o tis ell,

e must no ou visitos bette, to elve eee to unestan at maes tem ti. In oin so, e oul also be able to

omulate ustomise maetin amains tat esonate ell it bot ne an etunin visitos.

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DIFFERENTIATEDMARkETING

CAMPAIGNS:STRENGTHENING

THE yOURSINGAPOREBRAND

Visito-entiity is ental to Sinaoesam. Builin on STBs estination banYSng, e ave set about esonalisinte Sinaoe eeiene to te nees o ouvisitos.

Integral to the success o this approach is nding new ways to

grow and sustain the countrys allure and relevance through the

anticipation o the various markets consumer needs. With this

goal in mind, dierentiated marketing campaigns were rolled

out in China, Australia and India, three o Singapores top ve

visitor markets.

This undertaking involved extensive in-market engagements with

consumers and trade that began in early 2011. The observations

and eedback that culminated rom these sessions have enabled

us to recognise and consolidate emerging travel trends that havehelped determine the thrust o our marketing eorts.

With greater importance being placed on quality-driven

experiences, travellers, particularly Free and Independent Travellers

(FITs), are seeking more empowerment in their travel decisions.

Understanding this trend has shaped the way STB has chosen its

partners, as well as the channels rom which to reach out to this

demographic. Keeping in mind Singapores ease in getting around

as the key ingredient to the growing popularity o Do-It-Yoursel

experiences with FITs, STB has moved away rom packaged tours

and are creating more suggested itineraries such as walking

tours and immersive activities to enable travellers to discover the

depth and breadth o Singapores oerings on their own. We have

also partnered with selected airlines, travel agencies, media and

digital channelsall o which gure strongly in this new travel

behaviourto reach out to our target audiences.

As part o their growing independence, travellers today are also

incorporating digital technology into their plans, whether it is

planning the itinerary, making a reservation, or sussing out the

trendiest clubs. Catering to these demands, STB has ocused

on connecting with its consumers via digital developments

such as personalised YourSingapore.com pages or individual

markets, increased social media engagement, and creative

online ad campaigns. A mobile app that enables visitors to tailor

their experience in Singapore via travel suggestions and special

promotions has also been developed to continue the customisation

o the Singapore Experience post-arrival.

These developments have set the scene or Singapores shit

rom a holiday destination to a liestyle destination. The insights

gleaned, coupled with STBs already extensive in-market

knowledge, have ormed the backbone or the Board and its

industry partners to develop resonant destination. It has alsoenabled STB to develop customised marketing campaigns that

speak directly to its consumers.

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New DiScoverieS

Chinas New Discoveriescampaign was launched on 7 December

2011 in Beijings edgy 798 art district with home grown celebrity

Steanie Sun, Singapores Tourism Ambassador or Greater

China. To engage increasingly sophisticated Chinese consumerswho crave more depth in their travel experiences, the campaign

highlighted Singapores dramatic transormation and the hidden

acets that could be discovered each time they visit. Beyond new

icons and tourist attractions, lesser known local and liestyle

oerings were highlighted to enhance the breadth and depth

o the Singapore experience. Along with this, a series o New

Discoveries itineraries were created in conjunction with three

major Chinese travel agencies, namely GZL International Travel

Service, CYTS and Ctrip. In addition to pre-arranged fight and

accommodation options, these ree-and-easy packages comewith dining, culture and retail recommendations that allow Chinese

travellers to personalise their holiday in Singapore. The campaign

also cultivated local Chinese advocates and reached out to the

tech-savvy crowd through Chinese-centric social media platorms

such as Sina Weibo, Doubanand Renren.

STBs New Discoveries campaign or China was launched by Singapores Tourism Ambassador or Greater China and home-grown celebrity

Steanie Sun; Social bloggers were invited to China and blog about their Singapore Experience to the Chinese audience.

Beyond new iconsand tourist attractions,lesser known local andliestyle oerings werehighlighted to enhancethe breadth and depth

o the SingaporeExperience.

