australia stb market insights · 7 stb market insights – australia media consumption habits...

Australia STB Market Insights

This publication ‘STB Market Insights’ serves as a reference to the trends of specific inbound

tourism markets to Singapore. All information in this publication is deemed to be correct at time

of publication.

While every effort has been made to ensure the accuracy of the data in this report, the Singapore Tourism Board (STB) shall not be liable for any loss or damage caused by or arising from the use of the data in this publication. Data derived from surveys cited is subject to sampling error. Users are advised to exercise discretion when drawing any conclusion or inferences, or taking any action, based on the data.

STB makes no representation or warranty, express or implied, as to the accuracy or completeness of any information contained in this document. Appropriate professional advice should be obtained before relying on or acting on any of the information contained in this document, and neither STB nor any of its officers, employees or agents shall be held liable for any loss or damage, whether direct or indirect, as a result of any improper or incorrect use of the information in this document.

Consumer Research & Insights Research & Incentives Division [email protected]

©2014 Singapore Tourism Board.

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Month of Publication: March 2014

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3 STB Market Insights – Australia

Contents Executive Summary ................................................................................................................................... 4

About The Market ....................................................................................................................................... 5

The Australian Traveller.......................................................................................................................... 6

Media Consumption Habits .................................................................................................................... 6

Australian Travellers to Singapore .............................................................................................................. 8

Australian Visitor to Singapore ............................................................................................................... 9

Expenditure While in Singapore ............................................................................................................. 9

The Australian Leisure Traveller ................................................................................................................ 10

Needs of the Australian Leisure Traveller .............................................................................................. 10

Considerations for Travel ....................................................................................................................... 10

Emerging trends for the Australian Leisure Traveller…………………………………………………………..……..12

Planning and Booking Trends ................................................................................................................ 12

Information Sources Before and During Travel ...................................................................................... 13

Advocacy After Trip ............................................................................................................................... 14

Leisure Traveller in Singapore ................................................................................................................... 15

Reasons for Visiting Singapore .............................................................................................................. 15

Barriers to Visiting Singapore ................................................................................................................ 15

Business Traveller in Singapore ................................................................................................................. 16

The Australian Business Traveller .......................................................................................................... 16

What Australian Business Travellers Spent On ...................................................................................... 17

Key Findings .............................................................................................................................................. 17

Bibliography .............................................................................................................................................. 19


Executive Summary

Australia contributes 7% to the total number of visitors to Singapore and was the 4th largest market in

terms of arrivals in 2012. Visitor arrivals to Singapore have also registered a CAGR of 9.2% from 2010 to

2012, surpassing the country’s outbound CAGR of 7.7% during the same time period. The strong growth in

outbound numbers for Australia in 2012 may be attributed to myriad factors such as the strong Australian

dollar, increasing number of empty-nesters (a person whose children have grown up and no longer live

with them) and growing network of low cost carriers in the market.

Tourism receipts for Singapore, however, dipped by 5% in 2012. This slight drop may be attributed to the

decrease in length of stay from an average of 2.89 days in 2011 to 2.85 days in 2012. Specifically, a double

digit spike of 17% was observed amongst visitors who stayed for less than a day in Singapore in 2012. This

spike may be attributed to the increase in number of visitors (4%) who utilised Singapore as a transit hub

to their final destination in 2012.

For the Australians, travelling forms a significant part of their lives. Travelling not only allows them to

escape from their daily routine, it gives them the opportunity to bond with their loved ones and to

discover new experiences. As such, Australians tend to look for immersive experiences at destinations that

give them the opportunities to deepen their understanding of the people, culture and heritage.

Perceptions of Singapore differ greatly amongst the Australians. While recent visitors to Singapore

describe the destination as rich in culture, vibrant and friendly, strong stereotypes still persist amongst

non-recent or non-visitors as they view Singapore as sterile and having strict laws (e.g. the chewing gum

ban). Their knowledge of Singapore’s offerings also tends to be dated.

