Distinguished Guests,

Ladies and Gentlemen,

Tourism is an important sector of the Singapore economy, contributing about 10 per cent to our GDP, and accounting for 7 per cent of our employment, counting both direct and indirect effects. It is one of the service industries that we will strengthen and grow by promoting Singapore as a premier leisure and business destination. For years to come, this industry will provide good jobs for Singaporeans.

The Asian tourism market is growing dramatically, changing traditional patterns of travel and consumption. To seize new opportunities, the Singapore Tourism Board (STB) has recently been restructured to make it not only a tourism promotion agency, but also an economic development agency. The new STB has seven strategic tourism units to drive development in the areas of shopping, attractions, events, cruise, business and Meetings Incentives Conventions and Exhibitions (MICE), healthcare, and education.

In addition to being a getaway for local Singaporeans, Sentosa is a key tourism asset for Singapore. In June last year, the Sentosa Development Corporation (SDC) drew up a 10-year master plan to redevelop and rejuvenate the island. The new projects will transform Sentosa and make it an international resort, lifestyle and entertainment destination for both local and foreign visitors.

The existing attractions are being revamped and upgraded, including a new ‘Magical Sentosa’ musical fountain show, a multimedia interactive theatre to tell ‘Stories of the Sea’, four connected Cycle Trails, as well as enhanced food & beverage facilities. The island admission charges had also been reduced from $6 to $2 per individual and from $15 to $2 per vehicle. As a result of these improvements, visitorship to the island at the end of last year jumped 30%.

This is just the beginning. SDC is working on a $30 million project to enhance the beachfront food & beverage outlets and provide entertainment and beach sports facilities on Palawan and Siloso Beaches by 2004. A Family Beach Club with accommodation and recreational facilities will also be built. In addition, SDC is also keen to host the proposed new tourism academy on the island, which will not only help to upgrade service standards on the island, it will also make Sentosa an icon of Singapore as a regional tourism education hub.

Transportation to Sentosa and within Sentosa will be greatly improved under the Sentosa Master Plan, but without spoiling its resort atmosphere. The Sentosa Express is a light train, which will be connected to the MRT network via the HarbourFront station. The tender has already been awarded to Hitachi Asia Limited. Work will commence next month and the system will be completed by early 2006.

We also hope to launch the first phase of Sentosa Cove later this year. We were thinking of launching it at the end of last year but held back because of the war clouds gathering on the horizon. The Cove will be a jewel on Sentosa.

One of the strategies identified in our plans for STB and Sentosa is increasing the standard and range of services offered to visitors. Spa services is one such service that adds to the total holiday experience for visitors. As part of making Singapore a lifestyle hub in Asia, STB is promoting the spa cluster in Singapore. The sector has been growing rapidly, with the number of spas growing from 2 in 1994 to 30 in 2002, offering visitors a wide spectrum of choice.

STB is also working with the Spa Association (Singapore) to support the expansion of local spa operations overseas by linking them up with potential partners in other countries. To raise our own standards, STB encourages world class spa resorts to come here and help make Singapore a hub for the spa industry.

STB provides support to the industry by including Singapore spas in its marketing communications and collaterals, which are distributed worldwide through its network of overseas offices. STB also provides financial grants to spa operators through the Tourism Development Assistance Scheme (TDAS).

In addition, as service quality is critical to the success of the spa business, STB is working closely with both the Ministry of Manpower and the industry on joint training initiatives. Our aim is to build up a pool of trained and qualified spa professionals for the long-term growth of this sector.

The Spa Botanica is the latest addition to the spas in Singapore and will open a new dimension of spa experience. It is Singapore’s first garden spa, with mud pools, floatation pools, meditation labyrinths, galaxy steam bath and a special, custom-built, King's bath.

Since The Beaufort Singapore was built in 1992 as a 5-star resort, HKR International has continued to invest in the property to keep it at the forefront of the industry. The conversion of the hotel’s recreation centre to Spa Botanica is part of its ongoing renewal.

Today, we also witness the official opening of The Cliff, a lovely restaurant designed by renowned Japanese designer, Yasuhiro Koichi. The Cliff was developed at a cost of S$4.5 million, and offers a most charming alfresco dining experience overlooking the sea.

For HKR International to make this major investment when the global economic environment appears so uncertain is heartening. It is a demonstration of HKR’s confidence in Singapore and Sentosa. We thank HKR International and, in particular, Mr Victor Cha, for your commitment to Singapore and assure you that we will be worthy of your trust.

I wish HKR International and The Sentosa Resort & Spa great success.

____________________________