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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>F1 event drives retail profits up
</TR><!-- headline one : end --><TR>Some report up to 30% more takings, and small businesses benefited too </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Tan Dawn Wei and Lim Wei Chean
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Last weekend's maiden Singapore Grand Prix drove up takings by 20 to 30 per cent for many businesses, especially those in food and beverage, entertainment and hospitality.
At Tangs department store, for example, sales revved up by 40 per cent compared to that in the first week of last month.
The store saw 15 per cent more tourists turning up, especially men from Europe and Australia, said Ms Ellen Yeo, vice-president of store management.
Wisma Atria in Orchard Road also saw 13 per cent more shoppers.
Indeed, as The Sunday Times reported last week, it was a busy spell for Orchard retailers, including high-end boutiques.
Officials estimate that the Formula One event will bring in $100 million in revenue and about 50,000 tourists every year. The race organiser here has a contract to hold the event for five years, with an option for another two.
It was boom time too for several trackside hotels which had full houses, though they were reluctant to reveal profits, whether from rooms, F&B or catering.
But at least one, Fairmont Singapore, reported that its 769 suites and rooms were 90 per cent filled. It enjoyed a 50 per cent spike in F&B takings.
All of which suggest that the huge amount invested in bringing F1 here is paying off.
The race cost over $150 million to stage, with the Government footing 60 per cent of the bill, which went to infrastructure such as road resurfacing, fencing and a $40 million purpose-built pit building.
Singapore GP, the local race promoter owned by property and hotel magnate Ong Beng Seng, is mum about figures, but it is understood to have forked out about US$200 million (S$290 million) for the right to host the event over five years.
Singapore GP also had to put up the 1,500 lights lining the track, whose electricity came from stand- alone generators, and rent the Padang from the Singapore Cricket Club and Singapore Recreation Club for its grandstands and food and entertainment outlets.
In return, it pocketed money from selling 100,000 tickets, including 4,000 that were sold out for the Paddock Club, the luxurious hospitality suite housed in the pit building above the racing teams' garages.
That alone would have brought in $30 million, given that each ticket was priced at $7,500, although it is understood that Formula One Management - controlled by Mr Bernie Ecclestone and which signs rights to host the race - gets a cut from it.
But while there were runaway hits, there were bumpy moments too.
Hotels lamented that business could be better. They said tourists were turned off by the high prices - two to three times over non-peak periods - which may explain occupancy rates at many hotels hovering at 80 per cent.
Food Republic also increased prices, much to the chagrin of some race-goers. Prices at the 24 hawker stalls run by the foodcourt chain on the F1 grounds were between $8 and $10. Popiah was going for $11 for two.
It has a three-year contract to run the official hawker village on the F1 grounds.
Justifying the prices, its brand manager Patsy Loo said some dishes sold at its Suntec City branch were already priced at between $4 and $6, and it offered more variety than many other F1 race venues.
Food Republic has not done its sums for last weekend yet, she said.
Not everyone laughed his way to the bank, though. Retailers and restaurants in the Marina Bay area complained about poor takings since Singaporeans shunned the malls because of the road closures.
The authorities have acknowledged that a deeper look at how to help them make money is needed.
'But, on the whole, I think the impact on businesses has been very positive,' Senior Minister of State for Trade and Industry S. Iswaran told reporters on Tuesday.
[email protected]
[email protected]
Additional reporting by Nur Dianah Suhaimi
Are you put off by the high prices charged for food at F1 stalls? Have your say on straitstimes.com
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>F1 event drives retail profits up
</TR><!-- headline one : end --><TR>Some report up to 30% more takings, and small businesses benefited too </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Tan Dawn Wei and Lim Wei Chean
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->
Last weekend's maiden Singapore Grand Prix drove up takings by 20 to 30 per cent for many businesses, especially those in food and beverage, entertainment and hospitality.
At Tangs department store, for example, sales revved up by 40 per cent compared to that in the first week of last month.
The store saw 15 per cent more tourists turning up, especially men from Europe and Australia, said Ms Ellen Yeo, vice-president of store management.
Wisma Atria in Orchard Road also saw 13 per cent more shoppers.
Indeed, as The Sunday Times reported last week, it was a busy spell for Orchard retailers, including high-end boutiques.
Officials estimate that the Formula One event will bring in $100 million in revenue and about 50,000 tourists every year. The race organiser here has a contract to hold the event for five years, with an option for another two.
It was boom time too for several trackside hotels which had full houses, though they were reluctant to reveal profits, whether from rooms, F&B or catering.
But at least one, Fairmont Singapore, reported that its 769 suites and rooms were 90 per cent filled. It enjoyed a 50 per cent spike in F&B takings.
All of which suggest that the huge amount invested in bringing F1 here is paying off.
The race cost over $150 million to stage, with the Government footing 60 per cent of the bill, which went to infrastructure such as road resurfacing, fencing and a $40 million purpose-built pit building.
Singapore GP, the local race promoter owned by property and hotel magnate Ong Beng Seng, is mum about figures, but it is understood to have forked out about US$200 million (S$290 million) for the right to host the event over five years.
Singapore GP also had to put up the 1,500 lights lining the track, whose electricity came from stand- alone generators, and rent the Padang from the Singapore Cricket Club and Singapore Recreation Club for its grandstands and food and entertainment outlets.
In return, it pocketed money from selling 100,000 tickets, including 4,000 that were sold out for the Paddock Club, the luxurious hospitality suite housed in the pit building above the racing teams' garages.
That alone would have brought in $30 million, given that each ticket was priced at $7,500, although it is understood that Formula One Management - controlled by Mr Bernie Ecclestone and which signs rights to host the race - gets a cut from it.
But while there were runaway hits, there were bumpy moments too.
Hotels lamented that business could be better. They said tourists were turned off by the high prices - two to three times over non-peak periods - which may explain occupancy rates at many hotels hovering at 80 per cent.
Food Republic also increased prices, much to the chagrin of some race-goers. Prices at the 24 hawker stalls run by the foodcourt chain on the F1 grounds were between $8 and $10. Popiah was going for $11 for two.
It has a three-year contract to run the official hawker village on the F1 grounds.
Justifying the prices, its brand manager Patsy Loo said some dishes sold at its Suntec City branch were already priced at between $4 and $6, and it offered more variety than many other F1 race venues.
Food Republic has not done its sums for last weekend yet, she said.
Not everyone laughed his way to the bank, though. Retailers and restaurants in the Marina Bay area complained about poor takings since Singaporeans shunned the malls because of the road closures.
The authorities have acknowledged that a deeper look at how to help them make money is needed.
'But, on the whole, I think the impact on businesses has been very positive,' Senior Minister of State for Trade and Industry S. Iswaran told reporters on Tuesday.
[email protected]
[email protected]
Additional reporting by Nur Dianah Suhaimi
Are you put off by the high prices charged for food at F1 stalls? Have your say on straitstimes.com