The negative growth in total business outbound flow from Australia is reflected in business visitor arrivals

to Singapore. However, Australians in general have a good perception of Singapore as a business

destination. When they are not working, Australians enjoy unwinding at a bar near their hotel.

Methodology of STB Primary Research Sources

Figures from this report are gathered from STB internal research as well as publicly available sources. The STB’s research sources are STB’s Overseas Visitors Survey (OVS) and the Leisure Segmentation Study (SEG), as well as various interviews and focus groups done.

Overseas Visitors Survey (OVS) – conducted annually at exit points in Singapore, the OVS covers visitors from every nationality. The sample size is usually around 28,000 per year.

Leisure Segmentation Study (SEG) – conducted in 2011 in 9 key markets, SEG sought to understand the needs of different segments of frequent air travellers within our key markets of Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Thailand and Vietnam. The sample size was 500-900 per market, for a total of 6,000.

Business Traveller Study (BTS) – conducted over 2011-2012 in Singapore, BTS covers over 2,000 business travellers from our key business source markets to understand their pre-trip and during trip considerations, behaviour and touch points. Markets covered include Australia, China, Hong Kong, India, Indonesia, Korea, Philippines, Thailand, UK, US and Vietnam.

Brand Health Tracking Study (BHTS) - conducted in 2013 across 10 key markets, BHTS sought to understand the perception of Singapore as a leisure travel destination within our key markets of Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Thailand, United Kingdom and Vietnam. The sample size was 1,200 per market, for a total of 12,000.


About The Market

Population (‘000) (1) 23 032.7 (2013)

No. of Households (million) (2) 8.18 (2011)

Major States – Population (‘000) (1)

1. New South Wales: 7,381.1 2. Victoria: 5,713.0 3. Queensland: 4,638.1 4. South Australia: 1,667.5 5. Western Australia: 2,497.5

Outbound Travel (‘000) (3)

2008: 5,808.0 2009: 6,284.9 2010: 7,111.4 2011: 7,801.8 2012: 8,246.0

Top 5 Travel Destinations

in 2012 (‘000) (3)

1. New Zealand: 1,103.3 2. Indonesia: 911.9 3. USA: 863.6 4. Thailand: 622.5 5. United Kingdom: 488.9

Type of Outbound Trips (2012) (3) Business (13%)

Leisure (87%)

Seasonality of Outbound Trips (4)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


Singapore ranked 8th

Among countries travelled to

by Australians in 2012.

Peak travel season is from

December to

January; February and May

see the lowest number of

outbound travellers

The Australian Traveller

With a population of approximately 23 million people,

Australia is one of the wealthiest countries in the

world with the 12th largest economy. In 2012,

Australians were recorded to have the world’s 5th

highest income per capita (5). This has enhanced their

appetite for travel as outbound tourism numbers

continue to grow in 2012 increasing by 6% to 8.2

million. (3)

The growth in outbound numbers in 2012 may be

attributed to multiple factors such as the strong

Australian dollar during the same period of time, the

growing number of ‘empty-nesters’, (6) and the

increase in air capacity and routes; specifically the

number of low cost carriers flying on international

routes between Australia and South East Asia. (3)

Outbound numbers are expected to grow at a CAGR of 5% over the next few years, rising to 10.5 million

by 2017. (7)

Not surprisingly, New Zealand is the most visited destination amongst Australian travellers in 2012. Aside

from its proximity to Australia, the filming of the Lord of the Rings trilogy has also brought positive

attention to the country. (3) However, markets like Thailand and Indonesia are proving to be strong

competitors due to their strong beach offering, registering double digit growth of 23% and 13%

respectively in 2012. (8) Singapore is ranked 8th in terms of outbound from Australia, registering a 6%

year-on-year growth.

