Singapore is spending $20 million to host the historic meeting of U.S. President Donald Trump and North Korean leader Kim Jong-un. How come?
About 2,500 reporters have arrived in Singapore to cover the meeting between the two heads of state. «In terms of direct impact, (it) gives us publicity,» said Singapore's Prime Minister Lee Hsien Loong at a media briefing.
Tourists spend an average 3.5 days in Singapore and contribute about S$1,500, according to statistics collected by the Singapore Tourism Board (STB). With 4,000 visitors and an average stay of 3.5 days expected during this visit, they could generate S$21 million. This is a small blip only of the total S$27.1 billion generated in the whole year, according to a forecast by STB.
Burgers, Look-Alikes, and Medallions
Enterprising Singapore-based businesses and overseas artists are cashing in on the meeting too. Howard X and Dennis Alan, who impersonate Kim and Trump respectively, brought much delight to Singapore's tourists as they walked around Singapore's Merlion Park and staged an event at Bugis shopping complex over the weekend.
A burger chain by the name of Wolf Burgers created a campaign around the summit, inviting the two leaders to try out its «Burger for World Peace», its American sharp cheddar cheese, and a Korean marinated Bulgogi shabu brisket. Elsewhere, a Mexican restaurant, Lucha Loo, is selling tacos with the names Rocket Man and El Trump. Trump had called Kim little rocket man last year when they exchanged threats of nuclear war.
The Singapore Mint, which unveiled a commemorative medallion for the summit, said they had to raise the mintage for the gold and silver medallions after surprisingly strong demand. With each gold coin costing S$1,000 and each silver coin at more than S$100, they could generate S$5 million in revenue if sold out.
Regional Peace as the Ultimate Prize
«If you think about why Singapore attracts so many global and regional headquarters, it’s because CEOs and decision-makers feel that it’s not only a good place for them, but safe and enjoyable for their families,» said Lars Voedisch, managing director of PRecious Communications, a PR company.
The financial community is also carefully eyeing the summit. «A couple of days inconvenience to commuters is a small price to pay if the U.S. and North Korean summit can make Asia a safer and therefore more stable economic place,» said Simon Lints, chief executive officer of Schroders wealth management, Singapore in an interview with finews.asia.
Preferred Choice
Publicity is often hard to measure but experts gave their opinion on the tangible benefits of hosting the main event in Singapore. Since the 2015 meeting between China's President Xi Jinping and Taiwan's leader Ma Ying-jeou, the Singapore International Arbitration Centre (SIAC) has seen a 32 percent increase in new cases that amounted to S$5.3 billion. SIAC is ranked third-most preferred arbitral institution in the world, after London and Paris.
The S$20 million price tag is less than one-fifth the price tag of hosting the Formula One race for one year, according to figures mentioned by Singapore's minister for trade and industry S. Iswaran in the «Straits Times» (behind paywall). The event hosted over 450,000 international visitors who generated S$1.4 billion in tourism receipts.
NBA Star and Side Publicity
The Trump-Kim summit has attracted many commercial interests hoping to catch headlines. Former NBA star Dennis Rodman, whose trip is being backed by cryptocurrency Potcoin, is one who hopes to get his own publicity.
The Belgium Luxembourg Business Group also held a gala event at Hotel Capella, just before the Trump-Kim summit there.
