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• Overseas Trips Made by Singaporeans 1993 and 1994
• Implications for Tourism Marketers

The growth in the number of Singaporeans traveling overseas has been quite remarkable. In 1994,
Singaporeans made over 2.4 million overseas trips. This was made possible by the increased affluence of the population, after several decades of continued economic development. At the same time, there are changes in the demographic and psychographic composition of the population which attracted the attention of tourism marketers not only locally and abroad.  This paper attempts to examine these changes and discuss their implications. Several types of new tours are suggested for a tourism industry that must innovate and upgrade their products and services to meet the demands of a new breed of consumers.

The marketing environment is made up of a micro-environment and a macro-environment. The micro-environment is comprised of forces close to the enterprise which affect its ability to function. These elements include the suppliers, customers, competitors, and the public.  The macro-environment,  on  the  other  hand, represents the larger and more uncontrollable societal factors which affect the entire micro-environment.   These are comprised of the demographic, economic, natural, technological, political, and cultural forces.   This paper attempts to determine how the relevant macro-environmental forces have evolved over the years  in Singapore and  to examine the implications of such changes for tourism marketers; not only for those who are based in Singapore, but also for those who are interested in attracting out-bound tourists from Singapore. Singapore is a small island state of about 650 square  kilometers,  including  some  small outlying islands with a population of less than three million. Although it is an island, it has easy access to Malaysia, which is connected via a short  causeway  of  a  few  kilometers. Singaporeans can also visit the Indonesian islands of Batam and Bintan via regular boat and ferry services only an hour or so away. Furthermore,  many  airlines  have  flight connections with Singapore, making it extremely easy  for  its  residents  to  travel  abroad. According  to  a  survey  on  lifestyles  of Singaporeans published by a local newspaper (Lian He Zhao Bao, 3 December, 1995), 66 percent of the Singaporeans interviewed revealed that they had traveled abroad in the past year. This trend is also supported by the figures shown in Table 1.

Segmentation Of The Travel Market

Many studies have been conducted to classify people who engage in leisure and tourist activities into different types.  Ryan (1995) reports that holiday makers can be classified in terms of their attitudes, opinions, behavior, and demographics. Based on studies conducted in the United States and Canada, tourists can be segmented by using: (1) travel philosophy, (2) benefits - the motivation for traveling, and (3) product - the choice of specific features within a location. In the same writing, Ryan also reveals that several studies (Crask, 1981; Bryant and Morrison, 1980; Mayo and Jarvis, 1981) also made   use   of   vacation   preferences, demographics,  and  personality  types  to determine segmentation policies. However, he observes that the use of psychographics in tourism planning was not widely employed. This paper does not include a detailed study of individual tourists.  However, an observation about the changing trends in the various macro-environmental forces, especially those relating to demographics and psychographics will be made with a view to suggest the impact of these implications for the benefit of tourism marketers and planners.

Changing Demographic Trends

The population of Singapore grew from 2.07 million in 1970 to 2.41 million in 1980, and the census from 1990 reported the population to be 2.705 million. The latest figure as reported by the Department of Statistics (1994) was 2.93 million. However, the rate of population growth was very low with a registered rate of 1.6 percent in 1984, which rose to 2.2 percent in 1990, and declined to 2.0 percent in 1994. The slow rate of growth is contributed to an aging population, which is evidenced by the increasing median age of the population. It was computed as 26.7 years in 1984, increased to 29.8 in 1990, and in 1994 the median age was reported as years. The index of aging is the proportion of residents under age 15 and those aged 60 and over, divided by those aged 15 to 59 years old. This ratio rose from 31.7 percent in 1984, to 39.4 percent in 1990, and reached 42.2 percent in 1994.  This trend clearly indicates an aging population  which  might  require  different tourism and recreational products and services.

Changes in Age Structure

Table 3 shows the percentage distribution of the resident population by age groups in 1980, 1990 and 1994. It is noted that in 1990, the population was maturing with 17 percent people aged 50 and over. This figure increased slightly to about 18 percent in 1994. Nevertheless, those aged below 20 constituted some 30-31 percent of the population in 1990 and 1994. For those who are in  the  tourism  industry,  this  population structure necessitates a segmented approach in meeting the travel and leisure needs of these individuals.

In 1990, about 52 percent   of the adult population were reported as being married, as compared to 41.2 percent who were single; the rest  were  either  widowed  or  divorced. However, if the figures were analyzed by age group, it should be noted that the trend to remain single is most noticeable among those people aged 25 to 44.  Again, marketers of tourism products and services must think of an effective way to reach the different segments of this market as their needs differ from those people with families.