Australians in general are experienced travellers. While both domestic and international trips play an

important role in their travel repertoire, more is expected of an international trip, translating into bigger

budgets and more effort during planning. (9) Being experienced travellers might also explain their comfort

in purchasing travel-related products and services online. (10)

The cruise industry in Australia has also grown by leaps and bounds in the past decade with cruise

passenger numbers almost tripling in the past 5 years. In fact, passenger numbers increased by 11% in

2012, reaching 694,062. This growth is fuelled by a combination of factors such as increasing product

awareness amongst consumers, increase in the number of cruise ships, the widening range of offerings

and broadening cruise itineraries to more destinations. (11)

The peak travel period for leisure in Australia is from December to January, coinciding with the school

holidays and Christmas season. (4) This is largely similar to the inbound trend of Australians to Singapore

as we observe a peak in arrivals in January, June and December. (12)


Media Consumption Habits (13) (14)

Ranked 5th in the world, Australia is the only non-European country amongst the top 5 nations in terms of

Internet penetration. In fact, approximately 82% of the population is connected to the Internet. With the

recent introduction of the National Broadband Network (NBN) by the Australian government, 93% of

Australia’s population will have access to high speed Internet. As such, understanding how Australians

interact and behave online will become increasingly valuable. (15)

In a study conducted by Nielsen, it was found that Australians now spend more time on the Internet than

on traditional media. In particular, the rise of social media has greatly impacted the decision-making

process of Australians. (15) Today, 7 in 10 Australians online tap into opinions found on blogs, forums and

other social platforms. 6 in 10 use rich media to help inform their purchase decisions. In addition,

consumer engagement with brands and organisations through social media platforms such as the use of

“Like” and “Share” buttons registered the biggest growth in 2011. Aside from using the Internet as a

source of information, Australians are also active when it comes to creating new content with 39% of

online Australians posting reviews of brands, products and services. (13)

With such an active online sphere, it is no surprise that Australians are very comfortable when it comes to

purchasing products and services online. Importantly, flight and accommodation are the most widely

purchased categories online when it comes to non-retail items, with approximately 55% of Australians

who use the Internet having made their bookings online in 2011/12. (16)

To counter the trend of booking travel online, traditional ‘brick-and-mortar’ agents such as Flight Centre

Travel Group and more recently, the Jetset Travelworld Group have been shifting to a “blended” (or

’clicks-and-mortar’) retail model which would allow travellers to switch seamlessly between the website or

store for research and booking. By doing so, consumers have the convenience of researching and booking

from their preferred channel without compromising on customer service. (17)

12 Million users/

month

5 Million visitors/

month

4

11 Million unique

visitors/month

75% 76%

Internet use by device

Million visitors/

month

82% Internet penetration

57% ‘Liked’ a brand or organisation

46% Used ‘Share’ button to share

online content

3

Million visitors/

month

55%

Desktop Laptop Mobile Phone


881 956

1,050

39 39 38

15 12 11 11 8 8

36 40 32

1,138 1,146

988

201 201 242 61,963 62,803

75,150

26%

14%

17% 4%

39%

24%

13%

19% 4%

40%

Australian Travellers to Singapore

Visitor Arrivals (‘000)

2010

2011

Tourism Receipts ($mil/%)

Purpose of Visits

(%)

Others

VFR

BT/MICE

Holiday

Others

Transport

F&B

Accom.

Shopping

Tourism Receipts – per capita ($)

Weekly Flight Statistics (Flight Freq. / Seat Capacity)

Top 5 Cities of Origin

$1,002

$1,095

2012

1

2

3

4

5

28%

13%

15% 4%

40% $1,038

Perth

Sydney

Melbourne

Brisbane

Adelaide

Sydney

Perth

Melbourne

Brisbane

Adelaide

Sydney

Perth

Melbourne

Brisbane

Adelaide

Sightseeing, entertainment and gaming expenditure has been excluded from tourism receipts in the country breakdown due to commercial sensitivity of information.

Other TR components include expenditure on airfares, port taxes, local transportation, business, medical, education and transit visitors.


