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-- 17.0000 F1 Singapore GP Ahead, Who Stands to Benefit?
As the thunderous sound of Formula 1 engines echoes through the Marina Bay streets during this weekend's Singapore Grand Prix (20-22 September), investors are closely monitoring not only the racing dynamics but also the broader economic implications.
The Broad Impact of F1Singapore GP
With the discontinuation of the Malaysian Grand Prix in 2017, the Formula 1 Singapore Grand Prix has emerged as the sole race in Southeast Asia. This event consistently attracts over half a million tourists annually.
Since its inception at the Marina Bay Circuit in 2008, the Formula 1 Singapore Grand Prix has held the distinction of being the only nighttime street race in the F1 calendar, drawing international attention and substantial economic activity. This event is a pivotal opportunity for Singapore to attract global visitors, enhancing its tourism revenue and overall GDP.
Since 2021, Max Verstappen from the Red Bull Racing team has dominated the F1 races, but this year the competition has intensified, with increased suspense over which team and driver will triumph. Given that the track favors $Ferrari (RACE.US)$, the focus on this race is exceptionally high.
Furthermore, the influence of Formula 1 extends well beyond the race itself, significantly impacting the tourism, hospitality, and consumers sectors. For instance, during the 2023 Singapore Grand Prix, a total of twenty-eight MICE events (Meetings, Incentives, Conferences, and Exhibitions) were held. The allure of the F1 race acts as a powerful draw, encouraging business and academic leaders from the finance and technology sectors to attend meetings in Singapore, significantly boosting their participation.
Local tourism authorities also strategically schedule major entertainment events during the F1 period to create a synergistic effect between various activities. According to a statement earlier this year from the Ministry of Trade and Industry (MTI), the collaborative approach amplifies the overall impact of the event on the local economy:
Many international business events, such as the TIME100 Leadership Forum, the Forbes Global CEO Conference, the Milken Institute Asia Summit and SuperReturn Asia, have also been organised around the F1 race in Singapore to take advantage of the occasion for high-level networking and meetings.
Enthusiasm for the 2024 Formula 1 Singapore Grand Prix is evident, with bookings opening as early as December 2023 and prime spots filling up months in advance. According to $Trip.com (TCOM.US)$, there is expected to be "healthy growth" in attendance, reflecting in a significant surge in bookings during the race week from September 16 to 22. This year, during the F1 race week, Trip.com has seen a 60% increase in total bookings across all products compared to last year, with inbound flight reservations alone rising by nearly 90%.
Potential Beneficiaries
As a result, the Formula 1 Singapore Grand Prix not only boosts excitement among racing fans but also significantly benefits various sectors in Singapore. Key players in the transportation sector, including title sponsor Singapore Airlines $SIA (C6L.SG)$, along with $ComfortDelGro (C52.SG)$, $SIA Engineering (S59.SG)$, $SATS (S58.SG)$, and $Grab Holdings (GRAB.US)$, are poised to gain from the increased traffic during the event.
The hospitality sector is also set to thrive, with major hotel trusts and operators like $Man Oriental USD (M04.SG)$, $Frasers HTrust (ACV.SG)$, $Far East HTrust (Q5T.SG)$, $CapLand Ascott T (HMN.SG)$, and $CDL HTrust (J85.SG)$ expected to see a surge in occupancy rates.
$Genting Sing (G13.SG)$, the operator of Resorts World Sentosa, emerges as another pivotal entity within the Grand Prix ecosystem.
Additionally, $ST Engineering (S63.SG)$, a leader in aerospace and engineering, plays a crucial role by providing essential technical and engineering support for the Grand Prix.
Sustained Recovery in Singapore's Tourism Sector
Singapore's tourism industry continues its recovery trajectory, with the city-state welcoming 1.5 million international visitors in August this year, marking a 17.3% year-on-year increase. This makes August the second highest month for inbound visitor numbers in 2024. Mainland Chinese tourists topped the list with over 400,000 arrivals, followed by visitors from Indonesia, India, Australia, and Japan. The upcoming Chinese National Day Golden Week (October 1-7), a peak travel season, is expected to bring another wave of visitors to Singapore.
From January to August, Singapore saw 11.32 million visitors, and while these figures have yet to reach the pre-pandemic levels of 2019, the Singapore Tourism Board forecasts that the number of international tourists could reach between 15 to 16 million by year-end, potentially exceeding the 13.61 million recorded in 2023.
Source: SGX, CMC Markets, The Edge Singapore
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Hamed Hazretere : Grab US of coz
Mooloo88 : Plus oil price drop. Big win for SIA!
103680587 : China economy is trending downwards. More domestic travel instead?
Moomoo News SG OP 103680587 : Due to increased capacity in international flights leading to lower fares, ticket prices to Southeast Asian countries are now even lower than those of some domestic flights in China, resulting in robust outbound tourism from China.