Analysis: The Impact of Low-Cost Carriers on Tourism in Singapore

This report provides a comprehensive analysis of the impact of low-cost carriers on tourism development in Singapore. It examines the economic benefits, including the development of new destinations, markets, and products, and the influence on flight prices and route availability. The report highlights both the positive and negative effects of low-cost carriers, considering factors such as market segregation, infrastructure improvements, and the role of government policies. It also explores the operational strategies of low-cost carriers, focusing on cost minimization, efficiency maximization, and the use of direct flights. The conclusion emphasizes the importance of low-cost carriers in driving tourism growth and the need for strategies to support their continued development within the Singaporean context. The report also highlights the role of the government in ensuring the availability of routes and flights, as well as the impact of low-cost carriers on air travel demand.

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 1
IMPACT OF LOW-COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE
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IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 2
Executive summary
Singapore is a fast growing country with tourism growth and development of new
business opportunities. The objective of this report work is to present study on effects of low-
cost airlines division among the tourist marketplaces in Singapore. The ideas presented also
examine the contribution of inexpensive carriers to the growth of tourism in less renowned
destinations within Singapore as a country. Moreover, air transport in the Singapore in the recent
times remains to be the fastest growing sector of transport. The ideas presented in this paper seek
to quantify the impact of the expansion of inexpensive carriers on tourism trends within
Singapore. The entrances of low-priced carriers within Singapore have substantial economic
benefits for the region (Wong 2014). It influences the aviation marketplaces by the provision of a
considerable positive impact on the employment sector, trade, gross domestic product (GDP),
tourism, along with productivity among other factors. Survey on the impact of inexpensive
carriers’ airlines in Singapore has remained scarce due to causality issue. The negative and
positive effects of low-cost carriers in Singapore remains sparse due to the reliable data present
across the nation.
Introduction
After a decade that comprises of rapid developments in Singapore, inexpensive carriers in
its marketplaces now comprises of their prospects, by demographically along with geography.
The development ensures that the country can maintain their foot on the improved ideas.
Financial outcomes for Singapore for low-priced carriers over the last one year prove the region
to be highlighting its constant prosperity credentials. According to Kim & Lee (2011), after
emergence of the render down experienced by the year 2009, Singapore has continued to

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 3
experience intact operations relative to their tattered network opponents. Almost all the sectors of
airlines in Singapore have been able to improve their economic place as stipulate rose. Different
impacts of low-cost carriers arise, as results of those transporters across states are in service in
very distinct settings in present times (Sarilgan 2016). Low-cost carriers in more mature market
in developed nations have distinct scene to the airline in growing regions of countries in Asia.
However, both low-cost carriers among these areas encounter tests in supporting their
development. Therefore, this study examines the effects of low-priced transporters on the
development of tourism in Singapore.
Effects of low-priced transporters on tourism progress within Singapore
There are significant effects of low-priced transporters on tourism progress in Singapore.
With the positive results, the airlines are recommendable to provide low-cost carriers direct
flights to different destinations, as this is profitable for providers of aviation’s business services
as well as for clients out of Singapore. The impact affects various sectors. Some of the areas that
are negatively or positively affected by low-cost carry on tourism development in Singapore
include the development of new products, development of new destinations, development of new
markets, impacting prices of flights and goods, along with the availability of routes followed by
trips (Paulina & Cortes 2014). Low cost carries on tourism development in Singapore remain as
an essential part in pushing forward the progression of regional tourism. Moreover, low-cost
moves on tourism development in Singaporedo need support from the tourism industry (Yeung
et al., 2012). The tourism development seems to consider transportation revolution. Low-cost
carriers also force the tourism sector to pay attention to routes design by focusing on off along
with peak seasons, spatial traits, and scale.

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 4
Development of new destinations
Low cost carries on tourism development in Singapore allows the airport authorities to
focus their operations on developing improved target. The need to have more destinations
improves with the increase in some people who shift to using airlines for quick movement.
However, the impact of developing new target comes with the negative impact on the economy
of the country. The authority has to incur the enormous amount of money in the creation of a
well-equipped destination. Many resources that can apply to improving the quality of lives of
citizens in Singapore are then applicable for the development of new goals. However, after the
creation of such destinations, the country stands to receive massive foreign exchange from the
money earned from the tourism sector (Tas 2014). The development of new targets is essential
for the country to secure and maintain the vast number of travelers that increases by a reduction
in cost carriers within Singapore.
Development of new markets and products
Low-cost carriers on tourism development in Singapore have the significant role in the
development of new markets where society can take their goods and services. While talking
concerning rapid growth of low-priced transporters on tourism progress in Singapore, there is a
need to reflect effects that it brings to the development of new markets. However, air transport
network in Singapore is regard to be one of the sectors in the region that have the highest
negative impacts. Its effects occur on the environment, polluting the atmosphere, and emitting
noise. Low-cost carriers on tourism development in Singapore promote segregation and
corporation of tourist destination that is essential in developing new marketplaces. As reported
by Rodriguez & O’Connell (2017), low-cost carriers have positively affected segregation of

