I am very happy to be here to witness the arrival of SuperStar Leo at the Singapore Cruise Centre. I take this opportunity to congratulate Star Cruises for bringing this mega-ship here. I am pleased that Star Cruises has chosen Singapore as the home-port in Asia for SuperStar Leo. As the first world-class megaship to be built for Asia, SuperStar Leo is set to mark a milestone in the history of Singapore’s cruise industry and in the Asian cruise industry.

2 Over the years, the local cruise industry has grown strongly. Cruise passenger traffic has risen by a compounded rate of 35% per annum from 1991 to 1997 while cruise ship calls have increased by 29% per annum for the same period. Cruise ships are now based seasonally as well as year-round in Singapore with cruise itineraries covering the Asia-Pacific region. Singapore is recognised as the Cruise Gateway to the Asia Pacific region. Many people and organisations have contributed to this success, but particular mention must be made of the active promotion by the Singapore Tourism Board and the Singapore Cruise Centre.

3 The potential for the cruise industry is bright. It has consistently been one of the star performers of international tourism. For Singapore, the STB estimates that the cruise passenger throughput could reach 1.5 million cruise passengers by 2004 notwithstanding the current economic crisis. This is nearly double the current traffic of 700,000 to 800,000 passengers.

4 Furthermore, cruise lines are expanding their capacities and constantly looking for new destinations and new markets. Many of the traditional cruise destinations such as the Mediterranean and the Caribbean are reaching saturation point. Cruise passengers also look forward to new destinations for cruise holidays. The ASEAN region is a good alternative to the traditional cruise destinations. It can offer an exotic year-round destination that has cultural variety and natural beauty combined with modern and sophisticated tourism facilities.

5 The Singapore government supports the development of the cruise industry. It as an integral component of our aim to be an International Maritime Centre. We will continue to encourage investment in bigger and better cruise facilities and services.

6 PSA Corp has recently invested about $22 million to upgrade the SCC to handle the new generation mega-ships like SuperStar Leo. The arrival and departure halls have been expanded to improve the facilities for passengers. The existing pier has been extended, while the Cruise Bay has been dredged to provide a larger turning circle of up to 270 metres in length. The modern cruise terminal facilities will enhance Singapore’s status as a regional cruise hub.

7 I hope that the arrival of the SuperStar Leo with its high standards of luxury and facilities will increase the proportion of foreign cruise passengers that the cruises here will attract. I look forward to more mega cruise ships in Singapore and the region. I understand that the sister vessel, SuperStar Virgo, is scheduled to be delivered to Star Cruises in the second half of 1999.

8 Singapore welcomes all cruise lines that are keen to develop the cruise potential of the region. Several foreign cruise lines, such as Royal Caribbean International, Seabourn Cruise Line, Cunard Line and Princess Cruises have based some of their cruise ships in Singapore on a seasonal basis. These foreign cruise lines have helped to market and promote ASEAN cruises to the foreign cruise passengers in Europe and America.

9 To further promote the cruise industry in the region, we need to promote greater regional co-operation to develop this industry.

10 The first area of co-operation could be in the development of cruise infrastructure. We cannot grow the ASEAN cruise industry without the requisite supply of cruise infrastructure. Cruise infrastructure also needs to be upgraded to better serve the bigger cruise ship which can carry more passengers in greater comfort and style. We can enhance the attractiveness of ASEAN as a cruise destination if more and better cruise terminal amenities are developed in the region.

11 Cruising is not mono-destinational. The availability of multiple destinations enhances the cruise value of the whole region. ASEAN should therefore work together to develop and promote multi-destination cruise packages for foreign cruise passengers. The tourism authorities of each individual ASEAN destination should co-ordinate their promotion efforts through joint promotions in international cruise conferences.

12 To promote regional co-operation in promoting the cruise industry, ASEAN Transport Ministers at their recent meeting in Singapore in Sept agreed to consider the formation of an ASEAN Cruise Working Group in conjunction with other agencies. The formation of an ASEAN Cruise Working Group will be taken up in the forthcoming ASEAN National Tourism Organisation Meeting in Jan 99. The idea is for the ASEAN Cruise Working Group to be modelled after similar regional groupings such as MEDCRUISE, CRUISE EUROPE and Cruising Down Under. These regional cruise groupings were formed to allow regional cruise ports to co-operate in marketing and promoting cruising trade and to develop and foster good relations among them.

13 Despite the regional economic crisis, the Singapore cruise market has been relatively buoyant. I am confident that the ASEAN cruise market will continue to enjoy good growth especially with the rapid and successful development of cruise lines like Star Cruises in the region. Enhanced co-operation among the ASEAN cruise destinations will further spur the cruise industry to greater heights. In closing, I once again congratulate Star Cruises for bringing the new SuperStar Leo here and I wish the ship many smooth sailings.