Entrepreneurship is essential in the growth of economy. The entrepreneurship can be defined as an activity in which a customer’s need is identified and provisions are made to address it. The most important part in the entrepreneurship is the identification of opportunity (Stokes, Wilson & Mador, 2010). The Singapore hospitality industry is developed and mature tourism destinations. It is one of the most attractive tourism destinations in South-Asian countries due to ease of doing business and attractive cultural heritage. However, it has been identified in the report that from the last few years, the profitability if the businesses operating in the hospitality sector are facing declining profits (Fah, 2017). In the present report, the hospitality industry of Singapore has been explored. On the basis of the evaluation, an opportunity has been identified for the entrepreneurial activity. The report has also discussed the factors which can impact the success of the venture.
The hospitality industry of Singapore is quite developed due to high-tech infrastructure, geographical location and its home to major business houses. The hospitality industry is a vast industry which encompasses several categories of businesses such as travel, hotels, food and beverage, entertainment and the tourism attraction. Due to the large number of businesses involved in the hospitality sector, it is a significant part of the nation’s economy. The tourism and the hospitality industry in Singapore is the major contributor to the nation’s economy. The country also emphasizes on the development of the tourism sector by maintaining its natural heritage conservation programs and a low crime rate. The business environment, international openness and travel and tourism policy of the country are the major contributing factors in the development of the tourism sector of the country. However, with the increased inflow of the tourists from all across the world, the competitiveness in the tourism industry has also increased in Singapore. The hotels and the hospitality companies have to identify new ventures to remain competitive in the market. In this regard, in the present report, the entrepreneurship issues in the hospitality industry have been explored. Along with it, an opportunity has been identified in the hospitality industry to increase the revenue in the hospitality industry (Insight Alpha, 2017).
The hospitality industry in the Singapore is well-developed. There are a large number of hotels, tourism destinations and travel agencies which have equally contributed to the hospitality industry in the country. With the growth of the tourism sector, a large number of multinational and foreign hotels has emerged in the country. However, saturation has occurred due to the large number of hotels in the country. Along with it, the low influx of the international tourists has reduced the profit margins of the hotels significantly. According to Bloomberg Article, the revenue per available room has decreased to 7.4% a night which is lowest since 2010. Although the number of international tourists has arisen at a steady rate, the average revenue of the hotels has declined due to shorter visits by the tourists and increase in the available number of rooms. The high supply of the hotel rooms has declined the room rate of the major hotels (Mahrotri, 2016). Moreover, the hospitality industry in Singapore also faces several human resource issues. It includes shortage of skilled workforce and high retention rate. The employees leave their employment in the hospitality industry due to rotational working hours and increased work at festivities. It negatively impacts on the work-life balance of the employees and hampers their performance. The high turn-over rate of the employees creates shortage for the skilled workforce in the hotel industry.
With the declining profit margins of the hospitality industry, the Singapore Tourism Board and hotels are trying to adopt new strategies to increase the profitability and the sustainable growth of the organization. The companies are adopting manpower lean business models to foster innovation in the organization. It is used to identify the hanging consumer demands amid the manpower-constrained geographical location of Singapore. The manpower lean models in the hotel industry are more productive than their previous counterparts. The hotels are redesigning their premises to increase their productivity. With the increased capabilities in lean operations and measurements, the hotels can take productivity initiatives wherein the operations are less dependent upon the manpower and the human resources (Tan, 2016). Other initiatives include growing the hospitality business through internationalization and focusing on the skills development of the workforce (Singapore Tourism Board, 2016).
It could be deduced from the above discussion that the hospitality industry of Singapore is struggling from limited profits tourist influx. Most of the tourists arriving in the country come for the business purposes and stay for a very limited duration. Therefore, it is important that new avenues are explored to increase the influx of the tourists for the vacation purposes. The wellness vacations are a growing trend among the tourists wherein the holiday makers and vacationers are attracted towards the yoga sessions and health diets. It is a booming industry and only a few tourism destinations are providing services in the industry. The geographical location of Singapore makes it an ideal place for the wellness tourism. It is a tropical country and surrounded by sea which makes its climate warm and pleasant throughout the year. With this tourism strategy, the companies can attract the health conscious tourists in the geographical location. Due to the increased awareness regarding obesity and chronic diseases, the customers have become more conscious regarding their health. Moreover, the customers are also attracted towards the tourist destinations which deliver physical, emotional and environmental health of the people. However, the enjoyment remains a main criterion for the selection of the tourist destinations (Herman, 2015).
