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SINGAPORE: The levy to be imposed on hotel room revenues during the Formula One race in Singapore next year has been announced.
After consulting the Singapore Hotel Association, the Trade and Industry Ministry (MTI) has decided a levy of 30 per cent for hotels on the trackside, and 20 per cent for others.
Since the 11 hotels that line the track will benefit more from the race, a higher levy will be imposed.
One of the trackside hotels – Pan Pacific feels the levy befits the scale of the event.
"Our rates are not finalised yet because there are plenty of details that have not been finalised by the event (organisers)... For example, whether it's a day or night race will factor into the demand," said Cheryl Ng, PR manager of Pan Pacific Singapore.
"I think definitely hotels will benefit from the F1. It's not just a short-term benefit, but long term as well because this event will boost Singapore's... international standing and it will also (make) us more visible in terms of being a venue for future events to be held," she continued.
Pan Pacific Hotel has already received enquiries on bookings for September next year, and it expects full occupancy during the event.
Meanwhile, the hotel is trying to determine how to price its rooms.
"At the moment, we are conducting a global pricing strategy research with other significant F1 cities regarding how they are pricing the hotel rooms," said Ms Ng.
According to the MTI, the F1 levy will be effective for a period of five nights - from September 24 to 28.
The amount collected through the levy will be used to defray the estimated cost of S$150 million to stage the race, of which 60 per cent is funded by the Singapore Tourism Board.
MTI added that the projected annual tourist receipts should amount to about S$100 million, which is below the total costs of organising the F1. - AFP/ac
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