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Feasibility Studies report for SGF1 - 26 Sep 2004
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Feasibility Studies report for SGF1 - 26 Sep 2004

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  • 1. Temasek Polytechnic Specialist Diploma In Arts and Event Management Research Project Project Supervisor: Albert Toh OUR COMMUNITY WILL SUPPORT FORMULA ONE GRAND PRIX TO BE HELD ON THE STREETS OF SINGAPORE Cheng Khim Seng 0370121F poleposition@pacific.net.sg
  • 2. Cheng Khim Seng 0370121F Contents 1. Introduction -3- 1.1 Statement of purpose -3- 1.2 Research objectives -3- 1.3 Hypothesis -3- 1.4 Study area -3- 1.5 Limitation of research -4- 2. Background -5- 2.1 Evolution of Formula One in Asia -7- 2.2 Local motor sports scene -8- 2.3 Vision for Formula One Singapore Grand Prix -8- 3. The proposed venue -9- 3.1 A lap around the temporary streets circuit - 10 - 3.2 Temporary streets circuit versus the permanent race track - 12 - 3.3 Other fringe events and the race calendar - 14 - 4. Findings from public survey - 16 - 4.1 The survey questionnaire - 16 - 4.2 Public awareness and support for Formula One - 16 - 4.3 National pride and raising the profile of Singapore - 19 - 4.4 Potential business opportunities and economic benefits - 21 - 5. Conclusion - 24 - 6. References And Relevant Literature - 25 - Annex 1: Streets circuit venue map Annex 2: Survey questionnaire Annex 3: Breakdown of survey results A&EM community support for F1 -2- 9/26/2004
  • 3. Cheng Khim Seng 0370121F 1. Introduction: 1.1 Statement of purpose The purpose of this research is to establish the support from our community for Singapore to host Formula One Grand Prix race on a temporary street circuit. 1.2 Research Objectives From a proposed race venue, it is necessary to determine: - Public support and acceptance - National pride and raising the profile of Singapore - Potential business opportunities and economic benefits 1.3 Hypothesis Our community will support Formula One Grand Prix to be held on the streets of Singapore 1.4 Study area The research set out to identify a suitable venue to be converted into a temporary streets circuit course. A quantitative research on the proposed venue will be also conducted. Survey questionnaires were prepared and covered the following issues: - Acquire demographics and lifestyle information - Determine the respondents’ support and attendance of the event A&EM community support for F1 -3- 9/25/2004
  • 4. Cheng Khim Seng 0370121F A target of 200 public survey questionnaires will be distributed in either printed copies or carry out through an online survey posted onto the internet. The data collected will be entered in to the SPSS data mining and database analysis software to determine the frequencies and cross-tabulation analysis. 1.5 Limitation of research In view of the limited timeline available and the many potential areas that could be studied for this subject, the area of research will not be addressing the economic impact studies and cost and benefit analysis. Nevertheless, this paper will highlight any possible economic benefits and business opportunities based on either primary or secondary data collected. The proposed temporary streets circuit intended to use for this Formula One Grand Prix will have to be consulted and modified by the professional race circuit designers such as Tilke Engeering. The final design will be submitted to meet the appropriate stringent criteria and safety standards by Federation Internationale de I’Automobile (FIA). Due to the sheer size of this event and the possible impact to physical environment, before the event has to take place, an environmental impact assessment will be required to address issues such as crowd movement and control, noise levels and disruption to the local community. Relevant licences and clearances will also have to be approved from both the sports governing bodies and several local government agencies. Some examples includes endorsement on temporary public road closure for the streets circuit from A&EM community support for F1 -4- 9/25/2004
  • 5. Cheng Khim Seng 0370121F Land Transport Authority, permit to use of Marina Promenade area for temporary conversion into pit garages for the racing teams and parc ferme from Singapore Land Authority and The Maritime and Port Authority of Singapore for rescue boats to patrol the Marina Bay area. These will be some of the considerations and issues to be captured and addressed by the event organising committee during the initial planning process. 2. Background: Since the first organised motor race was stage from Paris to Rouen in 1894 by a newspaper, Le Petite Journal, the thrill and excitement of motor racing have been seen as significant events on both a global and local scale. At the pinnacle of motor sports, Formula One (F1) Grand Prix has always been associated with cutting edge technology, speed and symbol of global capitalism and glamour. It is a major global event with massive world wide followings. With power to reach 202 countries and the cumulative audience of 50.7 billion people for 1997 Championship, Hotten (1998: 200), Formula One is currently the third most watched live sporting event, second only to the Olympics and the World Cup Soccer. The host venue not only takes centre stage in the international spotlight, receiving enormous amount of media attention, it also provide a valuable opportunity to showcase the unique nature of the host city to the international audience enhancing the awareness, appeal and profitability of a tourist A&EM community support for F1 -5- 9/25/2004
