Trumpets pls: Formula E circus coming to town

The constructive, nation-building media  that S’pore will stage a Formula E race here next yr.

Nice to know someone high up reads me. In 2013, I wrote the following:

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S’pore did the first Kiddie Games and overspent for no apparent gain.

Why not try Formula E?

There will be 10 teams and 20 drivers racing on roads – not racetracks – in 10 cities, with a preliminary line-up that includes Los Angeles, Berlin, Rio de Janeiro, London, Buenos Aires and Beijing …

Jean Todt, president of the FIA, called Formula E “a vision of the future”. And this comes from a man who built his reputation in rally car racing and then as head of F1’s most famous competitor, Ferrari.

He told the BBC: “F1 is the pinnacle of motor racing, but there is plenty of space for other championships, from endurance racing to touring car, to karting – and definitely Formula E.”

He rejected claims that Formula E is simply a promotional exercise to improve motorsport’s image.

http://www.bbc.co.uk/news/business-24053853

OK, we got to divert traffic etc, one more time a yr. But this is new and innovative.

Formula E the new F1?/ Why can’t MSM report F1 event like this?

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Related post explaining why there are gains to be made from staging events like F1 and Formula E: LKY answered Ngiam Tong Dow’s F1 question

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Coming to Bangkok, not S’pore

The Mall Group, Thailand’s leading retail and entertainment complex developer, and AEG, the world’s leading sports and live entertainment company, recently jointly announced a strategic partnership that is destined to make Thai retail history and will redefine the retail entertainment experience in Bangkok with a 10 billion baht plus investment in two world-class arenas – “EM Live and BANGKOK ARENA” – that will anchor two new entertainment districts.

The Mall Group and AEG say they are joining forces with the

shared vision of revolutionizing the country’s business, retail and entertainment centres, placing Bangkok and Thailand at the forefront of world retail innovation, entertainment events, Meetings, Incentives, Conferences and Exhibitions (MICE) and new lifestyle experiences.

I tot that AEG would prefer S’pore given we got the casinos and F1. And the otters.

 

S’pore sabos M’sia

This yr’s Malaysian Grand Prix will be the country’s last after 19 years on the Formula 1 calendar.

Malaysia had struggled in recent years to attract a significant crowd, its appeal damaged by the more glamorous night-time event on a street track in Singapore, which made its debut in 2008.

It was confirmed in November that the race would end after the 2018 staging, but that decision has now been brought forward.

The country’s prime minister, Najib Razak, said: “The Cabinet has agreed to end the contract after considering lowering returns to the country compared to the cost of hosting the championships.”

BBC

One Tun M must really be unhappy. He made M’sia Great by bring F1 racing to the region. Now when he’s trying to make a comeback, F1 in M’sia comes to an ignominious end because of dwindling crowds and revenue because of S’pore.

VivianB’s other folly: F1

Dr Chee rightly put down the guy who sneered at the elderly poor (Pioneer Package was PM’s way of saying sorry?) by reminding everyone who was responsible for overspending on the Kiddie Games by S$300m. (Btw, we never got to find out about the truth about the food poisoning of volunteers as promised did we?)

But lest we forgot, F1 was VivuanB’s idea too.

And it’s been another folly. Worse, S’pore is still paying the costs of having F1.

Singapore pays US$65m (S$83.3m) a year to bring F1 here. Only Malaysia and Abu Dhabi pay more.(BBC report).

Monaco is the only place that doesn’t pay.

So our “iconic” race is not cheap. Remember this when you read how much money F1 brings here.

The cost for organizing each race is approximately S$150 million dollars, with the government paying about 60% of the costs. And the fee is 55.6% of the cost). The government claims that each race generates about S$150 million in tourism receipts. So sounds like breakeven to me only, without taking into account the inconvenience to commuters and the lost sales at Suntec*.

https://atans1.wordpress.com/2014/10/05/f1-only-two-other-countries-pay-higher-fees/

And

It’s not as though there is a huge savings gap. In fact it’s more expensive to stage a street race, even without taking account of the economic losses.

However, the annual running costs of a street race are greater than those of one on a permanent circuit: temporary grandstands need to be built and the roads need to be upgraded to F1’s high safety standards. The biggest single expense for the operators is staffing (c£10m), followed by rental of grandstands (c£8m) and construction of safety barriers and fencing (c£5m). 

