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SINGAPORE: The levy to be imposed
on hotel room revenues during the Formula One race in Singapore
next year has been announced.
After consulting the Singapore Hotel Association, the Trade and
Industry Ministry (MTI) has decided a levy of 30 per cent for
hotels on the trackside, and 20 per cent for others.
Since the 11 hotels that line the track will benefit more from
the race, a higher levy will be imposed.
One of the trackside hotels – Pan Pacific feels the levy befits
the scale of the event.
"Our rates are not finalised yet because there are plenty of
details that have not been finalised by the event (organisers)...
For example, whether it's a day or night race will factor into
the demand," said Cheryl Ng, PR manager of Pan Pacific
Singapore.
"I think definitely hotels will benefit from the F1. It's not
just a short-term benefit, but long term as well because this
event will boost Singapore's... international standing and it
will also (make) us more visible in terms of being a venue for
future events to be held," she continued.
Pan Pacific Hotel has already received enquiries on bookings for
September next year, and it expects full occupancy during the
event.
Meanwhile, the hotel is trying to determine how to price its
rooms.
"At the moment, we are conducting a global pricing strategy
research with other significant F1 cities regarding how they are
pricing the hotel rooms," said Ms Ng.
According to the MTI, the F1 levy will be effective for a period
of five nights - from September 24 to 28.
The amount collected through the levy will be used to defray the
estimated cost of S$150 million to stage the race, of which 60
per cent is funded by the Singapore Tourism Board.
MTI added that the projected annual tourist receipts should
amount to about S$100 million, which is below the total costs of
organising the F1.
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