The Australian Visitor to Singapore

Australia was the 4th largest market in terms of visitor arrivals to Singapore, and 5th when it comes to

tourism receipts in 2012. (12) Inbound visitor numbers have grown at a CAGR of 9.2% from 2010 to 2012,

surpassing the country’s outbound CAGR of 7.7% during the same time period. (3)

2012 registered an increase in both flight frequency and seat capacity between Australia and Singapore,

which may be attributed to the increase in flight frequency from both Full-Service-Carriers (FSCs) and

Low-Cost Carriers (LCCs). Specifically, the introduction of Scoot has led to an increase of 5 and 7 flights

weekly, to Gold Coast and Sydney respectively. Other airlines such as Jetstar Asia and Singapore Airlines

also increased their flight capacity in 2012. (18) With the Qantas-Emirates alliance that took off in March

2013, flights from Sydney en-route to Europe no longer fly through Singapore, but through Dubai.

However, Qantas has added new direct flights daily between Singapore and Sydney from June 2013. Not

only are these flights scheduled to be more business-friendly, direct connectivity will help position

Singapore as a destination as opposed to just a stopover. (19)

Leisure is the main driver for visits to Singapore from Australia. However, Australians, even those who are

familiar with the destination, do not perceive Singapore to be different from other city destinations. (20)

Interestingly, travel patterns between first time and repeat visitors to Singapore are largely similar for the

Australians. They tend to visit Singapore as free and independent travellers on a multi-destination trip.

Due to the nature of their trip to Singapore – a stopover or part of a multi-destination trip – they tend to

spend a shorter amount of time in Singapore as compared to visitors from other countries. (12)

Expenditure While in Singapore

When it comes to expenditure in Singapore, the per capita expenditure of Australians tend to be less than

visitors from other countries due to the nature of their travel i.e. part of a stopover or multi-destination

trip and hence, shorter average length of stay (2.9 days). In 2012, Australia registered a fall in spending

across all expenditure components aside from accommodation, leading to a 12% drop in per capita

expenditure. At the same time, Australians who spent less than 1 day in Singapore registered an increase

of 17 %. (18)This trend may be attributed to the increasing number of transit passenger from Australia, 4%

growth from 2011 to 2012, who utilises Singapore as a hub to their final destination.

Similar to other markets, Australians tend to spend proportionally more on accommodation as compared

to other components. In fact, more than half of Australians who visit Singapore stayed in at least a mid-

tier hotel and 1 out of 4 stayed in an upscale hotel in 2012, slightly above the global average. (12)

When it comes to shopping, Australians tend to spend more as compared to travellers from other western

markets. Specifically, they enjoy shopping at outdoor street markets or bazaars. A culture of buying gifts

and souvenirs for their friends and family back home is prevalent, and they prefer items that reflect the

local identity of a destination. (21)

Nevertheless, with the recent weakening of the Australian dollar since 2013, value remains key for

Australians when travelling. While this is not expected to stop the Australians from travelling, it may

translate to holidays closer to home or looking at more economical destinations. (22)


The Australian Leisure Traveller

Needs of the Australian Leisure Traveller

Travelling is an activity that constantly sits at the

back of the Australian travellers’ minds. (9) As

articulated during recent focus groups in

Melbourne and Perth, travelling is associated with

freedom, exploration and self-improvement. This

need to travel may be triggered by multiple

factors, such as wanting to escape the stress of

day-to-day life, discover new experiences, bond

with their loved ones or even visit their friends and

relatives abroad.

Travelling allows them to break away from their

daily routine and wipe away the stress built up

from their day-to-day life. As articulated by a

respondent during a focus group on her last

holiday in Milan, “to wake up in the morning to a

lake outside the window…we felt like movie stars.”

(23) For parents, travelling provides them with the opportunity to bond through experiencing something

new with their children.

But more importantly, travelling challenges them to explore beyond the usual tourist spots to seek out for

the authentic character and flavour of a destination. Novelty is insufficient for Australians, as they want to

immerse and be engaged in a new culture. Aside from the usual activities such as cultural festivals and off-

the-beaten-track locations, interactions with people and the food at a destination will play a major role in

shaping the destination experience of the Australian traveller. As mentioned by a respondent during a

recent focus group, “One of the best things about a holiday is experiencing things that aren’t on Lonely

Planet, or on a website, they’re just things that pop up randomly. It gives a better opportunity for deeper

understanding of the place you are experiencing.”

