SINGAPORE OUTBOUND

TOURISM MARKET STUDY

20 August 2019

This publication was produced for review by the United States Agency for International Development.
It was prepared by Chemonics International Inc.
SINGAPORE OUTBOUND
TOURISM MARKET STUDY

Contract No. 72047218C00001

DISCLAIMER

The authors’ views expressed in this publication do not necessarily reflect the views of the United
States Agency for International Development or the United States government.
CONTENTS
Acronyms ........................................................................................................... ii
Executive Summary .......................................................................................... 4
Introduction and Background .......................................................................... 6
Singapore Outbound : A closer Look.................................................................................. 7
The New Digital Traveler ...................................................................................................... 8
Situational Analysis ......................................................................................... 10
Knowledge and perception of Timor-Leste in Singapore ............................................ 10
Baseline Data of Current Singapore Outflows ............................................................... 10
Aviation Access...................................................................................................................... 11
Distribution of Travel to Timor-Leste ............................................................................. 13
Potential Niche Markets ...................................................................................................... 14
SWOT Analysis ..................................................................................................................... 16
Marketing Strategy ......................................................................................... 17
Branding and Positioning...................................................................................................... 17
Case Study for Reference: Bhutan..................................................................................... 17
Market Development and Sales Missions......................................................................... 19
Role of the Timor-Leste Embassy in Singapore.............................................................. 19
Travel Agents ......................................................................................................................... 20
Social Media and Digital Marketing.................................................................................... 20
Traditional Media................................................................................................................... 21
Partnership with Carriers.................................................................................................... 21
Action Plan....................................................................................................... 22
Branding ................................................................................................................................... 22
Annex a. About Singapore Market................................................................ 23
For potential use as infographics ....................................................................................... 23

SINGAPORE OUTBOUND TOURISM MARKET STUDY | i

ACRONYMS
ASA Air Service Agreements
ASEAN Association of Southeast Asian Nations
DIL Dili
FDI Foreign Direct Investments
GDP Gross Domestic Product
GOTL Government of Timor-Leste
KOL Key Opinion Leaders
LCC Low Cost Carriers
NATAS National Association of Travel Agents Singapore
OTAS Online Travel Agents
PATA Pacific Asia Travel Association
SIN Singapore
S$ Singapore Dollar
TL Timor-Leste
UNWTO United Nations World Travel Organisation
US$ United States Dollar
WTTC World Travel and Tourism Council

SINGAPORE OUTBOUND TOURISM MARKET STUDY | ii

EXECUTIVE SUMMARY
The National Tourism Policy of Timor-Leste approved in March 2017 has a vision of
transforming the country's tourism sector into a vibrant industry. By 2020, it targets
to welcome 200,000 international tourists annually, earning the country US$150
million in revenues and directly employing 15,000 workers.

To realize this vision, the government and private sector must jointly commit to an
operating strategy to put Timor-Leste on the global and regional tourism map.

Connectivity is key to international tourism development. And air transportation is

absolutely essential for linkage from source markets to destination(s).

Direct air access provides the best opportunity for tourism and trade flows.
Currently, DIL has non-stop flights from Darwin and Denpasar. It had direct links
from Singapore till 30 March 2019 when the Air Timor charter arrangement with
Silk Air was terminated. Fortunately, in August 2019, Air Timor established a
potential partnership with Drukair – Royal Bhutan Airlines that may result in the
resumption of twice weekly air services between Singapore and Timor-Leste
commencing on the 26th of September 2019.

Singapore is a major source market for many of the Association of South East Asian
Nations (ASEAN) destinations. With a population of 5.64 million and GDP per capita
of S$86,400 (US$64,000), Singapore residents took 10.4 million trips in 2018
(excluding land)

With such purchasing power coupled with such a high propensity to travel, it is an
outbound travel source market that cannot be ignored.

Changi Airport, the world's seven busiest for international traffic, managed a record
65.6 million passenger movements in 2018. With over 100 airlines providing
connectivity to over 400 cities worldwide, Changi Airport handles about 7,400 flights
every week or about one every 80 seconds.

Singapore travellers are spoiled for choice with such convenient air connectivity and
intense competition among destinations and carriers chasing after a share of their
wallets.

This study looks at the characteristics of Singapore as a choice outbound source

market and what it takes to tap into this high potential market. It also highlights the
vital importance of digital marketing to engage consumers during the travel purchase
cycle, i.e. dreaming, planning, booking, destination and post holiday sharing. It is
imperative for Timor-Leste to focus its limited marketing dollars on establishing and
continually updating robust digital platforms such as www.timorleste.tl.

With limited marketing resources, Timor-Leste must approach this market from a
quality over quantity perspective.
This outbound market study assesses the market potential for increasing visitations
from Singapore to Timor-Leste and provides guidance and strategic directions in
developing demand for future growth

Being one of three cities that have direct air links with Dili, Singapore presents
significant potential, particularly considering its status global financial centre, with a
per capita GDP of US$64,000. However, it must be remembered that the city-state
is one of the most sought after travel source markets in Asia and the competition is
stiff for attracting its resident travelers.

Despite a relatively small population of 5.64 million, with a high disposable income
coupled with a voracious propensity to travel, it is a market that Timor-Leste cannot
afford to ignore.

Having award winning Changi Airport offering convenient global connectivity to

some 400 cities, Singaporean residents are spoiled for choice with so many attractive
destinations at affordable prices to choose from.
SECTION 1

INTRODUCTION AND
BACKGROUND
Singapore is one of the few countries where tourism arrivals outnumber the
population. There are more than three times as many tourist arrivals than the
country’s population.

2018 was a record year with 18.5 million arrivals generating S$27.10 billion in
tourism receipts. Growth year over year was 6.2% and 1.0% respectively.