  • 6. Cheng Khim Seng 0370121F destination attracting the large followings of fans and enthusiasts. In return, the Grand Prix generate positive economic benefits to the local community by increasing tourism both before and after the event. Formula One Grand Prix races in European Union are economically distinctive that they create across the board very large amount of wealth for the local economies that host the events. This is a sports that makes its host communities rich. Governments around the world have also realised the ability of hosting major events to raise the profile of the politicians and the cities they govern as such events attract visitors, they not only create economic benefits but also jobs. Events also provide niche development opportunities and interests for the host communities. With these in mind, it has prompted government agencies such as the tourism board, to become major players in sponsoring, bidding for, hosting and staging of major events including the Formula One Grand Prix. As highlighted by Sawer (2004) and Garside (2004), Mayor, Ken Livingstone has made a formal offer to Formula One Commercial rights holder, Bernie Ecclestone to stage a Formula One Grand Prix on the streets of London with a race course based around Hyde Park within four years to boost tourism. Livingstone said: ”We are serious about this. Everyone recognises this is a huge plus for London. Every hotel bed will be filled, every restaurant. This is just what great cities do to sell themselves. New York is looking at doing the same thing. If you can do it in Monaco, you can do it in London.” A&EM community support for F1 -6- 9/25/2004
  • 7. Cheng Khim Seng 0370121F 2.1 Evolution of Formula One in Asia Other parts of the world, particularly in Asia and the Gulf Region are beginning to benefit from Formula One’s expansion into new regions. With the rapid growing of interests in motor racing in Asian region, China who is particularly keen in motor racing, has been trying to host a Formula One Grand Prix for more than a decade, spending nine years developing a race circuit near the southern city of Zhuhai. Although being listed provisionally in the F1 1998 calendar, the circuit was never approved for use after falling to meet international standards. Chellam (2004). Despite the setback, the Chinese rebounded with a new 5.4 km circuit in the fast growing metropolis of Shanghai, and will have their first taste of hosting China Grand Prix on 26 September 2004 with all the 150,000 tickets being snapped up by the Chinese fans a month ago. As noted by Hotten (1998), an estimated cumulative audience in China of 200 million people are watching Formula One each season. It is a race where whoever Asian country gets the first Grand Prix, it will stimulate further TV interest throughout the region. There are more countries, including South Korea and possibly Thailand, wanting to host a Formula Grand Prix than can be accommodated in the Formula One calendar for each season. Malaysia being the sole country in South-East Asia to have ever host Formula One Grand Prix since 1999 has signed a five year contract. Being strategically situated in Asia, Singapore must poise to exploit the growing interest of the sports. A&EM community support for F1 -7- 9/25/2004
  • 8. Cheng Khim Seng 0370121F 2.2 Local motor sports scene The Singapore Motor Sports Association (SMSA), the controlling body of motor sports in Singapore, hosts various car racing events, including the Autotest, Carpark Rally and the hugely popular Sprint/Super Sprint events several times a year. It attracted many from all walks of life who have passion for motor racing. However, motor sports in Singapore are still at its infancy stage. Due to the limited space allowable to put aside for motor sports activities, we lack of proper race facilities and these small scale amateur clubs events are being held in car parks at Kallang. Similar events are also held on several race circuits in our neighbouring country, Malaysia who has one of the purposed built permanent race tracks for Formula One and other categories of premier class motor racing at the state of Selangor, the Sepang International Circuit. 2.3 Vision for Formula One Singapore Grand Prix In Singapore, due to the fierce competition for injection of “new money” into the economy by our neighbouring countries and with many of our existing aging and ordinary so-so tourist attractions, we need to challenge the imagination and explore new possibilities by involving man in the streets and public to contribute new ideas to provide a fresh and different perspective to stimulate our local tourism. Tan (2004). While trying to regain our status in the major league and with a vision for Singapore to be a recognised hub through creation and hosting of exciting world-class sporting events, it will also reach out to various international A&EM community support for F1 -8- 9/25/2004
  • 9. Cheng Khim Seng 0370121F sports federations and governing bodies to propagate and expand the influence of their sports and leisure activities in our region, this study will look into the creation of a venue from our established facilities and infrastructure as well as to determine the level of local community support to host Formula One Grand Prix in Singapore. 3. The proposed venue: The proposed venue to host the Formula One Singapore Grand Prix will be in the heart of our city. Public roads around Suntec City and City Hall area will be converted into an approximate 4.5km long, 13 corners temporary streets circuit for the three days race event. The proposed race route will highlight our modern metropolis with its sleek skyscrapers to the landmarks and memorials sites with traces of our memorable past and its colonial heritage. It is ideally situated at the central of our business, cultural and tourism districts where it will be featuring some of Singapore’s best amenities and facilities, such as the world-class hotels, shopping malls, food and beverages outlets, cultural and entertainment centres, to capitalise on the many opportunities provided by this major event as a unique lifestyle destination to provide that “hook” to draw both local and foreign visitors. As noted in Allen (2002), events can provide newness, freshness and change, which sustain local interest in a destination and enhance its appeal to visitors. Furthermore, visitors want to do what the local residents do and experience the things they enjoy about the destination. A copy of the streets circuit map is attached in Annex 1. A&EM community support for F1 -9- 9/25/2004
