A strong currency and rising competition from other destinations are making business a little tougher for Singapore MICE players, writes Paige Lee Pei Qi
Singapore offers a conducive
environment for business and
corporate gatherings
Corporate travellers are spending less, according to the latest preliminary estimates by the Singapore Tourism Board (STB), which revealed a decline of six per cent between January and September last year, compared to the same period in 2012.
STB’s CEO, Lionel Yeo, said: “In 2013, we saw that corporate budget was tightened for business travel, (a result of) cyclical factors related to economic uncertainty. What is heartening is that business travellers are still coming to Singapore, it is just that they are spending less.”
Nevertheless, the business travel and MICE sectors continue to be a key contributor of Singapore’s tourism receipts. In 2012, the number of business visitors rose to 3.4 million, from 3.2 million in 2011. Expenditure by these visitors grew 2.3 per cent to an estimated S$5.7 billion (US$4.5 billion).
From January to September 2013, business travel and MICE visitor arrivals stood at 2.6 million, a six per cent year-on-year growth, while expenditure fell six per cent year-on-year to an estimated S$4.1 billion.
Yvonne Low, executive director of The Traveller DMC, told TTGmice that her company saw a 15 per cent year-on-year decline in MICE business last year.
Low said: “Our market from India dropped significantly because of the weakening rupee, which makes it even more expensive to come to Singapore.
“With Singapore’s (consistently strong) currency, the purchasing power of the Indians becomes a lot lower and it makes our destination less attractive even for high-end clients.”
Likewise, Tour East’s group vice president of sales and marketing, Judy Lum, said “substantial growth” evaded her company in 2013.
“Budget is critical to the selection process of a destination, especially for the MICE segment,” Lum said. “Any softening of hotel rates will help a destination look more attractive price wise.”
According to Elinda Ong, director of sales, Grand Park City Hall, the emergence of more mid-scale hotels in the market has helped made “rates and product offerings become more competitive among the hotels”.
Ong remains optimistic about the future and expects business from the MICE sector to grow three-fold this year.
Although the Raffles City Convention Centre played host to an increased number of events last year, Ng Sok Hia, executive assistant manager, sales and marketing, Fairmont Singapore and Swissôtel The Stamford, warned that Singapore is facing rising competition from neighbouring countries.
“Despite offering a conducive environment supported by our strategic location in Asia, Singapore is challenged by equally developed cities such as Macau, Hong Kong, Bangkok and Kuala Lumpur for MICE events,” Ng said.
To strengthen Singapore’s business value proposition, STB rolled out a new set of sustainability guidelines last November.
STB executive director for business tourism development, Chew Tiong Heng, said: “With corporate clients and delegates becoming increasingly concerned about the environment, business event organisers and meeting planners are turning to destinations and venues with strong sustainability policies in place.
“Green initiatives are therefore gaining traction among MICE event organisers, who recognise that such endeavours significantly enhance the overall visitor experience.”
Life’s a (South) Beach
In Singapore, where ‘MBS vs Suntec’ is something of a sport for MICE observers, it is one goal for Suntec Singapore Convention & Exhibition Centre and nil for Marina Bay Sands (MBS) as South Beach Development gets ready for its soft-opening in the first quarter of 2015.
The mixed use project, which ropes in designers such as Norman Foster and Philippe Starck, believes it will add a new shine to the Suntec Singapore and Raffles City convention area. South Beach is located in front of Raffles Hotel on the Beach Road side and will be connected directly to Suntec Singapore on the Nicoll Highway side via an overhead bridge.
“Before MBS opened, this was the only MICE hub, with hotels within the vicinity of Suntec benefiting from conferences held at the convention centre,” said Aloysius Lee, CEO, South Beach Consortium.
He added: “With a working agreement on the bridge that links our hotel to the convention centre, we will naturally work closely with Suntec. We will encourage our corporate guests to hold their meetings there while we also believe we will benefit when Suntec secures events, as our hotel is directly connected to it.”
Suntec’s CEO, Arun Madhok, said Suntec is looking forward to future collaboration with South Beach.
“I’m confident that this development will add to the vibrance of the area and enhance the experience for all visitors,” he said.
South Beach, developed by City Developments Limited Singapore and IOI Corporation Berhad, comprises over 46,000m² of Grade A office space; 190 residential units; a 654-room hotel designed by Philippe Starck; a retail concept; and a private membership club.
Currently, the hotel is called The South Beach. A decision has yet to be made on a third-party management, franchise or marketing representation.
Beach Road once was a tranquil seaside. Massive land reclamation saw the setting up of Beach Road Camp on the South Beach site, comprising three army blocks serving as headquarters for homegrown military forces, along with an ‘NCO’ club with its famous Olympic size swimming pool for army, naval and air force officers. The three blocks and the club are being conserved to maintain the heritage of the location.
For example, one of the three bars at the hotel will be a ‘Court Martial Bar’, conserved from the actual Court Martial room where National Service men were martialed even for little offences such as losing their registration passes.
With 654 rooms, MICE will be a big part of the revenue-generation strategy. MICE facilities include a ballroom which seats around 500 pax for a banquet and 350 pax for cocktails.
