Come race week this year, the Government will cut a special levy it imposes on their takings.

Instead of charging it over five days, it will do so for only four this year.

This will allow hotels to make their room rates for the Sept 27 race more attractive.

Last year, the levy kicked in on the Wednesday before the race. This year, it will do so a day later, on Thursday.

The Singapore Tourism Board (STB) and Ministry of Trade and Industry said yesterday: 'This is a special measure for hotels this year, taking into consideration the current economic downturn.'

The STB said the concession emerged from the talks it had with the Singapore Hotel Association, which had raised concerns about the hotels making it through the downturn.

The number of tourists coming here has been falling since last June, and room occupancies and room rates have also slid.

The one-day waiver of the levy will mean tax savings for the hotels, but some hoteliers yesterday said they were expecting something more substantial - perhaps even a lifting of the levy altogether.

The levy amounts to 30 per cent of room revenue and room packages for 13 track-side hotels. Other hotels pay 20 per cent.

Read the full story in today's edition of The Straits Times.