Average length of stay is 3.2 days. Efforts to increase length of stay include the huge
investment in infrastructure and iconic buildings like the recently opened S$1.7
billion Jewel@ Changi Airport, targeting transit passengers as well as locals. Both
integrated resorts, Marina Bay Sands and Resorts World Sentosa, would further
invest a total of S$9 billion to expand their presence. There is also a new central
business district in Jurong Lake District coming up. It goes without saying that
Singaporeans have high expectations given their own country’s vast tourism
resources, infrastructure and services.

On the outbound front, Singaporeans’ love affair with travel continues unabated.
Growth last year was 5% with Singapore residents collectively traveling 10.4 million
times by air and sea. Additionally, Singaporeans recorded 10.6 million trips to
Malaysia, mostly by land.

The trend in outbound travel among Singaporeans is towards shorter but more
frequent trips. Mid-year and year-end school holidays are peak travelling periods,
especially for family travel. More and more people are also taking advantage of public
holidays and long weekends to get away for short breaks.

There is also a sizeable non-resident population living in Singapore of approximately

1.64 million people, mostly consisting of expat managers and foreign workers. The
high income earners in this group do travel frequently within the region for leisure
during their postings in Singapore.

Being among the most well-travelled people globally, Singaporeans and expats are
constantly seeking new destinations and experiences. Millennials are more
adventurous in their choice of destinations and activities. In the next five years, these
millennial travellers will enter their peak earning and spending years. They will drive
the next wave of travel growth.

Timor-Leste is 3.5 hours flight away from Singapore. Near enough to compete for
the short haul market, which is highly competitive. Competitors such as Hong Kong,
Manila, Taipei, Shenzhen, Maldives and closer ones like Bangkok, Bali, Kuala Lumpur,
Phnom Penh, Ho Chi Minh enjoy year round demand from the Singapore outbound
travel market. This is an extremely competitive space, with airfares that are as low as
one third that of the US$350+ airfare for the return SIN-DIL-SIN flight.

SINGAPORE OUTBOUND : A CLOSER LOOK

While there are no official published statistics on actual outbound travel numbers,
one can rely on studies and surveys conducted by commercial entities to have a
good gauge of travel preferences and habits.

In a recent VISA study, international outbound amongst Singapore households are

expected to double by 2025, ranking the country 7th in the world and 3rd in Asia and
the Pacific. Household outbound travel spend in 2015 was estimated at US$22.5
billion and is expected to double to a whopping US$44.9 billion by 2025.

With an ageing population, the baby boomers form an important market segment.
They have time and money. 65+ year olds are expected to make 3.45 million trips in
2025, a huge increase from the 852,000 recorded in 2015. Average number of trips
per year are expected to grow from 1.31 in 2015 to 2.84 in 2025.

According to a Skyscanner 2018 APAC Travel Trends Reports, accessed 5 Dec

2018, the top ten favourite destinations in 2018 were Bangkok, Tokyo, Kuala
Lumpur, Seoul, Taipei, Hong Kong, Bali, Manila, London and Penang.

Notably, with the exception of London, the favorite destinations are all in Asia within
close flying proximity. This is in part due to the promotional marketing dollars
invested by various tourism boards based in Singapore and very attractively priced
holiday packages.

Travel trends indicate a strong inclination towards shorter but more frequent trips
per year versus the one annual long holiday. Travelling overseas is now a lifestyle and
people travel at every available opportunity, especially public holidays, long weekends
and school holidays.

In terms of devices used, desktop still leads, accounted for 57% while mobile was
43%. According the aforementioned Skyscanner Survey, 87% of respondents did
their research in bed and 50% in the office. 39% did it while commuting.

Average search lead days prior to traveling was 47 and average booking lead days
was 44.

Word of mouth (69%), social media (53%) and TV shows (39%) play a significant role
in influencing choice of travel destinations. Surprisingly TV advertisements accounted
for 15% and celebrities / influencers only a meagre 7%.

In terms of motivation to travel, ‘rest and relaxation’ stood out at 71%, follow by
‘explore new destinations’ and ‘seeking experiences’ at 67% and 43% respectively.
This bodes well for a destination such as Timor-Leste which is relatively
undiscovered with much opportunity for exploration.
The standard paid annual leave in Singapore is 14 days and the average holiday
duration is around five days. However, three out of 10 people took seven or more
international trips over the past 12 months.

In the same Skyscanner study, recently, 45% of Singaporeans are labelled as

“adventurous travelers”, eager and ready to explore new destinations and try out
new experiences and activities.

For 2019 travel plans, 82% said they were planning to visit a new destination for the
first time, citing off-the-beaten-track destinations like Ethiopia, Guatemala, Iran and
Yemen. Again, this augurs well for Timor-Leste.

18% of those planning revisits would want to experience it differently, including

taking road trips to explore parts of the country unknown to them.

Singaporeans are now frequent travelers and are shying away from the usual big well
known cities. Instead, they are ready to explore lesser known cities and this is made
easier with various low cost options offered by low cost carriers to secondary cities.

There is a sizeable non-resident population in Singapore of 1.64 million consisting

mostly of expatriates and foreign workers. The higher income earners in this group
do travel frequently and even forgo home leave to travel within the region during
their postings. Typically, they are more adventurous and would not go for the run of
mill type holidays. Again, this presents an opportunity for Timor-Leste.

THE NEW DIGITAL TRAVELER

Extracts from “The New Digital Traveler (2017)” by Criteo

https://www.criteo.com/wp-content/uploads/2018/01/New-Digital-
Traveler-EN.pdf

Everything we do is digital. The same applies to Singaporean digital natives and even
for those who are in the older age groups. It is inevitable that digital will play a big
part in influencing and deciding travel decision making.

The increasing use of smartphones contributed to the rise in mobile travel sales.
Household possession of smartphones is expected to reach 82% by 2020. Mobile
travel sales as a percentage of online travel sales is expected to reaach 35% by the
same year.

Needless to say Millennials are digital savvy. Millennials using smartphones for
browsing is expected to increase from 34% in 2016 to 37% in 2020. For booking
travel, numbers will grow from 21% in 2016 to 23% in 2020.