  • 10. Cheng Khim Seng 0370121F 3.1 A lap around the streets circuit The starting line will be positioned at the long stretch of Raffles Avenue with the temporary pit garages and parc ferme along the Marina Promenade, right opposite is the elegant The Ritz-Carlton, Millenia Singapore where the guests can catch the exhilarating start line action of the Formula One Grand Prix with comfort from their luxuriously appointed rooms with unobstructed views of the Singapore skyline and Marina Bay area. Likewise for those who are staying at The Oriental Singapore who is inter-linked with Marina Square Shopping Mall and to two other 5-star hotels, Marina Mandarin Singapore and Pan Pacific Singapore. As the circuit itself will come to life, the F1 cars powered onto the first bend and the second tight left hand corner heading towards the Esplanade Bridge along the Esplanade Drive. Imagine it is like attending a mega orchestra concert with the magnificent superstructure of The Esplanade - Theatres on the Bay located along the waterfront as the conductor, our CBD skyscrapers as its main backdrop resembling the audiences surrounding the long Esplanade Bridge as the performing stage with those mighty 3 litres V10 engines revving over 18,000 rpm in tunes, accelerating across at top speed exceeding 200kmh, leading the race onto several distinctive historic sites of our past. Braking hard at the tight right hairpin corner at the end of the long Esplanade Bridge, where it could be a favourite overtaking spot, right in front of The Fullerton Hotel which is one of our heritage buildings with a neo- classical architecture standing tall at the forefront of Raffles Place, Singapore’s financial and business district. At this hairpin, drivers will take aim A&EM community support for F1 - 10 - 9/25/2004
  • 11. Cheng Khim Seng 0370121F at the apex to position their cars back onto the racing line to have a good run as this could be the key to achieve a good lap time around this circuit before entering the exquisite Anderson Bridge, spanning across the entry of Singapore River, which comprises of steel arches with supporting steel ribs extending across them with rusticated archways. Plunging down to the natural right and left chicane at the junction of Fullerton Road and Connaught Drive, between Victoria Concert Hall and Singapore Cricket Club, this could be a beloved spot for photographers to take pictures of F1 drivers putting on their 100% concentration and driving skills to negotiate the chicane by brushing their cars with the armco barriers to achieve a perfect entry and gaining maximum speed into the right hand corner heading towards the ultra wide St. Andrew’s Road straight where they could potentially perform exciting overtaking manoeuvre on their opponents. Adjacent to the straight are two of our renowned landmarks, the Supreme Court, one of the finest buildings ever built with Corinthian columns and spacious interiors featuring murals by Italian artist, Cavalieri Rodolfo Nolli in 1939 during the British Rule of Singapore. Beside the Supreme Court is City Hall which was built in 1929 and was the site of the Japanese surrender in 1945 during World War II. The next right and left chicane at the junction of Stamford Road and Beach Road, reside the Asia's tallest hotel Swissôtel The Stamford, Singapore. This 72-storey hotel inter-linked with the Raffles City Shopping Complex as well the sister hotel, Raffles The Plaza, Singapore is ideally situated at the A&EM community support for F1 - 11 - 9/25/2004
  • 12. Cheng Khim Seng 0370121F crossroads of Singapore's business, cultural and shopping districts. At turn 7, a near 90 degree right hander at Bras Basah Road, next to it is one of the world’s most beloved Grand Hotels, Raffles Hotel Singapore, a National Monument and a jewel in the crown of Singapore's hospitality industry. After the end of the short straight, the streets course will bring the race into the futuristic Suntec City, the Times Square of Singapore, which integrate the Singapore's largest shopping and entertainment centre with four 45-storey high towers and one 18-story high building for offices plus the hi-tech, purpose-built meeting venue, The Singapore International Convention & Exhibition Centre (SICEC). Turn 9, right at the central of Suntec City featuring the Fountain of Wealth, one of the World's Largest Fountain, the F1 cars will have to negotiate the slow speed right hander around the fountain before blasting their way down Temasek Avenue, where the new Millenia MRT will be located, and Raffles Boulevard before heading towards the start – finish straight. The pit lane entry and the paddock area, where the racing teams will house their transporters and motor homes, will be situated before the penultimate corner of the circuit. 3.2 Temporary streets circuit versus the permanent race track The choice of the venue and the type of race circuits to use is a crucial decision that will ultimately determine the elements of staging the event. From the survey questionnaire received, there are some suggestions that a permanent race track should be built instead of a temporary course to emulate the Sepang International Circuit that our neighbour has. However, it A&EM community support for F1 - 12 - 9/25/2004
