Socioeconomic Perspective Of The Singapore Integrated Resorts - Free Essay Example

Sample details Pages: 13 Words: 4048 Downloads: 10 Date added: 2017/06/26 Category Economics Essay Type Analytical essay Did you like this example? 1 Introduction Singapore is a small island city with a total population of about 4.98 million. The local population consists of approximately 74.2% ethnic Chinese, 13.4% Malays and 9.2% Indians. The remainder 3.2% is made up of Eurasians and other foreign workers. Don’t waste time! Our writers will create an original "Socioeconomic Perspective Of The Singapore Integrated Resorts" essay for you Create order It is a relatively young population with only 217,000 or 7% of the population currently over the age of 65. This is set to change dramatically from now to 2030 when 800,000 or 18.7% of the population will be aged 65 years and above. The proportion of those between 15 and 45 years currently make up nearly half the population (Singapore Facts and Figures, 2009) The objective of the Integrated Resorts is to strengthen the leisure and entertainment options to enhance Singapores reputation as a must-visit destination for leisure and business visitors. The Integrated Resorts will be part of a larger spectrum of tourism products and are developing to enhance our destination appeal, and will enhance the tourism industry and economy. (Ministry of Trade and Industry, 2010) The Gross Domestic Product (GDP) in Singapore expanded at an annual rate of 24.00 percent in the last reported quarter. From 2007 until 2010, Singapores average quarterly GDP Growth was 7.62 percent reaching an historical high of 45.70 percent in March of 2010 and a record low of -12.50 percent in June of 2008. Singapore along with Hong Kong, South Korea and Taiwan is one of the Four Asian Tigers. Singapore has a highly developed and successful free-market economy. It enjoys a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing service sector. This page includes: Singapore GDP Growth Rate chart, historical data and news. (Trading Economics, 2010) There are over 7,000 Multi-National Corporations (MNCs) with operations based in Singapore, 4,000 of which are regional headquarters (Singapore Facts and Figures, 2009). Definition of Socio Economics In most cases, socio economists focus on the social impact of some sort of economic change, which is basically a study of the relationship between the economic activity and social life (Davis et al, 2008). Involve both economic and social factors. 1.2 Objectives of the Research The main objectives of this research are to understand the Socio-Economic Perspective of the Singapore Integrated Resorts. This research deals with the socio-economic factors that have potential impact of the Singapore Integrated Resorts. Its focus is to investigate and analyze the socio-economic impact. Identify and evaluate the significance of the social and economic factors of the Integrated Resorts. For instance gambling addiction, money laundering, Revitalizing of Singapore Tourism Industry and Boost in Singapore Tourism and Economy. The objective of this research to understand the socio economic perceptive of Singapore Integrated resorts, would they have bad or good effect to Singapore and understand the factors how these factors have positive or negative effect on Singapore. 1.3 Research Focus The Focus of this research is to understand the Socio-Economic perceptive of the Singapore Integrated Resorts. The main aim to understand how, the impacts of the Singapore Integrated Resorts can play a vital role in the socio and economic ways. Revitalizing Singapore Tourism Boost for Singapore Tourism and Economy Compulsive Gambling 1.4 Research Questions In this report we have to invest the socio economic- perceptive of Singapore Integrated Resorts and the effects of these socio and economic perceptive could be negative and positive. How the Integrated Resorts would help in Revitalizing Singapore Tourism. How the Integrated Resorts would help in boosting Singapore Tourism and Economy How the Integrated Resorts could cause Compulsive Gambling Chapter 2 Literature Review The purpose of literature review is to make sure that we analyze the Socio Economic- Perceptive of Singapore Integrated Resorts and the purpose of the literature review is to select promising measure, methods (Mamchak and Mamchak, 1994) The Integrated Resort (IRs) is undoubtedly a necessary step to Singaporeà ¢Ã¢â€š ¬Ã¢â€ž ¢s future economic viability. As Singapore has no natural advantages, it must capitalize its ability to stay at the front of the global economy, with focus to attract foreign investors, tourists and