For F&B, the hotel will offer an all-day dining establishment while the development is also signing up a “stylish, contemporary experience that combines shopping and dining in a space of 30,000 square feet (2,787m²)”.
Added Lee: “Planners can do incentives here and we’re working closely with Suntec to have a fair share of convention delegates. I believe we have the best access to Suntec – from the hotel, just a walk across Nicoll Highway through an overland bridge and you’re already at the convention hall.
“We’re creating a new product, probably the first in Asia that offers this kind of a lifestyle choice. With high occupancies in Singapore, we are a serious choice for all segments, be it MICE, bleasure, leisure, etc. Most new hotels that are opening are smaller in roomcount. We have 650 rooms.”
As for rates, Lee would only say: “The current rates of hotels in the neighbourhood are around S$400 (US$317) to S$500.” – Raini Hamdi
How I did Responsible Business Forum 2013
Held at Marina Bay Sands (MBS), the Responsible Business Forum (RBF) 2013 was a two-day forum which saw more than 500 business leaders, NGOs and policy makers from South-east Asia in attendance.
For this event, MBS played a big role in championing sustainable event planning along with the organisers. To ensure RBF meets its green standards and goal of creating a 100 per cent carbon-offset event, MBS ensured aspects such as the event setup, menu planning and waste management allowed delegates to give back to the community.
For instance, MBS used advanced movement sensors that are integrated with the building management system to control lighting when no one is in the room. The property also provided its Sands ECO360° standards in meeting rooms, which meant no pre-setting of paper, mints and water at tables. Water dispensers and glasses were provided instead.
A customised vegetarian Harvest Menu was also provided too. Fresh produce and ingredients on the Harvest Menu were sourced locally and from nearby markets in Indonesia, Thailand and Malaysia to minimise the carbon footprint of food imports. To reduce food wastage, there were no pre-served beverages during food service and most condiments were served in bulk.
Delegates were also invited to participate in MBS’ Soap for Hope, a programme which collects leftover shampoo and soap from hotel rooms. Soap for Hope stations were set up at the event and collections were distributed to Food from the Heart, a charity organisation. Unconsumed bread from the forum were also donated to the organisation.
Need to know
Eat well, meet well
A fine way to rejuvenate the minds and spirits of meeting attendees is to take them out for a healthy and refreshing meal in soothing environs.
Debunking the myth that healthy cuisine is bland and boring, Tangerine at ESPA, Resorts World Sentosa takes the best from Asian and Western cuisines and creates a tasty and nutritious menu that will delight even the fussiest of diners. Celebrity chefs Sam Leong and Forest Leong join forces with a resident nutritionist to deliver highlights such as Cured Atlantic Salmon with Granny Smith Apple and Celery Juice, and a low-calorie Aloe Vera, Rosella Gelo and Calamansi dessert.
Set amid a serene and lush landscape, Tangerine has been a hit with corporate groups and had recently hosted a 24-pax dinner event and two 27-pax company gatherings. Contact dining@rwsentosa.com for reservations.
Flavourful history
One of Singapore’s iconic heritage sites, the Clifford Pier, can now be enjoyed over a meal.
The brand new 272-seat, all-day dining restaurant, The Clifford Pier, pays homage to Singapore’s hawker food culture through local favourites such as Soup Kambing (a traditional spiced mutton soup), laksa and Teochew porridge.
Located at the foot of the Fullerton Bay Hotel, the historical venue has been carefully restored and enhanced to evoke a sense of nostalgia.
Email cliffordpier@fullertonbayhotel.com for more information.
Eye-popping dining surprise
A fine-dining pop-up restaurant will set up shop in Singapore’s historic Tanjong Pagar Railway Station this month. Mooted by My Private Chef, a company that specialises in bespoke dining experiences, the first chapter of Stories: A Pop Up Restaurant will be held from June 26 to 29. Tickets are priced from S$188 (US$150) to S$248 and available on www.myprivatechef.com.sg.
A different celebrity chef and location will be featured for each chapter.
Wings of Time soars right in
Sentosa’s popular Songs of the Sea night show has ended its seven-year run, making way for a new multimedia performance come June 17.
Called the Wings of Time, the show is set at the same outdoor theatre against a new 10m tall backdrop. Produced by events company ECA2, Wings of Time promises an array of multimedia effects including new robotic fountains, 3D video mapping and enhanced pyrotechnic effects, coupled with a live cast and audience engagement.
Wings of Time will be performed daily with shows at 19.40 and 20.40, each with a running time of 25 minutes at Siloso Beach. Premium seats are available at S$23 (US$18) per person, while standard seats are at S$18.
A Cuban celebration in Capella Singapore
Hot Havana nights are now a reality every day at Bob’s Bar in Capella Singapore. Meticulous research has been made to recreate an authentically glamorous Cuban-inspired bar through lively music, quality libations – with an emphasis on rum-based cocktails – and food, and exquisite glassware. Come Wednesday, Thursday and Friday, local jazz maestro Jeremy Monteiro and his band, Latin Jazz Trio, will fire up the night with the passionate beats of Latin Jazz from 19.00.
For reservations, call (65) 6591-5047.