In total, the annual operating cost of an F1 street race is in the region of £36m. Then comes the hosting fee, which is paid to the F1 rights holder. The average hosting fee came to £17m in 2011 but the sting in the tail of the contracts is that the price accelerates by as much as 10 per cent every year. Most new F1 race contracts are for ten years, so by the end of the agreement the annual fee comes to around £40m thanks to the escalator clause in the contract. That means that over the ten-year duration the bill for hosting fees totals an estimated £272m (see below) with the cost of running the races coming to £360m. That makes a total over ten years of more than £600m.

… With annual running costs that are far lower than those for a street race, the total cost of building a Grand Prix circuit and hosting an F1 race over a ten-year period comes in at around £560m. But promoters need to dig deep to fund that initial track construction… http://www.babusinesslife.com/Ideas/Features/The-cost-of-hosting-a-Formula-1-Grand-Prix.html … how much the key elements of a brand new Grand Prix circuit are likely to cost… [£164m]

So the difference is spending S$80m more over 10 yrs to “save” on the cost of building a permanent track. Of course, I ‘m assuming the cost of the circuit land is zero or nominal. But this being S’pore where giving away the land for public housing would be “raiding the reserves” (Mah Bow Tan), this is a non-starter. Anyway the usual suspects would shout “corruption” even if the govt was willing to lease land at a nominal price.

So, the end result is that the “little people” who have to commute by way of public transport, get screwed, So waz new?

https://atans1.wordpress.com/2013/09/08/cheaper-to-build-f1-track/

And in a meritocracy, he’s still a minister? Can sneer at the elderly poor, overspend, miscalculate badly benefits and still be a minister? Why liddat PM?

Btw, the people who come for F1 https://atans1.wordpress.com/2013/09/21/msians-pinoys-indons-love-f1-spore/

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*So how abt sharing the benefits with the losers?  Especially since F1 will bring S$1b “additional value-add” for economy, says Iswaran. (S’pore expects expenses to drop about 15% to 20%, according to the Ministry of Trade and Industry. The cost of the race is about $150 million, with the government co-funding 6o% of the amount, reminded S. Iswaran, “Singapore’s second trade minister, who’s responsible for developing the tourism industry”. What he didn’t say is that hotels have to pay a special levy of 30% on room rates during F1 period, if they are “track-side” hotels and 20% for the others. )

Compensate the retailers at Suntec City  and those who work in the city? Tax rebates for them? If no such sharing of the benefits, then it’s some private profits, and big state windfall (via taxes and other levies), and public inconvenience and some private losses. Readers might also like to know that it costs at least US$120m to build a dedicated F1 circuit (excluding, it seems, land costs), so by inconveniencing commuters and some retailers, the government is passing on the one-off cost of building a F1 track to some S’poreans annually. Whoever said there isn’t a free lunch? More reason to offer compensation.  

https://atans1.wordpress.com/2012/10/01/f1-sharing-the-1bn-in-value-add-with-the-losers/

MoM thinks we that stupid? Or they really that stupid

Or they juz trying their luck, throwing smoke, hoping to confuse S’poreans? And hoping smoke also protects FTs with fake degrees?

I mean if people fake their qualifications, why should they be trusted not to fake their work experience (see Zorro’s comments in parly below*? I would say even likeier because it is easier to fake work experience than to fake qualifications.  They could pay ex-supervisors or ex-employers to issue fake reports on his experiences, etc. Or they could fake reports themselves. How to verify meh?

On to something very serious: Not all unaccredited institutions are degree mills

A TRE reader points out there is a difference between an “unaccredited” institution and a degree mill, and that it’s wrong for MoM to say that they are the same: The Ministry of Manpower is now trying to pass off degree mills as “unaccredited schools” through its infographic (link). (In the extract* below, Zorro says the same thing as his staff: As for qualifications obtained from an unaccredited institution (degree mill) …)

The TRE reader goes to explain that while all degree mills are unaccredited institutions, not all unaccredited institutions are degree mills citing our very own SIM and SMU who are “unaccredited” in NZ.