For digital travelers, the top destinations booked are Malaysia, Thailand, Hong Kong,
Indonesia and Taiwan. 50% of respondents are influenced by word of mouth when
making these travel decisions.
In relation to travel searches, 56% used smartphone browsers while 44% used apps.
Drivers for travel demand which include travel websites, reviews, posts and forums
accounted for 54%. Internet advertisements of destinations and travel services
contributed 46%.
99.6% of survey respondents said they searched online for travel information by
going to travel providers’ own wesbites (such as online travel agents or OTAs) or
online price comparators (such as HotelsCombined.com) while 31.9% searched by
phone calls/visits to airline offices or travel agents.

When asked how they book* 37% of respondents reported using smartphone apps
and browsers to book. Notably retargeted ads showed a high percentage of
penetration. 89% have seen retargeted ads while browsing on wesbites/apps and 66%
have clicked at least one such digital advertisement. 92% preferred making travel
bookings online vs offline and 40% most often booked directly on travel service
providers’ websites

In relation to booking of in-destination activities* the majority of respondents

reported using smartphone apps to book vs smartphone browsers. 46% used
smartphone apps to book dining out and 25% used smartphone browsers.
For excursions and sightseeing, 37% used smartphone apps and 25% used
smartphone browsers. 31% used smartphone apps to book museum/cultural
attractions and 24% used smartphone browsers. 37% used smartphone apps to book
outdoor activities and 20% used smartphone browsers. As for theme parks and
ticketed events, 34% used smartphone apps and 23% and 22% used smartphone
browsers respectively.

Note : *Respondents for total pool of 9 Asian countries including Singapore

SECTION 2

SITUATIONAL ANALYSIS
KNOWLEDGE AND PERCEPTION OF TIMOR-LESTE IN SINGAPORE
When asked about Timor-Leste by the author of this report, most would still refer
to it as "East Timor", and the fact that it "used to be part of Indonesia". There also is
a perception among Singaporeans that the country is an "unsafe place". Safety is a
huge factor for travelling and a destination being perceived as “unsafe” presents a
serious obstacle to tourism development and an uphill challenge to overcome.

When told that Timor-Leste achieved independence in 2002, many were not fully
aware of what had happened since then as there is limited information and news
about the country.

It is no wonder Timor-Leste has achieved the dubious honour of being the "least
visited country in Asia" as the largely negative perception is carried over from the
past.

Clearly, there is an urgent need to brand and position Timor-Leste appropriately in

the Asia and ASEAN region where there is high potential for tourism demand
growth.

BASELINE DATA OF CURRENT SINGAPORE OUTFLOWS

Singapore. International outbound travel by Singapore residents is estimated at 9.8

million in 2016 and is forecast to grow by an average of 3.5% per year to reach
nearly 12 million by 2021. Incredibly, the ratio of outbound trips to Singapore
households was some 621.5% in 2016 making it the highest in all of Asia and the
Pacific. In total, Singaporeans spent just over US$21 billion in outbound tourism
making it the highest travel spending country in all of ASEAN despite its relatively
small population. This is in large part due to the lack of domestic tourism owing to
the city-state’s geographic size and easy access to nearby international destinations.1
Many travelers seek destinations that are suited to their preferred activities, which
for Singaporeans is shopping, food, relaxation and adventures. The destination
selection process begins as early as 5 months before the actual take off. Singaporeans
suffer from what is known as ABS syndrome - anything but Singapore – a common
phrase signifying zero interest in staying in Singapore over the weekend and rather travel
anywhere else

1
Choong, D and Wong YH (2016). Mastercard Future of Outbound Travel in Asia Pacific. (online), available at: www.mastercard.com (13-02-2018).
 Statistic of Singapore citizens arrivals to Timor-Leste

Total visitors % of Singapore

arrived - All Comoro citizens arrived at
Year gates Airport Comoro Airport
2011 1537 1519 99%
2012 1426 1373 96%
2013 1461 1443 99%
2014 1526 1472 96%
2015 1420 1348 95%
2016 1367 1335 98%
2017 1447
2018 525
Total 10709 8490

Notes:
1. On 2017 and 2018 the statistic is not disaggregated by gates
2. Statistic for 2018 is only until June 2018.

WTTC SINGAPORE 2019 ANNUAL RESEARCH : KEY HIGHLIGHTS

Contribution of Travel and Tourism to GDP was 10% of total economy. Total Travel
and Tourism GDP is USD 34.5 bn.

Contribution of Travel and Tourism to employment was 325,000 jobs, 8.8% of total
employment.

In terms of international visitor impact, USD 19.9 bn, 3.2% of total exports.

Top 5 inbound source markets, China, Indonesia, India, Australia and Malaysia
Top 5 outbound destinations, Malaysia, Indonesia, Thailand, China and Hong Kong

Leisure spending was 56% and business spending was 44%

Domestic spending was 34% and international spending was 66%

AVIATION ACCESS
Tourism and trade flows depend on connectivity between source markets and
destinations. The cessation of air services between Singapore and Dili from 1 April
2019 was unfortunate and a huge blow to the country’s tourism development
aspirations. The cessation of this service has severely hindered the development of
tourism as well as trade between Singapore and Timor-Leste. Plans for mega
projects such as Hera and Pelican Paradise could be impacted and may be shelved
until there is a long term solution in place.
In 2018, 4330 pax were carried by the once a week Air Timor charter service
(SilkAir aircraft) from Singapore to Dili and 4493 pax from Dili to Singapore.
However, it is estimated that leisure travelers formed a very small percentage of the
passengers. While these are not big numbers, they are still an important contributor
of tourism receipts to the nascent tourism industry in Timor-Leste. Direct imports
and exports of goods helped cost competitiveness.

Once a week service is not ideal for those seeking shorter stays. It is not surprising
that the seat load factors, both directions, were just under 50% making the route
unprofitable and unsustainable in the longer term.

