Introduction

Tourism is one of the most influential industries in many countries in the world. By
contributed $ 7.2 millions to the world GDP represent 9.8% (2015) of the global GDP
according to the World Travel, Tourism Council (2015). With over 10,000 kilometres
of coastline and three thousand kilometres of marine and freshwater environments;
and with beaches in every region, Singapore has become well known for its diversity
of beaches and is the third most favorite destination for tourism activities in the world.
A number of national and international resorts were approved, in January 2017, by
Tourism Singapore and this agreement brings the country to a new level of excellence,
from offering some of the best hospitality services the East Asian region, to leading
the way with the development and sustainability of our tourism industry. In 2016,
Singapore ranked fourth in the country with 1,829 tourists visiting Singapore, making
it the highest ranked tourist destination in the region, according to Singapore Tourism
Board. It demands a huge number of hotel room in Singapore to satisfy the demand of
tourists. Therefore, a lot of people want to invest in the hotel industry in Singapore.
So, they must clearly understand the law and regulations in setting up the hotel in
Singapore.
 1. Legal and statutory framework

1.1. Common law

Common law is the body of law descended from the Great Britain and based on the
English model. Common law must follow the principle of stare decisis while the
decision made by higher court and must be obeyed to the lower court. Moreover,
common law called as reviewing past litigation which means that decision is make
base on the pervious case with the similar situation and facts decided by the court.

1.1.1. Contract law

In the hotel industry, in the course of normal duties, they are making a large number
of promise and agreements on the daily basis. Any unclear problems or
misunderstanding may arise when the promise or agreement is not being fulfilled.
Therefore, contract is necessaries in any kind of business, especially in setting up a
hotel. Contract is defined as an exchange the relationship between both parties that
contained at least one promise and it recognized by law according to Wolters Kluwer
(2007). There are many types of contract will be create during the operation of hotel,
however, some unique and very specialized contract will be made such as Franchised
related contract, meeting space contract, management operating agreement. To be
enforceable, the contract must be valid, the contract should consist three components
offer, acceptance and consideration.
1.1.2. Negligence-Tort
Negligence is a most common form of common law. It creates based on the careless,
reckless by the defendant or blameworthy conduct caused the plaintiff harm in
circumstances in which the defendant should have taken more care. The plaintiff must
show that:
• The defendant owned the plaintiff a duty of care
• The defendant breach the duty of care
• The plaintiff suffer the damages
1.1.3. Singapore court system
A hierarchical court structure is give by the authority for the particular case. There are
divided into three type of court: Supreme Court includes Court of Appeal and High
court, Singapore international commercial court (SICC) and state court consist of
District Courts, Magistrates Courts and Specialized courts.

1.1.4. Types of businesses

Current common forms of business vehicles in Singapore include:

Company limited by shares.
Branches.
Partnership (including limited liability partnership and limited partnership).
Sole proprietorship.
Most foreign businesses use private companies limited by shares.
1.1.5. Unfair contract terms act
The Unfair Contract Terms Act (referred to as UCTA by business and legal insiders) is
a body of law designed to primarily protect consumers who may be prejudiced by the
weaker bargaining positions they occupy in most consumer transactions.
Negligence Liability: Section 2 of UCTA
Contractual Liability: Section 3 of UCTA
Indemnity Clauses: Section 4 of UCTA
Sale and Hire-Purchase: Section 6 of UCTA

1.2. Statutory law

1.2.1. Hotel act and licenses

Under the hotel Act, for people who want to open a hotel in Singapore. They must be
fulfilling all the document of Registration and hotelkeeper License includes

Business incorporation: first of all, the hotel or company must be registered as a

Singapore company, business or limited liability partnership at Singapore Companies
Registrar.