talent. Surveys have suggested that Singapore is seen as unexciting compared to other travel destinations, and has been labeled as conservative, moderate and stale; concentrating on traditional cultural projects like the Asian Village, Tang Dynasty and Haw Par Villa, and failing to move on with new innovations (Straits Times, 2005). Identify and highlight the important variables and document the significant results of earlier research that will serve as the bas is on which the theoretical framework of the investigation can be built and the hypothesis developed (Sekaran, 2003). Based on the research objectives, the researcher will provide relevant concepts in the review of current literature in this chapter. Revitalizing Singapore Tourism Singapore achieved good growth in visitor arrivals of 4.6% during Jan-May 2008, visitor arrivals to Singapore started to decline from June 2008 coinciding with the economic downturn. September/October saw a slight pickup in arrivals due to the 2008 FORMULA 1 SingTel Singapore Grand Prix. Stronger arrivals from West Asia (+15.5%), South Asia (+5.6%), Oceania (+6.6%) and Europe (+4.5%) also helped to cushion the downward pressure on arrivals. As a result, Singapore ended the year with a marginal decline of 1.6% in arrivals to reach a total of 10.1 million visitor arrivals. Visitor arrivals to Singapore fell by 4.5% year-on-year in July 2009 to reach 881,000 visitors. Visitorà ¢Ã¢â€š ¬Ã¢â€ž ¢s days were estimated at 4.6% million days, year-on-year decrease of 11.6% in comparison of July 2008 (923,000), The decline in tourism is certainly a concern for Singapore and the solution is to revitalize Singaporeà ¢Ã¢â€š ¬Ã¢â€ž ¢s tourism and create a unique Singapore niche. There is little point in selling Singapore as a country rich in heritage and culture; rather, the Integrated Resorts will market the modern entertainment, vibrant city life, and a constantly changing environment Singapore can best call her own (Singapore Tourism Board, 2009). Figure 1 Decline in tourism in 2008 C:UsersDickeyDesktopSingapore factsdrop in numbers.png Source: Singapore Tourism Board, 2010 Singapore Tourism Boards (STB) can see the potential attraction of the Integrated Resort as an economic case to revitalize the tourism attractions which have become luster over the years. The two Integrated Resorts can bring more prospective investors and they could invest up to some $5 billion and create about 35,000 jobs for the whole economy. (Ministry of Home Affairs, 18th April, 2005) The integrated Resorts played an important role and the visitor arrivals to Singapore registered 18.4% growth to reach 947,000 in September 2010, the highest number of arrivals received in the month of September. This also marks the tenth consecutive month of record visitor arrivals. This monthà ¢Ã¢â€š ¬Ã¢â€ž ¢s visitor arrivals can be partly attributed to the hosting of the Formula 1 SingTel Singapore Grand Prix, the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s only Formula One night race and the draw of the many leisure and entertainment events under the Grand Prix Season Singapore 2010 (Singapore Tourism Board, 2010). China is ranked third among the top 15. There is good potential for the Chinese tourists market. With the rise of China and the influx of middle-income Chinese tourists the segment with the largest growth potential, in which most are willing to gamble at the gaming tables, the IRs would become more crucial than ever. The Feedback Unit itself has ascertained that Singapore wants an iconic destination resort that offers world-class entertainment and leisure facilities not a mere gambling facility like Macau. Figure 2 Visitors arrival 2009/10 C:UsersDickeyDesktopSingapore f actsvisitors arrivals.png Source: STB 2010 Figure 3: Visitors arrival top 15 markets 2010 C:UsersDickeyDesktopSingapore factsvisiots arrival 2010.png Source: STB 2010 Figure 4 Visitors arrival 2007/08 C:UsersDickeyDesktopSnag itVisitordec 07,dec08.png Source: STB 2010 The socio economic perceptive of Singapore Integrated Resorts have really revitalized the tourism sector of Singapore as shown in the figure above and the tourism industry has grown rapidly as there are a lot of visitors coming to Singapore to check out the new Integrated Resorts, leisure and recreation purpose. Singapore had rapid hotel growth and development over the past two years with the openings of The St. Regis Singapore (April 2008), Capella Singapore (March 2009), Integrtaed Resorts and the Fullerton Bay Hotel Singapore. The hotels are doing very good business as their occupancy rate has really grown up and they are performing well. The new hotel