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 5
specialized regions in Singapore in every tourist destination. Such separation has allowed the
tourism destination around the area to comprise of travel distribution center, leisure destination
around the market, sightseeing district, along with tourism primary function zone. All these new
marketplaces formed as a result of inexpensive carriers on tourism growth in Singapore tend to
compete with regional industry chain. Additionally, low-cost carriers on tourism development in
Singapore provide space for the creation of new hotels that offers self-service travel products.
The developed packages in the new markets do not only offer discounts for their esteem and
targeted clients but also expanding marketplaces for related corporations while making low-cost
carriers around Singapore to continue as an attraction to more potential customers. Based on the
Low-cost carriers on tourism development in Singapore, it offers the beneficial condition that
aims at building low-cost airlines for tourists while improving the brand name through
improving innovation of ticketing services. These services of ticketing are essential as they
ensure every seat during a flight have occupancy (Chang et al., 2014). At the same moment,
Low-cost carriers on tourism development in Singapore aim at selling their services at a price
that can be essential in reducing authorities of different agencies by providing advanced sales
software that is not easy to hack.
Availability of routes followed by flights
Singapore has the best foundation of air rights with various navigable cities. Until
presently, Singapore particular administrative region has discussed the flight agreement with
other countries. Some countries have come into agreement with Singapore making the space of
routes expansion to be very broad as a result of inexpensive carriers on tourism growth within
Singapore. Low-priced carriers on tourism progress within Singapore have made the region to
form the authority of flexibility air traffic from central administration, available to sign the

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 6
agreement with other countries that independently for the air transport rights opening. Low-cost
carriers on tourism development in Singapore have seen many developers come in with the main
objective of constructing routes followed by flights. For instance, Singapore future aviation
industry has been able to open mainland routes, open routes to Europe, increasing the number of
weekend trips, and expanding Singapore international airport. These development aids in
ensuring that courses become available for Low-cost carrier flights by enhancing the competitive
advantage of Singapore airlines (Farmaki & Papatheodorou 2015). Moreover, Low-cost carriers
on tourism development in Singapore have seen Singapore government announced the
construction of the world travel leisure center five-year planning. The concentration of such plan
is to see how to improve Singapore’s tourism and recreation environment (Chung & Whang
2011). The plan inevitably involves the routes along with the flights of the international airport.
The availability of course followed by flights has seen the Low-cost carriers on tourism
development in Singapore attracting the international airline. All these airlines need to make on
infrastructures perfection, and international clients increment together with reception capacity
improvement.
Impacting prices of flights and goods
Low-cost carriers result to substantial fall in airlines. Moreover, due to such drop in the
cost, airfares have become common in Singapore in recent times with passengers now enjoying
prices that are more competitive. The idea of traveling across Singapore cities has indeed
become considerably cheaper. The low prices have made various passengers to across the region
to opt for usage of airlines in moving their goods and services around the globe (Kim & Lee
2011). Therefore, emergence of low-cost carriers in domestic marketplaces around Singapore has
had the even greater impact on activities of people. For instance, the potential market of about

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 7
two hundred and twenty million passengers has seen the new entry of budget of airlines that
resulted in cheap or low airfares. However, in the last five years, the five airlines serving the
domestic marketplaces in Singapore were capable of fixing prices through their industry
association. The fixation of prices made it difficult for the passengers to challenge such prices
offered to them within the country (Moreno-Izquierdo et al., 2016). The practice ended when
Singapore introduced the competitive law that aid in shifting the collision and thereby causing
the cost of airfares to drop significantly. The introduction of low-cost airlines sector saw
Singapore going changes in the cost of airfares drastically.
The low-cost airline has resulted to increment on people who travel using the carrier. The
consequence of the decrease on airfares has seen more people to visit. Even though there is
growth in the number of passengers traveling in different aircraft in Singapore, there is still more
task needed to isolate adverse effects brought about by entry of low-cost carriers (Tas 2014).
These effects range from economics variables that affect the growth of traffic to government
policies that regulate transport sectors. Besides, low cost carries on tourism development in
Singapore bring about a range of demand for air travel distinguished into two major classes.
These include business and leisure.
Prospect of inexpensive operations
Low-priced carriers on tourism progress within Singapore play an essential role in the
success of the application for the list of global heritage along with exhibition industry developing
in present years. Therefore, only Low-cost carriers on tourism development in Singapore help air
travel to transform from aristocratic to popularize and attain the requirements of marketplaces
segment. The revolution of the entire air industry plays the critical role of the impact that comes

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 8
with the inexpensive carriers on tourism development in Singapore (Lerrthaitrakul &
Panjakajornsak 2014). Low-priced carriers on tourism growth within Singapore enrich the air
transportation marketplaces by stimulating the two-way development of industry chain along
with consumption chain. Besides, operational issues should be placeable into consideration while
companies plan for the development of low cost carries on tourism development in Singapore
from regional to airports.
Summary and conclusions
The essential traits along with the attitude of how low-priced carriers work can be sum up
into different tips. Some of the points comprise of focus on minimizing costs along with
maximization of efficiency. Low costs transferable to low tariffs for clients, direct flights
between different regions in Singapore and outside its limits, and operation of newer, cleaner,
and more efficient aircraft. To sum up on the above report, one can conclude that low cost carries
on tourism development in Singapore influences the growth of tourism within smaller cities and
famed destinations in various distinct approaches. In order to reduce expenses of low price
airlines in Singapore, it is essential to move to local airports with lesser rates of landing, taxes,
along with little congestion. Such directives guarantee the people using such aircraft to have
small turnaround time while doing the businesses. Low cost carries on tourism development in
Singapore tries to increase the revenues during the operations. Taking into account above
considerations of the analysis presented in this report, one can conclude that low cost carries on
tourism development within Singapore can certainly manipulate less famous destination. Such
goals can aid passengers as well as business stakeholders to encourage and boost the total
number of tourists around global society.

IMPACT OF LOW COST CARRIERS ON TOURISM DEVELOPMENT IN SINGAPORE 9
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