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Economic forces in the macro environment. 

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Economic forces in the macro environment. 

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As the travel industry operates in a global environment, when the economy in a country, that is one of Singapore's main tourism contributors, is not doing well, tourism in Singapore will be affected as fewer people will visit due to limitations in their spending power. This applies vice versa.

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Environmental forces in the macro-environment 

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Environmental forces in the macro-environment 

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The natural environment involves natural resources needed as input by marketers or that are affected by marketing activities.
This means that any natural happenings that occurs in Singapore will affect its tourism industry. For example, the haze situation that occurred a few months back affected many of the tourists' experience and have resulted in a fall of tourism receipts. Thus, this create a negative impact on the well being of the tourism industry in Singapore.

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One market trend that can be focused on is the rising number of business travelers to Singapore.  With the development of Jewel Terminal 5, it will affect tourism in Singapore and will provide business travelers with the chance to shop and enjoy leisure time while waiting for their departure flight back instead of always travelling for only work purposes.

As Jewel Terminal 5 aim to be a new, world-class lifestyle destination that is set to entertain visitors in 2019, Singapore can expect an inflow of tourists. It will provide the tourists with attractions, unique shopping and dining experiences, accommodation and aviation facilities that appeal to the needs travelers.

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Cultural forces in the macro-environment

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Cultural forces in the macro-environment

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Culture incorporates the set of values, ideas and attitudes that are learnt and shared among the members of a group.
The hospitality industry, for example, have different ways of operating worldwide. As a partner of Starbucks who works in the airport, I've noticed that this company operates differently in every country, for example in Singapore, they launched a SG-based drink called the 'Syiok-AH Cino' about a year back to adapt to the taste buds and dive into SG's cultural lingo. This attracted many of the tourists as they wanted to try this 'Singapore flavor'.
This kind of cultural force would impact SG's tourism mostly positively. When travelling to another country, we tend to look for something that is of the country's specialty. Using the Starbucks example, many tourists tend to look for the country's 'flavor' to experience the country's culture.

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Political Forces in the Macro-Environment

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Political Forces in the Macro-Environment

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The political environment is made up of laws, government agencies, and pressure groups that influence and limit the activities of various organizations and individuals in society [Tay, K. (n.d.). Lecture 3- The Marketing Environment]. The article states that the Chinese & Indian government plays a big role in influencing the number of Singapore Carriers that enter China and India. “Ultimately, the number of flights that Singapore carriers, for example, can operate to China and India depends on government agreements.”[Kaur, K., & The Strait Times. (2018, March 31)]. Therefore, if the foreign government agencies decide to restrict the number of Singapore carriers entering those countries this will have a negative impact on the Changi group as there will be less potential customers that they can attract especially when Chinese and Indian tourist  are the biggest source of visitors to Singapore. To increase the number of Singapore carriers entering China & India “the Changi air hub team visits China almost every month, going to different cities to meet local government and aviation industry partners.”[Kaur, K., & The Strait Times. (2018, March 31)]. The Changi air group continuously meets government agencies to prove their commitment to their goal which is  allow more Singapore carriers to enter China.

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Technological forces in the macro-environment 

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Technological forces in the macro-environment 

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With the impending advancement of greater technology,  the development of new technology can dramatically affect needs and wants. For example, the Internet completely changed the way people communicate. If you walk into any electronics retailer or department store, you will see hundreds of new products that were directly tied to the growth of the Internet. That shift to the Internet resulted in new consumer needs and wants, opening the door for smart companies to take advantage of that opportunity.

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Social Forces (Demographic forces) in the macro-environment

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Social Forces (Demographic forces) in the macro-environment

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Singapore’s population grows slowly and is aging fast. This may be due to delayed marriage and childbirth, as well as a sharply reduced fertility rate. Therefore, Singapore will continue to use  expatriates and foreign workers

for specialised skills, not locally available and for unskilled work, such as work on construction sites to build new attractions which will benefit tourism in Singapore greatly as tourists will be attracted by these new attractions hence more visitors will want to come to Singapore.