With monopolistic supply as in the case of the Singapore-Dili route, airfares will
inevitably would be artificially high. However, in the case of this service, the
comparably high airfares reflected the need to cover the high cost of the charter
operations given the low load factor.

To seriously tap the tourism potential and drive imports and exports, a twice weekly
service or more would be an absolute necessity. It would allow more flexible
itinerary planning for leisure travel and shorter trips for business travelers.
Fortunately, a reprieve may be coming with the commencement of a charter service
between DrukAir and Air Timor said to be commencing in September 2019.
However, this should be viewed as a short term panacea and longer term solutions
should still be sought to overcome weak aviation access between important source
markets such as Singapore and the wider ASEAN community.

The current lack of reasonably priced air connectivity is a national emergency.

According to commercial aviation experts, there is urgent need to reform the
approach to national aviation in synch with market realities. Growing air services and
destination connectivity to Dili and Timor-Leste requires a growing volume of
passengers, travelling for a multitude of reasons to ensure balance and seasonality
issues allow for air services to be sustainable. The larger a volume of passengers are
travelling, the more destination and air fare choice that will emerge. Some airports
globally compete for added or new air services, to support communities, grow
economies and return surplus funds to stakeholders from profitable activities from
aviation that evolves.

Notably, competition for new air services is most intense from airports or cities
where no based or home airline exists. The current state of affairs may suggest the
need for a national airline to be established, possibly through a public private
partnership. Many national airlines started with government support. Even up until
today, Singapore Airlines is still majority-owned by the Singapore government
investment and holding company, Temasek Holdings, which holds 56% of voting
stock. However, there are downsides to establishing national carriers, and given
Timor-Leste’s population, location (with proximity to Asian aviation markets),
current economic size and wealth, aviation capability and expertise, needed
investment priorities elsewhere establishing and operating a successful national
carrier may be difficult. It would also encumber state funds in order to pay
obligations as they fall due. It is worth noting that many flag carriers today no longer
exist, nor have been merged with other entities. The establishment of a national
carrier should be a topic for debate.
The merits of establishing air service agreements (ASAs) or simply advocating for
open skies is a debate worth having as well. ASAs can create massive bureaucratic
log-jams and are complex and time consuming to negotiate. Notably, Singapore has
a universal global open skies policy. Whilst not many new flights are created without
an ASA being in place, increasing globalization, and the reference to open skies is
making ASA negotiations obsolete. Protection of a nation’s aviation markets was
often required and requested by national carriers to ensure high fares were
maintained. An open market approach by smaller states without a based home-
nation carrier has merit. Some countries have adopted reciprocal open skies free
market reforms, or multi-lateral agreements to allow airlines free choice as to where
they can fly their aircraft. It has been suggested that for Timor-Leste the best
strategy may be to consider some degree of open skies and permit any carrier to fly
to Dili or any airport in the nation without the need of an ASA. Considering Timor-
Leste’s aspiration to join ASEAN, the country may consider adopting the ASEAN
Single Aviation Market, which is intended to increase regional and domestic
connectivity, integrate production networks and enhance regional trade by allowing
airlines from ASEAN member states to fly freely throughout the region via the
liberalization of air services under a single, unified air transport market.

Singapore is a great aviation hub for connectivity but if it is not possible, alternatives
would be Bangkok or Kuala Lumpur. Between the two, Bangkok is a better choice
given the European and Chinese flights connecting through the Suvarnabhumi
Airport and Don Meaung Airport. U-Tapao Airport in Pattaya will also be upgraded
to cater to regional flights. Kuala Lumpur is a smaller hub and the purchasing power
of Malaysians is relatively lower given the weak ringgit. Timor-Leste should explore
all of these options.

Between a full service model versus LCC, the latter is more appropriate for a
startup. Smaller aircrafts with lesser seats are easier to fill especially during low
seasons.

The Civil Aviation Policy is already in place and what is critically needed is the
political will on the part of the GOTL to execute the strategic plan to ensure its
successful implementation. Improved connectivity, especially with ASEAN countries,
will also help its quest to gain access to ASEAN membership.

DISTRIBUTION OF TRAVEL TO TIMOR-LESTE

When the Air Timor charters were operating, the load factor was averaging 50%.
Based on estimates, about 5% were for leisure travel from Singapore residents. 95%
were for business travel.

The low load factor on a once a week service would inevitably require high airfares
to help pay for the charter costs. This is not sustainable in the long run. Thus, it is
not surprising to see the cessation of the air service. Time will tell if the new service
using the DrukAir aircraft will perform better.
POTENTIAL NICHE MARKETS
Singaporean travelers are spoilt for choice when it comes to selecting where to go
for their holidays. Focusing on the unique product offerings in such a competitive
market is the only way to stand out.

Dive Tourism: Diving as a sport is gaining popularity. There are several dive travel
companies in Singapore. Their customers consist of locals as well as expatriates. The
cost of diving trips in Singapore is relatively cheaper than in Europe and other
regions. Popular diving destinations are Malaysia, Indonesia and Thailand largely due
to the proximity and cost.

Gill Divers, the leading player, organised two small groups to Timor-Leste last year
and are planning for one in October this year. Feedback on Timor-Leste was
favourable. Divers enjoyed the uncrowded dive sites and untouched environment.
The seven nights stay package was acceptable to them as they typically spend at least
five to six days diving.

There is potential to develop dive tourism although the numbers initially would still
be fairly small for such a niche market. Being a "new" dive destination, there is a need
for building awareness. The recommendation is to participate at the Asia Dive Expo
(ADEX) which is usually held annually in April in Singapore. This year it was held
from 11 to 14 April where some 70,000 trade visitors and over 200 exhibitors came
together. At such an established show, there are lots of opportunities to meet dive
travel companies from the region and take advantage of speaking engagements at
workshops and presentations to promote the destination and lift the profile. In past
years, Timor-Leste was represented through the coordinatioin of the Market
Development Facility project.

