|
As the hype builds towards Singapore's first Formula One race in September, one thing could drop in the months ahead - hotel room rates.
Top executives whose chains operate a total of seven hotels in and around the city centre told The Sunday Times that prices may be 'relooked' if bookings do not pick up soon for the F1 period.
This, after rates - three to four times the norm and which can top $1,500 a night at some track-side hotels in Marina Bay - seem to have put off potential clients.
'Every hotel is holding its rates right now, there's no panic yet,' said the assistant vice-president (sales) of a prominent chain, who declined to be named.
The hotels under its banner, which total over 1,000 rooms, are about 50 per cent full.
Said the source: 'Probably in June or July we'll look at the situation and see if there's a need to change our price strategy.
'But F1 teams, when making enquiries with us, have also remarked that prices here are much higher compared to other venues like Shanghai or Kuala Lumpur.'
In Kuala Lumpur, five-star rooms can be had for as little as about $250 when the F1 circus swings into town every March.
While a few hotels like Fairmont Singapore ($1,700 a night) are full, industry sources admitted that many have yet to secure bookings for more than half their rooms.
And one five-star city-centre hotel is currently staring at less than 20 per cent occupancy for the Sept 22-28 F1 week.
Australian Jeff Goodridge has taken his frustrations to the Internet. He wrote on his blog: 'I was looking forward to going to the first ever night Grand Prix as a stopover on the way home from Europe.
'But now, guess we'll stopover elsewhere as I can't justify spending $2,500 to $3,500 over the period...I wonder how many others will be deterred by this blatant money grab?'
Singapore organisers have already received complaints from foreign media, peeved at the 'ridiculous' prices.
Coupled with high prices, many hotels are imposing minimum stays of at least three nights.
The Singapore Tourism Board has said it would not regulate hotel prices during the F1 period. But, should the trend continue, market forces may succeed in forcing lower rates.
A local fan who has attended the Monaco, Melbourne and Malaysian races said: 'The hotels were too greedy, they thought everyone would bite regardless of the astronomical prices.'
He added that fellow F1 fans from overseas will be looking at spending at $4,000 just for travel and accommodation.
On top of that, they have to factor in a three-day race ticket, priced between $168 and $1,388.
Despite the concerns, the Royal Plaza on Scotts will stick to its $960 nightly rates. General manager Patrick Fiat said it has 36 per cent occupancy for the F1 week.
'We did a study of the other F1 cities, and the main bulk of bookings come 80 days before the race,' he said.
'We're still five months away and, by mid-June, we might see a big increase.'
limze@sph.com.sg
|
