Singapore GP revs the city’s economic engine

FERRARI driver Fernando Alonso of Spain pulls into the pit during the Singapore Formula One Grand Prix. AP

Singapore successfully hosted Round 13 of the 2013 Formula One race calendar recently. The event, from the transportation of the participants and spectators to the erection of the massive Grand Prix park around Marina Bay and the race itself, was run like clockwork.

With the efficiency widely admired about the city-state, one might say that Singapore is the Switzerland of the East (the high number of high-end watch enthusiasts from that European country is another reason for the accolade). It may seem too easy these days, but not too long ago, the Singapore Grand Prix (GP) had novel features never before seen in Formula One.

First and foremost, the Singapore GP was the first time that an F1 race was held at night. Second, the night race was built around the downtown area of one of the busiest cities in the world. Technical and economic hurdles were overcome, and the great experiment turned out to be a great success. The year 2013 marks the start of the second “five-year mission,” as another five-year contract to run the race was awarded this year.

Singapore GP organizers were quoted as saying that over 262,000 visitors went to the Marina Bay circuit race this year, making for a sellout weekend. Over 87,000 general walkabout, grandstand and hospitality patrons attended the event, according to the figure published by the Straits Times. It marked the highest attendance figures since the inaugural 2008 race, when estimates ran at 100,000 for the race and 300,000 for the weekend.

One mark of success is that preselling has begun for the 2014 race, tentatively calendared for Sept. 19-21. Three-day tickets are on sale at “super early bird” prices, with discounts of up to 30 percent until Oct. 31, at outlets which include authorized ticket distributor Red Rock Travel.

Unique combination

Where Singapore has carved out its unique appeal among Formula One races is its unique combination of hard-core on-track action and world-class entertainment. The artists and celebrities roaming the track provided nonstop action throughout the weekend. Singapore GP director for operations and security Sarah Martin helped conceptualize the event as one, incorporating the elements of sport, theater and outdoor spectacle.

This year marked a new angle, as a night-after concert featuring Justin Bieber and Owl City was held Monday night. This followed headline acts Tom Jones, Rihanna and The Killers during the race weekend. Sir Tom Jones was seen hobnobbing at the paddock with F1’s big boss Bernie Ecclestone, footballer David Beckham and Jessica Michibata, Jenson Button’s supermodel girlfriend.

The event is beneficial to Singapore’s economy as it attracts a large number of tourists. Flight bookings for the race weekend increased by 12.6 percent, according to the Straits Times. Tourism experts see more and more events being timed to take advantage of the race. The newspaper cited the Russia-Singapore Business Forum, Singapore Summit, Deutsche Bank Women in Asian Business Conference and the World Engineers Summit. This is in addition to the corporate initiatives of companies like Shell and Pirelli to bring their dealers and friends to the spectacle of Formula One. Motioncars even spotted a popular Filipino religious leader at the airport, but couldn’t confirm if he was there for the race weekend.

Local newspapers cited earlier arrivals than before, with 29 percent more arriving three days before the first qualifying session. The study revealed Australians as the biggest foreign arrivals at 17 percent, followed by visitors from Britain, Indonesia and the Philippines. The race coincided with public holidays in Hong Kong and South Korea, leading to increased attendance from those countries. Hong Kong residents added 37 percent, while Koreans shot up by 241 percent.

Singapore’s Ministry of Trade and Industry estimates that each race weekend attracts S$150 million in tourism revenue, appropriate as the race costs approximately that much to mount each year. Singapore analysts reckon that the economic benefits extend beyond the race weekend. The  “sticky” impact has tourists experience Singapore as a worthwhile place for a repeat visit.

A few locals have opposed the race on the grounds that the race is a polluting event, with the huge energy requirements to mount the race including the innovative lighting equipment. However, the global motoring organization and F1’s sanctioning body, the Fédération Internationale de l’Automobile (FIA),  has reportedly seen to it that the F1 championship has been carbon neutral since 1997. The FIA offsets the greenhouse gas emissions of F1 and WRC through carbon credits that support a fund. The fund then helps in planting trees and protecting threatened forests. The FIA’s purchase of carbon credits offsets not only the emissions of the competing cars but also the worldwide travel of the sport’s personnel.

Bernie Ecclestone was enthusiastic about Formula One at Singapore, with the financial hub as a possible venue for the F1 group’s initial public offering.