The sense of achievement and fulfilment associated with unexpected new discoveries can lead to a deeper

connection between the destination and the Australian traveller.

Top Travel Needs (21)

Break away and escape from daily routine and stress from day-to-day life

Spending quality time with partner/family/friends

Exploring the unknown and enjoying new experience


Top Hindrances to Overseas Travel (34)

Considerations for Travel Destinations

Travel Considerations

Visiting friends and relatives (VFR) is the top consideration amongst Australians when planning for their

holiday. This tendency among Australians may be intrinsically tied to the history of their country, as more

than 7.5 million people have migrated to Australia since the 1940s – a result of an agreement between

Australia, Britain and other European countries. Due to this, 1 in 4 Australians today were born outside of

Australia. (24) Unsurprisingly, this has prompted VFR travel by migrants between their country of origin

and Australia. (25)

When planning for their trip, Australians look for good value across multiple aspects of their holiday.

Despite this, they are unlikely to be swayed by deals if they expect their experience to be compromised.

(26) Their quest to seek out value when planning their holiday makes South East Asia an appealing

destination choice due to the proximity and availability of a myriad of affordable experiences to choose

from.

As mentioned in the previous section, bonding with their loved ones is a key need for the Australians. This

is especially so for parents with younger children as they bond through new experiences and shared

memories. For these parents, ample time is taken to plan for the trip. Aside from the activities and

experiences available, cost is usually the main consideration when choosing the destination. (9)

With travel being so ingrained in their lives, very little can deter the Australians from travelling. However,

currency exchange is a point of consideration that may affect where one takes a trip to and for how long.

In 2012, due to the strong Australian dollar, outbound travel for Australia went up by 5.4% from the

previous year. However, there is a recent resurgence in domestic travel with the weakening of the

Australian dollar since mid-2013 and aggressive domestic marketing. Domestic travel spend grew by 3.4%

to A$51 billion in the 12 months to June 2013. (27)

Top 5 Travel Considerations (21)

Visit Friends and Relatives

Value for Money

Travel Companion

Unique Experience

Fits the Budget

Currency Exchange

Cost

Aggressive Marketing of Domestic Destinations


0% 10% 20% 30% 40% 50%

I did not book in advance

1 - 7 days in advance

8 - 30 days in advance

1 - 3 months in advance



More than a year in advance

Booking Planning

Emerging Trends for the Australian Leisure Traveller

Recording the largest growth rate globally for cruise in 2012 – equalled only by Germany – Australians

have clearly made cruise a serious option for their holidays. Aside from cruises around the South Pacific

region – which accounted for 36% of the market in 2012 – other popular destinations for cruising (among

Australians) include Europe, the Caribbean and the US. (11)

Unfortunately, across all key destinations for cruise in 2012, Asia was the only region that registered a

drop of 13% in terms of cruise passengers. (11)

As articulated during a focus group in 2011, specifically on

South East Asia, while cruising in the region is perceived to be an affordable option closer to home, the

region is currently not closely associated with cruising. In addition, Australians feel that the region is

better explored by land. (28) However, given its growing cruise potential, Australians is a key source market

that the cruise industry in Asia should look to tap on.

Planning and Booking Trends

As mentioned earlier, travelling is

always on the minds of the Australians.

During a focus group discussion,

respondents candidly mentioned that

they start planning for their next

holiday once they are back in Australia.

(9) While anecdotal, there are elements

of truth as observed from their planning

and booking behaviour. In particular, 1

in 3 respondents start their planning

process 4-6 months ahead of their

holiday.

Similarly when it comes to booking for their trip, 1 in 3 respondents book their trip 4 – 6 months ahead of

their trip. This is in contrast to other Asian markets such as China and Japan where only 15% of

respondents book their trip so early in advance.

