BACKPACKER hostels and budget hotels here have seen a surge in bookings, thanks to the first Formula One night race later this month.
Such no-frill establishments have never before seen rates rise by up to 50 per cent. And many have been booked solid in the run-up to the races from 26 to 28 Sep.
While these establishments used to attract mostly backpackers, they are now seen as an attractive option for those who find F1 season hotel room rates of up to $1,000 a night too expensive. Several hostels are already fully booked for the period.
YMCA International House, a big player in the hostel market, has already filled 70 per cent of its 111 rooms for the race weekend. Its general manager, Mr Gerald Lim, said: 'We started receiving reservations as early as June, with 40 of them through travel agents. Typically, we get more European and American guests, but because of the F1, we're also getting customers from the region.'
The hostel has raised its rates by about 50 per cent for the period. A superior room costs $325 a night, up from the usual rate of $180.
'Three-star' hostel
Mr Lim said: 'We're a hostel, but we're almost like a three-star hotel in terms of our rooms and service. Our 107 private rooms have ensuite bathrooms, cable television and Internet connections.'
He explained that while the hostel is not subject to the levy that hotels have to pay for the race weekend, he had to increase prices to manage the demand for rooms.
He said: 'Foreign missionaries stay at YMCA from time to time and I have to ensure there are enough rooms for them too.'
Budget hotel player Hotel 81, which raised its rates by 20 per cent, has sold out most of its rooms in the city, where there are two branches in Chinatown, one in Bencoolen Street, one in Bugis and another in Little India.
Mr Spencer Han, who manages The Hive Backpackers Hostel, said its six private rooms and two dormitories will be fully occupied for the race period.
He said: 'Many of the guests are checking in on 25 Sep and leaving on 29 Sep, so we assume they're here for the F1.'
He added that the hostel began getting bookings in June. It has not raised rates.
Staying in a dorm at The Hive costs $20 a night while a private room costs $42 to $55 a night, depending on the size.
Chinatown
It is a similar story over at Backpackers' Inn Chinatown. Its dormitory, which accommodates 10 guests, and two of its three private rooms, are fully booked for the race period.
On normal days, guests pay $55 for a room and $22 for a bed in the dormitory.
The hostel's boss, Mr Richard Yuen, said: 'I increased the room rates by $10 and the bed rates by $3 as I thought there would be better demand during the race.'
Another hostel, Tresor Tavern, has even offered to collect race tickets for its guests.
Its managing director, Ms Josefine Fun, said: 'We have asked our guests if they already bought their tickets. If not, we'll offer to book and collect the tickets for them as a value-added service.'
More than 40 of the 50 beds at Tresor are booked for the race weekend, even though the hostel increased its nightly rate of $28 by 20 per cent for the period.
Ms Fun added that her guests come from places such as Denmark, Germany, South Korea, Taiwan, the US and Australia.
She said: 'We opened in late May and business is already exceptionally good, considering the peak season is from November to December.'
Working to the hostels' advantage is their exemption from the levy that the Government is charging hotels for the race period.
Trackside hotels have to pay 30 per cent of their room revenue to the Government, while non-trackside ones pay 20 per cent.
This is why room rates here have more than doubled for the race period.
Trackside hotels are charging at least $900 a night while rooms in non-trackside hotels are priced from $500 onwards.
However, The New Paper's checks showed that there were still rooms available at trackside hotels such as Pan Pacific and Carlton.
Some trackside hotels have even reduced the minimum period that guests have to stay.
One trackside hotel source said: 'Since 21 Aug, we have reduced the minimum period from five days to three days. We had to do so because the F1 race is coming and we still have many rooms available.'
Other beneficiaries of the spinoff include hotels in Johor Baru, where room prices are only a fraction of those in Singapore.
The 332-room Mutiara Johor Baru, a five-star establishment, expects a daily occupancy of 80 per cent from 22 to 28 Sep.
Mostly Malaysians
Mutiara's marketing communications manager, Ms Lily Tham, said: 'Enquiries have been pouring in since April, with most of the bookings coming from Malaysians.'
Ms Samantha Liew, director of sales and marketing at the 400-room Zon Regency Hotel, said: 'We're seeing more bookings and we expect almost full occupancy as the race nears. Because of the exchange rate, it's advantageous for tourists to stay in JB.'
Zon Regency is charging about RM400 ($167) a night during the race period.
Even travel agents in Johor Baru have also jumped on the bandwagon.
Johor-based New Asia Holidays general manager, Mr Raaj Navaratnaa, said his agency is offering a four-day-three-night package, complete with daily return transfers between Johor Baru and the race circuit in Singapore.
Prices range from $1,200 to $2,200.
There have been 500 confirmations so far, and about 300 of them bought race tickets through Mr Raaj.
This article was first published in The New Paper on Sept 8, 2008.