SIM, SMU, which both teach undergraduate courses in Singapore, are by all means bona fide educational establishments. Their courses require rigour and a level of standard befitting a tertiary qualification. Ask any SIM or SMU graduate and they will tell you there was nothing fake about their educational experience at these institutions. They were required to submit assignments, pass exams, and complete internships if the course calls for one.

That said, both SIM and SMU are considered “unaccredited” universities in New Zealand for the purpose of immigration and/or employment in licensed sectors for example, teaching, health and law. I am sure SMU or SIM graduates will strongly disagree that it is because their course is not rigorous or of a poor standard. More importantly, their course was not fake. The “unaccredited” status just means New Zealand authority has little understanding of the rigour of these courses and their entry requirements or deems the learning outcomes are not at a level New Zealand recognises as compatible to the skills the country seeks in its immigrants and workforce. This, in no way illegitimise the qualifications from these institutions.

A qualification obtained from a degree mill, on the other hand, reeks of non-existent education experience and absent rigour. Degree mills have long been considered fraudulent schemes which are really “dollar for paper” printing machine. One need not mug through exams or sweat through assignments. There probably aren’t much course readings to do, even. There is no internship or practicum to speak of. The tuition fee you pay does not give you face-to-face support from a tutor or lecturer, not even by distance through Skype. What it does give you is that piece of paper to “qualify” you as a graduate in a certain field of study whether you have actually studied it or not.

Degree mills are not new. They have been around for many decades. Singaporeans had previously not heard much of it because the laws of our land are so strict that few would contemplate jeopardising their future by buying into such a scheme**. We have been brought up to mug, to burn the midnight oil and to put in the hard mile. The government always prided itself for having built a nation of honest, hardworking citizens with integrity.

The Ministry of Manpower is now trying to pass off degree mills as “unaccredited schools” through its infographic (link). The government may have brought Singaporeans up by the rod but it certainly is handling its adopted children with cotton gloves.

No, I will not let the authority pull wool over my eyes. Degree mills are not merely “unaccredited schools”. They are fraudulent schemes and people who use them to gain entry into our country or workforce should be recognised as such and properly chastised.

Been There Seen It

Thank God for IDA’s and now MoM’s attempts to defend FTs with fake degrees. They are helping to offset the “feel good” factors of Harry’s funeral and the PAP administration’s spending of our money on ourselves that were working in the PAP’s favour in making the ground sweet for GE.

Here’s two constructive suggestions to make us feel good: free “S’pore” Lego kits for all voters, not just teachers, and throw Amos into a cell without internet access and throw away the key.

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*“As for qualifications obtained from an unaccredited institution (degree mill) that does not ensure that its students are properly qualified, MOM conducts 100% checks and disregards these qualifications completely,” Mr Lim assured.

“They will have to meet more stringent criteria in terms of experience and salary in order to qualify for the EP or S Pass.”

In other words, foreign applicants with qualifications from degree mills can still qualify for a work pass based only on their experience and salary.”

**I remember a few years back when a degree mill was exposed, ST reported S’poreans who were taken in, resigning from their jobs, before their private sector employers found out and asked them to leave. Some of them had proper degrees and took the “fake” course to better themselves.

Now S’poreans who kanna sien can point out to Nisha and IDA. WTF MoM.

F1- Only two other countries pay higher fees

Singapore pays US$65m (S$83.3m) a year to bring F1 here. Only Malaysia and Abu Dhabi pay more.(BBC report).

Monaco is the only place that doesn’t pay.

So our “iconic” race is not cheap. Remember this when you read how much money F1 brings here.

The cost for organizing each race is approximately S$150 million dollars, with the government paying about 60% of the costs. And the fee is 55.6% of the cost). The government claims that each race generates about S$150 million in tourism receipts. So sounds like breakeven to me only, without taking into account the inconvenience to commuters and the lost sales at Suntec.

Worse, ticket sales are falling. More than 84,450 tickets were sold for the 2014 Formula 1 Singapore Grand Prix, slightly lower than last year but the third highest attendance since the inaugural race in 2008.Back in 2008, 100,000 tickets were snapped up as Singapore successfully pulled off the world’s first F1 night race on a street circuit.

