The Singapore Grand Prix- Boom or Boondoggle?

With breathtaking panoramas and sceneries located at every nook and cranny of the Singapore Grand Prix circuit, the Singapore Grand Prix presents an impeccable picture of a dream race taking place beneath the stars of the night sky.

Recognising the economic potential inherent in Singapore’s unique street circuit, Julian Lim lucidly expounds the multitudes of benefits brought about by Singapore’s first Formula One race in decades.

Unequivocally, the Singapore Grand Prix is expected to give a strong boost to Singapore’s tourism sector, generating incremental tourism receipts of about S$100 million a year. With the great influx of visitors, hotels, night spots, and many other groups will benefit from the Singapore Grand Prix. The “hive of activity” manifested is also expected to add vibrancy to Singapore as a global city and business centre.

As Singapore strives to become the global hub of trade and business, the Singapore Grand Prix serves as an important step towards gaining the confidence of investors and companies worldwide. This also serves as an opportunity for Multi-National Companies and private wealth management industries to procure benefits for their clients and businesses.

Nevertheless, despite the multitudinous economical benefits of the Singapore Grand Prix, several problems might subvert its status as an “economical boom.”

Firstly, the materialisation of such high-profile events could have detrimental effects on consumers- especially those of a lower economic status.

Based on the relationship between demand and supply in economics, the Singapore Grand Prix is expected to raise the prices of goods and services dramatically over time. This makes it less affordable for consumers throughout Singapore, and limits the expenditure to that of tourists and expatriates. This leaves the economy overly-dependent on foreigners.

With the natural tendency for economies to correct themselves back to equilibrium, the economy will experience sharp devaluations and downturns following the Singapore grand Prix.

Aside from this, preparations before the Grand Prix might cause a major disruption of traffic, affecting stakeholders and companies throughout the area.

Indubitably, it is of paramount importance for the government to consider the common man amidst the glitz and glamour of the Singapore Grand Prix. While tourists and expatriates do contribute a large sum of money to the economy, the local population must not be left out of the buzz.

One way of doing this is by reducing the price of tickets. Owing to the large number of reservations for VIPs and expatriates, the high demand for tickets would most certainly raise prices sharply. Considering the fact that Formula One is hardly as popular as football in this country, more steps must therefore be taken to draw locals out to fill the stands.

Being only a secondary school student, my comments on the economical aspects of the Singapore Grand Prix does have its limitations. Aside from this, my views are solely based on generalisations derived from my own personal perspective, leaving several blindspots within my argument. Adding on to the fact that I am not a fan of Formula One, my views may also be biased and prejudiced.

See article at:

http://motoring.asiaone.com.sg/news/20070511_001.html