Decrease in Household Size

During the last decade, the social-economic changes witnessed in Singapore have been quite evident. In 1980, slightly more than one third of the households were reported to have at least six members; by 1990, this number was down to about one fifth of all households. On the other hand, households with two to three members increased from 24 percent to 28 percent. The biggest change was found among households with four to five persons. It increased from about 37 percent to 46 percent in the same ten-year period.  The average household size also decreased from 4.9 to 4.2 persons. This implies that household income will be divided among fewer members, with a subsequent rise in buying power.

Growth in Household Income

Table 6 shows the distribution of monthly income by working persons aged fifteen years and over in 1980 and 1990. It should be noted that income increased by 1.36 times during the decade from S$598 in 1980 to S$1414 in 1990. The number of people who earned at least S$2000 also increased from 4 percent to 17.2 percent, thus signaling that a greater proportion of the population possessed a higher level of disposable income.

More Married Couples Who Are Working

As shown in Table 7, there were about 540, 900 married couples in 1990. Of these, in almost 40 percent of the cases were both the husband and the wife were working to support the family. About 45 percent of the families reported to have only the husbands working, while just three percent of them had only the wife working.

Of these married couples, those who had both husband and wife working were reported to have a monthly income of S$3,557. For those with only the husband working, the monthly income was about half (S$1,778) of the first group.  This indicates that there were more double income households in Singapore, that they earned substantially more, and that they possessed a greater buying power.

This is further confirmed by the rising levels of household incomes. According to the Household Expenditure Survey 1992/93 carried out by the Department of Statistics,   the household income in Singapore increased by almost 73 percent between 1988 and 1993. Income per household in 1988 was S$2,~3 and rose to S$3,829 by 1993.

Rising Economic Status of Women

The economic power of women has also been rising steadily during the ten year period under observation. The participation rate of females in the labor force increased from 44.3 percent in 1980 to 50.3 percent in 1990, and the levels of income experienced a big improvement also, which should allow them to afford more of the finer things in life.  This represents a good opportunity for tourism marketers who now need to examine the travel potential for this segment of the market.

As shown in Table 8, the monthly incomes for all workers has increased quite substantially during the past decade.  The average monthly income for males increased by 1.2 times from S$692 to S$I,584. Similarly, the incomes of female workers also improved by about 1.8 times during the same period, from S$421 to S$1,161. As a whole, those earning at least S$1,500 increased from 6.5 percent in 1980 to slightly more than 28 percent in 1990 which reveals a substantial improvement in the earning power of the people.

Higher Educational Attainment

An analysis of the non-student population among residents aged ten years old and older found that the level of educational attainment had improved quite perceptibly. This trend was most  noticeable  among  those  who  had completed secondary education. In 1980, only about thirteen percent of all Singaporeans received  a  secondary  education.    This percentage increased by almost two-fold to 24 percent by 1990.  Similarly, those with upper secondary education (including polytechnic graduates) increased from 5.6 percent to almost 10 percent between 1980 and 1990. Those with university qualifications  doubled from 2.2 percent to 4.4 percent during this period.

Advancement in education among the female population of Singapore has been quite impressive during this period also.  This is especially pronounced among the younger adults in the 25-29 year old age group. In 1990, the percentage of females in this age group with at least upper secondary education was just marginally lower than that of the males (19.6 percent for females, as compared to 20.7 percent for males). The higher educational attainment of the population, especially among the younger adults, will dictate different needs and wants for tourism products/services. For example, they may prefer more culturally and historically oriented tours instead of choosing shopping or sight-seeing.

In the previous sections, many changes were observed in the demographic structure of the population, as well as the socio-economic status levels..    These  changes  should  have  a tremendous effect on the relative demand for tourism products and services. Nonetheless, it is equally  imperative  to  examine  changes occurring among the  population in their psychographic  make-up.   As  defined  by Schiffman and Kanuk 1983), "demographics consists of objective and somewhat easily measured characteristics of a population, such as age, income, education, sex, and marital status. Psychographics, on the other hand, tends to include relatively intangible variables, such as motives,  interests, attitudes,  and  values". According to Engle and Blackwell (1982), psychographics is an "operational measure of life style". In their words, psychographics has come to mean about the same as AIO (Activity, Interest, and Opinion) measures.

Psychographics   has   been   used successfully  in  segmenting  the  market. Although no specific psychographic studies have been done on the travel behavior of Singaporeans, an attempt is made here to examine  the  changing  psychographics  in Singapore. More specifically, the changes in the values and life styles of the population will be examined.  The information will be based primarily on newspaper reports and other related studies published by researchers in various academic and business journals.