Planning and Booking Trends Planning and Booking Trends (21)

Trip Planning/Booking Duration (21)


59%

44%

33%

26%

18%

0% 50% 100%

51%

50%

45%

35%

34%

0% 20% 40% 60%

During Travel

Information Sources Before and During Travel (21)

Like most developed markets, the Internet is the top source of information before travel for the

Australians. During a focus group session, respondents mentioned that TripAdvisor is a commonly used

crowdsourcing travel review website.

This is followed by the use of travel agents, which is surprising for the casual observer. While brick-and-

mortar travel agents have lost some ground to the Internet, travel agents in Australia today have evolved

to better compete with their online counterparts. Now, not only are they able to provide insights on a

destination, they can often beat any price that online counterparts can offer. (29)

Most importantly, their

expertise makes a difference when organising complicated multi-destination trips, common amongst the

Australians.

Australians also regard recommendations through word-of-mouth as an important source of information,

with 1 in 2 respondents getting information from past visitors or friends and family who live in the

destination. A possible reason as to why they hold these recommendations in such high regard may be

due to the level of detail one can get from their friends and family. As articulated by a respondent during a

focus group, “my best friend went over and lived there and we would go over there and have the best time

you could possibly ever have. You just need to have your eyes opened a little bit. And once they are

opened, it’s a great city, there are great people, it feels good.”

While travelling, Australians turn towards more traditional information platforms, as we observe that

more than half of our respondents use brochures and maps picked up at the destination. This is followed

by visiting information centres and using travel guidebooks. The reason for this shift from online to

traditional platforms may be due to the exorbitant roaming fees telecommunication companies are

charging. However, with the implementation of new regulations by the Australian government, with

effect from September 2013, to make overseas roaming cost transparent to consumers (30), the ability to

make an informed decision may put more Australians at ease when activating their data plans overseas.

Before Travel

Recommendation from friends/relatives who live

at destination

Travel Guide

Recommendation from past visitors

Travel Agent

Online Sources

Online Sources

Travel Guidebook

Visitor Information Centre

Map picked up at destination

Brochure picked up at destination


Advocacy after Trip (21)

Whether an Australian visitor

recommends a destination or not is tied

very closely to their need when travelling.

As mentioned, Australians like to explore

and discover new experiences when

travelling. If this need is fulfilled and a

connection is established with the

destination, this special bond will serve as

a driver for advocacy.

Interestingly, a good majority of

Australians share their trip experiences

face-to-face and 50% of respondents

email their friends and family about their

holiday.

Specifically for Singapore, past visitors

perceive the destination quite positively

with 45% of respondents indicating that

they are “very likely” to recommend Singapore as a leisure destination. Interestingly, Australians who

have been to Singapore are more likely to perceive Singapore as a must see destination (33%) as opposed

to those who have never been to Singapore (21%). The lower perception of Singapore amongst non-

visitors may be due to the long standing stereotype that Singapore is strict, sterile and boring. As

articulated by a respondent from Melbourne “it’s like a business city, pretty straight-laced, clean, friendly,

everything works, where’s the excitement? There’s nothing compelling that would drag me there”.

Channels used to Share Travel Experiences

(21)

Talk to friends or family

61%

36% Share photos/videos face-to-face

50% Email friends or family


Leisure Traveller in Singapore

Reasons for Visiting Singapore

When asked about what Singapore is associated with during a focus group, replies from Australian visitors

range from the commonly mentioned Raffles Hotel, chilli crab, the chewing gum ban and the Singapore

sling to the contrast in scenery between day and night, bustling night life and richness in culture. (23)

While

Singapore’s image of being “too clean and safe” may be a turn-off for some at first, the energy of the city

that is brought to life through its culture, night life, and people is appreciated once they fully immerse

themselves in the city. As mentioned by a respondent from Melbourne during a focus group in December

2013, “Different food, different religions, different smells, different sights. Everything is just amazing. It’s

just a little taste of Asia.”

