Question:
Mrs Lina Chiam: To ask the Minister for Trade and Industry whether the Ministry can provide (i) a cost-benefit report on the Formula One Singapore Grand Prix to justify Singapore's participation in the event for the next five years; and (ii) a comparison between the projected and actualised increase in tourism receipts from the F1 event in the last three years.
Written Reply by Mr S Iswaran, Second Minister for Trade and Industry:
The Government supported the hosting of the Formula One (F1) Singapore Grand Prix in 2008 to help transform the tourism sector, generate economic value, and boost Singapore’s image as a vibrant and distinctive global city. The F1 Singapore Grand Prix has met these objectives over the first five-year term.
The cost of organising each race is estimated at about $150 million. The Government co-funds 60% of approved costs. In turn, the F1 Singapore Grand Prix has generated about $150 million in incremental tourism receipts per race, surpassing the original projection of $100 million per race. These tourism receipts are over and above the typical tourism spending on a non-race weekend. Further, close to 200,000 international visitors have come to Singapore for the first five races. Many of these visitors are from non-traditional tourism source markets as the race also helped to broaden Singapore’s reach as an international tourism destination.
The F1 Singapore Grand Prix has also yielded significant global branding benefits to Singapore. Cumulatively, more than 360 million television viewers worldwide have followed the first four races; the statistics for this year’s race are still being compiled. The extensive international media coverage of the F1 Singapore Grand Prix has showcased Singapore’s distinctive skyline globally and boosted our image as a vibrant global city.
We expect these benefits to be sustained and the costs to go down in the extended term as we optimise existing infrastructure, become more efficient in race organisation, and benefit from revised terms with the race promoter and Formula One Administration. We will also continue to explore ways to minimise the public inconveniences that a street race may bring to Singaporeans. We look forward to the support of all Singaporeans, so that the F1 Singapore Grand Prix will continue to be an event that we are happy and proud to host.