openings come at a time when visitor arrivals numbers to Singapore are seeing an increase. The destination saw visitor arrival numbers increase by 30.3 percent to 946,000 visitors total in May 2010, compared to the same period last year, which saw 726,000 visitor arrivals. May marked the sixth consecutive month during which Singapore saw record tourism arrival numbers. The country expects to reach its goal of at least 11.5 million total visitor arrivals by the end of 2010 (Travel Age West, 2010) Average Occupancy Rate (AOR) posted a 5.2 percentage point increase over September 2009 to reach 82% in September 2010. (STB, 2010) Figure 5 Hotels average occupancy 2009/10 C:UsersDickeyDesktopSingapore factshotel occupancy in 2010.pngSource: STB, 2010 Average Room Rate (ARR3) increased by 13.1% over September 2009 to reach an estimate of S$233 in September 2010. Figure 6 Average Room Rate 2009/2010C:UsersDickeyDesktopSingapore factshotel arr.png Source: STB 2010 2.2 Boost Singapore Tourism and Economy The Integrated Resorts brings in entertainment and conventions, hospitality and retail outlets, which will help to increase the demand for hotel services, greater patronage at restaurants and heightened convention and exhibition activities. Studies and surveys have shown that tourism numbers and spending increase with the development of IRs. The Integrated Resorts in Singapore is not like the gambling facilities in Macau or Australia, which mainly cater to local patrons. One possible model for Singapore is a premium themed mega-resort, which has a large scale development that takes advantage of beach and marina settings to create a truly get-away holiday feel for visitors and locals Supporters of Integrated Resorts have claimed that touristà ¢Ã¢â€š ¬Ã¢â€ž ¢s duration and repeated visits would also increase. Singapore Tourism Board also supports the project, as it believes that the IRs has help to boost the tourism industry and enhance Singaporeà ¢Ã¢â€š ¬Ã¢â€ž ¢s attractiveness as a tourism destination. Being among the top-three visitor-generating markets, China (with increasing number of middle-class), and Japan (with existence of high rollers), serve as attractive target segments for Singapore (Singapore Tourism Board, 2009). There has been a great change from the paradigm over the past century. Governments and developers around the world have caught on the race to mastermind, create and develop Integrated Resorts and Entertainment which creates positive value propositions and potential growth to the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s image and economic strength of Singapore. Between 1993 and 2002, tourismà ¢Ã¢â€š ¬Ã¢â€ž ¢s contribution to GDP dropped from 6.1% to 3%, and our share of the Asia Pacific tourist flow fell from 8% in 1998 to 6% in 2002. Extremely moderate. Figure 7: Assessing the Economic Impacts Integrated Resort: Assessing the Economic Impacts Total Revenue of about $ 270 million, of which $212 million are derived from gaming activates Contribution to GDP of about $500 million, which is 0.4 of Singaporeà ¢Ã¢â€š ¬Ã¢â€ž ¢s 2003 GDP Employment of people of 3600 Source: Forecast by Assoc Prof Winston Koh, Singapore Management University The Singapore Tourism Board (STB) has forecasted its tourism industry for 2010, predicting that between 11.5 million to 12.5 million visitors will arrive, with S$12.6 billion ($9 billion) to S$13.3 billion ($9.52 billion) in tourism receipts. The forecast can be attributed to Singaporeà ¢Ã¢â€š ¬Ã¢â€ž ¢s dramatic transformation as a result of multibillion-dollar investments in new tourism infrastructure (Singapore Tourism Board, 2010). The Integrated Resorts play a vital role in attracting the visitors through Casinos, Shopping Centers, Universal Studios, different types of Hotels, Convention halls and restaurants. Singapores two integrated resorts are a major boost to the cou ntrys economy, said Prime Minister Lee Hsien Loong. The Prime Minister said he is glad that visitors are generally happy with the IRs as such attractions make the economy more vibrant and the city more colorful. He added that the IRs have created buzz and both were packed with visitors on their opening days, creating many jobs in the hospitality and tourism sector. According to media reports, nearly 200 bus loads of Malaysian tourists a day are visiting the IRs. (Channel News Asia, 2010) Asia in particular is fuelled by rapid growth, economic interest for the business and leisure group. Plenty of investors both local and foreign are becoming aware that Integrated Resorts are now becoming the of city life with important socio economic implications. (Integrated resorts