The industry is blooming due to increase in the growth of young customers below the average age of 30. These young consumers were in the search of rest and relaxation due to hectic lifestyle and long working hours. These customers explore spa treatments as a form of relaxation and indulgence (Category Briefing, 2014).
The health and wellness tourism in Singapore is in its early stage. This tourism sector is growing at a steady rate; however, the shortage of the skilled labor is the major concern for the growing industry sector. Moreover, the emergence of the new medical and wellness tourist destinations such as Indonesia and Malaysia has increased the competition in the industry. The wellness and the fitness spas in Singapore registered a growth of 5% in the country; however, the major hurdle in the growth of the wellness tourism sector is the shortage of the skilled labor. It is critical issue as the room turnover and the bookings are directly related to the availability of the professionals. The spa professionals must also be skilled because of the sensitivity of the treatment and physical interaction with the customers (Wan, 2015).
The success factors of the wellness and the fitness tourism is the availability of the skilled labor. The tourism industry of Singapore should make effort for the skill enhancement of the workforce. The hotels should also promote skill enhancement program so that talent can grow within the organization (Lee-Ross & Pryce, 2010).
Another success factor is the online image of the organization. The young customers who are attracted towards the spa treatment and wellness tourism are also highly resourceful. These customers are constantly connected through online mediums to expert and their friends. The instances of bad hospitality can be wrongly popularized and tarnish the image of the organization.
Conclusion
Entrepreneurship is an essential part in driving the nation’s economy. The entrepreneurship can be defined as an activity wherein a need is identified and addressed. The hospitality industry of Singapore is mature and observed a high growth in the recent years. It is because its operations as a business hub, geographical location and vicinity to other countries. However, recently, the profitability of the tourism sector has reduced significantly. It is due to the high supply in comparison to the demand. The net profit from the vacant rooms has reduced. In regard to the present situation, the companies can promote the wellness and the fitness tourism. It is the branch of the tourism sector wherein the customers are attracted by the fitness spa and healthy diet. The geographical location of the county makes it an ideal place as the wellness tourism destination. It is a growing sector and the major customer segment is the young generation couple who want to take time from their hectic lifestyle. The major challenges in the growth of the wellness tourism sector are the shortage of the skilled workforce and the maintenance of the online reputation. The tourism board of Singapore and the hotels can take initiatives to implement training and development programs to combat this issue.
References
Categoy Briefing. (2014). Health and Wellness Tourism in Singapore. Retrieved 4 April 2017 from https://www.dtn.go.th/files/245/all%20ppt/Health_and_Wellness_Tourism_in_Singapore.pdf
Fah, S. (2017). Tourism and Hospitality Sectors – Still a Growing Industry in Singapore. Job Central. Retrieved 4 April 2017 from https://community.jobscentral.com.sg/articles/tourism-and-hospitality-sectors-still-growing-industry-singapore
Herman, V. (2015). Why ‘wellness vacations’ are the hottest trend in travel. Los Angeles Times. Retrieved 4 April 2017 from https://www.latimes.com/travel/la-tr-d-wellness-part-1-20150614-story.html
Insight Alpha. (2017). Industry Overview: Singapore Tourism Industry. Retrieved 4 April 2017 https://insightalpha.com/news_test.php?cid=157&sid=75&nid=245
Lee-Ross, D., & Pryce, J. (2010). Human Resources and Tourism: Skills, Culture and Industry. Channel View Publications.
Mahrotri, P.T. (2016). Tourist Influx Brings No Joy to Singapore Hotels Amid Room Glut. Bloomberg. Retrieved 4 April 2017 from https://www.bloomberg.com/news/articles/2016-09-05/tourist-influx-brings-no-joy-to-singapore-hotels-amid-room-glut
Singapore Tourism Board. (2016). Transforming the Hotel Industry for Sustainable Growth. Retrieved 4 April 2017 from https://www.stb.gov.sg/news-and-publications/lists/newsroom/dispform.aspx?ID=690
Stokes, D., Wilson, N., & Mador, M. (2010). Entrepreneurship. Cengage Learning EMEA.
Tan, N. (2016). Transformation plan launched for Singapore’s hotel industry to ensure sustainable growth. Retrieved 4 April 2017 from
https://www.channelnewsasia.com/news/singapore/transformation-plan-launched-for-singapore-s-hotel-industry-to/3305916.html
Wan, C. (2015). THE WRAP: WELLNESS TOURISM ON THE RISE IN ASIA. Retrieved 4 April 2017 from https://www.webintravel.com/the-wrap-wellness-tourism-on-the-rise-in-asia/
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