F1 revs up economy as it roars into town

SINGAPORE - Five years after the Grand Prix was first held here, the glamorous event is turbo-charging the local economy more than ever.

New tourism data shows a 12.6 per cent spike in advance flight bookings for the Formula One race, now into its sixth year here. A surge in last-minute bookings is also expected.

And motor sport fans flooding here for the event from tomorrow to Sunday are arriving ahead of the race earlier than before.

The data was compiled by technology and travel firm Amadeus, and market research and consulting company Forward Data SL.

Then there is the proliferation of spin-off events - timed to coincide with the big race.

Large corporations are more eager than ever before to schmooze with clients against the dramatic backdrop of the night grand prix.

Events held around this weekend include the Russia-Singapore Business Forum, Singapore Summit, Deutsche Bank Women in Asian Business Conference and the inaugural World Engineers Summit.

In previous years, the number of visitors was estimated to be 40,000 for the race weekend.

The tourism data shows that while most visitors are touching down today or tomorrow, about 29 per cent more visitors have arrived three days before the first qualifying race than last year.

Australians take top spot as the race's biggest fans, accounting for 17 per cent of bookings, followed by those from Britain at 8 per cent, and Indonesia at 6 per cent.

With the night race coinciding with public holidays in Hong Kong and South Korea, more tourists from those places are flocking here for the long weekend. Bookings from Hong Kong have shot up by 37 per cent from last year, while those from Seoul are up by a staggering 241 per cent.

The race gives the economy a big boost. Over the last five years, each race weekend has attracted about $150 million in extra tourism receipts, according to the Ministry of Trade and Industry.

Big winners include local small and medium-sized enterprises, which account for about 80 per cent of race organisation work.

From 2008 to last year, the race attracted 430 million television viewers worldwide in total.

The spin-off events are nearly as valuable as the big race, said Ms Jeannie Lim, Singapore Tourism Board executive director for exhibitions, conferences, conventions and meetings. "Through the years, Singapore's exciting F1 race and world-class entertainment acts have also become prime opportunities for many multinational companies based in Singapore to engage top clients for work as well as for a thrilling evening out in town," she said.

BCG Singapore managing director Jeffrey Chua said even after five years, the race still ranks very highly in global TV viewership and attendance. The consultancy was hired by the Government in 2010 to analyse F1's costs and benefits. "The longer the race has been held, the more 'sticky' the impact has been," said Mr Chua.

UOB economist Francis Tan said the spillover effects on the rest of the economy continue to be significant. "People associate Singapore with the F1 and it has helped with putting our brand out there to millions of people around the world... The value of this is hard to quantify but contributes to indirect benefits," he said.

mellinjm@sph.com.sg

chiaym@sph.com.sg

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