and Entertainment 2010) Singaporeà ¢Ã¢â€š ¬Ã¢â€ž ¢s growth accelerated to a record 18.1 percent pace in the first half of 2010, spurring the currency and putting the island on course to overtake China as Asiaà ¢Ã¢â €š ¬Ã¢â€ž ¢s fastest-growing economy this year. Gross domestic product expanded at a 26 percent annualized pace in the second quarter from the previous three months, after a revised 45.9 percent gain in January to March, the trade ministry said today. Growth in the first half was the fastest since records began in 1975, prompting the government to predict GDP will rise 13 percent to 15 percent in 2010 (Bloomberg,2010) Figure 8 Singapore GDP Growth rates 2007/2010C:UsersDickeyDesktopSingapore facts11-10-2010 1-48-36 PM.png C:UsersDickeyDesktopSingapore factsgdp.png Source: Trading Economics (2010) Singapores two integrated resorts are a major boost to the countrys economy, said Prime Minister Lee Hsien Loong. The Prime Minister said he is glad that visitors are generally happy with the IRs. He added that the IRs have created buzz and both were packed with visitors on their opening days, creating many jobs in the hospitality and tourism sector. (Channel News Asia, 2010) In the case of the tourist-related services, like Hong Kong, Singapore has enjoyed a big bounce in tourist arrivals during the first 5 months of 2010, and theres an extra boost from the Integrated Resorts opening. Jimmy Koh, head of Economic-Treasury Research, United Overseas Bank, said: Most of us are still expecting a moderate 5 to 6 more per cent growth for 2011. This will put Singapore on track to possibly becoming the worlds fastest growing economy, surpassing even China. On an annualized and seasonally adjusted basis, Singapore economy expanded 26.0 per cent in the April-June period (Channel news Asia, 2010) Figure 9, 10, 11 Visitors arrive 2009/10. 2008/09. 2009/10C:UsersDickeyDesktopSnag itjuly 2010 visitors.png C:UsersDickeyDesktopSnag itVisitor10-23-2010 2-22-36 PM.png C:UsersDickeyDesktopSingapore factsvisitors arrivals.png Tourism in Singapore is expected to experience a boom this year due to Integrated Resorts. Industry players say there are now over 950 tr avel agents in Singapore an increase of over 100 from previous year. Travel agents told Media Corp that there are now more queries on visiting Universal Studios Singapore, Casinos and Hotels. Some operators are also increasing investments to expand their businesses and gain a bigger share of the tourism dollar. The two integrated resorts are expected to bring in more tourists to Singapore in the next one to two years. (Channel News Asia, 2010) 2.3 Compulsive Gambling As reported in à ¢Ã¢â€š ¬Ã…“Todayà ¢Ã¢â€š ¬? on 27 August, 2009, Singaporeans have a love for gambling. Singaporeans reportedly indulged in gambling, such as 4D, TOTO, and Football betting and horse-racing. Their growing appetite for gambling drove an increase of 3.6% in betting and sweepstakes duties, totaling S$1.4 billion (4D accounted for S$1.1 billion). Individuals claimed S$19 billion in reliefs (for example CPF, child, caregiver, maid levy, NS man); 218,600 people with assessable income of over S$20,000 did not have to pay tax (Today, 27 Aug, 2009). Figure 11 People Queuing outside Singapore Pools C:UsersDickeyDesktopSingapore factsSingapore pools.png Source: Today 2009 PM Lee Hsien Loong at Parliament Sitting, 18 April 2005. Integrated Resorts (IRs) are a significant proposal to boost our tourism industry. The government has been studying this idea for over years. The issue has been debated intensely, both among the public and within the government, because the IRs has a gaming component that is a casino. Many Singaporeans have spoken up both for and against. One of the key issues would be compulsive gambling as a social impact of having a casino in Singapore. So there will be the casino regulator. The Ministry of Home Affairs set up a new regulatory agency to regulate the casino. The casino regulator will put in place a strict regulatory to ensure that the casino remains free from criminal influence and that illegal activities on the premises are kept under control. Singaporeans love for gambling could be issue as people would have a compulsion for gambling. Casino gaming is becoming widely available around the world and Singapore, intention is not to develop a gambling attraction that compete in the gambling market (Lee, 2005). The Integrated Resorts in Singapore will not be like the gambling facilities in Macau or Australia, which mainly cater to local patrons. One possible model for Singapore is a premium themed mega-resort, which has a large scale development that takes advantage of beach and marina settings to create a truly get-away holiday feel for visitors. The Integrated Resorts are having issues raised included concerns that the casinos is resulting in increased compulsive gambling and undesirable activities linked with gambling such as loan sharks and organized crime.  