The key dive operators in Timor-Leste should come together to popularize Timor-
Leste as the “new dive destination”. To position favourably, investments must be
made to upgrade the infrastructure and facilities to match those in the region.

Religious tourism: With a predominantly Catholic population, there is the

opportunity to promote Catholic tourism.

About 5.7% of Singapore’s populace, or about 300,000 people, are Catholics.

Churches do make mission trips abroad. They typically work with select travel
agents once they have decided where to go.

Palm Travel is the leading Singapore travel agent specializing in organizing trips for
religious groups. They had a couple of church groups to Timor-Leste a few years
ago. Feedback is that there was not a lot to do there besides pure missionary work.
Infrastructure was also notably lacking.

Current favourites for mission trips are Eastern Europe and Africa. To entice them
to consider Timor-Leste, special efforts must be made to reach out to these
churches and this must be initiated from the Timor-Leste side.
There is potential for more groups but not in big numbers.

Ecotourism: Frequent travellers are looking out for new experiences and this is
where the Timor-Leste can be a destination of choice for ecotourism, with its
unique form of topography and natural environment.

Often also labelled together with responsible and sustainable tourism, there is
growing awareness and many destinations are eyeing this segment. To put Timor-
Leste on the ecotourism map, there is a need to engage global associations such as
UNWTO and PATA who are championing the cause. Participating in trade shows
and conferences are ways to improve visibility and showcase products to a targeted
audience.

Singapore travellers, especially millennials, are ready for such experiential holidays.
To reach out to them, exposure in social media and engagement with special interest
groups are necessary.
SWOT ANALYSIS
Strengths Weaknesses
Product Market Product Market
• Unique history and heritage • Proximity to thriving ASEAN • Lack of air connectivity • Very low market awareness
• Scenic landscapes and natural markets • Inexperienced and undertrained • Perceived as “unsafe”
attractions • Within 4 hours to many human capital • No investment in
• Unspoilt diving sites ASEAN cities • Lack of English speaking destination marketing
• Strong Catholic culture • Lack of explanatory signage at • Tourism Board not taking
• Coffee cultivation popular destinations the lead.
• Weak wifi and internet access • Poor coordination and lack
in most places of standardization in digital
• Visa on arrival requirement marketing
• Weak business enabling • Lack of a coherent TL
environment tourism brand and
• Unclear regulatory environment communication strategy
• Low awareness of tourism • Complete lack of marketing
investment opportunities Search Engine Optimization
• Poor road infrastructure • Limited targeting of
• No popular tourist attraction segmented markets
other than Cristo Rei • Limited coordination among
• Pricing in US dollars a public and private sector
disadvantage actors
• No coherent digital
marketing strategy
Opportunities Threats
Product Market Product Market
• Range of yet-to-be discovered • Public Private Partnership with • Lack of coordination between • No government
attractions, itineraries and consortium led by Tourism public and private sector to commitment to grow
resources which could expand Ministry to focus on driving align priorities and future tourism amidst strong
the product offering “Explore the Undiscovered” directions competition for tourism
• Existing product lines can be theme both locally and • Stagnated or slow improvement market share
reviewed to ensure that they overseas in tourism infrastructure • Natural and human induced
are differentiated from those • Brand awareness with • Failure to develop human disasters
of competing destinations in dedicated budgets and resource capacity • Economic downturns both
the region. coherent strategic plan. • Lack of direct air connectivity domestic and international
• Improved air access from • Set up Destination Co-op will adversely impact potential due to macro headwinds
ASEAN will make itineraries Marketing Fund to promote new tourism developments and trade tension.
more attractive and cheaper Timor-Leste in select source • Failure of tourism stakeholders • No government support to
airfares with competition markets to upkeep and upgrade promote more air access
• Collaboration with ASEAN • Continued push for ASEAN products and services • Failure to gain admission to
tourism schools to develop membership ASEAN membership
curriculum and establish • Open sky policies to encourage
training centres to upgrade new airlines
service standards • Stakeholders commit to
• Future mega projects in Hera participation in overseas trade
and Paradise Cove missions and consumer/trade
shows
SECTION 3

MARKETING STRATEGY
BRANDING AND POSITIONING
There is an urgent need to create a distinctive image for the country and
consistently promote it at every available opportunity on both online and offline
media and touchpoints using "Explore the Undiscovered", the country's official
destination brand. It requires the combined efforts of the public and private sectors
to relentlessly drive the message across all channels.

The tone of the message must be warm and inviting. Appeal to those who are able,
willing and ready to embark on a holiday with a difference. It is all about
"differentiation” in a market where there is no lack of options. It’s quality vs quantity
and much has to be done to deliver that promise on the destination end.

To gain share of voice, a co-op marketing fund could be set up with GOTL matching
private sector contribution. It is not a one-off exercise but a long term commitment
as brand building is not cheap and requires a consistent plan throughout the year

The targets set in the National Tourism Policy, including doubling tourist arrivals to
200,000 by 2030, are laudable. It requires the alignment of government policies,
physical infrastructure readiness, human resource capacity, multiple fold increase in
air connectivity and tourism promotion budgets to make it happen.

CASE STUDY FOR REFERENCE: BHUTAN

Bhutan is a landlocked small country with about 750,000 people which gives priority
to culture and environment over economic growth. Instead of focusing on GDP, it is
widely known for the concept of “Gross National Happiness”. Using this overarching
theme, the then prime minister Tshering Tobgay launched “Brand Bhutan” in
February 2016, bringing all sector brands under a unified national brand.

The strategy is to leverage on the generally positive international image to lift the
low level of trade with the outside world, increase export and raising GDP per head.

Futurebrand was selected to bring the concept to life.

