Singapore may be small, but it is punching well above its weight in terms of tourism and air service development.

The fortunes of this tiny island nation have always been closely linked to its position as a strategic crossroads between Asia and the rest of the world and now, more than ever, its many air connections to Europe, China, the Far East and Australasia are seen as crucial to encouraging tourism growth. 

“The development of new airline routes is important for Singapore’s tourism sector as it will further entrench our position as a preferred regional air and travel hub with strong global connectivity,” says Oliver Chong, director of communications for the Singapore Tourism Board (STB).

As a major proponent of Open Skies agreements and a keen supporter of the growth of low-cost carriers, Singapore, and by extension Changi Airport, is well placed to derive benefits from the Asia-Pacific region’s strong growth and increasing propensity to fly, says Chong, while the country’s focus on sustainable tourism, which is based on real value creation, complements its appeal.

Singapore’s tourism sector has responded well despite the tough economic times. It welcomed 9.7 million visitors in 2009, and 11.6 million in 2010. These travellers generated revenues of $10.6 billion for the economy in 2009 and a record $15.5 billion last year.

This year, the STB is predicting tourism revenues will break records again, to hit between $18.2 and $20 billion. In Q1 2011 results were very encouraging, showing a dramatic 35.7% increase to $4.1 billion, compared with a year ago.

Singapore’s top markets include Indonesia, China, Malaysia, Australia, India, Philippines, Japan and Thailand, with Europe and the US also significant.

So what has gone so well? According to Chong, Singapore’s myriad offerings of dining, shopping, entertainment and unique attractions are proving very appealing.

“Our busy annual calendar of activities includes highly anticipated international events such as Asia Fashion Exchange, Formula One’s only night race, the Great Singapore Sale and the World Gourmet Summit. Furthermore, the cosmopolitan make-up of our inhabitants is a riveting mix that dishes out tempting local cuisine, ethnic celebrations and cultural festivals aplenty,” he enthuses.

New attractions like the Singapore Flyer observation wheel and the famous Marina Bay Sands hotel and casino complex have generated global interest. The latter – a spectacular building which looks like an ironing board from afar and boasts a dramatic infinity pool on the roof – has been photographed, filmed and written about in the media worldwide. 

The first phase of the upcoming Gardens by the Bay, a vast 101 hectares of botanical gardens stretching through Singapore’s civic district, is due to be completed in June 2012.

“The Marina Bay precinct is Singapore’s latest and most ambitious urban project to date. Located by the Singapore River, the development has enhanced Singapore’s signature skyline with iconic attractions such as our integrated resort: Marina Bay Sands; the Arts Science Museum; the Esplanade; as well as the Fullerton Heritage complex – an all-in-one fine dining, entertainment and upscale shopping destination comprising buildings such as The Fullerton Waterboat House, Clifford Pier, Customs House and the Fullerton Bay Hotel,” Chong explains. 

So where do the country’s airlines and airports fit in? According to Chong, Singapore’s tourism authorities work closely with them to create ‘win-win’ partnerships that leverage each partner’s strengths – Singapore Airlines (SIA) is a good example.

“This is exemplified by the partnership between the STB and Singapore Airlines to create a mobile phone application to enhance the experience of tourists in Singapore. Passengers travelling on SIA are able to make use of this app to locate boarding pass privileges while in Singapore, making their visit even more enjoyable,” Chong explains.

Singapore Airlines, famously the first carrier to deploy the A380, has been one of the country’s great success stories. With a fleet of 106 aircraft serving 63 destinations, Singapore carries an average of more than 18 million people annually.

Thanks to SIA and Singapore’s strategic location, visitors from all over Asia can reach the country simply and, more often than not due to Changi’s mature route network, directly. 

Changi Airport – Singapore’s main international gateway – has been a key player in this success and the gateway has grown at a phenomenal rate over the last 30 years. The facility served 35 airlines operating 1,400 weekly flights on opening in 1981. Fast-forward to today and that figure has mushroomed to 100 airlines and 5,800 weekly flights to 200 cities in 60 countries.

“The progress Changi has made in the last three decades is the result of the steadfast support and partnership of our airline partners, who have helped Changi brave storms and overcome challenges,” Lim Ching Kiat, Changi Airport Group’s (CAG) senior vice president for market development, tells Routes News.

