Sg will host F1 in 2008

The wait is finally over. The decision is out. Singapore has won the right to host the F1 GP starting next year. Read the following press release.

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It's on! Formula One race is coming to Singapore in 2008 By Julian Lim - May 11, 2007 AsiaOne
Singapore will host a Formula One race in 2008, and it may be a night race, Minister of State for Trade and Industry, Mr S. Iswaran told press conference today.
He said Singapore has won the right to host the race for five years, with option to extend for another five years, and it expects annual tourism receipts from the event of about S$100 million.
The rights were secured by Singapore property tycoon Ong Beng Seng, who has been leading the charge to bring the F1 race here.
The first race will take place in September or early October next year in a street circuit around Marina Centre, said the beaming minister, and it could "potentially" be the world's first night race, but organisers are still looking at safety issues.
"A night race will be unique, different and allow the Singapore event to reach out to television audiences in Asia, Europe and the US. Safety is of paramount concern to all of us," said Mr Iswaran. Therefore, we will proceed with a night race only if the safety and operational requirements of all parties including the FIA, FOA and Formula 1 teams are fully met. If not, we will revert to a day race."
He said the government would cover 60 per cent of the estimated annual cost of up to S$150 million and that an extra hotel tax would be charged during the race week to help meet the costs.
Singapore has been pushing hard for the race. Last month Australian Formula One driver Mark Webber tested the Singapore's 5.2-km street circuit in a Porsche 911 GT3.
FI Supremo Bernie Ecclestone expressed his enthusiasm at the prospect of a night race in Singapore.
"Singapore is going to be the leader with the street race at night. Everyone's excited about the idea," he said via teleconference from Spain.
Singapore's announcement comes a day after Ecclestone confirmed that Valencia, Spain, would also stage a F1 race in 2008 on a street circuit. The eastern Spanish city will hold F1 races for seven years beginning next year.
Ecclestone has previously been reported as saying he would like to include several night races on the F1 circuit -- especially in Asia -- in a bid to make their broadcast times more accessible to European and North American television viewers.
The proposal has so far met with mixed responses from teams and drivers, with safety concerns the main issue.
Speaking at the packed media briefing, Mr Iswaran noted that over the past few months, there has been a palpable buzz at home and internationally at the prospect of Singapore hosting an F1 race.
"Singaporeans from all walks of life are excited and we share their excitement. By holding the race on a street circuit in Marina Centre, we will bring the buzz and excitement into the heart of the city, so that everyone can join in the festivities. And there will be ample opportunity for broad-based participation in the event - whether as a guest, a spectator, a volunteer, or simply to participate in the events that will be held around the race," he said.
On the economic benefits and positive spill-overs from F1, the minister said it would add vibrancy to Singapore as a global city and business centre, that is abuzz with high quality entertainment and events.
"A world class event like the F1 race, with more than 500 million viewers worldwide, will take us closer to this objective. F1 will give a strong boost to our tourism sector. It is expected to generate incremental tourism receipts of about S$100 million a year," Mr Iswaran told a packed media conference.
"Hotels, night spots, restaurants, retailers, airlines, taxi drivers, and many other groups will benefit. The hive of activity surrounding the race will create opportunities for individuals and companies alike.
"There will be broader economic spin-offs as well. Our growing private wealth management industry, strong contingent of MNCs and local companies, and diverse retail and entertainment establishments can all take advantage of the event to derive benefits for their clients and their business."
On the government's role, Mr Iswaran said the staging the F1 is a major financial undertaking for any company, costing as much as $150 million a year.
"Revenue from ticket sales, merchandising and sponsorship will defray some of the costs. However, given the larger economic benefits from an F1 race that do not accrue to the Race Promoter, there is a case for commensurate support from public funds," he said, adding that STB will, therefore, co-fund about 60 per cent of the cost of the event from the Tourism Development Fund.
Calling on the hotel sector to pitch in, he said: "The Government cannot do this alone. While the tourism-related businesses and the economy, in general, will benefit from the F1 Grand Prix, the hotels, in particular, will be significant beneficiaries. Hotels in Monaco and Melbourne, for instance, are near full occupancy and are known to raise their room rates by up to 2 to 3 times, with stipulated minimum stays of 3 to 4 nights, during the race period.
"We expect hotels in Singapore to benefit similarly and we need our hotels to contribute their fair share.
"The Government, therefore, intends to impose a special F1 cess on hotel room revenues to defray some of the cost of staging the F1 race in Singapore. The F1 cess will be for a limited period of about 7 days around the race.
"It will be tiered so that track-side hotels which will benefit from the highest increases in room rates will pay a higher rate, and those further away will pay a lower rate. We are looking at a cess of no more than 30 percent to ensure that hoteliers still keep a significant share of the upside whilst making a meaningful contribution. The F1 cess is expected to raise an average of about S$15 to S$20 million per year. "
The government is in talks with members of the hotel industry, including members of the Singapore Hotel Association (SHA) EXCO, and the feedback has been positive, he said.
The Minister also warned of disruption to traffic, as some roads will have to be closed in the period leading up to the race, during the race days, as well as after the race. There may also be some access restrictions around the track during the race period.
"We will need the understanding and cooperation of all Singaporeans and stakeholders affected by such inconveniences. I would like to assure everyone that our Government agencies will work closely with all stakeholders concerned to minimise any disruptions and inconveniences. We will set up an inter-agency committee for this purpose to work in partnership with the Race Promoter to ensure that Singapore stages a world-class F1 race whilst doing our best to mitigate the inconveniences. "

Singapore Tourism Board' chief executive and deputy chairman Lim Neo Chian, who was also at the media briefing, said he expects the Singapore F1 race to attract 80,000 spectators, many of them foreigners and add boost the economy by filling hotel rooms, increase retail spending and other spinoffs.
He said the F1 is the third most watched sports in the world, after the Olympics and World Cup.
Mr Ong, who was also at the press conference, said that it has taken 12 "difficult months" to reach the decision to host the F1 race and the next 16 months will be challenges. He expects there will be differences but says the business community will work closely with the government agencies to make the event a success.
Mr Ong, with three others, has formed a company, Singapore GP Pte Ltd, with a capital of 20 million shares of $1 each. Under one of the pre-requisite fields, the company's activity has been described as 'event promotion'.
Ong is the controlling shareholder of mainboard-listed Hotel Properties Ltd, which owns Hard Rock Cafe. He is also the majority shareholder of Komoco. Ong is the controlling shareholder of mainboard-listed Hotel Properties Ltd, which owns Hard Rock Cafe. He is also the majority shareholder of Komoco.
The chequered flag is finally is sight, signally an end to the months of behind-the-scenes wrangling and on-and-off media speculation.