Business winners and losers of Singapore's Fl race

Event spells bonanza for hotels and creates jobs but some shops lament loss of revenue

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It's just days before the roar of the engines will be heard in Singapore.

As the city transforms its streets into the famed Marina Bay Street Circuit ahead of this weekend's Formula One Grand Prix, a familiar buzz of anticipation is building.

This is the 16th edition of the annual night race, and it has grown to become more than just a sporting event. Other side activities such as concerts and showcases of local cuisine have turned the race into a beacon for international tourism.

Who are the winners and losers of this mega annual event? The Business Times takes a closer look.

WINNERS

HOSPITALITY SURGE

Hotels across the island have recorded a surge in demand ahead of the weekend.

As at mid-September, islandwide hotel occupancies on the books ahead of the F1 weekend hit more than 70 per cent, data from hotel industry research firm STR indicated.

Major players are seeing occupancy levels that eclipse a typical weekend, with Pan Pacific Hotels Group (PPHG) forecasting that its trackside properties will reach between 90 and 100 per cent occupancy.

And despite being the 16th edition of the race, it seems to be growing in popularity, as PPHG, Fairmont Singapore, Swissotel The Stamford, and Hilton hotels report that their bookings are tracking significantly higher than a typical non-race weekend and ahead of this time in 2024.

In line with this surge in demand, the hotels have seen a healthy increase in both their average daily rates (ADR) and revenue per available room (RevPAR).

Based on STR records of past year performances in 2023 and 2024 for the month of September, Fl generally stimulates an uptick in RevPAR by around 100 per cent.

This means that on an average day of the Fl week, hotels make around double the money per room compared with an average day in the rest of the month.