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CAG, STB join hands to boost visitor numbers

SINGAPORE — Amid dwindling international air traffic and increased competition from regional airports, Changi Airport Group (CAG) and the Singapore Tourism Board (STB) yesterday announced a joint investment of S$35 million over two years in a marketing blitz to boost visitor numbers to the Republic.

Changi Airport has to rise to the challenge of a highly competitive tourism landscape, said CAG chief executive officer Lee Seow Hiang. Photo: REUTERS

Changi Airport has to rise to the challenge of a highly competitive tourism landscape, said CAG chief executive officer Lee Seow Hiang. Photo: REUTERS

SINGAPORE — Amid dwindling international air traffic and increased competition from regional airports, Changi Airport Group (CAG) and the Singapore Tourism Board (STB) yesterday announced a joint investment of S$35 million over two years in a marketing blitz to boost visitor numbers to the Republic.

The collaboration is the largest strategic partnership between CAG and the STB to date and comes against the backdrop of a challenging market environment, the two organisations said in a joint press release.

TODAY understands that CAG and the STB will contribute an equal amount towards the investment, which will be used for marketing campaigns aimed at enhancing global perceptions of Singapore and Changi Airport as “destinations in their own right and thereby driving tourist traffic to and beyond Singapore”.

A key initiative is to showcase local brands and cultures in all the terminals to inject “more local flavour” at the airport. “Together with the amenities and facilities currently offered, these displays would make Changi Airport a must-see attraction in itself in Singapore,” the joint statement said. Singapore Airlines will also be roped in as a partner in the marketing blitz.

UOB Kay Hian aviation analyst K Ajith noted that Thailand’s Suvarnabhumi and Don Muang airports as well as the Kuala Lumpur International Airport are increasingly more cost effective for airlines serving the region, despite CAG’s move last year to set aside S$100 million for discounts on aircraft parking and aerobridge charges.

In February, STB’s estimates showed a 3.1 per cent decline in tourist volume of 15.1 million, dragged down by a sharp fall in the number of Chinese holidaymakers. Those who came, however, spent more, with receipts remaining the same as in 2013, at S$23.5 billion.

Recent aviation disasters, such as the disappearance of Malaysia Airlines Flight MH370 last March and the Chinese authorities’ curbs on low-cost shopping tours starting from October 2013, were cited by experts as reasons for the softer numbers.

On the latest joint investment, Mr Brendan Sobie, chief analyst at the Centre for Asia Pacific Aviation, said it indicated that CAG and the STB were aware of the slowdown. “The impact of airlines rationalising capacity in the region is also evident,” he said.

In 2013, the Government announced plans to build a fifth terminal, even before the completion of a fourth one. Then, Transport Minister Lui Tuck Yew said Changi Airport had to respond to fundamental shifts in the global aviation landscape to cement its status as a leading air hub.

Last year, the airport managed a record 54.1 million passengers. Flights from Indonesia accounted for the most number of passengers: 7.5 million. The next highest number of passengers came from flights originating from Malaysia, Australia, Thailand and China.

The STB and CAG are targeting an annual growth in visitor arrivals of 3 to 4 per cent over the next decade. CAG chief executive officer Lee Seow Hiang reiterated that Singapore and Changi Airport have to rise to the challenge of a highly competitive tourism landscape. The STB-CAG partnership will enable the organisations to pool their resources and enhance their joint marketing programmes to better capture greater mindshare among tourists to this region, he said.

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