Family Orientation

According to a study by Kau and Yang (1991) on the values and lifestyles of Singaporeans, close to two-thirds (65 percent) of the respondents surveyed agreed with the statement that the family is the single most important element of their lives. If those who mildly agreed with the statement were also included, the percentage would increase to 85 percent.  This is an indication, in general, that Singaporeans attach a great deal of importance to the concept of family.  The government of Singapore also stresses the importance of maintaining the cohesiveness of the family. For instance, there is an annual family day where various activities are organized to encourage family members to get out and enjoy themselves as a family unit. This emphasis on family togetherness  offers additional marketing opportunities for tourism marketers. For instance, tours for families could be organized to meet the needs of this segment of the market by providing opportunities for the families to share their activities through prearranged packages. Such family tours could also be offered at a discount to encourage greater participation.

With a greater percentage of married couples working, there is a strong desire among the working parents to spend more time with their children.  In a Delphi survey on future lifestyles  and  consumption  patterns  of Singaporeans completed by Kau, Yeong, and Richmond (1993), it was observed that over 95 percent of the respondents affirmed that with the next eight years, "over 50 percent of working parents would attempt to spend quality time with their children".  This tendency clearly represents a good opportunity for tourism marketers to plan tours for the family as a traveling unit.

Religious Inclination

In the study by Kau and Yang ~ it was observed that religion was an important part in the lives of a sizable number of Singaporeans. Slightly more than half (51.3 percent) of those interviewed in this study concurred with the statement "Religion is an important part of my life;" only sixteen percent held a different view. There is also a shift from eastern religions (e.g., Buddhism or Hinduism) to Christianity among the younger population.  As such, there is a possibility of promoting tours, as pilgrimages, for those who are religiously inclined.  For instance, tours can be organized for Buddhists to visit temples in China, India, and Sri Lanka. On the other hand, tours to the Vatican and to the Middle Eastern countries for worship can also be arranged.

Prioritization of Education

Singaporeans place a great deal of importance on education.  According to Kau and Yang
(1991),  more  than  three-quarters  of  the respondents  believe  that  advancement  in education is important to one's future. Only a tiny 2.8 percent of those surveyed believe otherwise. From the tourism marketers' point of view tours which provide an educational value will be greatly appreciated. It is therefore not surprising that educational tours to study the geography and historical development of other countries have been well received.

Interest in Culture and Ancestral Roots

The majority of Singaporeans are ethnic Chinese. With the increased accessibility to China in recent years and the growing role that China plays in the global economic arena, a large number of Singaporeans are interested in learning more about China and Chinese culture. In addition, many of the local residents are interested in learning about their family roots. Furthermore, for those who were educated in the English language during the colonial period, this affords them an opportunity to explore their own cultural heritage. As evidenced by some of the advertisements announcing this type of tour, the emphasis is on providing the youngsters of Singapore an opportunity to appreciate their own culture and history. For instance, tours to Beijing are designed to highlight the ancient Chinese culture and to introduce the children to Chinese children of similar ages in Beijing schools are aimed at this market segment.

Growing Interest in Outdoor Adventure

Singaporeans generally live a stressful urban life style. There are few opportunities available for outdoor activities, other than going to the beach or visiting the parks. As such, there is a growing appetite for soft-adventure, outdoor life. In the study conducted by Kau, Yeong, and Richmond (1993), it was noted that there was a growing trend towards participating in water sports, overseas camping, taking holiday cruises, and general outings.

This trend is supported by a newspaper report (Straits Times, 30 January 1995), whereby some 24,000 Singaporeans visited New Zealand in 1994. Many of them went there to view the geysers and volcanoes, experience life on a farm, or try jet-boating; all activities that are not available in Singapore. Similar tours that can be arranged for other countries to experience
outdoor life include:  snorkeling in Indonesia and trekking in Nepal.

In  the  previous  sections,  the  changing demographic,     social-economic,     and psychographic trends have been discussed. Based on these trends, the implications for tourism marketers can be elaborated as follows:

1) Increased levels of income have enabled a greater proportion of the population to undertake tours previously reserved for the wealthy. People with average levels of disposable income can now travel to nearby countries such as Malaysia, Indonesia,  and  Thailand  relatively easily.  Those with greater financial ability can look forward to tours to faraway places such as the USA and Europe, not to mention countries such as China, Australia, and New Zealand.

2) The aging population of Singapore reveals that there is a greater proportion of older people.  The travel needs of these older people may differ from the rest of the population.  For instance, they may need a more leisurely pace in their itinerary to enjoy the tour without jeopardizing their health.  In addition, special tours for health rejuvenation and exercise can also be arranged.

