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Source:
www.mti.gov.sg |
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F1 LEVY BEGINNING IN 2008 ALLOWS HOTELS TO KEEP
SIGNIFICANT UPSIDE |
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Following consultation with the Singapore
Hotel Association (SHA), the Ministry of Trade and Industry (MTI) has
decided on the following rates for the Formula One (F1) levy on hotel
room revenues: |
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a. 30% of the total revenues from rooms and
room packages for trackside hotels; and |
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b. 20% of the total revenues from rooms and
room packages for all other tourist hotels[1]. |
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The F1 levy will be effective for a period
of five nights. For the first F1 race to be held in Singapore on 28
September 2008, the five-night period will be from Wednesday (24
September) to Sunday (28 September). |
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Based on the current circuit design, the
trackside hotels for 2008 are: |
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a. Swissotel The Stamford, Singapore |
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b. Raffles The Plaza, Singapore |
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c. The Pan Pacific Hotel Singapore |
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d. The Fullerton Hotel |
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e. The Ritz-Carlton, Millennia
Singapore |
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f. The Oriental Singapore |
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g. Marina Mandarin |
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h. Raffles Hotel |
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i. Conrad Centennial Singapore |
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j. Carlton Hotel |
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k. Peninsula-Excelsior Hotel |
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The list of trackside hotels will be
revised, if necessary, when the circuit design is finalised with
FIA approval. |
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In setting the F1 levy rates, MTI is
mindful that hotels should still be able to keep a significant
share of the upside. |
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However, as the F1 race in Singapore
will be held on a street circuit, some hotels are likely to
benefit more from the event than others due to their proximity to
the circuit or because their rooms have a good view of the track. |
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As such, these trackside hotels should
contribute more towards the organisation of the race. |
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In May this year, Minister of State
for Trade and Industry, Mr S. Iswaran, had announced that hotels
would be making such a contribution through a levy to defray some
of the cost of staging the F1 race in Singapore. |
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It is common for hotels in F1 host
cities to be near full occupancy and to raise their room prices by
up to two to three times during the race period because of the
high demand. |
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Similarly, hotels in Singapore are
expected to be key beneficiaries from Singapore¨s hosting of the
race. |
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MINISTRY OF TRADE AND INDUSTRY |
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13 AUGUST 2007 |
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[1] Tourist hotels include
all hotels previously gazetted for purposes of collecting cess.
New hotels deemed to be tourist hotels will also be required to
make a contribution via the F1 levy. |
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Source:
www.mti.gov.sg Media Release
13 Aug 2007 |
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Related Article: |
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-
Inaugural F1 Singapore Grand Prix to be held on 28 Sep 2008 |
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 |
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FrontPage Edition: Mon 13 August 2007
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