  • 13. Cheng Khim Seng 0370121F will make more economic sense when we can capitalise by modifying existing venue and facilities available and bringing out the best of what we have now as it will require a huge budget to stage the event. The savings gained from not having to build a new race circuit could be passed down to the spectators who could be paying less for the ticket price and still experience the charm of this thrilling race. Malaysia spent about RM286 million to built their 5.542 km long circuit on the rural part of Selangor state around plantation and farming, hoping it to become a major economic growth centre. There are some critics who felt that it would not contribute to a healthier Malaysian economy instead it could burdened the country if the circuit could not generate the expected revenues to cover the cost of building the facility as they had signed a five-year contract to host the Formula One Championship since 1999 and they have to pour out US$8 million to host each Grand Prix Teh (1999). Also with the gradual declining interest of local Malaysian, due to the overly priced tickets and the situation has not been improving since its inception Khairul (2004). In the worst case scenario, they might even be forced to operate at the loss now to fulfil the obligation of that five year contract. Similarly for the new ultra modern Shanghai circuit which the Chinese spent at least US$325 million which they have forecasted that it will only be profitable by 2016 Chellam (2004). Street circuit such as Monaco at Monte Carlo well known to both spectators and drivers as one of the most satisfying and exciting tracks in the Formula One Championship and it has been on the Formula One calendar since 1929. A&EM community support for F1 - 13 - 9/25/2004
  • 14. Cheng Khim Seng 0370121F It is brilliantly exciting for the spectators where they can get so close to the race actions, with just a few metres away. The sound, the sight and the adrenaline rush generated as the cars speeding by. Drivers like the challenge of the street circuit as it differentiate the men among the boys! The armco barrier-lined circuit leaves no margin for error, demanding more concentration that any other Formula One track. Cars are running so close to these barriers to achieve good lap times and the drivers must be able to maintain 100% concentration throughout the entire race distance. These barriers are not forgiving, drivers must put absolute premium on their skills and bravery. They cannot afford to make any mistakes which could end their race prematurely at the barriers. As quoted by Alain Prost, former F1 Champion, “This is regarded as the classic Grand Prix circuit on the Championship and it is a track where absolute precision and consistency reap dividends. If you are impulsive at Monaco, you are likely to end up in the barrier. Overtaking is extremely difficult and the opportunities to do so seldom present themselves. It can be enormously frustrating, but, equally, very satisfying.” Mika Hakkinen, 1998 & 1999 F1 Champion, commented “The grip level changes and to keep your concentrations is incredible difficult. It’s so easy to make a mistake.” Henry (1997). 3.3 Other fringe events and the race calendar The three days Grand Prix event will comprised more than just Formula One race to provide additional entertainment for the spectators, an array of interesting programme may include a tie-up with Motorsports Asia Limited as host for their Asian Festival of Speed series that comprises of: A&EM community support for F1 - 14 - 9/25/2004
  • 15. Cheng Khim Seng 0370121F - Asian Formula 3 (AF3) - Formula BMW Asia (FBMW) - Porsche Carrera Cup Asia (PCCA) - Asian Touring Car Series (ATCS) In addition, motor sports themed festivities carnivals or EXPO could be held at Marina Promenade and the Padang. Extravaganza or parties could be launched by the visiting Grand Prix teams to gather support and sponsorships from both local crowds and businesses respectively at our various night spots nearby. There could also be a large scale automotive exhibition being held at The Singapore International Convention & Exhibition Centre during this Grand Prix week. According to the current Formula One Championship calendar, the race season will commence at Australia in middle of March, and with Malaysia hosting the round 2 in late March or in the case of China hosting round 16 of the Grand Prix series which take place in the middle of September where these two periods are potentially low seasons in Singapore. So to have a Grand Prix during either this time of the year would be a strong advantage to attract visitors and inject some event excitement to our community during this period. A&EM community support for F1 - 15 - 9/25/2004
  • 16. Cheng Khim Seng 0370121F 4. Findings from public survey: 4.1 The survey questionnaire Quantitative survey questionnaires were prepared and distributed. With the support from public, friends, colleagues and fellow classmates, a total of 208 responses were received, exceeding the initial target of 200. Of all the responses received, 20% are in printed copies and remaining 80% from email response through an online survey posted onto the internet. A copy of the survey questionnaire is attached in Annex 2 and a full breakdown of the survey results are presented in Annex 3. 4.2 Public awareness and support for Formula One - 65% of the respondents had ever watched a Formula One Grand Prix race. From the cross-tabulation analysis with gender and age group, 83% are Males and 44% Females. The age group of 25 to 34 has the highest percentage at 43% and 22% for Males and Females respectively. (Q1) - 73% would attend if given a chance for Singapore to host the Grand Prix event. From the cross-tabulation analysis with gender and age group, 81% are Males and 63% Females. Once again, the age group with highest percentage for both genders fall between the age group of 25 to 34 with 36% Males and 34% Females. (Q2) A&EM community support for F1 - 16 - 9/25/2004
