F1 Grand Prix Fees Singapore Hotels
The return to Singapore's 2008 Grand Prix, after nearly 30 years of inactivity, has stimulated tourism and the economy of the city-state. After being stopped in 1974 due to people's complaints and concerns about traffic jams, community noise and subsequent racing accidents in 1972 and 1973, the Singapore government decided to co-finance the return of the Race to Singapore GP Pte Ltd and Bernie Ecclestone .
With the phenomenal return of September 2008, local hotels have received a number of swollen occupations and even had a full reservation this season. The forecasts that it will stimulate tourism and hospitality industry in Singapore have proven to be true and accurate.
It was true that Singapore hotels boast the annual hosting of this popular event. Christopher Khoo, MD from Master Consult Services, explained that the hotel industry will be the first to benefit from an F1 course in Singapore. Rooms will be reserved in full and prices will be kept at a high level. Due to the large number of people who come with fully occupied rooms, other tourists could even go to detach rooms to neighboring countries such as Malaysia just to watch the race.
Associate Professor Prem Shamdasani of Singapore's National University Business School has further elaborated that events like the F1 race are very costly to organize. For Singapore to meet the costs, a cost-sharing approach has been recommended. A strong partnership between the private and public sectors could help ensure that this event is well prepared and well prepared. Thus, the government imposed a special tax on all hotels.
State Minister for Trade and Industry, Iswaran explained that a special tax of no more than 30% will be imposed on the hotel's income for about seven days this season, designed to help the Government pay for the cost of hosting the race. This special fee would rise to an average of approximately 15 million to 20 million dollars a year.
It was obvious that not everyone in the industry was happy with the special tax imposed by the Government for this season. With this special charge, the hotels admitted that an increase in price rates was the solution to deal with the new regulation. The government, on the other hand, has assured the hotel industry that they will pay attention to the hotels. They understand the need of businesses and business units to earn profits, but it is important not to forget their fair share for the nation.
Minister Iswaran further explained that they only ask for 30% to give the hotels the chance to take advantage of their sales and to keep their share. Hotels closer to the racing track and offering the best view of the race, such as those set in Marina Bay, would be paying 30%, while those hotels positioned further would pay less.
Experts say about 35,000 tourists are due to arrive annually at F1. And this outpouring will always require a high demand for accommodation and will result in higher rates in hotels and airplane tickets. A positive turnaround for the Singapore economy is provided with the resumption of F1. The tax imposed, albeit a little hard for the commercial industries, would help stimulate the economic recovery of cities and states.