Hotel prices are surging as the Formula 1 Grand Prix weekend draws near. Held from Sep. 20 to 22 this year, the annual event, which draws crowds from all around the globe, has caused demand to spike. Hotels near the city’s F1 circuit, such as Marina Bay Sands and Fullerton Bay, are either fully booked or charging significantly higher prices than usual. According to an article by Lianhe Zaobao, hotel prices were as high as S$15,000 for a three-night stay. An online search conducted on Sep. 5, 2024, revealed that prices for various hotels along the F1 Grand Prix circuit in the city centre have skyrocketed for a 5D4N stay from Sep. 19 to Sep. 23, 2024.
Background
The Formula 1 Singapore Grand Prix is a major event that significantly impacts the local economy, drawing in tourists and racing enthusiasts from around the world. The surge in hotel prices is a common occurrence during this period, as the demand for accommodation near the race circuit increases. This year, the trend continues with hotels either fully booked or offering rooms at exorbitant rates. The Ministry of Trade and Industry has noted that the F1 Singapore Grand Prix has attracted over 550,000 visitors and generated approximately S$2 billion in incremental tourism receipts.
Popular hotels fully booked, prices more than triple for others
Popular hotels like Marina Bay Sands and Fullerton Bay Hotel were unavailable for booking from Sep. 20 to 22, while a single night’s stay on Sep. 19 would cost S$2,148, compared to the usual price range of S$800 to S$1,000. A stay at the Pan Pacific hotel from Sep. 19 to 23 is priced at S$1,625 per night. In contrast, a similar room booked a week later, from Sep. 26 to 30, is going at a rate of S$399.50 per night — less than a third of its price during the F1 week.
Meanwhile, at Swissôtel The Stamford Singapore, standard rooms over the F1 weekend will cost around S$6,460 for a 5D4N stay. Staying in a similar room with a balcony on a high floor would cost approximately S$2,075 a week later. For those looking to watch the race in luxury, the hotel’s Stamford Crest Suite during the F1 peak period will cost approximately S$28,000 for non-members.
F1 packages
To capitalise on the demand from F1 fans, hotels like Pan Pacific and ParkRoyal are offering F1-specific packages, promising premium track-facing rooms and additional perks like complimentary breakfast. Pan Pacific Singapore’s “Night Race Track-facing Room Offer” package for a 4D3N stay is priced at S$1,873.33 per night for non-members and includes complimentary breakfast. ParkRoyal Collection Marina Bay offers a similar package. The hotel’s “Night Race (Trackside) package” costs around S$1,700 per night for an individual, totalling over S$8,300 for a 5D4N stay after GST and service charge.
Economic impact and future implications
The F1 Singapore Grand Prix has consistently proven to be a significant economic driver for Singapore, attracting hundreds of thousands of visitors and generating substantial tourism revenue. The high demand for hotel rooms and the corresponding surge in prices reflect the event’s popularity and its impact on the local hospitality industry. As the event continues to grow, it will be interesting to see if this year’s attendance breaks the 2022 record of 302,000 attendees. The ongoing success of the Grand Prix could lead to further developments in the tourism sector and increased investment in infrastructure to accommodate the influx of visitors.