Ultimately, FutureBrand’s immersion and analysis uncovered the need for Bhutan to
first define what value ‘Bhutan’ the country brings to the market before it is possible
to define the value of ‘Made In’ Bhutan. Consequently, we set out to define the
strategy and identity for the Bhutan country brand to communicate the competitive
difference it offers to the world. Building upon these insights, FutureBrand created
one unified and overarching country brand for Bhutan, which is broad enough to be
leveraged across all sectors and industries in the future – particularly for sectors that
support Bhutan’s sustainable and long-term growth plans such as handicrafts, organic
farming and clean energy.

Using the newly articulated brand strategy as the platform for creative exploration
and inspiration, FutureBrand designed Brand Bhutan to amplify the ethos of Gross
National Happiness, and capture the spirit of the country, its people and way of life.
From the vibrant colours of the prayer flags to the spiritual patterns and symbolism
of the country’s handmade treasures – everything crafted for Brand Bhutan comes
from the country’s pristine nature, timeless traditions and enduring values”.2

Led by the Tourism Council of Bhutan which is headed by the Minister of Foreign
Affairs, all efforts are directed towards the mantra of “High Value. Low Impact”
With firm commitment from public and private sector stakeholders, tourist arrivals
grew 21.5% and 7.6% in 2017 and 2018 respectively.

The minimum daily package price of US$250 per day positions Bhutan as a quality
destination for those who also respect sustainability and the culture of the country.

Having achieved success over these few years, there is the inevitably concern with
overtourism for a country that is not designed for mass tourism. There is a plan to
increase the minimum daily package quantum which will enhance its exclusiveness
and avoid falling victim to mass tourism which had already affected many popular
destinations.

Takeaways:

1. Bhutan is rather similar in some ways to Timor-Leste in geography,

demographics and economy
2. It demonstrated that a small nation can stand out and compete on its own
merits
3. Government leadership and commitment is critical
4. It is imperative to have a distinctive “national brand” and an overarching
strategy which encompasses all things Timor-Leste, particularly trade and
industry, including tourism.
5. Driving tourism on a standalone platform is not impactful enough. It has to
part of a larger national vision that can contribute to raising GDP and
enhance socio-economic development.
6. Given its current infrastructure and limited air access, Timor-Leste, like
Bhutan, cannot sustain mass tourism.
6. Commission a professional brand specialist like FutureBrand to work with all
major stakeholders in the public and private sector to draw up a branding
strategy and commit financial and non-financial resources to execute.
7. Tourism is not a one-off exercise but a long term commitment.

2
www.futurebrand.com/our-work/bhutan
www.tourism.gov.bt/uploads/attachment_files/tcb_sZjMpdQJ_BTM_2018.pdf
MARKET DEVELOPMENT AND SALES MISSIONS
With a clear brand and destination positioning in place, funds need to be committed
and invested in reaching the right target audience.

In Singapore, there are 2 large travel fairs, one typically in February and the other in
August organized by the National Association of Travel Agents Singapore (NATAS).
NATAS Travel Fairs on average draws about 100,000 visitors to each show. Besides
travel suppliers, many national tourism offices also participate to showcase their
destinations to the travelling public.

This is a great platform especially for those with a limited budget. Besides reaching
out to eager holiday makers looking out for travel deals under one roof, it is also the
right place to meet travel agents and tourism industry leaders.

The most cost effective approach would be presenting a unified "Timor-Leste

Pavilion". Ideally, this would be led by the Tourism Ministry and supported by private
sector stakeholders willing to come together to showcase the "The Best of Timor-
Leste - Explore the Undiscovered".

To coincide with the trip, partner with NATAS in conducting product workshops for
select travel agents and tour operators. A separate presentation could be arranged
for travel media journalists and bloggers. Offer familiarization trips for top travel
writers to experience first hand what TL is all about. There are also opportunities to
showcase Timor-Leste in travelogues on local Singapore television.

Timor-Leste mainstream media and television should cover the activities of the sales
missions and broadcast to the local community. It will give profile to the participants
and encourage new players to join future missions. It would also show that the
government is doing its part in promoting the destination to help the stakeholders.

Promoting a destination is not a one-off initiative. It requires a long term

commitment. With consistent marketing throughout the year coupled with a strong
showing at the two travel fairs year after year, Timor-Leste will gradually gain top of
mind awareness.

ROLE OF THE TIMOR-LESTE EMBASSY IN SINGAPORE

The embassy is the face and voice of a nation in a foreign land. On top of their
diplomatic and consular duties, the embassy can play a more active role to promote
trade and tourism.

Besides coordinating trade shows and meetings for attendees and participants from
Timor-Leste, it can take on a proactive role by working with private sector
stakeholders in Timor-Leste to organize trade missions to Singapore to present
foreign direct investment opportunities to Singapore based investors. Singapore is a
global financial center and regional hub for private equity and venture capital firms.
The Timor-Leste Embassy is seeing increasing enquiries in agriculture, tourism and
oil and gas. This is a positive sign and the Embassy can drive the interest level higher
through closer engagement with potential investors.

It can also organize events to showcase Timor-Leste like “Timor-Leste Festival”. This
could be a week long event in a local hotel featuring Timor-Leste cuisine, culture,
tourism, Timorese coffee, religious sites etc. Get mainstream and online media to
cover the event. It is a cost effective way of introducing the country to Singaporeans
and make it an annual feature in the local calendar.

TRAVEL AGENTS

Timor-Leste being a niche destination will only appeal to travel agents who are
specializing in niche products.

For religious tourism, HolyLand Travel & Tours is one of the leading ones.
Established in 1989, they specialize in pilgrimage tours to the Promised Land and
have now diversified to include Catholic, Buddhist and Hindu religious tours.
Website : http://holylandsite.com.sg/about-us

Palm Travel handles church groups and tours to Israel. They had a couple of small
groups to Timor-Leste several years ago. An opportunity to reconnect if there is
strong pull from Timor-Leste end.
Website : https://www.palmtravel.com.sg/about/

To target dive enthusiasts, the most effective platform to reach out to dive related
agencies is Asia Dive Expo – ADEX. It is the largest, and the longest-running dive
show in Asia with an estimated 70,000 visitors and 200 exhibitors. The next show
is from 17 to 19 April 2020.
Website : https://10times.com/adex

SOCIAL MEDIA AND DIGITAL MARKETING

One of the determining factors for choosing a destination nowadays is other
travelers’ experiences and recommendations of a given destination. User generated
content on popular platforms play an important part in educating and influencing first
time visitors.

