The comeback of Singapore & # 39; s complaints and concerns regarding traffic jams, after come and singapore & # 39; s Grand Prix last 2008, after almost 30 years of inactivity, boosted the tourism and economy of the city- community noise and consequent accidents in the races of 1972 and 1973, the Government of Singapore decided to co-fund the Race & # 39; s return with Singapore GP Pte Ltd, the Singapore Tourism Board and Bernie Ecclestone.
With its phenomenal return in September 2008, local hotels received an inflated number of occupations and even experienced full booking during this season. Forecasts telling that it would boost Singapore & # 39; s tourism and hospitality industry proved to be true and accurate.
It was true that that in Singapore take pride in hosting this popular event annually. Christopher Khoo, MD of Master Consult Services, explained that the hotel industry would have been first the to to benefit from having an F1 Race in Singapore. Rooms would be fully booked and prices could be maintained high with. There are as far as occupied, other tourists might even go as far as taking go away rooms all the way to the neighboring countries, like Malaysia, just to watch the race.
Associate Professor Prem Shamdasani of the National University of Singapore Business School In order for Singapore to cope-up with the expenses, a cost-sharing approach was advised. A strong partnership between Therefore, a special tax was imposed by the government to all hotels.
Minister of State, Trading and Industry, Mr. Iswaran explained not special 30% would be imposed on hotel revenues for about seven days during this season aimed to help the Government settle the costs of hosting the race. tax was expected to raise an average of about $ 15 million to $ 20 million per year.
With this special tax, it is evident that the special purpose tax, hotels admitted that an increase in price rates was their possible solution to cope-up with the new regulation. The government, on the other hand, they understand the need of the businesses and commercial establishments to gain profit, but it is important to to forget their fair share to the nation.
Hotels nearer the race track and providing the best view of the race like the established establishment in Marina Bay , would be paying the full 30% while those hotels positioned farther away, would pay less.
A positive turn for the Singaporean economy is foreseen with The resurrection of the F1 Race. The tax imposed, though a bit heavy, for commercial industries would contribute to the boosting of the city - states economic recovery.