LKY answered Ngiam Tong Dow’s F1 question

Ngiam Tong Dow said: “My favourite topic — I’m on public record — is Formula 1 (F1). We’re paying the Englishmen to stage the F1 night race here. Why should we use taxpayers’ money to pay for these races? I have asked this question publicly, but the MOF has never addressed it.”

Maybe MOF didn’t, but LKY did juz before F1 came to S’pore, LKY said, when it was first suggested to him yrs ago, he didn’t believe it as something that could contribute to S’pore’s development. He was only convinced about its development potential, after F1 became massively popular and had already gone to KL. By then, Berniewas tua kee, with every aspiring global city wanting to stage a race, and many of them had cash pouring out of their ears.

BTW, the S’pore organisers were very clear that they couldn’t make money without govt help.

Taz history. There is an alternative on the horizon that S’pore should be trying to take advantage of:

… all-electric grand prix called Formula E, which gets under way in London in September 2014. Other races are planned in Bangkok, Beijing, Berlin, Buenos Aires, Los Angeles, Miami, Monaco, Putrajaya, Rio de Janeiro and Rome.

…

Some big names have already signed up to support Formula E, including DHL, a logistics giant, and Qualcomm, an American technology group. But the commercial potential, and the ability to draw a large audience, will need to be proved before Formula E becomes a technological race. Then, provided the teams can come up with better batteries, electric motors and power electronics, electric racing cars really could, one day, mount a serious challenge to the petrol-heads’ F1 cars.

http://www.economist.com/blogs/economist-explains/2013/09/economist-explains-14

In addition, to not paying much (maybe very little), seeing Formula E is a new brand, as the circuit here slows the F1 cars down considerably, a Formula E race here would be gd for Formula E to camouflage its main weakness: slower cars. The twisting, turning race would be juz as exciting for racing fans. Heck, we might even get it for free.

The Marina Bay Street Circuit is the second slowest 23-turn circuit on the calendar after Monaco, with an average speed of 172kph. Approximately 46% of the lap is taken at full throttle, compared with over 75% at Monza.

The twisting layout is hard on the brakes, while the gearboxes also take a beating, with around 80 gear changes per lap.

Drivers will complete 61 laps in the race – in 30C heat and 70% humidity – which takes a little under two hours to complete.

A change to the circuit this year is at turn 10 – dubbed the Singapore Sling. The original layout, a three-turn chicane, was seen as dangerous by drivers with Kimi Raikkonen crashing there in 2008 and Lewis Hamilton describing it as ‘the worst corner in Formula 1′.

This year, it has been turned into a single-apex left-hand bend and, without the chicane, lap times are expected to be lower. BBC report

https://atans1.wordpress.com/2013/09/22/formula-e-the-new-f1-why-cant-msm-report-f1-event-like-this/

Since we staged the first Kiddie Games, overspending in the process, why don’t we join this circuit? True in addition to F1, it would inconvenient us for another few days in a yr, but what the heck. Let’s try it. BTW Bernie is pretty relaxed about Formula E competing with F1, so he shouldn’t object.

Format of race: Each of the ten teams will have two drivers. But unlike F1, each driver will have two cars. Hence 40 SRT-01Es in all are being built by Spark Racing Technologies, a French firm, in collaboration with Renault and a number of other motorsports companies, including McLaren, Michelin and Williams. With present battery technology the cars will run out of juice after about 25 minutes in a race that is supposed to last around an hour. So each driver must make at least two pit-stops to change cars—sprinting 100 metres between each car in the old Le Mans style. As an added twist, one of the cars will be a sprint version capable of greater acceleration while the other will have more endurance. Flat out, the SRT-01Es will reach a top speed of around 225kph (140mph), whereas F1 cars top 300kph on some circuits. But on the short, twisting closed-off city streets which will be used by the electric racers, they will be spectacularly quick. And because of the instant torque provided by electric motors, they can accelerate to 100kph in just three seconds. Nor will they be quiet, because of the sound made by the cars’ tyres, electric motors and aerodynamics at speed.

Formula E the new F1?/ Why can’t MSM report F1 event like this?

S’pore did the first Kiddie Games and overspent for no apparent gain.

Why not try Formula E?

