Is F1 worth it? Updated with 2011 estimate of additional tourism revenue

In Economy, Tourism on 25/09/2011 at 9:48 am
Year Cost (SGD M) Additional TourismRevenue(SGD M) Profit/ Loss(SGD M) Margin over Costs (%)
2008 150 168 18 12
2009 150 93 -57 -38
2010 150 160 10 6.67
2011 150 100 (Estimate) -50 – 33.33

Totals                      600                     521                      -79                             -52.67

(Click the headline to see full table if you are reading from the Home page.)

Doesn’t look gd does it? Looks bad if you ask me. Revenue (estimated albeit) drastically down this year.

[Update on 26 September 2011 7.15am: ST headline “Stunning S’pore race a big winner” and reporting that “race has retained its lustre and won over new fans”, is at variance with the estimated drop in revenue (see table) that SunT reported yesterday.]

Note: As much as 60% of the S$150m a year is being invested by the Singapore government through the Singapore Tourism Board (STB) in a bid to attract more visitors here,

Any wonder why “intangible rewards” matter. 

But shouldn’t intagible costs be taken into consideration, which makes things worse. Danny the SDP Bear’s pals may not be wrong.

(Cost and revenue numbers taken from BBC link above, except for 2011 revenue, taken from ST. Note ST quotes a revenue figure of S$98m for 2009.)

  1. Don’t worry. Singapore is rich and has tons of money to burn. We are afterall in the Golden Age. Next year PAP will announce construction of 2 nuclear power plants. This will jack up GDP and provide full employment during the next global recession. Build a couple more nuclear stations and Singapore will become net exporter of energy instead of net importer. We will become the new age Saudi Arabia of the East, in addition to the current Monaco of the East.

  2. […] F1 Night Race – Thoughts of a Cynical Investor: Is F1 worth it? Updated with 2011 estimate of additional tourism revenue – Sporting Roar: Singapore GP 2011 – Anonymous_X: F1 Night Race 2011 – Photos […]

  3. However, the figures are for tourism in general and not F1 tourism specifically. Without F1, tourism returns might be even worse? Or the other way around, with F1, bottom line worsen.

  4. […] The government is footing 60% of the bill supposedly and we want to know whether it is money well spent so far in terms of return of investments, granted that the years since 2009 has been slightly unstable as far as the global economy is concerned and pulling in big global money now is an uphill task. While we can do our own sums, Thoughts of a Cynical Investor has already done the maths on tourism (albeit not specifically F1 tourism) and the returns do not look promising. […]

  5. I was caught in a 1-hour jam this morning trying to get into work. Assuming this happened last week as well (I took MRT so am not sure), go work out the productivitiy lost for everyone who came in late for work for the past 5 days, and the people who are able to drive (or at least take a cab) are not your usual $2K/month wage earners.

    I honestly question the jams we endure just so that 20 guys can drive around at 300km/h. Put them on the CTE at 7pm from Orchard and have them race to Punggol, I dare say our Singapore drivers will come out ahead of these so-called race drivers.

  6. On a positive note, at least the government is actively monitoring this ‘high risk’ investment. If it’s not making any, or much, money; cut the loses and move on. It’s an honest mistake.

    On the other hand, has work been sufficiently done to ensure this is a win-win situation, and not get into it and see where we go from there? Where did honesty ends and sloth & incompetency begin?

  7. Looks like the only one laughing his way to the bank is hotelier KBS – he was the one who persuaded our gahmen to host the F1 races here…

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