Aside from shopping, local tours are also popular among Australians. The ease associated with the

destination is much appreciated by Australians and helps meet their needs when exploring a destination.

(20)Driven by the desire to explore and go beyond the surface, walking tours – both self-guided or guided

that take them into every nook and cranny of Singapore allowing them to immerse in the local culture –

are particularly popular with the Australians.

When it comes to food, Australian visitors are more adventurous and open to trying our local cuisine. In

fact, their top dining choices while in Singapore are the local ethnic restaurants and hawker centres. To

the Australians, dining at the hawker centre is about both the food and the atmosphere. As expressed by a

focus group respondent, “It’s about good, fast, quality, cheap food with the locals… it’s exciting!”

Barriers to Visiting Singapore

However, while information on key attractions and precincts are readily available, it was interesting to

hear from past visitors that “it seems like everything is hidden” in Singapore and it is difficult to dig deeper

to find out more.

For non-visitors, the lack of information coupled with deeply ingrained stereotypes about the destination

is a major mental obstacle, as they are unaware of what Singapore has to offer. For those who have never

been to Singapore, the destination is simply another big city that is “no different from Melbourne”. The

need to differentiate ourselves from other destinations is important; Australians who saw Singapore as

different from other destinations also perceived that the destination offered new experiences and is

energising (20) In addition, being more expensive than most countries in the region and perceived to be

less rich in culture and history, Singapore is not the top choice amongst Australians when selecting a

holiday destination.

Top 5 Activities Done In Singapore (21)

Went Shopping

Went on Local Tours

Visited a well-known landmark or tourist icon

Visited friends or relatives

Visited a place or district with cultural or historical significance

Top Dining Choices (21)

59%

51%

18%

14%

13%

0% 20% 40% 60% 80%

Local Ethnic Restaurant

Hawker Centre/FoodCourt/Coffee Shop

Fine Dining

Unique Dining Experience(e.g. Singapore Flyer)

Dining Enclave (e.g.Dempsey)


Perceptions of Business Experiences in Singapore (9)

Business Traveller in Singapore

The Australian Business Traveller

In 2012, outbound business travel registered negative growth of -7.6%. (3) Since the global financial crisis of

2007-08, Australian companies seemed to have made the belt-tightening from 5 years ago on business

travel, permanent. (31) Today, business travellers are requested to make greater use of discounted fares and

avoid overnight stays where possible, in order to reduce accommodation bills. The drop in total outbound

business travellers has impacted business travel to Singapore from Australia, registering a drop of 5% in

business visitor arrivals last year. (12)

Amongst our Australian business visitors, a large majority are repeat visitors to Singapore and almost half of

our respondents (46%) indicated that they are “likely” to visit Singapore for leisure within the next 2 years.

They also have a positive perception of Singapore as a business destination and see the country as a safe and

stable environment for business with world class facilities and infrastructure. (32)

When planning for their business trips, it is an equal split between visitors who hold the decision making

power on where to go versus those who were sent by their companies. While looking for information in

Singapore, online sources such as online travel guides are most often used. (32)

Good reputation for safety

Good infrastructure (e.g. accessibility,

connectivity)

Is a stable business environment

I would like to visit Singapore with a different

set of travel companion(s)

I would like to revisit a particular

attraction/store/dining place that I have been to

during this trip

I have always wanted to visit Singapore for

holiday/leisure.

Top reasons for revisiting Singapore for leisure (9)

Average length of

stay

3.4 days 95%

Repeat visitors to Singapore

70% Multi-

destination trip

46% “Likely” or “Very likely” to revisit Singapore in the next 1-2 years for leisure (9)


What Australian Business Travellers Spent On

On average, an Australian business traveller spends an average of approximately S$1,200 per trip in

Singapore, slightly below the global average. Approximately 56% of their expenditure goes towards

accommodation, 13% towards shopping and the rest on food, local travel and other miscellaneous

expenditure. (33)

Compared to their counterparts from other countries in the region, shopping during a business trip is not

as important to the Australian business travellers. (32)

