Steering ahead with F1

August 9, 2008
Steering ahead with F1
Apart from bringing in tourist dollars, F1's first night race is set
to sharpen Singapore's competitive edge and create new businesses and
industries, reports SAMUEL EE

THE arrival of Formula One in September will have obvious tourism
benefits. But F1's first night race is expected to create waves for
more than just hotels and F&B outlets. Some people believe the
inaugural Singapore Grand Prix will not only boost visitor arrivals
and the wealth management sector, but also sharpen the island's
competitive edge and create new businesses and industries.

Amid the softening global economy and strengthening inflation, the F1
race in the last weekend of September will arguably help Singapore
stay ahead of the regional competition by giving it a buzz like no
other international event has. As the world's first night race and
Asia's first street race, the event will be unique in many ways, says
the Singapore Tourism Board (STB).

According to Lawrence Leong, STB's director of F1 Projects: 'This is
a major international leisure event with strong brand value, and will
profile Singapore as a vibrant global city abuzz with high-quality
entertainment and events.'

The race has already caught the attention of many people outside
Singapore. Mr Leong says more than 92 per cent of the tickets have
been sold, over 100,000 spectators are expected - and 40 per cent of
them will be from overseas.

'This event will put Singapore firmly in the global spotlight, with
the international broadcast ensuring the island gains exposure to
millions of viewers worldwide,' he says.

Tourism and the economy will gain tangible benefits. 'Incremental
tourism receipts of about $100 million are expected to be generated
annually from the race, with hotels, nightspots, restaurants,
retailers, airlines, taxi drivers, and many other groups standing to
benefit from the many team receptions, after-race parties and race-
related events that will be hosted,' says Mr Leong.

Other sectors also stand to gain, he adds. 'Our 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.'

Anand Vathiyar, managing director of UP Media, Singapore's sole
motorsports-specific consultancy, agrees, saying that apart from
bringing in obvious tourist dollars for retail, accommodation,
entertainment and F&B, F1 will give an enormous boost to Singapore's
finance industry.

'It will attract all sorts of funds, and the money from private
banking clients sold on Singapore during the race weekend could drive
everything from property prices to art auctions,' claims Mr Anand,
who advises clients on strategic and creative involvement with
motorsports.

But other than the amount of money generated by business deals struck
as a result of F1, the arrival of the event itself should create spin-
off businesses followed by spin-off industries.

'One area is design and technology,' says Mr Anand. 'Someone may
create a night race for video gamers, who will have to deal with wet
weather conditions and glaring lights - much like the F1 drivers may
face in September. Tomorrow, someone else may create the perfect
visual aid that can be used in night racing. The possibilities are
endless.'

Mr Anand also believes F1 will have a longer-term effect on the
overall economy by raising service standards and making businesses
more competitive and 'more responsive to free market dynamics'.

For example, event companies will have to think of how to host a
better party with each passing F1 race, he says. And hotels will have
to offer better value if they want to charge higher room rates the
following year.

'Service standards will have to go up across the board, given F1 is
for the jet-set crowd,' says Mr Anand. 'And we haven't even got to
the part where the race organisers will need to sell the race as
a 'must watch' event past the first year. So overall, value
propositions will have to get better because consumers vote with
their dollars in a free market.'

It helps that Singapore has had a headstart with a unique product -
the first night race - that leaves other countries like Australia and
Malaysia scrambling for later race starts. The STB's Mr Leong says
the idea of a night race in Singapore came about when the board was
talking to Formula One Management (FOM) to secure the right to host
the race.

'With a night race, not only will F1 fans worldwide enjoy a different
and more exciting spectacle, but Singapore will be able to gain
maximum exposure to the global and European market via the race
broadcast,' he says. The start time of the race - 8pm local time -
coincides with prime television airtime on Sunday afternoon in Europe.

'This timing will attract many more viewers than if the race had been
held in the afternoon like other races,' says Mr Leong. 'That would
have resulted in the Singapore race being telecast in the early hours
of the morning in Europe.'

Equally important, he says, is that a night race in the heart of
downtown will 'better showcase Singapore's vibrancy, city skyline and
historic buildings surrounding the circuit'.

But the inaugural night race won't only show off Singapore's best
side. It is a big boost for F1 and its organisers too, because as
glamorous as the sport is perceived to be, it has not introduced any
innovations for some time, says UP Media's Mr Anand.

'Night races have worked for other series in other parts of the
world, so it has been long overdue on the F1 calendar,' he says. 'I'm
just glad that Singapore gets to be a footnote in history by hosting
the very first F1 night race.'

So it looks like the Singapore GP is going to be a win-win event for
everyone involved.