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I READ with dismay reports that hotel room rates have been upped to three or four times the norm for the Sept 22 to 28 Formula One first night race. This reflects the corporate myopia and greed that has affected Singapore hoteliers. Other F1 locations usually charge double the norm. Already, the fallout is felt when one five-star hotel was reported to have less than 20 per cent occupancy during this period.
Exorbitant rates will drive away F1 fans and tourists. When South Korean tourism boomed, they killed the golden goose by becoming expensive. Tour agents simply switched to cheaper places like China.
The foreign media is already complaining of exorbitant room rates. Coupled with the initial ticket fiasco, the inaugural F1 night racing may see a disappointing turnout as even die-hard fans may give Singapore a miss.
The United States is heading for recession and local inflation will get worse before it improves. Hoteliers have miscalculated if they think they can charge $1,500 a night for F1.
Dr Lim Boon Hee
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