Question No 593 of Notice Paper No 215 of 2010
Name and Constituency of Member of Parliament
Mdm Ho Geok Choo, Member of Parliament (West Coast GRC)
Question
To ask the Minister for Trade and Industry when will the review of the extension of Singapore's Formula One races be completed; (b) what are the implications for the economy; and (c) what have been the tangible benefits derived from the staging of the night races.
Answer
Since 2008, Singapore has successfully hosted three Formula One (F1) night races. The first two races in 2008 and 2009 brought in a total of more than $260 million of tourism receipts, attracted 70,000 international visitors constituting about 40% of race attendance, and were watched by a total of more than 195 million “live” television viewers worldwide.
The figures for Year 3 have not been finalized but preliminary estimates place this year’s international visitors hip at about 40,000, close to Year 1 levels. Overall, the event has helped to brand Singapore as a premier lifestyle destination to a global audience. The race has given Singapore good international exposure and it continues to enjoy strong support locally and internationally.
Beyond the headline figures, the event has also brought significant benefits to businesses and the local community. With the influx of international visitors, tourism-related businesses have benefitted from the F1.In particular, many hotels reported significantly higher occupancy rates of over 90% whilst charging a premium for rooms over the F1 weekend. The event also provided a networking platform for businesses with many taking up hospitality suites to host partners and clients at the race. This year, the Singapore Exchange organized a conference at the sidelines of the race to bring together potential investors in the Asian motorsports industry.
Within Singapore, the F1 has fuelled local interest in motorsports, creating opportunities for close to 1,000 local enthusiasts to serve as volunteer race Marshalls. It also provided training opportunities for more than 1,000 ITE students who were subsequently deployed as street guides and event officials at the circuit park over the race weekend.
Singapore is currently contracted with the Formula One Administration (FOA)to host the F1 race until 2012.FOA has the option to offer an extension for an additional five years. In the event Singapore decides not to take up such an offer, we will have to serve notice with FOA to terminate the arrangement, with the last race to be held in 2014.
The decision to extend the contract arrangement beyond 2012 needs to be carefully studied. Our decision will be based on an assessment of the costs and benefits to the economy over the long term. These would include factors such as the projected attendance and overseas visitors hip at future races, the impact on our tourism industry and other sectors, its contribution to Singapore’s international branding, and how F1 would continue to fit in with the ongoing renewal and transformation of our tourism landscape.
The Singapore Tourism Board will be studying this together with other Government agencies and the race promoter, Singapore Grand Prix Pte Ltd (SGP). Given the range of issues to be studied, the review exercise may take about a year to be completed. An announcement on the outcome will be made when ready.
I would like to take this opportunity to thank Singaporeans and the many volunteers for their continued support for the F1.Our government agencies and the race organizers will continue to work to further enhance Singapore’s F1 night race which has gained the reputation of being one of the highlights on the F1 season calendar. We look forward to the continued support of Singaporeans and all stakeholders as we prepare to host the race in 2011.
Mdm Ho Geok Choo, Member of Parliament (West Coast GRC)
Question
To ask the Minister for Trade and Industry when will the review of the extension of Singapore's Formula One races be completed; (b) what are the implications for the economy; and (c) what have been the tangible benefits derived from the staging of the night races.
Answer
Since 2008, Singapore has successfully hosted three Formula One (F1) night races. The first two races in 2008 and 2009 brought in a total of more than $260 million of tourism receipts, attracted 70,000 international visitors constituting about 40% of race attendance, and were watched by a total of more than 195 million “live” television viewers worldwide.
The figures for Year 3 have not been finalized but preliminary estimates place this year’s international visitors hip at about 40,000, close to Year 1 levels. Overall, the event has helped to brand Singapore as a premier lifestyle destination to a global audience. The race has given Singapore good international exposure and it continues to enjoy strong support locally and internationally.
Beyond the headline figures, the event has also brought significant benefits to businesses and the local community. With the influx of international visitors, tourism-related businesses have benefitted from the F1.In particular, many hotels reported significantly higher occupancy rates of over 90% whilst charging a premium for rooms over the F1 weekend. The event also provided a networking platform for businesses with many taking up hospitality suites to host partners and clients at the race. This year, the Singapore Exchange organized a conference at the sidelines of the race to bring together potential investors in the Asian motorsports industry.
Within Singapore, the F1 has fuelled local interest in motorsports, creating opportunities for close to 1,000 local enthusiasts to serve as volunteer race Marshalls. It also provided training opportunities for more than 1,000 ITE students who were subsequently deployed as street guides and event officials at the circuit park over the race weekend.
Singapore is currently contracted with the Formula One Administration (FOA)to host the F1 race until 2012.FOA has the option to offer an extension for an additional five years. In the event Singapore decides not to take up such an offer, we will have to serve notice with FOA to terminate the arrangement, with the last race to be held in 2014.
The decision to extend the contract arrangement beyond 2012 needs to be carefully studied. Our decision will be based on an assessment of the costs and benefits to the economy over the long term. These would include factors such as the projected attendance and overseas visitors hip at future races, the impact on our tourism industry and other sectors, its contribution to Singapore’s international branding, and how F1 would continue to fit in with the ongoing renewal and transformation of our tourism landscape.
The Singapore Tourism Board will be studying this together with other Government agencies and the race promoter, Singapore Grand Prix Pte Ltd (SGP). Given the range of issues to be studied, the review exercise may take about a year to be completed. An announcement on the outcome will be made when ready.
I would like to take this opportunity to thank Singaporeans and the many volunteers for their continued support for the F1.Our government agencies and the race organizers will continue to work to further enhance Singapore’s F1 night race which has gained the reputation of being one of the highlights on the F1 season calendar. We look forward to the continued support of Singaporeans and all stakeholders as we prepare to host the race in 2011.