Eleven "trackside" hotels will have to pay a Formula One (F1) levy of as much as 30 per cent during the Formula One race, slated to take place in Singapore on Sept 28 next year, the Ministry of Trade and Industry (MTI) announced today.

The levy, to be imposed for hotel stays from Sept 24 to 28, 2008, when the first F1 race is to be held here, will be 30 per cent of the total revenues from rooms and room packages for trackside hotels, and 20 per cent of the total revenues from rooms and room packages for all other tourist hotels.

The government announced in May it will stage a Formula One race for at least five years from 2008, as part of its effort to increase the number of tourists to 17 million annually by 2015 and triple their spending to S$30 billion ($20 billion). The government will provide funds for about 60 per cent of the event's costs, estimated at S$150 million a year, it said.

In a statement today, MTI said the hotel levy rates were set following consultation with the Singapore Hotel Association (SHA).

"In setting the F1 levy rates, MTI is mindful that hotels should still be able to keep a significant share of the upside. 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," said MTI..

?As such, these trackside hotels should contribute more towards the organisation of the race."

Minister of State for Trade and Industry, Mr S. Iswaran, said in May that hotels would be making such a contribution through a levy to defray some of the cost of staging the F1 race in Singapore.

MTI said 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. Similarly, hotels in Singapore are expected to be key beneficiaries from Singapore?s hosting of the race.

The race is expected to draw 80,000 spectators each year and generate S$100 million (US$66 million) in tourism spending, the ministry said at the time.
Based on the current circuit design, the trackside hotels for 2008 are:
Swissotel The Stamford, Singapore
Raffles The Plaza, Singapore
The Pan Pacific Hotel Singapore
The Fullerton Hotel
The Ritz-Carlton, Millennia Singapore
The Oriental Singapore
Marina Mandarin
Raffles Hotel
Conrad Centennial Singapore
Carlton Hotel
Peninsula-Excelsior Hotel
MTI said the list of trackside hotels will be revised, if necessary, when the circuit design is finalised with FIA approval.

The list of trackside hotels will be revised, if necessary, when the circuit design is finalised with FIA approval, said MTI.