Haze seen dealing Singapore tourism sector fresh blow

Singapore

THE haze, returning just when the Singapore Formula One (F1) Grand Prix is about to begin, could prove to be an added damper to the tourism industry in a year already hit by softening visitor arrivals.

Overall visitor arrivals slipped some 3 per cent year on year to 7.26 million for the first six months of this year, going by preliminary data from the Singapore Tourism Board (STB).

Executive director of CBRE Hotels (Asia-Pacific) Robert McIntosh put this down to the strong Singapore dollar, the slowing GDP growth and austerity measures imposed in China, Singapore's second biggest source market. He said that ultimately, the magnitude of the impact on the tourism industry will depend on how long the haze lasts; it could hit the number of tourist arrivals if the haze is protracted.

However, he added that he did not think too many tourists will eschew the city-state unless they have health problems.

"It's a transient issue," he said, citing Hong Kong as another often smog-shrouded city.

With the Singapore dollar strengthening against the Malaysian ringgit, arrivals from Malaysia came down 5 per cent in the first half.

Similarly, arrivals from Indonesia, Singapore's biggest source market for tourists, slumped nearly 14 per cent.

Arrivals from China were up nearly 9 per cent in the same period, possibly due to low base effects in H114, when travel to South-east Asia out of the populous nation plummeted in the wake of the disappearance of Malaysia Airlines' flight MH370.

For Singapore's hotels, industry-wide room rates softened nearly 6 per cent in H115 to S$244. A one percentage point dip in occupancy also contributed to a 7 per cent drop in revenue per available room (RevPAR) to S$203. RevPAR was down across all four hotel categories in the first half of the year, with economy hotels suffering the biggest decline of 7.7 per cent.

Still, Mr McIntosh expressed hope that the second half will be better for tourism, noting that the rate of decline was slower than it was previously.

Oliver Chong, STB executive director for communications, said: "It is premature to determine the extent of the impact of the haze at this juncture. Nonetheless, the STB is monitoring the situation."

He added that tourists have been advised to exercise caution, given the current weather conditions, and to opt for the indoor tourism activities listed on its "Your Singapore" website.

Meanwhile, the race organiser for one of the year's marquee sports events, the Singapore Grand Prix (SGP), has stressed that the haze is already factored into the contingency plan drawn up by stakeholders, government bodies and the F1 community.

An SGP spokeswoman said: "In the event that the haze causes visibility, public health or operational issues, SGP will work closely with the relevant agencies before making any collective decisions regarding the event."

A number of weekend outdoor events were either postponed or shelved because of the haze; these included the Singapore Cancer Society run and POSB PAssion Run For Kids.

But the SGP has been billed as a rain or shine event; presumably it will go on even amid the haze. The weekend's programme features a number of outdoor entertainment acts on the sidelines of the race, including roving artistes and concerts by international stars such as rock band Bon Jovi and pop group Maroon 5. Deteriorating air quality could make the outdoor activities decidedly less enjoyable for the more than 85,000 spectators that usually throng the Singapore Grand Prix over the race weekend.

Adverse weather conditions aren't exactly unheard of in Grand Prix season. The smog at Shanghai's Grand Prix is a prime example.

Separately, SGP released tickets for the 2016 Singapore Grand Prix (Sept 16 to 18), slightly earlier than usual, with rates for certain ticket categories going at up to 30 per cent cheaper, as a sweetener.

With roughly 40 per cent of the spectators for the Singapore Grand Prix traditionally hailing from overseas, the weekend is typically a bonanza for hoteliers. Hotels such as the Royal Plaza on Scotts and The Four Seasons are expecting to be full house this race weekend.

General manager of the Royal Plaza on Scotts Patrick Fiat said it has yet to receive queries from guests concerned about the haze, but added it could have an impact on tourism if the situation persists or worsens.

"The haze condition will deter visitors as it poses health hazards. Leisure travellers who are here to visit the iconic places of interest will be disappointed as well," he said.

Where its staff are concerned, the Royal Plaza on Scotts is making an effort to adjust work schedules to minimise exposure for its employees who are required to work outdoors. N95 and surgical masks are also being handed out to those who have to work outdoors for long hours.

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