Using social media for brand building can be effective especially for niche destinations
and niche products. Identifying KOLs and travel bloggers to spin positive stories and
project desirable images would be one cost effective way to start.

For greater and wider impact, investment in high profile platforms such as Facebook,
Instagram and TripAdvisor would be necessary.

Working with Tripzilla Singapore : https://tripzilla.sg/, the Number One Travel Portal
in Singapore would be a good start.
The digital strategy is not a standalone strategy. It must be integrated with offline
marketing and advertising. The advantage though is that it is more measurable and
thus, more targeted with less wastage.

Timor-Leste – Explore The Undiscovered is largely unknown and both the

government and private sector must come together to pool their limited resources
to derive synergy.

There is no quick return on investment. It has to be a multi-year commitment as the

competition among destinations is intense and most of them have bigger budgets
than Timor-Leste.

TRADITIONAL MEDIA

While digital media is fast gaining dominance, traditional offline media still has an
important role. Advertising in mainstream national newspapers and TV would be
prohibitively expensive.

An alternative to straight advertising is advertorials. Newspapers and magazines are

constantly looking for new content. Organising familiarization trips for well known
journalists and travel writers in exchange for coverage in main stream media can be
very cost effective as the hosting costs can be shared with various stakeholders.

There are also opportunities to collaborate with TV channels for travelogues.

The Straits Times is the mainstream daily newspaper for English readers and Zaobao
for Chinese readers.

Lifestyle magazines such as Her World, 8 Days and Expat Living are popular too.

PARTNERSHIP WITH CARRIERS

As there is no direct air service between Singapore and Dili, there are no
opportunities for collaboration with an airline for the time being. This may change
with the commencement of the DrukAir flight in September.

Assuming the resumption of direct air services in the near future, it will present an
opportunity for the re-launch of the destination as well. A consortium of travel
agents can put together promotional tour packages with special airfares supported
by the airline. Cooperative advertising featuring tourist attractions and the
promotional tour packages will drive awareness and increase visitor arrivals. The
airline can provide complimentary air tickets and leading hotels and service providers
in Timor-Leste can host accommodation and activities for familiarization trips.
Section 4

ACTION PLAN
BRANDING
For a relatively unknown destination, branding must be a number one priority for
next few years.

Branding is a multi-year commitment and can be expensive. With limited resources,

the Tourism Ministry, including other government agencies, have to take the lead
and the private sector must support.

Explore the Undiscovered is a good brand positioning, particularly for a matured

travel market like Singapore where travelers are seeking new experiences.

Given that there is currently no direct air service, destination marketing will largely
be directed at promoting awareness rather than pushing products or packages.

Use public relations instead of advertising. The key objective is to promote a

favourable image of the destination and correct any pre-conceived negative
perceptions.

Social media platforms present opportunities to share positive travel stories and
blogs to a huge audience as well as the ability to reach a select segment of the travel
market.

VISION
Timor-Leste as a destination of choice for Singaporeans who want to Explore the
Undiscovered
EXPECTED OUTCOME
Increased awareness of Timor-Leste as a desirable destination for Singaporeans
who want to experience something different
Pillar 1 Pillar II
Promote Timor-Leste – Explore the Formalize structure for joint marketing
Undiscovered brand positioning and promotion incorporating public and
private sector stakeholders
Improve destination website with Establish a formal organization (Tourism
compelling content and user friendly Board) with clear goals and assignment
functionalities of roles with accountability

Commit a budget for online and social Allocation of annual budget from
media public relations and marketing government supported by co-op funding
from private sector stakeholders
Consistent use of logo and images Compliance and transparent reporting
across all channels and platforms by all of performance and expenditures
stakeholders
ANNEX A. ABOUT SINGAPORE
MARKET
FOR POTENTIAL USE AS INFOGRAPHICS

DEMOGRAPHICS
Total population 5.64 million (end June 2018)
Total population growth 0.5%
Resident population 3.99 million
Median age 40.8 years
Highest qualification attained
(among residents aged 25 years & over)
University 31.6%
Diploma & Professional 15.1%
Number of resident households 1,325,300
GDP at current market prices S$125,840,300
Per capita GDP S$86,383
Unemployment 2.2%
Source : Singapore Department of Statistics

TOURISM
Visitor arrivals 18,506,600 (+6.2%)
(excluding Malaysian land arrivals)
Tourism receipts S$27.10 billion (+1/0%)
Average length of stay 3.2 days
Source :STB

Outbound departures of SG residents

Total 10.4 million
Air 8.4 million
Sea 2.0 million
Source : Immigration & Checkpoints Authority

CHANGI AIRPORT
Passenger movements 65.63 million
Network More than 100 airlines flying to some
400 cities in about 100 countries and territories worldwide
Each week, about 7400 flights land or depart from Changi
Source : Changi Airport Singapore (2018)
Skyscanner Singapore Travel Trends 2018/2019

Top Destinations Rank By Cities By Market

1 Bangkok Thailand
2 Tokyo Malaysia
3 Kuala Lumpur Japan
4 Seoul Indonesia
5 Taipei Australia
6 Hong Kong India
7 Bali China
8 Manila Philippines
9 London South Korea
10 Penang Taiwan

TRAVEL AGENTS
No. of active travel agents 1200
No. of outbound agents 800
No. of inbound agents 600
No. of agents doing both 200
Source : STB Trust Website

Mapping the future of global travel and tourism in Asia Pacific

region - VISA
International outbound travel amongst Singapore households are expected to double
by 2025, ranking 7th in the world and 3rd in Asia Pacific