3) Many more Singaporeans choose to remain single. For this group of people, more adventurous types of tours may need to be planned. For instance, they may prefer to travel in smaller groups or even independently. They may want to travel to more exotic places in search of soft-adventure, excitement, and sports-related activities.

4) With more married women working outside  the  home  and  smaller households,   there   are   ample opportunities  to  introduce  family oriented tours for these people.  Such family-oriented tours may take several forms.  One type would be designed mainly for relaxation and recreation; where the family could spend time together. Another type could be for the benefit of the children who accompany their parents on these tours, to provide educational benefits or opportunities for cultural  appreciation  among  the children.

 5) With the increased educational attainment of the population, it may be necessary to plan all tours with this in mind. It may no longer be possible to simply send people to a vacation spot to take photos.  Tourists with advanced education may need better services or prefer   to   develop   a   deeper understanding of the countries or places they visit by studying them before, during, or after a trip.  It may be necessary to employ better educated and more sophisticated tour guides. In essence, the level of professionalism of the tourism industry must be upgraded to meet the needs of a new generation of tourists.

6) A greater variety of tours must be planned by the tour operators.  The tourists who travel more frequently may desire to visit more exotic places or countries, instead of going to the more traditional tourist spots that they have visited before. In addition, tours which emphasize  an  appreciation  of  the culture, the history, and even religions can be planned. According to a June 24, 1995, report published in the Straits Times Singapore travelers now want to attend "camel fairs", experience ice-climbing, transcontinental train rides, and Antarctic cruises, as well as diving the Great Barrier Reef.   Tourism marketers must be prepared to offer such possibilities for more adventures and more exotic experiences.

The last few decades of economic development has transformed Singapore into a more affluent country.   The population enjoys a higher standard of living, is better educated, and is able to afford more recreational and leisure activities. On the other hand, certain demographic and psychographic changes are also taking place which have great implications for tourism marketers. For instance, the aging population demands a more segmented approach in providing tourism related services to meet the needs of the population. More single people require newer and more innovative types of tourism activities to cater to the aspirations of this new generation of consumers. A new sense of cultural identity has also made some Singaporeans eager to explore their parents' or grandparents' motherlands in search of their ancestral roots. A greater religious inclination also means that there are more opportunities to organize tours which stress the spiritual aspects of life. For  marketers  in  the  neighboring countries, it may be necessary to introduce new services (including new attractions) to meet the aspirations of this group of potential tourists. For instance, the previously unexplored islands in Indonesia can now be offered to Singaporeans as an exotic adventure.  For countries which have a lot of culture and history to offer, more culture-oriented activities can be incorporated, in addition to the normal urban, sight-seeing, and shopping oriented itinerary. All in all, marketers must be able to gauge the changing trends in the tourism generating countries and make an attempt to satisfy the needs and wants of their customers. Ultimately, ignoring these changes can only mean that the products or services will not be required by the market, and this must be avoided at all cost.

References

Bryant, E. F. and Morrison, A. J. (1981). Travel market segmentation and the  implication of market strategies. Journal of Travel Research, 18 (3): pp.2-6.

Crask, M. R. (1981). Segmenting the vacationer market: identifying the vacation preferences, demographics and magazine readership of each group. Journal of Travel Research, 20 (2):. pp.29- 33.

Engle, J. F. and Blackwell R D (1982). Consumer Behavior, The Dryden Press, New York.

Kau, Ah Keng and Yang, Charles (1991): Values and Lifestyles of Singaporeans: A Marketing Perspective, Singapore University Press, Singapore.

Kau, A. K., Yeong, W. Y., and Richmond, Dee (1993). A Delphi Study of Future Lifestyles and Consumption Patterns in Singapore, Center for
Business Research and Development, National University of Singapore.

Lian He Zhao Bao, (4 May 1995).

Lian He Zhao Bao, (3 December 1995).

Mayo, E. J. and Jarvis, L. P. (1984). The Psychology of Leisure Travel, CBI Publishing Co., Boston, Massachusetts.

Ryan, Chris (1995). Researching Tourist Satisfaction: Issues, Concepts, Problems, Routledge, New York.

Schiffman, L. G. and Kanuk, L. 1983). Consumer Behavior, Prentice Hall, New Jersey.

Straits Times (30 January 1995). Yearbook of Statistics (1 980, 1985, 1990, 1994). Census of the Population, Singapore.

Kau Ah Keng, PH.D., is an Associate Professor in Department of Marketing, Faculty of Business Administration, National University fo singapore, 10 Kent Ridge Crescent, Singapore 0511; email: fbakauak@nus.sg

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