Sports tourists hold key to new era

Englishman James Hudson's excitement at his maiden visit to Singapore had nothing to do with the exotic food or culture of the Far East.

Instead, the highlight of his itinerary was experiencing the sight of Formula One cars under the glittering skyline of a modern metropolis.

Drawn by Singapore's growing appeal as a sports destination, the 40-year-old sales representative is part of an emerging band of sports tourists that have contributed to improving tourism figures here.

Since its debut in 2008, the Singapore Grand Prix has welcomed over 250,000 international visitors while ringing in an average of $150 million in earnings from each edition of the race.

According to the Singapore Tourism Board's (STB) latest newsletter, tourism receipts for the first half of 2014 came in at $11.8 billion, a year-on-year rise of two per cent, while the sightseeing, entertainment and gaming segment saw a 15 per cent increase to $3.07 billion.

Data for the second half of the year is unavailable but the recent slew of marquee sports events staged here does make for encouraging reading.

Popular events

The F1 race in September was bookended by two high-profile football friendlies - the first one featuring Italian league champions Juventus, while the second, between top international sides Brazil and Japan, played to a capacity crowd inside the National Stadium.

Last month's WTA Finals saw 93,000 fans, with almost one in five hailing from overseas, flock to the Singapore Indoor Stadium over 10 days of tennis action featuring the world's top-eight ranked women players.

The recent announcement that rugby's Sevens World Series will include the Republic on its list of nine legs from next season is also expected to attract sizeable international interests while proving to be a money-spinner, as has been the case for Hong Kong.

The Hong Kong Sevens, a week-long rugby festival, attracts daily attendances of 40,000 fans - half from overseas - said the Hong Kong Rugby Football Union (HKRFU).

Tourist spending has been increasing steadily in the last few years, with this year's crowd spending an average of HK$32,601 (S$5,420) each during their time there.

They are likely to do the same when the series arrives in Singapore - a prospect which local pub and nightclub operators are relishing.

Said Dennis Foo, president of the Singapore Nightlife Business Association: "Drinking is very much part and parcel of the rugby culture and hosting the Rugby Sevens will have a positive impact on the nightlife, retail and hospitality scene here."

Growing market for sports

With the global sports market pie projected to reach US$80 billion this year and showing no signs of slowing down - new research by consulting firm A.T. Kearney estimates it will cross US$90 billion (S$103 billion) by 2017 - it is unsurprising that Singapore is keen to position itself as a leading destination for sports enthusiasts.

Said Jean Ng, STB's director of sports: "Singapore's sport industry is in a nascent state, but the combination of fans, capabilities and infrastructure has set the stage for further growth of sport tourism in Singapore."

The expanding sports events market - with revenue from tickets, media rights and sponsorships witnessing annual growth of between 6 and 7 per cent since 2005 - has made the industry a highly attractive one for event organisers.

With the Asian market valued at almost US$10 billion last year, repositioning Singapore and its new S$1.33 billion Sports Hub as an epicentre for sports makes sense, said Ang Swee Hoon, associate professor of marketing at the National University of Singapore (NUS) Business School.

She said: "The Government has fought hard and done a good job of attracting tourists in the past. First it was the MICE (Meetings, incentives, conferences, and exhibitions) conventions and then the casinos.

"Now the focus seems to be on sports tourism and this adds to the other tourism base we have already established and brings in additional revenue."

Reaching out

To ensure the success of these events and their own bottom line, organisers like World Sport Group (WSG), who were responsible for promoting both the Brazil v Japan game and the WTA Finals, adopt a multi-level marketing approach months in advance.

Japanese travel agencies were engaged to bundle match tickets with travel packages while ASEAN markets like Thailand, Indonesia and Malaysia, all football-crazy countries, were specifically targeted.

Besides tie-ups with print, social and online media in the West, WSG also appointed London-based online ticket seller Viagogo to reach out to broad demographics across Europe and the United States.

Said WSG's vice-president of sports development and events Malcolm Thorpe: "There is no doubt that Singapore is entering a new era in sports with huge possibilities and opportunities for fans, athletes, businesses and rights-holders."

Intense competition

Singapore's rising prominence has also caught the attention of some of its competitors. It is understood that the Singapore leg of the Sevens World Series will be held a week before the Hong Kong edition in early 2016, presenting some travellers with a dilemma.

Said the HKRFU's head of rugby operations Robbie McRobbie: "We're very conscious of other tournaments around the region. Our ultimate goal is to grow the sport around Asia so we can't take the short-term view of worrying only about our own events."

Promoters are likewise cognisant of the fact that the modern sports fan is spoilt for choice when considering his next pit stop.

Other forms of entertainment away from the sporting field, like music concerts, have proved to be an effective draw.

Singapore GP have brought in a host of international acts including Beyonce, Maroon 5 and Jay Chou since the inaugural night race while Mariah Carey's concert last month was timed to coincide with the WTA Finals.

Said STB's Ng: "We want consumers to enjoy not just the sporting event itself but also the other lifestyle experiences available in Singapore." Offering such non-sport-related activities is also vital as host cities seek to capitalise on the spending potential of their foreign guests.

Said NUS's Ang: "Unlike other types of tourists, these come here with a specific purpose, which is to attend the sports event.

"But that cannot be the end, so we have to find ways to encourage them to extend their stay and gain as much mileage as possible while they are here."

Nevertheless, sports tourism is still in its infancy here, and whether Singapore can sustain its initial optimism remains to be seen.

Said Ang: "Singapore wanted to be an arts hub, but that has petered out. My worry is that the same could happen to sports."

jonwong@sph.com.sg

nsanjay@sph.com.sg

WHO DO SPORTS PROMOTERS TARGET?

Different sports events attract fans from different countries. Here are some examples of which overseas markets are targeted by promoters

IN SINGAPORE

Football

Example of event

Top-bill international friendlies such as Japan versus Brazil at National Stadium

Target overseas markets

Japan, Malaysia, Thailand, Indonesia

Tennis

Example of event

WTA Finals Singapore, season-ending event featuring top women's players at Singapore Indoor Stadium

Target overseas markets

Malaysia, Indonesia, China, India, Philippines, Thailand, Vietnam, Hong Kong, Australia, United States, Britain, Europe

Formula One

Example of event

Singapore Grand Prix, F1's inaugural night race, held since 2008 at the Marina Bay street circuit

Target overseas markets

Traditionally strong F1 fan bases like Britain, Australia and Japan, as well as new markets like Indonesia, Malaysia, Philippines, China and India

IN HONG KONG

Rugby

Example of event

Hong Kong Sevens, an annual competition held since 1976

Target overseas markets

Europe, Britain and Australia

This article was first published on Nov 9, 2014.
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