Global Destination Competitive In Singaporeâ€Myassignmenthelp.Com

Question: Explain on Global Destination Competitive? Answer: Introduction It has been identified that Singapore remains as a great destination of choice for global investors as well as international travellers. The country is widely acknowledged due to its effective as well as competitive business environment. The government of the nation has positioned the investment between the two rapidly growing economies of China and India as well as the promising economy of Asia (Lee, 2012). The nation is a critical path with the strategic capability as well as access to fulfil the demands of global business. The existing of several leading global organizations as well as the local firms remains as the testimony of Singapores excellence in manufacturing and services. A significant bridge between the EAST and the WEST for decades enables Singapore to embrace tradition as well as modernity (Eeckels, Filis Leon, 2012). Over the decades, the nation has witnessed a tremendous transformation in Singapores tourism environment and it has achieved an increasing growth in tour ism. Now, the major policy of the country is to work effectively with the global investors to enhance the new top-class attraction and attract the strategic leisure business evens to Singapore. The major focus of the report is on the evolution of Singapores tourism sector and countrys future initiatives to maintain this sustainable growth. The report focuses on how the government of the country is dealing with the foreign investors to increase the growth of the tourism sector as one of their major revenue source. The major objective of the paper is to evaluate the current FDI policies applied in the tourism sector of Singapore to increase the economic growth of the country. The outcome of the paper revolves around the fact that FDI policies in respect with the tourism sector of Singapore effectively contributes to the growth of sector as well as Singapores economy. In order to understand the effectiveness of FDI policies in tourism sector, a critical analysis has been conducted with the outcomes found the existing literature. Literature Review Fereidouni and Al-mulali (2014) depicts that Foreign Direct Investment signifies the investment made by an organizational or an individual body either for acquiring business assets and establishing business operations. In Singapore, marketers invests for acquiring establishing their business especially in tourism sector and this is the reason that FDI in Singapore have enhanced by 24859.90 SGD Million by the year 2016 (Tradingeconomics.com, 2017). Mode for making foreign investment Swee-Hock and Wong (2014) portrays that the size of the market and likeliness of the future wealth of consumers together drives the economic growth rates of a nation. Moreover, after accessing the entry to a foreign market, it is the lability of the marketers to choose the best mode of entry. Some of the best modes are franchising, turnkey projects, licensing, exporting and most importantlyestablishing new wholly owned subsidiaries and formulating a joint venture for sharing profits with the local bodies. Swee-Hock and Wong (2014) Moreover, highlight that Singapore has a very rich culture and have many places to visit. Thus, foreign companies prefer to invest in formulating a joint venture or to own a subsidiary. Political and Economic system of Singapore Singapore has an open economy and the Singapore Government adopts a free enterprises or open door policyso that foreign investors can get more attracted towards the industry like tourism, telecommunication andfinance sector (Fereidouni Al-mulali, 2014). United States, United Kingdom, Netherlands and Japan are among the top sources of FDI in Singapore (Singstat.gov.sg., 2017). However, investors intends to invest more in the tourism sector as identifying the tourism desire of a multi-ethnic and multi-cultural society like Singapore is easy compared to any other businesses (Spring.gov.sg, 2017). Thus, Singapore being a country, where there are 75% are ethnic Chinese, 7% ethnic Indians and 17% ethnic Malays, it is beneficial for the foreign investors for establishing their travel enterprises (ACRA, 2017). In this way, people from the home country also desire to visit the tourist location in the host country. FDI Policy in Singapore All business must registered under Accounting Corporate Regulatory Authority (ACRA) Singapores Economic Development Board (EDB) facilitate foreign investment in Singapore A non-resident entity can invest in Singapore under the Government route. OCBs have been derecognized as a class of investors in Singapore. There is no capital on the aggregate investment by foreign investors Direct registration of foreign mutual funds is allowed Foreign Law Firms are also allowed for Qualifying Foreign Law Practice (QFLP) licenses Advantage of FDI policies in Singapore According to the Singapore FDI policy, tourism and hospitality sector gets the advantage of lower risk of obtaining licensing and franchising, fast establish and operation for obtaining a joint venture. Moreover, there is a lower risk of shared cost, benefit from local partner and political considerations for establishing joint ventures (ACRA, 2017). Swee-Hockn and Wong (2014) on the other hand denotes that FDI policy in Singapore also provides tight overall control and 100% share of profits in formulating wholly owned subsidiary. Disadvantage of FDI policies in Singapore There is less risk but still risk of losing expertise is present in FDI policy of Singapore. Moreover, maintaining quality control and tight control of partnership is one of the major disadvantages that are occurred due to culture difference (Edb.gov.sg, 2017). Lastly, conflicts, battles and loss control of technology in conducting business are some more disadvantage of Foreign Direct Investment. Methodology The effectiveness of the analysis depends on the methodology and resources used in the paper. The methodology determines the outcome of the research; thus, it is necessary to implement the appropriate research procedures to receive the desired outcome. Thus, to conduct, the critical analysis, existing journals on FDI policies in tourism sector of Singapore has been reviewed. Different opinions and views regarding the FDI policies have been evaluated in the papers. Likewise, theories and models such as Steward Island country theory have been discussed to build the argument. The critical discussion in the literature review focuses on different elements of DC model to analyze the current conditions of Singapores tourism sector. Similarly, to analyze the