Approval of Premises: the approval will be in the form of written approval and it use
as a proposed premises to run and operate the hotel. The hotel can approved it though
Urban Redeveloped Authority.
Appointment of the Hotelkeeper: A Chief Executive Officer (CEO) or the General
manager (GM) must be appointed to manage the hotel administrative affairs.
Advertising the application: after submitted the application for the Certification of
Registration, the hotel have 14 days to advertise the application in both The Straits
Time and Zaobao.

Clearance from National Environment Agency: It is necessary to obtain Clearance

Certificate (Temporary Occupation Permit) or a Compliance Certificate (Certificate of
Statutory Completion) from the Planning and Development Department of the
National Environment Agency of Singapore.

Approval from Fire Safety Department: A Temporary Fire Permit (TFP) or a Fire
Safety Certificate (FSC) must be procured from the Fire Safety Bureau of Singapore.

Approval from Building Construction Authority: A Temporary Occupation Permit

(TOP) or Certificate of Statutory Completion (CSC) must be obtained from the
Building Construction Authority of Singapore.

1.2.2. In- keeper act

Most of the hotel is the safe places for visit and work. As the hotel manager who
will have a responsible to make facilities safety for the guests and security for the
properties of the hotel. Under the common law (1956, Act), innkeeper were held the
responsible for the safety of the guest property. The role of innkeeper is importance
for the hotel to protect the customer while they are traveling. The in keeper have a
responsible to maintain protected environment from the robber, and bandits that make
the places unsafe.

Duties of Inkeeper:

No innkeeper shall be liable to make good to his guest any loss of or injury to goods
or property brought to his inn, not being a horse or other live animal, or any gear
appertaining thereto or any car or carriage, to a greater amount than the sum of $500,
except:
where the goods or property have been stolen, lost or injured through the wilful act,
default or neglect of the innkeeper or any servant in his employ; or

where the goods or property have been deposited expressly for safe custody with the
innkeeper or his manager.

An innkeeper or his manager may refuse to receive for safe custody under this section
goods or property of any one guest the declared value of which exceeds $5,000, and
shall in no case be liable for loss of or injury to goods or property so deposited by a
guest to an amount exceeding the declared value thereof.

1.2.3. Safety Workplace & Health Act

As the manager of hotel who will be responsible for the large number of activities was
designed to prevent the property and people from any harm. For the effective of
safety program, manager must be convers all components such as guests and staffs.
There is many kinds of potential threat due to the operation of facilities in the hotel
that call crisis situation include: Fire, bomb threats, robbery and power outages.

As the employers, the hotel must provide the employees a safety work places and
health. The Workplace Safety and Health Act covers the safety, health and welfare of persons
at work in a workplace. It requires employers to take reasonably practicable steps for the
safety and health of workers and others affected by work.
2. Employment Law, Health and Safety and Data Protection

2.1. Common law

2.1.1. Contract of employment

Employment contract is defined as an agreement between employees and employers,
which is also known as an Offer letter or Appointment letter. Moreover, the contract
is a legally enforceable agreement. There are four elements that need to make the
contract become legal such as offer, acceptance consideration and intention. The
contract is important for both parties while it have effected to the employee
compensation, benefit, working environment and family leave. To the employers, the
contract is plan a significant role in the employee’s duties of loyal and these
responsibilities at the workplace. In the theory, the contract means the parties are feel
free to negotiable the term and condition that suite term within the constraints
imposed by the statute or common law. In additional, violations is an element will rise
the tort liability or contractual.

2.2.2. Restraint of trade

Restraint of trade clauses are commonly found in different kinds of contracts for
example, employment contracts and sale of business contracts.