2015 2025 % Increase

Households outbound travel spend US$22.5 bn US$44.9 bn 99%

65 + year-olds travelers
No. of international trips by 65+year-olds 852,000 3,451,000

Average number of trips per year 1.31 2.84

The New Digital Traveler (2017) by Criteo*

1. RISE OF THE SMARTPHONE

2016 2020
a) % of household possession of smartphones 79% 82%
b) Mobile travel sales (as % of online travel sales) 22% 35%

2. MEET THE MILLENNIALS

2016 2020
a) Millennials using smartphones for travel browsing 34% 37%
b) Millennials using smartphones for booking travel 21% 23%

3. FROM INSPIRATION TO DESTINATION

DREAM

a) Top Destinations
1. Malaysia
2. Thailand
3. Hong Kong
4. Indonesia
5. Taiwan

b) % of respondents influenced by word of mouth 50%

SEARCH

a) Share of apps and browsers in smartphone browsing

Smartphone apps 44%
Smartphone browsers 56%

b) Drivers for travel demand

Travel websites / reviews / posts / forums 54%
Internet advertisements of destinations / travel services 46%
c) Online sources used to search for travel information*

% of survey respondents searched by going to travel providers’

own websites/apps/OTAs or online travel price comparators 99.6%

% searched by phone calls/visit to airline offices or travel agents 31.9%

BOOK*

a) % of respondents most often use smartphone apps / browsers

for booking 37%
b) Retargeted ads show high percentage of penetration
% have seen retargeted ads while browsing on websites / apps 89%
% have clicked at least one of such ads 66%
c) % prefer making travel bookings online vs offline 92%
d) % most often book directly on travel service providers’ websites 40%

VISIT*
Booking in-destination activities *
Smartphone Smartphone
Apps Browsers
Dining out 46% 25%
Excursion / Sightseeing 37% 25%
Museum / Cultural Attractions 31% 24%
Outdoor Activities 37% 20%
Theme Parks 34% 23%
Ticketed events 34% 22%

Note : * Respondents for total pool of 9 Asian countries including Singapore

Skyscanner APAC Travel Trends 2018

Mobile usage in travel bookings
% of internet users in Singapore purchased with their mobile phones in Q3 2017 :
39%

Country Average Search Lead Average Booking Lead

Days Days
Singapore 47 44

Average Holiday Duration 5 days

Standard paid annual leave 14 days

7 or more international trips over past 12 months 3 out of 10

Open link for infographics

https://www.skyscanner.com.sg/media/singapore-travel-trends
Skyscanner Study : Jan 2019

One in two (45 percent) Singaporeans are adventurous travellers, eager to

explore new destinations and try out new activities while travelling abroad.

For travel plans in 2019, 82 percent said they were planning to visit a new
destination for the first time, citing off-the-beaten-track destinations like
Ethiopia, Guatemala, Iran and Yemen to name a few. Even those who planned to
revisit a destination (18%) said they would experience it differently, including doing a
road trip to explore parts of the country unknown to them.

Singaporeans are increasingly shying away from the usual capitals and instead
exploring lesser-known cities, made possible by the introduction of various low-cost
carrier options to non-capital cities such as Scoot to Berlin and Silk Air to Hokkaido,
to name a few.

What does adventure mean to

Singaporeans?
The study found that Singaporeans would like to or have travelled like a local on
public transportation without private car hires (24%), travel solo (18%), ride a
hot-air balloon (17%) or hike a mountain (14%) among other activities.

It pays to be adventurous!
More than half (58%) said they were willing to spend up to S$500 on an
adventurous element on their travels, while a quarter (21%) would even spend
S$1,000 or more.

https://www.skyscanner.com.sg/press-releases/adventure-index
Useful Links
https://www.visa.com.sg/about-visa/newsroom/press-releases/singapore-households-
estimated-to-be-worlds-7th-top-overseas-travel-spenders-by-2025.html
https://usa.visa.com/dam/VCOM/global/partner-with-us/documents/global-travel-and-
tourism-insights-by-visa.pdf
https://www.criteo.com/wp-content/uploads/2018/01/New-Digital-Traveler-EN.pdf
https://www.skyscanner.com.sg/press-releases/adventure-index
https://www.skyscanner.com.sg/press-releases/skyscanner-singapore-travel-report-
2017
https://corporate.cms-horwathhtl.com/wp-
content/uploads/sites/2/2018/05/MR_AP_REGIONAL-TOURISM-TRENDS.pdf
https://travel.padi.com/d/asia/
https://10times.com/adex
https://www.singstat.gov.sg/
https://www.straitstimes.com/
https://www.stb.gov.sg/content/stb/en/statistics-and-market-insights/statistics-and-
market-insights-overview.html
https://www.ica.gov.sg/news-and-publications/statistics
http://www.changiairport.com/corporate/our-expertise/air-hub/traffic-statistics.html
https://www.skyscanner.com.sg/media/singapore-travel-trends
https://www.visa.com/partner-with-us/visa-performance-solutions/international-
outbound-travel-projections/
http://www.natas.travel/Home/index.aspx
http://natastravelfair.travel/
https://www.catholic.sg/our-faith/
https://www.cafeasia.com.sg/
https://www.itb-asia.com/
https://www.acra.gov.sg/home/
https://www.edb.gov.sg/
https://www.enterprisesg.gov.sg/
https://www.sha.org.sg/
https://www.saceos.org.sg/
http://www.singapore-attractions.com/
https://www.pata.org/
http://www2.unwto.org/
https://www.singaporecruise.com.sg/
https://sicc.com.sg/
https://www.abs.org.sg/
http://images.globalclient.visa.com/Web/InovantElqVisaCheckout/%7Baf5fef00-f254-
488d-9c74-3ca21c776149%7D_visa-global-travel-intentions-study.PDF
U.S. Agency for International Development
1300 Pennsylvania Avenue, NW
Washington, D.C. 20523
Tel.: (202) 712-0000
Fax: (202) 216-3524
www.usaid.gov