In what is said to be one of the biggest losses yet at a Singapore casino, a local businessman lost $26.3 million over three days of gambling in June 2010. This included a staggering $18 million that he lost in one day alone. (Today, June 2010). These are the signs of compulsive gambling. Singapore love for gambling can become a compulsive gambling issues and casino industry in Asia has been booming over the years, both legally and illegally, despite moral and religious barriers in legalizing and operating gambling facilities for recreation. Now the Integrated resorts being operating in Singapore which gives the resid ents of Singapore to gamble but with a levy charged upon entry. Singapore has being the hub for gambling for several years as shown in the figure below before the Integrated Resorts even, but now it is legally allowed by law to gamble with responsible gambling. Figure 12 Gambling Participation Rates by Type of Games (%) C:UsersDickeyDesktopSingapore facts11-15-2010 10-17-29 PM.png Source: Gambling Survey 2008 2.4 Theoretical Framework Based on the theoretical framework the theoretical framework is there to test the validity of an existing theory. It is easier to understand the theoretical framework if it is viewed as the answers to the collected interrelated concepts. Revitalize Singapore Tourism IV 1 Socio Economic Perceptive of Singapore Integrated Resorts DV Boost Singapore Economy and Tourism IV 2 Compulsive Gambling IV 3 2.5 Hypothesis Development Hypothesis development is necessary as it shows a relationship between two or more variables expressed in the form of testable statement. (Sekaran, 2003: pg 103). Based on the research topic the final independent variable and dependant variable are as follows. Revitalize Singapore Tourism. (IV 1) Boost Singapore Economy and Tourism. (IV 2) Compulsive Gambling. (IV 3) Socio Economic Perceptive of Singapore Integrated Resorts. (DV) 2.6 Null hypothesis Addressed by: = 0 Finding: There is no relationship between the IVs and DV The null hypotheses represent that the independent variable (IVs) and do not have effect on the outcome of Dependent Variable DV. Table of Null Hypotheses H1 = Hypothesis 1. Revitalize Singapore Tourism H2 = Hypothesis 2. Boost Singapore Economy and Tourism H3 = Hypothesis 3. Compulsive Gambling = 0 = = Ho H1= Ho There is no significant effect of Revitalize Singapore Tourism on Social Economic Perceptive of Singapore Integrated Resorts H2= Ho There is no significant effect of Boost Singapore Economy and Tourism on Social Economic Perceptive of Singapore Integrated Resorts H3= Ho There is no significant effect of Compulsive Gambling on Social Economic Perceptive of Singapore Integrated Resorts Alternative Hypothesis Addressed by: à ¢Ã¢â‚¬ °Ã‚   0 meaning that à ¢Ã¢â‚¬ °Ã‚   Ho Finding: There is either negative or positive relationship between the IVs and DV Procedure : The alternative hypotheses represent that the outcomes are different from zero; in particular, it could be greater (positive) or lesser (negative). As a result, IVs positively relate to the DV if alternative hypotheses greater than zero and negatively relate to the DV if alternative hypotheses lesser than zero. To find out how significant IVs positively or negatively relate to DV, Alternative Hypotheses are measured. The alternate hypothesis  which is the opposite of the null is a statement expressing a relationship between two variables or indicating differences between groups. (Sekaran Bougie, 2003) à ¢Ã¢â‚¬ °Ã‚   0 = à ¢Ã¢â‚¬ °Ã‚   Ho H1à ¢Ã¢â‚¬ °Ã‚   Ho There is either positive or negative effect of Revitalize Singapore Tourism on Socio Economic Perceptive of Singapore Integrated Resorts H2à ¢Ã¢â‚¬ °Ã‚   Ho There is either positive or negative effect of Boost Singapore Economy and Tourism on Socio Economic Perceptive of Singapore Integrated Resorts H3à ¢Ã¢â‚¬ °Ã‚   Ho There is either positive or negative effect of Compulsive Gambling on Socio Economic Perceptive of Singapore Integrated Resorts Research Design The main aim of this research is to conduct a descriptive study and a correlation study. Descriptive research is used to obtain information concerning the current status of the phenomena to describe what exists with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time. (Key, 1997) In this research the researcher wants to