2.2. Statutory law

2.2.1. Small claim tribunal

The Tribunals have jurisdiction to hear claims not exceeding $10,000. Therefore, a
claim cannot be split or divided to bring it within the Tribunals' jurisdiction. Where
the Claimant and the Respondent consent in writing, the jurisdiction can be raised to
$20,000.
According to the Section 35 for the small Claim Tribunal Act, the Claim Tribunal Act
can:
 Order the employers to pay money to the employees
 Make a work order (to rectify the defects or replace defective parts)
 Make other extra orders.
2.2.2. Employment act
The employment act covered all the employees under the contract of services with the
employers, however they are exceptions. The employment act is a Singapore main
labours law, it provided a basic terms and conditions at works for the employers under
the Act. Moreover, the forgein worker who are holding pass also covered under the
Employment of Forgine Manpower Act. According to Part Iv of the Act, the
employees will be provided the rest day, hour of working, annual leave and other
conditions and services but those not includes the managers or executive.
 3. Consumer Protection
3.1. Implied terms of contract
The hospitality and tourism industry is closely interlinked and regulated by law. The
legal system provides for a fair and equitable environment in which the industry can
operate in. employment laws, consumer protection laws, contract law and the law of
tort helps to ensure that both the seller and the buyer of goods and services are
insulated from unfair, illegal and unsafe practices.

3.2. Consumer protection fair trading act

The Customer Protection Fair Trading Act is the result year of relentless advocating
by the Consumer Association of Singapore(CASE) for the protection of customer.
Whatever that we see today is the result of the testimony to the continued of
dedication of many consumers advocates over the years
Fair trading legistration aims is to protect the consumer interest by regulating trading
practice in various ways. The Act was formulated primarily to protect consumers
against unfair practices and to give consumers additional rights in respect of goods
that do not conform to contract.
3.3. Data protection Act
The Personal Date ProtectionAct(PDPA) establishes a data protection law that
comprises various rules governing the collection, use, disclosure and care of personal
data. It recognises both the rights of individuals to protect their personal data,
including rights of access and correction, and the needs of organisations to collect, use
or disclose personal data for legitimate and reasonable purposes.

Personal data refers to data, whether true or not, about an individual who can be
identified from that data; or from that data and other information to which the
organisation has or is likely to have access. Personal data in Singapore is protected
under the Personal Data Protection Act 2012 (PDPA).
 4. Other Licenses
4.1. Central provident fund (CPF) Act
In Singapore, the Central Provident Fund (CPF) is a compulsory comprehensive
savings plan for working Singaporeans and permanent residents primarily to fundtheir
retirement, healthcare, and housing needs.
4.2. Halal certificate
In the Islamic Regious Council of Singapore( MUIS), the owner can volunitary to
apply for the Halal certificate under the Eating Establishment Scheme or Halal
Certifiacte Food Prepareration Area Scheme while the products or services or
actitivities realtion.
4.3. Fire Safety Act

The Petroleum / Flammable Materials Storage License must be obtained from the
Singapore Civil Defence Force (SCDF), Fire Safety & Shelter Department (FSSD) for
the storage of petroleum & flammable materials including LPG, unless specifically
exempted. It normally takes seven working days to process a successful application,
upon which the license will be issued for a one-year or two-year validity period.

4.4. Protection from Harassment Act

An Act to protect persons against harassment and unlawful stalking and to create
offences, and provide civil remedies related thereto or in relation to false statements
of fact.
4.5. Public entertainment & meeting Act

The Public Entertainment License and Arts Entertainment License issued by the
Singapore Police Force, under the Public Entertainments & Meetings Act, is required
for organizing any ad-hoc entertainment in any place to which the public has access
A Public Establishment License is required for organizing public entertainment at the
hotel such as bar, restaurant. Futher The Public Establishment License is issued by the
Singapore Police Force and is normally valid for a one-year period.

4.6. Tobacco retail licensing act

A Tobacco Retail License is required from the Health Sciences Authority for the sale
of tobacco products on hotel premises. The license will be valid in one year period
and costs S$360.
Conclusion
There remain opportunities for both national and international companies to set up
and operate hotel in Singapore and Singapore's hotels regulations are clear. Hotel
chains need to respect the hotels laws and regulations like they will have to when they
operate in a foreign country, it is not expected for hotel operators to act outside of the
law to keep their profits high

Bibliography
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