There will be 10 teams and 20 drivers racing on roads – not racetracks – in 10 cities, with a preliminary line-up that includes Los Angeles, Berlin, Rio de Janeiro, London, Buenos Aires and Beijing …

Jean Todt, president of the FIA, called Formula E “a vision of the future”. And this comes from a man who built his reputation in rally car racing and then as head of F1’s most famous competitor, Ferrari.

He told the BBC: “F1 is the pinnacle of motor racing, but there is plenty of space for other championships, from endurance racing to touring car, to karting – and definitely Formula E.”

He rejected claims that Formula E is simply a promotional exercise to improve motorsport’s image.

http://www.bbc.co.uk/news/business-24053853

OK, we got to divert traffic etc, one more time a yr. But this is new and innovative.

BTW, I enjoyed reading http://www.bbc.co.uk/sport/0/formula1/24127798 about how Marina Bay is turned into a race track. Makes me proud to be a S’porean: We are the Prussians of the East.

Why can’t our constructive, nation building media report like this?

Or tell us why the race is so technically challenging for the drivers:

The Marina Bay Street Circuit is the second slowest 23-turn circuit on the calendar after Monaco, with an average speed of 172kph. Approximately 46% of the lap is taken at full throttle, compared with over 75% at Monza.

The twisting layout is hard on the brakes, while the gearboxes also take a beating, with around 80 gear changes per lap.

Drivers will complete 61 laps in the race – in 30C heat and 70% humidity – which takes a little under two hours to complete.

A change to the circuit this year is at turn 10 – dubbed the Singapore Sling. The original layout, a three-turn chicane, was seen as dangerous by drivers with Kimi Raikkonen crashing there in 2008 and Lewis Hamilton describing it as ‘the worst corner in Formula 1’.

This year, it has been turned into a single-apex left-hand bend and, without the chicane, lap times are expected to be lower.

This article told me more interesting facts about the skills needed to finish the course than all the drums coming from our MSM.

M’sians, Pinoys & Indons love F1 S’pore

F1 in Singapore … as in the past five races, the proportion of foreign fans hovers around the 40 per cent mark. It was highest at the inaugural race in 2008, with visitors buying 41.7 per cent of the 100,000 tickets, but dipped to 39.2 per cent in 2010 on 81,350 tickets.

 Last year, it was 40.9 per cent of the total 84,317 tickets sold … according to race promoter Singapore GP, the top 10 countries are (in no particular order): Australia, India, Indonesia, Japan, Germany, Malaysia, the Philippines, the United Kingdom, the United States and Taiwan. (BT report on Wednesday)

Other Asean round-up news

Gambling revenues round Asia compared

Way of presentation is v.v gd.

http://www.economist.com/blogs/graphicdetail/2013/09/daily-chart-5

Thank us ethnic slitt-eyes, who gamble on anything

In January 2011 the Chinese city of Tianjin opened an “art exchange” in which artworks’ ownership is divided into tradable shares. Demand was enormous: Chinese households have limited investment options for their savings. Within a year more than 50,000 investors had bought shares in less than two dozen artworks. At least 34 similar art exchanges cropped up elsewhere in China, says Zhao Li, a professor at the Central Academy of Fine Arts, a state school in Beijing.

But frenzied trading on the new exchanges soon turned the market frothy. Tianjin’s exchange halted trading on two paintings after their values multiplied seventeenfold in less than three months; other exchanges have also limited trading. To protect investors, the central government has drawn up regulations that have stifled activity. “We have to be careful not to cause trouble,” says Chen Zongsheng, a city official behind the Tiajin exchange.

Meanwhile an ang moh exchange folds.

http://www.economist.com/blogs/schumpeter/2013/06/investing-art

“Cheaper” to build F1 track

Netizens in July were making comments about a SMRT river training for F1 following a tragic accident when a bus alleged to be speeding overturned. The driver (apparently an FT PRC) claims the brakes didn’t work. http://www.tremeritus.com/2013/07/24/smrt-bus-crash-at-dairy-farm-road-actual-video-of-crash/. Nothing further has emerged.

