SINGAPORE: A seven-year renewal of Singapore’s contract to host the Formula 1 Grand Prix will be the driving force behind major changes in the post-pandemic landscape, from a tourism boost to job creation, industry experts say.
After a two-year absence due to the COVID-19 pandemic, the Singapore Tourism Board announced on January 27 that the night race will return to the streets of Marina Bay in September.
The Singapore Grand Prix was cancelled in 2020 and 2021 as it was scheduled as part of the F1 race calendar.
Singapore Attractions Association (ASA) chairman Dr Kevin Cheong said the event was “catalytic” as the attention from the rest of the world would directly benefit the entire tourism industry.
“[With] the number of eyeballs on F1 racing globally, Singapore’s seven-year contract locks Singapore and the Grand Prix as Southeast Asia’s premier must-see, must-experience and must-visit event.”
Dr Zhang added that the timing of the September F1 race was “very strategic”.
“F1 will kick off the year-end holidays, with the peak tourist season in India in October/November, then the winter break in December and finally the Lunar New Year holiday in January/February,” he said.
With the F1 Grand Prix targeting “high-yield, luxury travellers” and corporate entertainment customers, the new contract positions the Singapore destination in “the highest possible target market”, Dr Cheong added.
“Indirectly, corporate entertainment visitors are important F1 visitors. They are likely to be high net worth individuals and corporate leaders from the region. They are a very important market for Singapore as tourists, investors and business stakeholders. “
Therefore, Dr Zhang believes that industries outside the tourism ecosystem, such as high-end luxury retail and F&B, will also be positively affected.
To draw crowds, attractions could start planning “an exclusive experience for F1 visitors” before and after the race, and plan to be the venue for F1 parties, he suggested.
“(ASA) is exploring how to make F1 parties and entertainment more nature-based and outside the city. These activities will add value, richness and depth to the visitor experience in Singapore.”
Hotel ‘delighted’ to welcome F1 back
Some hotels located near the track are also pleased with the return of the night race and are ready to welcome more customers.
“As Mandarin Oriental, Singapore is located at the heart of the Marina Bay Street circuit, we are delighted to hear that Formula 1 in Singapore is resuming,” said hotel general manager Philipp C Knuepfer.
“Because it will allow us to provide a favorable view of the game to international and local audiences eager to immerse themselves in this adrenaline-pumping event.”
At Pan Pacific Hotels Group, the hotel company was “ecstatic” to learn the campaign had been extended for seven years.
Cinn Tan, the company’s chief sales and marketing officer, said the company now has two “trackside hotels” where the races can be watched. In addition to its flagship Pan Pacific Singapore hotel, its new luxury hotel, The Royal Marina Bay Hotel, will offer the event’s “main balcony view”.
Ms Tan added that the return of the competition also brought opportunities to collaborate with other companies.
“Pan Pacific Singapore has been the official caterer and host for a variety of high profile groups over the past few years, and we expect to see more collaborations, hosting groups and guests as the night races return.”
The hotel group has been in discussions with partners to prepare for the return of the game, with marketing promotions and membership rates on its website.
“As the date draws closer, we will be developing packages to cater to the important returning fans and guests who are eager to watch the event live from our hotels,” Ms Tan said.
Influence goes beyond tourism
With the renewed contract keeping Singapore on the F1 Grand Prix calendar until 2028, the event will create “dynamism” for the tourism industry, which has been hit hard by the pandemic, said Dr Michael Chiam, tourism analyst and associate dean of Ngee Ann Polytechnic College. Business and Accounting.
Mr Ben Cassim, Diploma Manager in Hospitality and Tourism Management at Temasek Polytechnic, added that while the economic benefits these will bring to the Singapore economy and the hospitality industry are “initially small”, the “fundamental positive impact” will remain.
Among the benefits, he said, were the influx of tourism revenue and demand for hotel rooms during races, especially for hotels near the track.
But the knock-on effects of the F1 Grand Prix will also affect other sectors beyond tourism.
Dr Chiam and Mr Cassim noted that the event will generate business for local businesses and job opportunities for locals, ranging from project-based contracts to part-time jobs.
They stressed that the F1 race will also benefit the catering, attractions, retail and transport industries.
“Other potential beneficiaries include… the healthcare (sector). More importantly, the event will provide business networking opportunities for various industries and sectors operating in Singapore,” Mr Kasim said.
On the other hand, Mr James Walton, head of Deloitte’s Southeast Asia sports practice group, noted that the length of the contract renewal “brings some interesting new partners” outside the industry that has traditionally benefited from the event.
“The seven-year duration is partly driven by a desire to turn the event into a more sustainable and a sandbox for innovation,” he said.
“With a three- or five-year contract, companies may be reluctant to invest in developing new technologies. But with a seven-year runway, we will see companies work with organizers and governments to come up with more efficient lighting solutions, bio-friendly Degradable and recyclable trackside waste options, and alternatives to single-use plastics.”
Mr Walton noted that there was a “multiplier effect” in the local economy, as “usually 90% of racial organisations are subcontracted to Singaporean companies and around 30,000 people gain short-term employment before, during and after events”.
However, he said the economic impact in 2022 could not be estimated until closer to the event.
“Local attendance will also depend on track capacity due to safe distancing and off-track entertainment options,” he said.
“The best-case scenario for 2022 is for Singapore to break even. But ultimately, if the local and global response to the COVID-19 situation continues to move forward, we expect a return to more positive numbers from 2023.”
Singapore ‘open and safe’ again
Mr Walton said it was undeniable at the moment that renewing the Singapore Grand Prix contract was a “huge” statement.
It indicated that Singapore was “ready to move forward post-pandemic and try to return to hosting international mass audience events”.
“In terms of what it can do in the coming months to boost tourism and restaurants, and in terms of cementing our position as one of only two Asian F1 Grand Prixes in the coming year, maybe as the calendar fills up. full, longer,” he added.
Mr Cassim added that the flagship event was also a “affirmation” of the importance of the events industry to Singapore’s economic growth, especially given the catastrophic impact of COVID-19 on the industry.
“Given the seven-year extension, this does give Singaporeans a certain amount of hope living in uncertain times. Hope is one of the main drivers of society moving forward, so the impact here cannot be underestimated. “
But Mr Walton said there was a lot more to come.
“What will concerts and off-track events look like in a safe-distancing future? Likewise, how will safe-distancing in seating areas such as pit lanes be handled? Given the new NS Plaza construction, what route will the track take? We expect to bring How many tourists will come? What will the vaccinated travel regime look like? Given all of the above, how many viewers can actually attend in the next one to two years?
While many factors need to be addressed over the next eight months, Mr Walton said the contract renewal was a “very positive step” and provided a platform for work.
Ultimately, we need flagship events to encourage people to travel, he added.
“Sports fans have been raving about live events in Asia, and recent months have seen the return of stadiums and tracks in the US and Europe.
“But aside from those F1 ‘gas stations’, (F1 races) can also serve as an appeal to tourists from all over the world – Singapore is open and safe – as the world opens up again.”