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Demographic forces in the macro environment

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Demographic forces in the macro environment

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Demographic statistics of visitors from India and China must be taken into consideration. As those are largest tourist markets for Singapore, there is a need to look into categories to segment these tourists for a better understanding of tourist trends. According to The Straits Times article, the generation of Baby Boomers dominate the tourists. However, this statistic is bound to change as Millennial are increasingly attracted to Singapore as well. Therefore, the travel and hospitality industry must foresee this change and stay relevant with the change.

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Economic forces in the macro-environment

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Economic forces in the macro-environment

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Economic forces in the macro-environment

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Economic forces in the macro-environment

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Tourists contribute to sales, profits, jobs, tax revenues, and income in a country. The most contributions mainly go to accommodation, restaurants, transportation, retail stores and entertainment (attractions). Just like the article has shown, China tourists come to Singapore for shopping wise whereas the India tourists go for accommodation more. So these will then actually help to generate sales and help in the aiding of the country's economic state.

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Economic Forces in the Macro-environment

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Economic Forces in the Macro-environment

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As the travel industry operates in a global environment, the economic forces is important. For example, the currency rate exchange rate. When the exchange rate between Singapore and India favours the Singapore, fewer Indians will come to Singapore because to the Indians, it is expensive to travel and to spend in Singapore. This will lead to lesser tourist receipts that will affect SG tourism.

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Technological forces in the macro-environment

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Technological forces in the macro-environment

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In this current day and age, just about everyone has access and the capabilities of using technology. Especially youths and children. Plain old plastic boards with tons of information and photos no longer excite, intrigue or capture the attention of the new generation. The tourism industry in Singapore would need to incorporate technology into its attractions in order to attract the market and enhance customer experience. From the change from using regular information boards to digital interactive boards that handles information, photos and even videos to the implementation of the Smart Hotel Technology Road map, which is capable of handling e-payment wallets and facial recognition at check ins. Technology plays a huge part in order for tourism in Singapore to keep up with the rest of the world.

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Political forces is a important force that impacts Singapore Tourism. Not only does Singapore but other country government also play a vital role in our tourism sector. As seen from the article, China has become the biggest source of visitors to Singapore last year.(The Straits Times, 2018). India market is also growing rapidly.The article also further elaborates the importance of understanding government to government relationships.As the number of flight carries that can be operated to China or India is determined by the government. Even though you might have understand the market trends or demographics of the people, without having good relations with the government you are unable to increase your imports revenue. Due to this impact," the Changi air hub team visits China almost every month, going to different cities to meet local government and aviation industry partners.”[Kaur, K., & The Strait Times. (2018, March 31)]  to maintain good relationship thus bringing in their target market in.

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Cultural Forces in the macro-environment.

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Cultural Forces in the macro-environment.

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Culture incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group. The cultural environment includes forces that affect society's basic values, perception, preferences and behaviors.
An example is, from the article,  "More Indian travellers cruising to and from S’pore", there is an increase in the number of Indians who are travelling to Singapore. In order to further satisfy them, the staffs of the hotel industry has taken note of their dietary requirements and has menus available to cater for those needs.

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Social forces are made up of demographic and cultural forces. I will be focusing on demographic forces. Demographic forces are made up of 4 generation cohorts: baby boomers, gen x, gen y and millenials. Demography is the study of human population in terms of size, density, location, age, gender, race, occupation and other statistics. Demographic forces greatly affects tourism in Singapore . As people of all ages come to Singapore, they have different needs. For example, elderly people who are wheelchair-bound would think twice about visiting a country but not so much for Singapore as we can cater to their needs such as buses, as wheelchairs can be pushed onto the bus. Another example would be occupation, as Singapore is one of the largest business hub in Asia. Hence, many people would visit Singapore for work.

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Technological forces in the macro environment

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Technological forces in the macro environment

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Technology advancements such as the Internet has created a new distribution channel for hospitality and travel products, making it more convenient for everyone.

An example would be Airbnb, which is a rental platform which allows travelers to rent out entire homes, or to stay in the spare bedrooms, basements, or converted garages of the world, all for a fraction of what they might pay at a hotel.