  • 17. Cheng Khim Seng 0370121F - Out of those respondents who would be coming to the event, 60% would bring their friends along, 19% would come with their family members and 1% would attend alone. From the cross-tabulation analysis with their age group and employment status, the highest percentage among those who would attend with their friends and family members with 41% and 39% respectively fall between the age group of 25 to 34 and they are currently full time employed. (Q3) - Over 80% would be willing to pay for tickets at less than S$150 while only 5% would attend the 3 days events even if the tickets priced above S$300. From the cross-tabulation analysis with their age group and employment status, 46% will pay for tickets at less than S$150 fall between the age group of 25 to 34 and they are currently full time employed and likewise 30% and 57% for tickets between S$150 to S$300 and above S$300 respectively. (Q4) - 72% would watch the race on television. From cross-tabulation analysis with (Q2), 42% of the respondents that indicated not going for the event will actually watched the Grand Prix on television. (Q5) - 49% of the respondent believed that “ticket price is too expensive and no cable TV at home” would be the main contributing factor that discourage them from attending or watching the event. (Q6) A&EM community support for F1 - 17 - 9/25/2004
  • 18. Cheng Khim Seng 0370121F From the encouraging results received from the respondents, it can be seen that majority of our local community are aware about the sports and would want to attend the Grand Prix with their friends and families if given a chance for Singapore to host the event here. With advancement and expansion of media into other delivery systems such as cable television and the internet, those who could not attend the Grand Prix will not missed the actions through live television broadcast. Ticket price and access to cable television are the main factors that will discourage our community from supporting the event. Therefore if our local TV station could purchase the TV rights to broadcast the Grand Prix live like what they had done for the several important matches of the Euro 2004, with the backing from business sponsors, there will surely be a huge substantial increase in both viewership and support for this event. In terms of tickets price, it should also be priced affordable for the local community so that they could share the excitement, be entertained and thrilled by the event. Allen (2002) argues that should the event being produced solely for tourists, without meaning for their own community, it will run the danger of being inauthentic and shallow. As recognised by Khairul (2004), that there is substantial declining interest among local Malaysian and a need to call for a serious review for ticket prices so as to make it realistic for the average Malaysian at Sepang International Circuit (SIC) as other remaining 16 rounds of the Formula One Championship where the Grandstands are filled mainly by local enthusiasts and fans. From the further cross-tabulation analysis on these results, there is a an interesting trend whereby those who supported the event majority fall between A&EM community support for F1 - 18 - 9/26/2004
  • 19. Cheng Khim Seng 0370121F the age group of 25 to 34 and they are currently full time employed. From the secondary data collected, as referenced to table 19 of Census of population 2000, Annex 3, age group between 25 to 34 currently employed has the highest population with 750,771 compared to a total population of 3,197,311 in Singapore. They are the driving force of our economy and the majority of them are either professionals, managers, executives and businessman (PMEB) or married couples with double incomes and no kids (DINKS). With these, we can proof the notion that Formula One fans tend to be young and upwardly mobile, and have disposable income as noted by Hotten (1998: 204). 4.3 National pride and raising the profile of Singapore - 91% believed that by hosting the Grand Prix race in Singapore, it will enhance our international image that we care capable of hosting world-class sporting events. (Q7) - In given an opportunity, 59% would be willing to play a part in making this Grand Prix event successful. (Q9) The Formula One Grand Prix can provide our community with strong platform to showcase our expertise, enhance our international image and promote new business opportunities to attract the interest of entrepreneurs to Singapore. The positive media exposure generated by the event can also illustrate the capacity, innovation and achievements of both our country and our people. A&EM community support for F1 - 19 - 9/25/2004
  • 20. Cheng Khim Seng 0370121F It is heartening to know that our community will back this major event even if they have to put up with temporary inconvenience and disruption because the air of excitement generated, the “feel good” aspect that “the whole world is watching us” and the provision of long term expectation for improvement of facilities and economic benefits. As described by Allen (2002), Australian Formula One Grand Prix in Adelaide was popular among residents. The Grand Prix in 1985 set Adelaide alive… “The spirits infected all of us, including large numbers of people in ‘normal’ times might be expected to be against the notion of this garish, noisy, polluting advertising circus”. Catherwood (1992) noted that International federations and other governing bodies no longer concentrated on awarding events solely on the basis of a community’s population. They are more interested in staging a smooth, well- run event that participants enjoy themselves and were treated well. The key will not be the population because the ticket buyers, for the most part, could come from outside the community. For smaller cites such as us, we can easily focus and work together as a team in a unified community. More than half of the respondents would like to be part of making this major event successful. They could contribute by volunteering to be the track marshals where they will be trained on racing terminology, fire-fighting and first-aid in dealing with car crash. Such specialise skills will be beneficial on only to individual but to our community as a whole. There will also be other temporary jobs created during the Grand Prix week by the race management. As proven by Lilley III (1999), The 1999 Italian F1 Grand Prix at Monza recruited about 2,000 workers for the race week which acts as an economic force to bring all the community A&EM community support for F1 - 20 - 9/25/2004
