Singapore Tourism Board to regulate cruise terminal operators

SINGAPORE - The Singapore Tourism Board (STB) will take over the regulation of cruise terminal operators from the Maritime and Port Authority of Singapore (MPA) to ensure that terminals here are run in accordance with the Republic's goal of developing its cruise sector and remaining the region's leading cruise hub.

The move empowers the STB to ensure high service standards and the optimal use of the limited number of berths at the Singapore Cruise Centre and Marina Bay Cruise Centre Singapore and prevent excessive pricing, said Minister of State for Trade and Industry Alvin Tan.

"As the volume of cruise tourism grows, Singapore's cruise terminals will become critical infrastructure for our tourism sector," said Mr Tan during the debate on the STB (Amendment) Bill on Monday that Parliament approved.

When the law takes effect, STB will be able to directly manage the affairs, business and property of a cruise terminal licensee under extraordinary circumstances, such as if the operator becomes insolvent.

This is to ensure business continuity and avoid disruptions to cruise operations and passenger flows, said Mr Tan.

The updated law will also require that cruise terminal licensees' central management and control take place in Singapore, so that STB can take swift enforcement action if needed.

STB will also be empowered to conduct surveys and obtain financial and operational data from the cruise terminal licensees.

"Such data will help STB monitor the industry's development and make comprehensive analyses and projections for effective economic regulation," said Mr Tan.

The Singapore Cruise Centre at HarbourFront is operated by the Temasek-owned Singapore Cruise Centre Pte Ltd, while Sats-Creuers Cruise Services operates Marina Bay Cruise Centre Singapore.

MPA will continue to regulate other marine and port facilities.

The change in regulator comes as demand for cruise holidays has rebounded strongly worldwide despite the pandemic, while cruise capacity in the region is set to more than double in the next five years, said Mr Tan.

"The cruise industry is especially optimistic about the growth potential in the Asia-Pacific," he noted. "Cruise capacity in the region is projected to more than double from 3.4 million in 2022 to 7.3 million passengers by 2027."

In response to a question from Mr Louis Ng (Nee Soon GRC) about the sustainability efforts of the cruise sector, Mr Tan said that in line with the Singapore Green Plan 2030, the Republic is well positioned to facilitate the cruise industry's shift towards a more sustainable future.

"As a leading bunkering hub with expertise in ancillary services, such as the retrofitting of LNG (liquefied natural gas) ships, we are an ideal home port for LNG-powered ships," he said.

Singapore will welcome its first deployment of an LNG-powered cruise ship - Silversea's Silver Nova - in 2024.

"This will pave the way for more sustainably powered cruise ships to Singapore," he added.

The amended law also expands STB's administrative capabilities and enforcement powers over the broader tourism industry here.

For instance, STB's purview over tourism enterprises will be extended to providing grants and acting as a guarantor for selected strategic tourism enterprises.

Another clause grants STB the ability to collect and access tourism information such as visitor numbers and tourism receipts from businesses, which Mr Tan said is needed to develop and promote the tourism industry.

To protect the information that has been collected, a "preservation of secrecy" provision limits the onward disclosure of such information.