1. Introduction

1.1 Introduction of Economic

Economic is used to study the behavior of individual, organization and government. It provides some incentives that can affect these behaviors. It is a social science and it includes microeconomic and macroeconomic. Macroeconomic focuses on the study of the national economy and global economy. Microeconomic studies the choice about the behavior of individuals, businesses and government. These choices can interact in relevant industry and markets.

1.2 Tourism Industry in Singapore

As the major economic resources of Singapore, Tourism industry is increasing rapidly in recent years. It attracts different international tourists from different countries. In 1964, Singapore government established the Singapore Tourism Board in order to manage this industry. This board focuses on analyzing the performance of tourism industry. Then the government can set and implement the suitable policy measures that can improve Singapore economy. In the1980s, it provided some specific spots, such as Chinatown, Sentosa and Merlion. Also, government pays attention to the quality of infrastructure, high quality service and a healthy. In 1997, it renamed the Singapore Tourism Promotion Board.

2. Economic Impact in Singapore

The development of Singapore tourism industry can influence the operation of its relevant industry, such as transportation, hotel and retail industry. These elements influence sales revenue and job income. The indirect influence is the growth of GDP, the change of job opportunities and the growth of occupancy.

2.1 Tourism Contribution to Gross Domestic Product

As seen the graph in the follow, it describes the growth of total Gross Domestic Product (GDP) from 2003 to 2014 in Singapore. The total trend shows an increase in ten years. Between 2003 and 2008, the tourism value fluctuates between 8% and 10%.

However, after 2008, the trend of value is to continue to grow in the next four years. By 2012, the share of tourism is about 11.2% in total GDP. It reaches at the highest value of tourism during these ten years.

2.2 The Change of the Average Daily Rate (ADR) and Occupancy

The growth of tourism number affects the average daily rate and occupancy. Between 2003 and 2013, the growth of occupancy increases from 68% to 88%. During this period, the average daily rate is growth to 248 SGD in 2013. There is a steep drop in 2008, but it remains growth trend between 2009 and 2013. The occupancy reaches at 88% as the highest growth (Clare Fu, 2014).

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2.3 Tourism Contribution to Employment

Generating employment opportunities can promote the Singapore tourism economy, whereas the development of tourism can provide more job opportunities. The major sectors about employment are hospitality industry, catering industry and other service industries. Compare with other kinds of industries, these kinds of sector provide 67% job opportunities in total.

In Singapore, the change trend of employment is unstable. It exists floating up and down between 2003 and 2014. In 2004, the highest change in 33.96%. Nonetheless, the total value of employment is on the rise. In 2009 and 2013, it remains 7.0% and 9.0%, respectively. Between 2010 and 2011, the trend of value continues to increase. It rises from 7.8% to 8.5%. The highest value about employment is 9.2% in 2014.

3. Demand Analysis:

3.1 The growth of International Tourist Number

In recent years, the international tourist numbers increases rapidly in Singapore. The diagram in the follow points out the total number of tourists between 2003 and 2013. The general trend of tourist number is to maintain growth in several years. It increased from 6 million to 14 million. The highest rate of arrival growth is 36% in 2004. However, the total number of tourists is in decline between 2007 and 2009,. It decreases from 10.2 million to 9.7 million (Clare Fu, 2014). Among the total international tourists, there are 11 million tourists from Asia. I accounts for 76% of all international tourists. However, the number of tourism from American, Oceania and Africa accounts for about 4%, 8%, and 1%, respectively.