  • 21. Cheng Khim Seng 0370121F together – male and female, white and blue collar – to work in “extra jobs” that strengthen both the local economy and the local community. Although our current local motor sports scene may be still at its infancy now, but with the exposure and propagation of Formula One and motor racing in our community reaching out to potential followers and fans, perhaps there will be possibility of local born drivers flying our national flag at the Formula One arena in future. 4.4 Potential business opportunities and economic benefits - 95% agreed that the Grand Prix event will attract more visitors and provide more business opportunities to the amenities and facilities nearby. (Q8) - 74% of the respondents had ever purchased or owned products and services with their brand names associated with Formula One. (Q10) From the cross-tabulation analysis with respondents’ age group, employment status and had they ever purchased or owned products and services with their brand names associated with Formula One, the highest percentage with 44% fall between the age group of 25 to 34 and they are currently full time employed. Since this group has both the disposal income and being the highest population, they could be the biggest local market segment that business will target their products and services for. This segment of A&EM community support for F1 - 21 - 9/25/2004
  • 22. Cheng Khim Seng 0370121F consumers will be likely be interested in high technology IT products and gadgetry, entertainment and lifestyles services that could enhance their social status. The Grand Prix event will enable opportunities for businesses to increase their brand awareness to the international audience and drive sales. In addition, it also provides important opportunities for relationship building through hosting partners and clients. Companies may invest in the sponsorship to achieve corporate objectives and sales goals. Local successful home grown businesses such Creative and Hyflux could associate themselves with Singapore Grand Prix through one-race sponsorship programme with the event, facility or with an existing Grand Prix team in return to strengthens their links with the international business community and promote sales for their products. Giant multinational companies use Formula One as billboards for transporting their products and slogans around the world. Racing teams are globally recognised for being linked with global brand names such as Marlboro, Mobil, Canon, Hewlett Packard, Shell, HSBC and Vodafone. As in the case in the upcoming China Grand Prix, Chellam (2004) noted that Shoulo-Huayan Co., China’s largest property development company has signed a one race sponsorship for the Jordan Grand Prix Team to promote their new upmarket apartment, the Beijing Chateau which situated in Beijing’s Central Business District, to market their apartment to both the 1.3 billion people in China and to create international awareness. A&EM community support for F1 - 22 - 9/25/2004
  • 23. Cheng Khim Seng 0370121F Major events are catalysts for attracting non-local visitors by increasing their average spending and the length of stay. Lilley III (1999) noted that Formula One Grand Prix are among some of the major sporting events that have unusual huge percentage of the event spectators that are non-locals. For example in 1997 Austrian Grand Prix, out of the 234,500 spectators during the race week, 96.5% are non-locals. The nature of the non-local spectators at a Grand Prix is critical because these visitors typically come for more than one day and they spend much of their money outside the racing facility and in the host communities. The multiplier effects will channel the expenditures into other local retail businesses and contributes to supporting the long term benefits of the local economies. In Lilley III (1999), the 1999 Italian Grand Prix not only attracted 41% of visitors outside Italy, with the collaboration of the Grand Prix event with the Milan “fashion week”, occupancy reaches 100% for majority of the hotels in the region and the hotel management charge their high season peak rates. Restaurants, food and beverages outlets receiving advance bookings and the revenue increases more than 30% in certain outlets. As Milan area’s has a world wide niche leadership in the appeal and fabrics, retail outlets of big name clothing designers such as Armani and Prada reported boost in sales for their fall and winter collections. Operation hours were extended, with staffs working extra shifts and temporary staffs hired. A&EM community support for F1 - 23 - 9/25/2004
  • 24. Cheng Khim Seng 0370121F 5. Conclusion: Major event such as Formula One Grand Prix requires a host venue whereby it could showcase its uniqueness to increase the profile of the destination and can be designed to act as catalyst for attracting visitors and extend their length of stay. Every event will produce impacts. In this study, social impact involves shared experiences which give rise to local pride and potential economic benefits. The results shown from the above study has demonstrated that the hypothesis, our community will support Formula One Grand Prix to be held on the streets of Singapore has been accepted. Ultimately, whether or not if the Grand Prix could be made possible will be dependent on the relevant government agencies involved following a series of detailed impact studies and economic assessment. Nevertheless, we will be looking forward to this day when the F1 cars could spin their wheels on our public roads. A&EM community support for F1 - 24 - 9/25/2004