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Get LoSt aND FiND the reaL SiNGapore

Next to launch was the Australian campaign, whose message GetLost and Find the Real Singapore aimed to change Australians

entrenched and outdated perceptions o the city as a mere

stopover destination. Launched on 8 March 2012, the campaign

kicked o in Sydney, Melbourne and Perth with cinema ads lmed

in a tongue-in-cheek manner to spark multiple conversations

about the city as a leisure destination. Appealing to Australians

sense o humour, the ads cheeky use o the colloquialismGet Lost showcased Singapores lesser known side, inviting

Australians to discover how the citys concentration o eclectic

oerings and convenience resonates with their own ree-and-easy

style o travel. The campaign will be urther sustained by digital,

public relations, and social media activities in the coming months,

with each platorm promoting a rereshing alternative aspect o

Singapore to challenge the stereotypes many Australians currentlyhold o the destination.

A lie-sized maze was erected in Melbourne to give Australians a chance to get lost and discover Singapores diverse and eclectic oerings.

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SiNGapore - the hoLiDaY You take home

with You

Indias marketing campaign Singapore - The Holiday You Take

Home with You kicked o on 20 March 2012 in Bangalore,

Chennai, Mumbai and New Delhi. The campaign recognises the

Indian travellers shit in preerence, rom taking unctional trips

that include visits to typical places o interest to holidays that

oer enriching experiences, allowing them to acquire new skills

and knowledge while connecting with loved ones. It invites Indian

holidaymakers to come and experience Singapores richness as a

sophisticated, dynamic liestyle destination under our enriching

itineraries:Active Lifestyle, Family Fun, Romanceand Culinary.

The campaign also aims to capture Indias growing group o

FITs, who are known to curate their own itineraries based on

Internet research. To this end, the campaign takes on a digital

thrust with online and mobile advertising, a dedicated Indialanding page on the YourSingaporedestination website, and social

media engagement which includes a Facebook quiz. STB has

also entered into strategic collaborations with specialised travel

partners Thomas Cook and Mercury Travels in India to co-create

and promote itineraries and travel experiences.

The campaign continues to build on the recognition accorded to

Singapore and STB; CNBC Awaaz Awards were given to Singapore

or Best International destination and STB or Best International

Tourism Board, while readers o Travel + Leisure, India & South

Asiaand Lonely Planet Indiavoted the country as Best City in theWorld, and Best Family Destination respectively. The campaign also aims to capture Indias growinggroup o FITs, who are known to curate their own

itineraries based on Internet research.

Romance and amily are two aspects that STB has ocused on or its Indian campaign.

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Singapores tourism is vibrant, with attractive and compelling oerings

that continue to draw many visitors rom around the world. GZLs

partnership with STB has seen us take on a consumer-oriented approach

to understand Chinese visitors needs on a more in-depth level, andpromote tailored experiences that appeal to them. We have received

avourable response or the exciting content and packages we have co-

created with STB, and have ound that the Chinese visitors love Singapore

very much and want to keep coming back to enjoy the diverse new

discoveries that can be ound in the destination.

huan weize, Vie geneal Manae, gZL Outboun deatmentGZL is STBs partner or Chinas marketing campaign to reach out to the growing semi-FIT and FITs in Guangdong. The multi-level

partnership saw the co-development o relevant content and experiences, sta training, product updates and media buys to enhance brand

awareness. These eorts have resulted in the visitors deepened understanding o Singapores value proposition and new discoveries. GZL

has been ranked the top outbound travel agency (by revenue) in 2011 by the National Tourism Administration o China.

S G O O S O O /

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A bette unestanin o ou maets as also

enable STB to sae eistin oeins to elive

es eeienes an attative ootunities to an

eve-anin onsume lansae.

Back or the ourth year rom 23 to 25 September 2011,

The Formula One SingTel Singapore Grand Prix kept race

enthusiasts glued to the edge o their seats as the worlds best

race drivers skilully negotiated the circuits twists and turns or

top placing. More excitement came in the orm o a dazzling line-

LIVING LOUDERTHAN LIFE

AGAIN

up o music acts and high-octane parties. O-track, coinciding

with Superclub Avalons grand opening during the race season,

dance music extravaganza Avalon at Large returned even bigger in

2011. The two-day estival saw headliners such as Benny Benassi

and Massive Attack, while popular acts LMFAO and The BloodyBeetroots kept the race ever burning.

Conceived as STBs marketing eorts to highlight the liestyle

dimension o the Formula One race, the Grand Prix Singapore

Season (GPSS) imbued the theme o Live Louder than Life or

The Formula One SingTel Singapore Grand Prix returned with a thrilling night race and a jam-packed Grand Prix Singapore Season line-up.