relate the independent variables and the dependent variables. Descriptive study and a correlation study would help in identifying the information, design a procedure to gather the information and analyze the information with the help of the IVà ¢Ã¢â€š ¬Ã¢â€ž ¢s and DV. 3.1 Research Methodologies In order to collect the data for my research it is necessary to get an understanding of the data collection methods. There are many research methods but according to the topic nature we are doing a qualitative study. Qualitative research is unstructured exploratory in nature based on small samples and may utilize popular qualitative techniques such as group interviews, word association asking respondents to indicate their first responses to stimulus words and interviews For the purpose of this research the survey questionnaire of quantitative research is more effective in collecting and analyzing a huge amount of data. Furthermore the time to collect and study the answers from questionnaire is shorter as well. As a result the survey questionnaire of quantitative is the most suitable method to this research. (Malhotra, 2007) 3.2 Data Collection Methods According to the research design we are going to the following methods Secondary Data: Secondary data are the existing sources which were produced by earlier researchers for some specific purposes. According to the research topic we are using secondary data collections ways as it is from existing sources. (Blaxter et al, 2001) Primary Data: Primary data are original information collected by researchers to fulfill numerous purposes of research. The investigators could collect primary data by using various methods such as direct interviews, interviews through telephone, questionnaires, observations and others. (Macneill and Chapman, 2005) In this research, secondary data will be collected through magazines, journals, newspaper reports, company manuals, brochures and annual reports. 3.3 Data Collection Methods In this research, the researcher uses a questionnaire to gather data due to questionnaire is an effective data collection mechanism when the researcher knows exactly what is required and how to measure the variables of interest (Sekaran, 2003). Data would be collected through magazines, journals, newspaper reports, and brochures. To capture data, questionnaires are designed accordingly to specific information needed. In order to be precise, the question will be set as simple as possible. The number of question is small and the words are simplified. Before the questionnaire is practiced, they should be pre-tested to see how it works and improved if there is any mistake. 3.4 Data analysis The researcher needs an effective data analysis tool to examine the chosen hypothesis at the beginning step. SPSS which stands for Statistics Package of Social Science is considered the best method in statistical analysis. This software allows researchers to enhance their perception of the data and interpretation of the output. (Weinberg and Abramowitz, 2002) The main jobs of researcher are to decide the needed variables before entering the input to the software, to select correct statistical tests to analyze data and to interpret the final output results. (Bryman and Bell, 2007) 3.5 Pilot-Testing The purpose of doing pilot testing is to detect weaknesses in design and content in the instrument before it is reach final steps. (Fink, 2003), 12 peoples are required to be tested. The pilot tested should monitor the ease with which respondents complete the questionnaire, and also the ease with respondents to complete the questionnaire (Fink, 2003). 4 Ethical issues While conducting survey and interview for the research, the researcher should consider the code of ethical issue. The major responsibility of the researcher is to inform clearly and accurately the surveyà ¢Ã¢â€š ¬Ã¢â€ž ¢s purpose and content to respondents so that they can make decision whether they wish to participate. The researcher should also show the respect to the participants by keeping their answers confidential based on the guidelines of the university. Furthermore researcher need to guarantee the data must be used only for this particular report. No Content Month Nov, Dec 2010 Jan Feb 2010 Mar Apr 2010 Week 1,2 3,4 1,2 1,2 1,2 3,4 1,2 3,4 1,2 3,4 1,2 1 Problem Identification 2 Literature Review 3 Research Design 4 Choice of Methodology 5 Data Sources 6 Data Collection 7 Data Analysis 8 Writing up Draft 9 Editing 10 Final Document 11 Binding of Document 5 Schedules Figure 13: Singapore Population .Source: Singapore department of Statistics C:UsersDickeyDesktopSingapore facts11-10-2010 2-07-49 PM.png