For us lesser mortals, when F1 comes to town, those of us who have to work, have the inconvenience of blocked roads and altered bus routes. And the shops at Suntec have to deal with falling biz. All this so that S’pore doesn’t have to build a proper F1 track. Guess we now know why only Monaco, Montreal and S’pore have street races: peanuts compared to the number on permanent circuits. The public are inconvenienced, and the public cannot be upset even in countries where the people can’t vote for the govt ruling them. BTW, in Montreal, the street race ain’t in the heart of the city, and in Monaco, people commute by helicopters and boats too (at least the rich do).

It’s not as though there is a huge savings gap. In fact it’s more expensive to stage a street race, even without taking account of the economic losses.

However, the annual running costs of a street race are greater than those of one on a permanent circuit: temporary grandstands need to be built and the roads need to be upgraded to F1’s high safety standards. The biggest single expense for the operators is staffing (c£10m), followed by rental of grandstands (c£8m) and construction of safety barriers and fencing (c£5m). 

In total, the annual operating cost of an F1 street race is in the region of £36m. Then comes the hosting fee, which is paid to the F1 rights holder. The average hosting fee came to £17m in 2011 but the sting in the tail of the contracts is that the price accelerates by as much as 10 per cent every year. Most new F1 race contracts are for ten years, so by the end of the agreement the annual fee comes to around £40m thanks to the escalator clause in the contract. That means that over the ten-year duration the bill for hosting fees totals an estimated £272m (see below) with the cost of running the races coming to £360m. That makes a total over ten years of more than £600m.

… With annual running costs that are far lower than those for a street race, the total cost of building a Grand Prix circuit and hosting an F1 race over a ten-year period comes in at around £560m. But promoters need to dig deep to fund that initial track construction… http://www.babusinesslife.com/Ideas/Features/The-cost-of-hosting-a-Formula-1-Grand-Prix.html … how much the key elements of a brand new Grand Prix circuit are likely to cost… [£164m]

So the difference is spending S$80m more over 10 yrs to “save” on the cost of building a permanent track. Of course, I ‘m assuming the cost of the circuit land is zero or nominal. But this being S’pore where giving away the land for public housing would be “raiding the reserves” (Mah Bow Tan), this is a non-starter. Anyway the usual suspects would shout “corruption” even if the govt was willing to lease land at a nominal price.

So, the end result is that the “little people” who have to commute by way of public transport, get screwed, So waz new?

(Related post: https://atans1.wordpress.com/2012/10/01/f1-sharing-the-1bn-in-value-add-with-the-losers/)

But let’s look on the bright side like Brian Cohen in the Life of Brian. Suffering a lingering, painful death by cruxification, Brian’s spirits were lifted by others crucified along with him, who sang “Always Look on the Bright Side of Life”.

Hopefully SMRT and SBS are tapping F1 to make our tpt system more reliable and efficient. In the UK, train and bus companies have started working with the Williams Formula One team to help improve their service.

The companies are buying advice and equipment to make their vehicles more reliable, something every passenger in the land will be grateful for.

http://www.bbc.co.uk/news/business-23132335

At the moment, SMRT’s only links with F1 is that the previous CEO drove a Ferrari, and is alleged to have had a Mercedes super car. Maybe when Desond Kwek and his ex-SAF mgrs want to buy super cars with their mega-bonuses, Williams could call them to see if something win-win can be arranged for them, Williams and SMRT? Free sex is no longer an option after recent corruption court cases.

SMRT might be interested in this: talking train window ads

http://www.bbc.co.uk/news/technology-23167112

I mean its CEO is claiming that its business model is not sustainable i.e. he can’t raise fares to cover the costs of salaries and maintenance. Cut dividends leh? As at end February 2012, SMRT has paid SMRT paid S$562.79m in dividends to Temasek since its listing.

(Another way of raising $https://atans1.wordpress.com/2012/08/13/how-smrt-can-spend-more-on-maintenance-while-contd-paying-gd-dividends/)

Finally, great video that shows guy driving round Manhattan at speeds that breaks the law. http://www.theguardian.com/world/video/2013/sep/06/manhattan-island-24-minutes-video. Driver records 24-minute fastest lap around Manhattan

F1: Sharing the $1bn in value add with the losers?

Singaporeans must accept F1 race as necessary event: MTI (The Trade and Industry Ministry says the community must accept the Singapore Formula One race as a necessary event in Singapore. This is because the race has reaped benefits such as enhancing Singapore’s image and bringing in more tourism receipts.)