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2011. Building on the previous years results, STB ocused its in-

market activation initiatives in Thailand, Malaysia and Indonesia

countries that made up the majority o the events ticket sales.

The Thais, in particular, got to experience rst-hand how

Singaporeans partied with the organisation o a GPSS-themedparty in Bangkok. Co-created by STB Thailand and Thai-based

event organiser LUSH/Bless Entertainment as part o GPSS

2011s pre-arrival marketing eorts, the party sought to increase

awareness o GPSS 2011 among the citys afuent residents and

drive attendance to the race itsel. Held on the helipad o Imperial

Queens Park Hotel, the party saw a turnout o 300 guests, including

65 media or the VIP event, and 2,300 people or the public party.

In Indonesia, the Grand Prix Party Blaster, an interactive online

game that drummed up awareness and excitement or the party

season, also saw overwhelming response rom music ans.

GPSS 2011s dance acts saw overwhelming response rom music ans around the region.


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On te business ont, te seon Asia Fasion

Eane (AFx), el om 11 22 May 2011,

ontinue to o in stent aoss its ou ano

events: Aui Fasion Festival, Blueint, Asia Fasion

Summit an Sta ceation. Tis initiative jointly

iven by STB, IE Sinaoe an SprINg Sinaoe

ovies a olisti latom o esines, buyes,onsumes an inusty oessionals to ta into

Asias bueonin ootunities.

Collaborations with private sector players Mercury Marketing

& Communications and the Textile and Fashion Federation

(TaF) Singapore resulted in a pipeline o original Asia-centric

content with an international appeal, enhancing AFXs prole as

Singapores premier ashion event since its inaugural launch in

2010. STB oces in Philippines, Thailand, South Korea, Japan,

and Vietnam were also roped in to increase the awareness o AFXand its events, particularly that o Audi Star Creation, a ashion

design competition organised by TaF to discover Asian talent; and

ASIAS FASHIONCAPITAL EARNS

STREET CRED

Blueprint, a one-stop ashion trade show created to present rising

international and Asian designers.

For AFX 2011, STB HQ worked with STB Thailand and TaF to

organise a trip to Bangkok to share more about Audi Star Creation

with the citys top ashion design schools. Bangkok was chosen

or its thriving ashion industry and the strong anity that Thais

have or ashion. The direct engagements with these schools

contributed to the signicant increase in participation o Thais in

the event rom two in 2010 to 24 in 2011.

In the lead-up to AFX 2012, STB Philippines leveraged the

countrys growing pool o design talent and used media and

partnerships with top design institutes to entrench Singapores

status as a ashion capital. A showcase platorm was also held

in Bangkok, while direct engagements with ashion institutes in

Tokyo, Seoul and Ho Chi Minh City provided aspiring regionaldesigners with the opportunity to appreciate the potential o

Singapore as a launch pad into the world o ashion.

The Asia Fashion Exchange has grown rom strength to strength, with its pipeline o original Asian-centric content amassing international appeal.


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wen it omes to ientiyin onsume tens,no one is moe attune to onsumes seninattens an tei evolvin nees tan tetouism inusty itsel.

Understanding the importance o staying a ew steps ahead o

their target audiences, our stakeholders have begun investing

considerable eort into the rebranding and expansion o current

oerings to keep products updated and in demand.

In response to changing customer demographics and their evolved

needs, local hotel groups have also seized market opportunities

and began branching out with new hotel portolios. Brands such

as Far East Hospitalitys Oasia, Fragrance Groups Parc Sovereign

and United Engineers Park Avenue have been created to cater to

the broader global climate, while international hotel chains such

as Marriott, Inter-Continental and Pan Pacic are also renovatingto reresh and upkeep their properties. Together, the new and

reurbished hospitality oerings are expected to cater to the

sectors growing demand or dierentiated experiences.

Local fagship events are also staying relevant through

rejuvenation. BroadcastAsia2011 and CommunicAsia2011

saw a combined number o 56,000 attendees and close to

2,000 exhibitors. Both shows have continued to remain relevant

ater about 20 years through continuous and careul content

curation. BroadcastAsia2011 launched a new Cinematography/

Film/Production Zone showcasing cutting edge 3D, HD andproduction technology that maximises production eciency, while

CommunicAsia2011s programming saw increased interest rom

rst-time exhibitors like Zynga and 3M Touch Systems.

