It is good news that F1 has been extended by another five years. After so much money has been spent during the first 5 years, it would be a waste if the race is stopped. http://www.todayonline.com/Sports/EDC120922-0000074/Singapore-Grand-Prix-contract-extended-until-2017
The estimated increase in tourist spending is $150 million a year. The cost of organizing the race is stated to be $150 million, of which the government pays 60%. I have checked and this is the cost for each year's race. So, we are spending $150 million to get $150 million in tourist revenue.
The estimated increase in tourist spending is $150 million a year. The cost of organizing the race is stated to be $150 million, of which the government pays 60%. I have checked and this is the cost for each year's race. So, we are spending $150 million to get $150 million in tourist revenue.
3 comments:
It does nothing for you or me.
Whatever value it has, is allowing the Cabinet to proclaim to the rest of the world that they could negotiate to have the F1 held here.
It benefits the retailers at Orchard road. Their shop assistants are mostly non singaporeans.
It benefits the big hotel names whose workers are mostly non singaporeans
Bus routes are diverted and this affects singaporeans
Roads are closed and this affects singaporeans.
You & I get zero.
The $150 million tourist spending is pull from the air number. Some of the "increased spending" is actually spending that would have happened anyway (people who were originally planning to come another time, but chose to come during this weekend). And some will choose not to come because of the increased tax (applied on all hotel guests, not just those attending F1).
In any case, remember how Singapore works. Everything is imported, so of that $150 million, a large proportion is sent overseas immediately (champagne, gourmet food for VIP receptions, souvenirs made in China, etc.). Actual profit out of the $150 million is probably around $50 million at best (33% margin). Not everyone who worked extra hours during that period would actually get paid overtime, so the direct impact on wages is probably not large.
Bottom line - Give $150 million to some ang moh, earn back $30 million.
There are a few individuals both local & overseas who will be celebrating this 5 more Good Years!
Note that what the SIN Govt "subside " will come from you and me, including that late 80 year old dishwasher at ABC Brickswork.
Sure, this deal may help to protect some jobs and retailers for some time.
Including those TP who have to be extra busy during the seasons as driving at high speed is just too infectious. Hmm, can also include healthcare and motor workshop /insurance personnel, no?
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