However, when they do, buying gifts for their friends

and family back home is the most prevalent among business travellers. While consumer electronics are

popular amongst Australian business travellers in general,they tend to purchase fashion related

merchandise and genuine jewellery instead when in Singapore. In fact, these purchases make up

approximately 77% of their shopping expenditure. (12)

When they are not working, business travellers from Australia like to spend their time unwinding at a bar

or club with live music, with a tendency to visit those around their hotel due to convenience. They are also

more likely to dine alfresco as compared to other business travellers from South East Asia. (32)

Gifts for friends, family, business partners or colleagues

Gadgets and consumer electronics

Brands or items that I cannot find back home

Sightseeing & entertainment expenditure has been excluded from tourism receipts in the country breakdown due to commercial sensitivity of information.

Other TR components include expenditure on airfares, port taxes, local transportation, business, medical, education and transit visitors.

Shopping when on Business Trips (32)


Key Findings and Implications With travel being an integral component of their lives, Australians are expected to keep travelling despite potential economic downturn or unfavourable exchange rates. As such, it is important that we constantly reach out to stay connected and top-of-mind for them.

Here are the key insights and opportunities that have been identified for the travel and tourism sector.

Finding #1: It is all about the ‘soul’ of the destination

For the Australians, it takes much more than the physical aspects of a place to leave a lasting impression. While they do enjoy new attractions and architecture, it is the ‘soul’ of the place that makes the connection and draws them in. In particular, Australians are fascinated by unique or quirky aspects of local living for example, our HDB dwelling culture, bird-singing at Ang Mo Kio etc. Therefore, it is important that Singapore’s identity comes through when reaching out to the Australians.

While Australians who have visited Singapore are exposed to and understand its culture and heritage, a good majority of Australians are unaware of what the destination has to offer and base their perception on long-standing stereotypes. Hence, to break into their consideration set, the tourism industry in Singapore needs to communicate beyond what is new and include local elements such as its people, food and culture into its marketing strategy.

Finding #2: Experiences that go beyond the surface is vital

Travelling, to most Australians, is a learning journey as they explore and discover new experiences. While most of them spend only a short amount of time in Singapore as a stopover or part of a multi-destination trip, they constantly look out for experiences that allow them to understand the destination on a deeper level. Therefore, the importance of developing quality, in-depth content for storytelling to engage the Australian consumers is crucial to satisfying their needs.

In recent years, multiple new attractions have been added to the tourism landscape in Singapore, such as the River Safari and Gardens by the Bay. While these developments may give visitors a reason to visit, we have to curate a story with experiences beyond the infrastructure to give them a deeper appreciation of the destination.

The inability to find experiences with quality content that allow them to dig deeper into a destination feeds into the dated perception of some Australians, that Singapore is a destination that can be done in 3 to 4 days. Hence, attractions and local precincts may want to curate experiences and develop tools that will allow visitors to immerse and go behind the scenes. Such examples include audio-guides which bring to life the stories behind the product or precinct, wet market tours, information signage and/ or hands-on experiences like cultural cooking classes etc.


Finding #3: Building advocacy through their locals, past visitors and the expatriate community

Word-of-mouth is a powerful tool for the Australians when it comes to travel. Not only do recommendations from friends and family influence their consideration set when planning for a holiday, they potentially have great impact on the itinerary.

Advocacy of the destination may also come from the everyday Australians who are respected in their community or key opinion leaders as they are perceived to be a credible information source. Specifically for Singapore, the sizable Australian expat community may potentially serve as a reliable source of information for visitors. Not only are they able to provide information that are more customized and specific to meet the needs of their friends and family, but having lived in Singapore, they would be able to provide beyond what is already available on the Internet.

To tap on the full potential of what this community has to offer, there should be greater engagement with key influencers, past visitors and Australians living in Singapore by creating suitable platforms and tools to make it easy and rewarding for them to spread the word. Buy-in from this group can spark fresh and authentic communication to new visitors, bringing new perspectives to our island city.

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