MEETINGEVOLVING

DEMANDS

Hotels such as Oasia have helped to expand the range o hospitality

oerings in Singapore.


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The Singapore Airshow 2012, Asias largest and one o three

key aerospace and deense exhibitions in the world, recorded

its largest turnout ever. The third edition o this premiere aviationevent recorded US $31 billion in deals, a threeold increase over

the total value o deals in 2010. In addition to the existing China

and India orums, the inaugural Southeast Asia Business Forum

addressed evolving industry needs by giving companies insights

into the opportunities arising rom key growth markets.

As a home-grown event that has carved a name or itsel in the

international design scene, The International Furniture Fair Show

(IFFS) continues to grow as a quality marketplace platorm orinternational buyers, manuacturers, designers and architects to

meet. IFFS 2012 saw an increase o spot orders rom US$289

million in 2011 to US$303 million in 2012. The Hospitality.Design.

Furniture CONVERGE ASIA 2012 conerence was created in

response to the demand or a single knowledge-based platorm

IFFS 2012 saw anincrease o spot orders

rom US$289 millionin 2011 to US$303

million in 2012.

Homegrown events such as The International Furniture Fair Show have created invaluable platorms or interested buyers to network and share

the latest trends.


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or the complementing industries to exchange ideas and share

insights. IFFS emphasis on quality and innovation continuing to

draw interest rom new markets such as Lithuania, reinorcing the

event as Asias premier, design-led urniture sourcing platorm.

Fiteen years o showcasing some o the worlds most exquisite

culinary creations have made the World Gourmet Summit (WGS)

one o the regions leading ne-dining estivals. Alongside growing

the citys reputation as a ood paradise, WGS has also contributed

to Singaporeans increasing discernment when it comes to all

things gourmet. Hence, it was a timely opportunity or WGS to

evolve rom an annual estival into a year-long programme that

develops and recognises local and regional F&B talents and more

importantly, sustain the interest o culinary enthusiasts. With the

support o STB, WGS was transormed into the World GourmetSeries comprising the Awards o Excellence in addition to the

World Gourmet Summit. The revamped WGS has been positively

received; the 2011 Asian Gastronomic Awards o Excellence

presented 23 Singapore awards, our regional awards, nine

experiential scholarships and two education scholarships. Eight

...WGS has alsocontributed toSingaporeansincreasingdiscernment whenit comes to allthings gourmet.

Showcasing the best in the international ne-dining scene, the World Gourmet Summit has helped to grow Singapores reputation as a ood paradise.


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awards were also presented by the Singapore Workorce Skills

Qualication at the event. The summit itsel was attended by

9,327 guests, with average spending increasing by more than 15

per cent as compared to 2010.

Private medical group Rafes is also re-engineering patientexperiences as part o its overall strategy to become an integrated

patient-centric hospital. Regarded as a medical rst in Singapore,

Rafes completed its design or a prototype ward in March 2012,

created specically to cater to the needs o Middle Eastern

patients. When launched, the ward will enable the medical group

to gain a competitive advantage over regional competition when

proling its acilities to Middle Easterners. Such initiatives will not

only create quality experiences or international patients, but also

enhance the overall service standards and patient satisaction

o Singapores healthcare industry. This visitor-centric approach

is integral to the shit towards quality tourism, and is a positivestep towards establishing Singapores reputation as a quality

healthcare destination.

Having a ward that specically caters to Middle Eastern tastes is one way medical group Rafes is looking to gain a competitive advantage over

regional competition.

Such initiativeswill not only createquality experiences

or internationalpatients, but also

enhance the overall

service standards andpatient satisaction oSingapores healthcare

industry.


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Te tavelle o te utue is an ineenent,

noleeable an soistiate one. gettin tis

emoai to sit u an tae notie equies

eative, besoe onets as ell as best aties

an intellient business moels to ee tem

enae an omin ba.

In line with the development o a orward-looking, sustainable

Singaporean hospitality sector, STB organised the inaugural

Hospitality Business Forum in New York as a platorm or local and

US boutique hoteliers to share business practices and experiences.

The orum was presided over by US hoteliers Thompson Hotels,

(Crosby) Firmdale Hotels, The Greenwich Hotel, ACE Hotel Group

and Gansevoort Hotel Group, alongside Singaporean delegates

rom Santa Grand

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