“For example, we partnered Turkish Airlines and the STB in several joint marketing projects, which included multi-city road shows, stopover programmes, familiarisation visits and industry networking events – to increase awareness of Singapore as a destination and Changi Airport’s ideal location as a gateway to Asia and the south west Pacific. These projects generated positive feedback from the respective markets and, more importantly, increased demand for travel,” Kiat explains.

Changi has adopted what Kiat describes as a proactive route development strategy. Once it has identified route opportunities it shares this analysis with its airline partners in order to support their own evaluation studies. 

“We also conduct joint study trips with airlines to better understand new markets. We understand that airlines make significant investments in starting new routes, especially for long-haul services. Hence, CAG also partners with its resident airlines to jointly market and promote new routes, to ensure that new services become sustainable in the long-term,” comments Kiat.

CAG has also pursued a policy of continually investing in the airport’s facilities. In 2008 the new 22mppa capacity, state-of-the-art Terminal 3 opened its doors, immediately earning rave reviews for its ease of use and passenger-friendly features, such as a butterfly garden and living wall.

Major upgrades to Terminal 1 are currently underway and are scheduled to be completed in 2012, while plans for a fourth terminal are under consideration.

While its three main terminals cater to premium airlines such as BA and ANA, Changi, like its neighbour Kuala Lumpur International Airport, has been at the forefront of catering to low-cost carriers (LCC), by developing a dedicated no-frills terminal.

Opened in 2006, the 28,000sqm single-storey terminal has no travelators, escalators or aerobridges and caters to airlines such as Tiger Airways and Jetstar. Both experienced double-digit growth in 2010 and, to accommodate increasing LCC traffic, the Budget Terminal was recently expanded to 7mppa, up from 2.7mppa previously.

“The terminal offers budget carriers a low-cost operating option, which fits the business model of some airlines. We speak regularly with our airline partners about their future plans. If needed, we will expand and improve the terminal to meet the growth aspirations of our airline partners.

“Both carriers rank among Changi’s top airlines by passenger carriage while Jetstar Asia is the fastest growing airline among the Singapore-based carriers. The two carriers operate close to 1,000 weekly flights linking Singapore to more than 20 destinations in Asia and the south west Pacific. Both carriers have announced expansion plans. We are convinced that these developments will enhance Changi’s connectivity,” Ching Liat explains.

So what about those big new markets of China and India? Changi would seem to be well placed to act as a feeder for flights to both countries. Last year, passenger traffic between Singapore and China increased by 16% year-on-year; traffic with India was up by 14%.

“Given Singapore’s strategic geographical location, Changi Airport is well placed to tap into the growth of travel demand in China and India. With Changi’s extensive reach into both countries, Singapore is the most connected point to China and India in South East Asia. 600 weekly flights with a capacity of 45,000 weekly one-way seats currently link Changi Airport to 23 cities in China. Changi is also linked to 11 destinations in India via 340 weekly flights and 37,000 weekly one-way seats,” explains Ching Kiat.

“One of our key priorities is to attract more airlines from China and India. In September 2011, Changi will welcome IndiGo, India’s largest low-cost carrier. IndiGo will initially operate daily flights from New Delhi to Singapore and will add a Mumbai–Singapore service in the middle of October, adding 2,500 additional weekly one-way seats to the India–Singapore market.”

But which cities, specifically, feature in the growth plan? It seems that growing regional centres are where to put the chips on bets for future route development. 

Ching Kiat expands on the point: “CAG is also focused on growing links between Singapore and secondary cities in China and India. So far in 2011, Changi has welcomed new services and increased frequencies to Chengdu, Chongqing, Hangzhou, Hefei and Zhengzhou. We believe there are more secondary cities with potential for direct links such as Wuhan and Shenyang in China, and Pune and Jaipur in India. CAG will continue to work with airlines and other travel trade partners to grow new links to China and India.”

Singapore Airlines launched a new service to São Paulo in March 2011, though, perhaps counter-intuitively, it travels west to get there (via Barcelona). “Being our first connection to South America, São Paolo is an exciting new link for Changi Airport,” Ching Kiat explains

“Both Asia and South America are fast growing economic regions and the service to São Paulo comes at an opportune time for Changi to tap into the growing demand for air travel between the two regions,” he adds.

The future looks bright for Singapore, with a strong working relationship between the STB and the airport. 

Ching Kiat signs off: “The Singapore Tourism Board is an important partner of Changi Airport Group. Together, we raise the profile of Singapore internationally and leverage on each other’s strengths.”