  • 25. Cheng Khim Seng 0370121F 6. References and relevant literature: • Hotten, R (1998). Formula One – The Business of Winning • Teh, E WC (1999). TED Case Studies – Formula 1 Racing, The Economy and The Environment (31 August 1999) (website: http//.www.american.edu/ted/formula1.htm) • Bodeen, C (2004). Shanghai Inaugurates F1 Track. Associated Press Newswires (6 June 2004) • Lilley III, W and DeFranco, LJ (1999). The Economic Impact of the European Grands Prix. Federation Internationale de I’Automobile (FIA). (Chapters 1, 2, 9 & 10) • Sawer, P and Baracaia, A (2004). We want F1 Grand Prix every year in London, Says Mayor. The Evening Standard (7 July 2004) • Garside, K (2004). Livingstone revs up F1 bid. The Daily Telegraph (7 July 2004) • Tan, EH (2004). Turning to people power to boost tourism. Today (16 August 2004) • Allen J, Toole WO and McDonnell I (2002). Festival and special event management • Henry, A (1997). Grand Prix Circuits • National Statistical Authority (2004) Census of population 2000. (website: http://www.singstat.gov.sg/keystats/people.html) • Catherwood, DW and Van Kirk, RL (1992). The Complete Guide to Special Event Management - Business Insights, Financial Advice, and Successful Strategies from Ernst & Young, Advisors to the Olympics, the Emmy Awards and the PGS Tour A&EM community support for F1 - 25 - 9/25/2004
  • 26. Cheng Khim Seng 0370121F • Khairul, AM (2004). Think about price before thinking of support. The New Straits Times Press • Chellam, G (2004). Feature: motor racing – China embraces for Formula One debut. Reuters News (16 September 2004) A&EM community support for F1 - 26 - 9/25/2004
  • 27. Cheng Khim Seng 0370121F Annex 1: Streets Circuit Venue Map annex01 9/25/2004
  • 28. Cheng Khim Seng 0370121F Annex 2: Survey Questionnaire annex02 9/25/2004
  • 29. Questionnaire Introduction Hello! I am running a survey on the support for Formula One Grand Prix race to be held on a temporary street circuit in Singapore. Could you please help me with a few questions? (The results of this survey will be used for academic research purpose) Will you support Formula One Grand Prix race in Singapore? Q1. Have you ever watched a Formula One Grand Prix race? (Either on Television or attended any of the events before) (Please tick) - YES - NO Q2. If given a chance for Singapore to host the Formula One Grand Prix race on the streets around Suntec City and City Hall area, would you attend the event? (Please tick) - YES - NO (Skip Q3 & Q4) Q3. Who would you attend the race event with? (Please tick all that apply) - Alone - Friends - Family members - Others Please specify: ----------------------------------------------- Q4. How much would you be willing to pay to attend the 3 days race event? (Please tick) - Less than S$150 - S$150 to S$300 - Above S$300 Page 1 of 3 (If you have any questions regarding this survey, please email: team_poleposition@yahoo.com.sg)
  • 30. Q5. If you are not attending the race event, would you watch it on Television? (Please tick) - YES - NO Q6. What are the factors that would discourage you to attend or watch the race event? (Please tick all that apply) - Not interested at all - Venue inconvenient with road closure - No time; busy with other more important activities - Ticket price is too expensive and no cable TV at home - Others Please specify: ----------------------------------------------- Q7. By hosting Formula One Grand Prix race in Singapore, do you think it would enhance our international image that we are capable of hosting world-class sporting events here? (Please tick) - YES - NO Q8. By having the Grand Prix race event held in Suntec City and City Hall area, do you think it would attract more visitors (both local and overseas) and provide more business opportunities to the retail shops, hotels and restaurants nearby? (Please tick) - YES - NO Q9. If given a chance, would you like to play a part in making this event successful? (Such as volunteers or temporary staffs etc.) (Please tick) - YES - NO Page 2 of 3 (If you have any questions regarding this survey, please email: team_poleposition@yahoo.com.sg)
  • 31. Q10. So far, have you ever purchased and owned any products or services with their brand names that sponsored and associated with Formula One? (Example: Hewlett Packard, AMD, Intel, Panasonic, Shell, DHL & HSBC etc.) (Please tick) - YES - NO Demographic Information Q1. What is your gender? (Please tick) - Male - Female Q2. Which age category do you fall under? (Please tick) - Less than 18 - 18 to 24 - 25 to 34 - 35 to 44 - 45 to 54 - 55 to 64 - 65 and above Q3. What is your employment status? (Please tick) - Employed : Full time - Employed : Part time - Self-employed - Unemployed - Student - Retired Thank you for your time to take part in this survey. Enjoy your day! Page 3 of 3 (If you have any questions regarding this survey, please email: team_poleposition@yahoo.com.sg)
  • 32. Cheng Khim Seng 0370121F Annex 3: Breakdown of survey results annex03 9/25/2004
  • 33. Q1. Have you ever watched a Formula One Grand Prix race? YES (65%) NO (35%) Frequency Table Cumulative Frequency Percent Valid Percent Percent Valid YES 135 64.9 64.9 64.9 NO 73 35.1 35.1 100.0 Total 208 100.0 100.0 Cross-tabulation Which age category do you fall under? What is your gender? Less than 18 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and above Total Male Have you ever YES Count 8 23 49 12 2 0 94 watched a Formula % of Total 7.0% 20.2% 43.0% 10.5% 1.8% .0% 82.5% One Grand Prix race? NO Count 1 7 9 2 0 1 20 % of Total .9% 6.1% 7.9% 1.8% .0% .9% 17.5% Total Count 9 30 58 14 2 1 114 % of Total 7.9% 26.3% 50.9% 12.3% 1.8% .9% 100.0% Female Have you ever YES Count 5 5 21 4 4 2 41 watched a Formula % of Total 5.3% 5.3% 22.3% 4.3% 4.3% 2.1% 43.6% One Grand Prix race? NO Count 14 6 22 6 3 2 53 % of Total 14.9% 6.4% 23.4% 6.4% 3.2% 2.1% 56.4% Total Count 19 11 43 10 7 4 94 % of Total 20.2% 11.7% 45.7% 10.6% 7.4% 4.3% 100.0%