And

Teo Ser Luck: Singaporeans must accept F1 as a necessary event

So how abt sharing the benefits with the losers?  Especially since F1 will bring S$1b “additional value-add” for economy, says Iswaran. (S’pore expects expenses to drop about 15% to 20%, according to the Ministry of Trade and Industry. The cost of the race is about $150 million, with the government co-funding 6o% of the amount, reminded S. Iswaran, “Singapore’s second trade minister, who’s responsible for developing the tourism industry”. What he didn’t say is that hotels have to pay a special levy of 30% on room rates during F1 period, if they are “track-side” hotels and 20% for the others. )

Compensate the retailers at Suntec City  and those who work in the city? Tax rebates for them? If no such sharing of the benefits, then it’s some private profits, and big state windfall (via taxes and other levies), and public inconvenience and some private losses. Readers might also like to know that it costs at least US$120m to build a dedicated F1 circuit (excluding, it seems, land costs), so by inconveniencing commuters and some retailers, the government is passing on the one-off cost of building a F1 track to some S’poreans annually. Whoever said there isn’t a free lunch? More reason to offer compensation.  

BTW, before the race, our constructive, nation-building media gave the impression that a deal-breaker was S’pore’s demand that it be charged a nominal fee for the race (Monaco pays nothing because until S’pore’s F1, it was the only F1 race on public roads.) Well it seems, S’pore was told to f***off and it got buggered: “Ecclestone refused to confirm the cost of the new contract, although he did hint that negotiators for the Singapore race had failed to extract a Monaco-style race fee exemption. It is thought that they argued for one, pointing out how successful the race has been for sponsors. http://www.telegraph.co.uk/sport/motorsport/formulaone/9560875/Singapore-Grand-Prix-secures-its-place-on-F1-circuit-after-organisers-agree-a-new-five-year-contract.html

Mr Iswaran only said there has been “a discount in franchise fees for the new contract”: whatever happened to the deal-breaker? The silence from our media on the issue is deafening.

Seems that Bernie said that the Thais willing to stage a F1 night race in Bangkok if he pulled out of S’pore.

Related post: https://atans1.wordpress.com/2011/09/25/is-f1-worth-it-updated-with-2011-estimate-of-additional-tourism-revenue/ BTW not seen any details of estimated 2012 revenues despite all the talk of benefits.

F1: Does the government know?

Earlier this year News Corporation, a media group, and Exor, the family investment firm of the Agnelli family, which also owns Ferrari, announced their interest in making a joint bid for Formula One. (News Corp is no longer interested given its problems in the UK.)

They briefed that the sport was losing its ground. Viewership is falling, though the business rakes in ever-growing piles of cash from doing deals with governments to host Grand Prix races. Mr Ecclestone (the current supremo) has no successor trained to take on the difficult task of balancing the competing needs of teams, sponsors, broadcasters and circuits.

If viewership is falling, and if there are succession problems, waz the point of staging rsace, unless the cost of staging one comes down?

F1: S’pore will not rush into contract decision: Iswaran

Mr Iswaran, junior trade minister said: “We have engaged independent consultants, because we want to make sure that going forward, we have a clear idea of what is the value proposition of the F1 for Singapore…from the tourism point of view, from an economic spin-off point of view and a social point of view.

‘My own sense is that we need to have some kind of closure on this, certainly before next year’s race. But I’m hoping we can find a mutually beneficial agreement sooner rather than later.”

This was only reported in ST Online. ST carried an article on its front page praising the economics and other aspects of the race. Headline read,  “Stunning S’pore race a big winner” .

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

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. http://www.bbc.co.uk/news/business-15015158 

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.)

Is F1 worth it?

Year	Cost (SGD M)	Additional TourismRevenue(SGD M)	Profit/ Loss(SGD M)	Margin over Costs (%)
2008	150	168	18	12
2009	150	93	-57	-38.00%
2010	150	160	10	6.67
Totals	450	421	-29	-19.33

(Click the headline to see full table if you are reading from the Home page.) (Cost and revenue numbers taken from BBC link below.) 

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. http://www.bbc.co.uk/news/business-15015158 

But shouldn’t intagible costs be taken into consideration.