Question:
Mr Teo Siong Seng: To ask the Minister for Trade and Industry (a) what plans does the Ministry have to redress the loss of revenue to retail/ food and beverage outlets in the vicinity of Marina Bay during the period of the F1 night race in Singapore; and (b) what is the percentage of contracts being awarded to Singapore companies for the build-up of the F1 event since the F1 contract has now been renewed for another five years till 2017.
Written reply by Mr S Iswaran, Second Minister for Trade and Industry:
1. The economic benefits of the Formula One (F1) Singapore Grand Prix was an important consideration in Government’s evaluation to extend the race till 2017. Over the last five years, each race has attracted close to 40,000 international visitors and about $150 million in incremental tourism receipts on average. Of this sum, about one-third or $50 million goes directly to the retail and F&B sectors, of which SMEs form a significant proportion. SMEs also account for about 80% of the race promoter Singapore GP’s (SGP) race organisation works annually.
2. However, a street race will inevitably cause some short-term inconveniences, especially to stakeholders in the vicinity. While some businesses in the Marina Bay area have benefited from the buzz and the increase in visitors, others have reported a drop in their short-term sales during the road closure period.
3. Government agencies have been working with SGP to improve public access to the Marina Bay area and to minimise disruptions. For example, the duration of road closures has been halved from 12 days in 2008 to 6 today. LTA and SGP have also been working with businesses in the Marina Square and Suntec area to help more of their employees, suppliers and key customers drive to and from the malls via Raffles Boulevard, except during race times. Also, with the opening of the Circle Line stations around Marina Bay and the extended MRT operating hours during the race weekend, the area is easily accessible by public transport.
4. STB and SGP have also worked closely with local businesses to take advantage of the high volume of visitors to the race. STB and SGP will continue with their efforts in the years ahead and will welcome further suggestions to help businesses, including those in the Marina Bay area, derive greater benefit from the F1 Singapore Grand Prix.