THE SINGAPORE CRUISE INDUSTRY : A REVIEW OF ITS PERFORMANCE

Abstract

The analysis of the Cruise Industry in Singapore is the focus of this study. As the industry is relatively a new one, much of the data, especially recent ones are still considered confidential by the Port of Singapore Authority (PSA) and the Singapore Tourist Promotion Board (STPB) and are thus not available to the public and to the research for this study. According to futurologist John Naisbitt, the author of Megatrends 2000 and Global Paradox, three "paradigm industries" will drive the service-led economies of the 21st Century - Telecommunications, Information Technology and Travel and Tourism (which encompasses the Cruise Industry). In the latest World Travel and Tourism Council (WTTC 19966) report, Singapore Travel and Tourism: Millennium Vision, it shows that the industry is a true economic driver in Singapore, where it is expected to generate 12.0% of gross domestic product and 9 .5% of employment in 1996. The outlook for the next decade is equally strong with the industry expected to grow 5.5% in size (real terms) to S$41.8 billion (nominal) of gross output. Also by 2006, Singapore Travel and Tourism is expected to add 41,000 jobs to total 9.9% of total employment. Hence, the importance of the Travel and Tourism industry is indeed significant for Singapore. The objective of this study is to analyse the economic contribution and development of a key component in this industry, namely the Cruise Industry, and attempt to answer the question of whether this industry is important or significant enough to warrant further investment and development in Singapore. Furthermore, it is also important to examine whether the industry will be able to sustain its growth or will fizzle out in the future. This study is divided into 5 chapters, Chapter 1 starts off with an Introduction and Data Limitation. Chapter 2 deals with the Development of Singapore's Cruise Industry. Chapter 3 looks at the Regionalisation - Comparative Advantage and Obstacles for Singapore as a Cruising Centre. Chapter 4 reveals the Contribution and Importance of the Cruise Industry. Finally, Chapter 5 concludes with an Outlook to 2005 and Conclusion.