competitiveness of the tourism sector, different theories and models related to competitiveness have been discussed in the above-mentioned analysis. The models help to analyze how a business environment with developing economy can be suc cessful in the global competition. In addition, it is also analyzed how global economy is affecting the countrys business. Moreover, the critical discussion also represents the forces associated with the foreign direct investment that could attract or disappoint the foreign investors. In order to make the analysis of the topic, different opinions and views of authors have been discussed the key ideas regarding the tourism an FDI policies mentioned by the scholars in the previous studies have been linked with the ideas found in the current research. To analyze the situation regarding Singapores tourism sector, the past record such as growth, challenges, threats and economy have been compared and contrasted with the present record. Based on the comparison, appropriate assessment has been developed in the paper. In addition to this, while comparing the ideas, the statements of many scholars and critics have been linked to increase the effectiveness of the discussion. Thus, to make this comparison, many blogs, critics reviews, annual reports of tourism sector, newsletters, journals and other secondary sources have been used in the paper. Most importantly, all data has been collected from the reliable sources like Academy of journal, Journal of Management and other equ ivalent sources. To build an appropriate discussion on the topic, the outcomes of previous research papers have been linked with the key objectives of the paper. The literature review has been conducted based on the objectives formed in the introductory sector of the report. The facts included in the discussion are derived from the outcome of the content analysis. Content analysis- Policy review- Even though, Singapore observes a significant growth in the tourism sector, the industry faces some severe challenges that exist in the market. The consumers are becoming more technically-savvy as well as consequently more demanding. As out forward by Horng et al., (2012), disruption is becoming the millennial norm and yet there is an increasing grey segment, which could result in a dichotomy of worlds as well as the explosion of growth. On the other side, the destinations in the region and across the globe are developing their strategies with the focus of tourism attraction as well as increased marketing investment. Thus, while dealing with these highly competitive forces, the nation Singapore faces the resource constraints at the same fighting with the misperception issues. Thus, there is a significant need for Destination Singapore to support the market efforts to figure out Singapores ambitions in improving the tourism sector. On the contrary, Ringer (2013) mention ed that Singapore Tourism sector possesses enhanced capabilities in the design, development as well as the production of advanced products. In addition to this, it has also been observed that by leveraging on its strength as the hub for services like logistics and education, the nation is expected to become Asias one of the leading service hubs, which provide the world-class and advanced services. Competitive advantage- The standard living of the nation is determined by the productivity, with which it utilizes its people, capital as well as the natural resources. The tourism sector of Singapore competes on the most productive environment for the business. The productivity of tourism sector increases as both visitors as well as tourism receipts increased and it is forecasted to reach a historical increase in 2017. While the arrivals of visitors increased by 7.8% to 17.8 million, the tourism receipts has increased by 13.9% to $23.8 billion (Tan, Wang Sia, 2013). Thus, the strong tourism receipts came on visitors spending;especially on food, beverage, accommodation and shopping. The CEO of Singapore Tourism Board has mentioned that the sector is heartened by increased performance in the last year. In spite of the significant challenges like poor economic performance in nations highly developed markets as well as Zika virus outbreak, the country has managed to attract the high qua lity visitors to increase the economic growth. In addition to this, competitive advantage in the tourism sector also comes from the highly developed airline services. Discussion The above-mentioned analysis helps to discuss that the tourism sector in Singapore has some significant business opportunities. The implementation of those opportunities could contribute to the economic growth of the country. The most significant fact that found in the analysis is the governmental support towards the sustainability of the tourism sector. Furthermore, the critical analysis also helps to learn that the industry is supported by the increased productivity and arrivals of foreign visitors in the countrys attractive destinations. Moreover, the stakeholders of the industry have the ability to tap on the technology to enhance their productivity and increase the business to business to collaboration (Christie et al., 2013). On the business tourism, the sector is supported by 410 business events that held in the last year. It is observed that generated around 343,000 visitor arrivals, which generated around $11 million in tourism receipts (Teo Chang, 2012). This further increa ses 28% increases year on year respectively. In spite of the potential challenge, the tourism sector in Singapore has achieved a tremendous growth. In addition, it can also be mentioned that the growth of the tourism sector is influenced by the FDI policies. Conclusion On the completion of the report, it can be mentioned that tourism sector in Singapore is at the crossroads. The unparalleled growth of the past few years enables the industry to make the strategies for the sustainability of the sector. The companies in the sector competing in the interesting phase, as the internal as well as external constraints could pose real and urgent concerns for the developed future of Singapore tourism sector. References ACRA.(2017). Acra.gov.sg. Retrieved 7 May 2017, from https://www.acra.gov.sg/home/ Chen, H. J., Chen, P. J., Okumus, F. (2013).The relationship between travel constraints and destination image: A case study of Brunei.Tourism Management,35, 198-208. Christie, I., Fernandes, E., Messerli, H., Twining-Ward, L. (2013). Tourism in Africa: Harnessing Tourism for Growth and Improved Livelihoods. Edb.gov.sg. (2017). GIP Global Investor Programme Factsheet EN.. 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