By most accounts, the inaugural Singapore Formula One Grand Prix on September 28, 2008 was a roaring success, and race promoter Singapore GP has since won three major international awards. Trackside hotels benefited from increased rates, hosted functions and on-site catering, even if retail and F&B outlets within the race circuit did not.
Missed opportunities
Although the night race was the highlight, various side events could have been attractions too, had more companies and DMCs seen their potential. The Singapore GP Season, a fortnight of lifestyle events, had ample activities that could have made up an interesting programme – even outside the race period of September 26-28.
Jose Coelho, operations manager of Sonangol Asia, says: “I enjoyed the excellent VIP service at Singapore Flyer’s premium suite. The champagne flight was superb and unique.” Yet for all the euphoria and accolades (CEI Asia, November 2008, p49-57), some people are questioning the anticipated economic multiplier effect, especially from corporate incentives and hospitality.
Sceptics query the opportunity cost – how much business was lost or foregone because leisure and business visitors stayed away due to exorbitant hotel rates.
Visitor arrivals
Several hotels reduced prices in mid-September, but by then it was either too late to mount a programme or companies had already decided on other destinations, event planners and companies told CEI Asia. Although visitor arrivals surged in the last week of September 2008 compared to the same time in 2007, overall numbers for the month declined four per cent.
Hotel room revenue grew 26.3 per cent but average occupancy rate decreased by 11.6 per cent from a year earlier.
In September 2007, Patrick Fiat, general manager of Royal Plaza on Scotts, had commented in a Singapore Tourism Board (STB) publication: “All the corporate market will avoid Singapore during that time and we have to manage inventory well.”
STB estimated some 13,000 senior executives were hosted by banks and multinational companies, and more than 40 per cent of the 100,000 spectators were from overseas.
Excellent platform
Ken Low, assistant chief executive (Brand & Communications) STB, says: “The race was an excellent platform for local businesses to leverage from, and many took the opportunity to stage their own functions or parties, or offer F1- themed products to consumers.” However, without official post-event data from Singapore GP and STB, one may ask what tangible and intangible benefits corporate sponsors and hosts gained, and why more companies did not leverage the mega-event.
Supporters cite goodwill, relationship building and rewarding trade partners as key reasons for using prestigious events such as the GP. Many non-users baulk at the cost. Hosts such as liquor distributor Pernod Ricard, which booked the Paddock Club and Sky Suites at the Pit grandstand, received compliments on the classy ambiance of the former and on the good, open-air views of the latter.
A Singapore GP spokesman says: “Regardless of the state of the local and global economy, we have sold close to 25 per cent of the corporate suites on offer for 2009. We also anticipate demand for tickets will remain strong.”
Time will tell whether more corporates take up the ante, or if global sports travel companies will include the Singapore GP in the list of sporting events and games that they market internationally.