  • 34. Q2. If given a chance for Singapore to host the Formula One Grand Prix race on the streets around Suntec City and City Hall area, would you attend the event? YES (73%) NO (27%) Frequency Table Cumulative Frequency Percent Valid Percent Percent Valid YES 151 72.6 72.6 72.6 NO 57 27.4 27.4 100.0 Total 208 100.0 100.0 Cross-tabulation Which age category do you fall under? What is your gender? Less than 18 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and above Total Male If given a chance for YES Count 9 28 41 12 2 0 92 Singapore to host the Formula One Grand % of Total 7.9% 24.6% 36.0% 10.5% 1.8% .0% 80.7% Prix race on the streets around Suntec City and NO Count 0 2 17 2 0 1 22 City Hall area, would % of Total .0% 1.8% 14.9% 1.8% .0% .9% 19.3% you attend the event? Total Count 9 30 58 14 2 1 114 % of Total 7.9% 26.3% 50.9% 12.3% 1.8% .9% 100.0% Female If given a chance for YES Count 12 5 32 5 4 1 59 Singapore to host the Formula One Grand % of Total 12.8% 5.3% 34.0% 5.3% 4.3% 1.1% 62.8% Prix race on the streets around Suntec City and NO Count 7 6 11 5 3 3 35 City Hall area, would % of Total 7.4% 6.4% 11.7% 5.3% 3.2% 3.2% 37.2% you attend the event? Total Count 19 11 43 10 7 4 94 % of Total 20.2% 11.7% 45.7% 10.6% 7.4% 4.3% 100.0%
  • 35. Q3. Who would you attend the race event with? Alone (1%) Others Friends (60%) Others Frequency Table - Alone Cumulative Frequency Percent Valid Percent Percent Valid Alone 3 1.4 100.0 100.0 Missing System 205 98.6 Family Total 208 100.0 members (19%) Others Frequency Table - Friends Cumulative Frequency Percent Valid Percent Percent Valid Friends 125 60.1 100.0 100.0 Missing System 83 39.9 Total 208 100.0 Frequency Table - Family members Cumulative Frequency Percent Valid Percent Percent Valid Family members 39 18.8 100.0 100.0 Missing System 169 81.3 Total 208 100.0
  • 36. Cross-tabulation - Age category vs employment status vs who do you attend the race with? What is your employment status? Who would you attend Employed : Self-empl the race event with? Full time oyed Unemployed Student Total Friends Which age Less than 18 Count 0 0 0 20 20 category do % of Total .0% .0% .0% 16.0% 16.0% you fall 18 to 24 Count 11 2 1 16 30 under? % of Total 8.8% 1.6% .8% 12.8% 24.0% 25 to 34 Count 51 5 3 2 61 % of Total 40.8% 4.0% 2.4% 1.6% 48.8% 35 to 44 Count 8 0 1 0 9 % of Total 6.4% .0% .8% .0% 7.2% 45 to 54 Count 3 0 1 0 4 % of Total 2.4% .0% .8% .0% 3.2% 55 to 64 Count 1 0 0 0 1 % of Total .8% .0% .0% .0% .8% Total Count 74 7 6 38 125 % of Total 59.2% 5.6% 4.8% 30.4% 100.0% Cross-tabulation - Age category vs employment status vs who do you attend the race with? What is your employment status? Who would you attend Employed : Self-empl the race event with? Full time oyed Unemployed Student Total Family members Which age Less than 18 Count 0 0 0 10 10 category % of Total .0% .0% .0% 25.6% 25.6% do you fall 18 to 24 Count 0 0 0 1 1 under? % of Total .0% .0% .0% 2.6% 2.6% 25 to 34 Count 15 0 0 0 15 % of Total 38.5% .0% .0% .0% 38.5% 35 to 44 Count 9 0 1 0 10 % of Total 23.1% .0% 2.6% .0% 25.6% 45 to 54 Count 1 1 1 0 3 % of Total 2.6% 2.6% 2.6% .0% 7.7% Total Count 25 1 2 11 39 % of Total 64.1% 2.6% 5.1% 28.2% 100.0%
  • 37. Q4. How much would you be willing to pay to attend the 3 days race event? Less than S$150 S$150 to S$300 Above S$300 Not attending Frequency Table Cumulative Frequency Percent Valid Percent Percent Valid Less than S$150 121 58.2 80.1 80.1 S$150 to S$300 23 11.1 15.2 95.4 Above S$300 7 3.4 4.6 100.0 Total 151 72.6 100.0 Missing System 57 27.4 Total 208 100.0
  • 38. Cross-tabulation - Age category vs employment status vs How much would you be willing to pay to attend the 3 days race event? How much would you be What is your employment status? willing to pay to attend Employed : Self-empl the 3 days race event? Full time oyed Unemployed Student Total Less than S$150 Which age Less than 18 Count 0 0 0 18 18 category % of Total .0% .0% .0% 14.9% 14.9% do you fall 18 to 24 Count 11 1 1 11 24 under? % of Total 9.1% .8% .8% 9.1% 19.8% 25 to 34 Count 55 3 3 2 63 % of Total 45.5% 2.5% 2.5% 1.7% 52.1% 35 to 44 Count 11 0 1 0 12 % of Total 9.1% .0% .8% .0% 9.9% 45 to 54 Count 2 1 1 0 4 % of Total 1.7% .8% .8% .0% 3.3% Total Count 79 5 6 31 121 % of Total 65.3% 4.1% 5.0% 25.6% 100.0% S$150 to S$300 Which age Less than 18 Count 0 0 2 2 category % of Total .0% .0% 8.7% 8.7% do you fall 18 to 24 Count 1 1 5 7 under? % of Total 4.3% 4.3% 21.7% 30.4% 25 to 34 Count 7 1 0 8 % of Total 30.4% 4.3% .0% 34.8% 35 to 44 Count 4 0 0 4 % of Total 17.4% .0% .0% 17.4% 45 to 54 Count 2 0 0 2 % of Total 8.7% .0% .0% 8.7% Total Count 14 2 7 23 % of Total 60.9% 8.7% 30.4% 100.0% Above S$300 Which age Less than 18 Count 0 0 1 1 category % of Total .0% .0% 14.3% 14.3% do you fall 25 to 34 Count 4 1 0 5 under? % of Total 57.1% 14.3% .0% 71.4% 35 to 44 Count 1 0 0 1 % of Total 14.3% .0% .0% 14.3% Total Count 5 1 1 7 % of Total 71.4% 14.3% 14.3% 100.0%
  • 39. Q5. If you are not attending the race event, would you watch it on Television? YES NO Others Frequency Table Cumulative Frequency Percent Valid Percent Percent Valid YES 147 70.7 72.1 72.1 NO 57 27.4 27.9 100.0 Total 204 98.1 100.0 Missing System 4 1.9 Total 208 100.0 Cross-tabulation If given a chance for What is your gender? Singapore to host the Male Female Total F YES l O G d If you are not attending the YES Count 79 44 123 race event, would you % of Total 53.7% 29.9% 83.7% watch it on Television? NO Count 11 13 24 % of Total 7.5% 8.8% 16.3% Total Count 90 57 147 % of Total 61.2% 38.8% 100.0% NO If you are not attending the YES Count 14 10 24 race event, would you % of Total 24.6% 17.5% 42.1% watch it on Television? NO Count 8 25 33 % of Total 14.0% 43.9% 57.9% Total Count 22 35 57 % of Total 38.6% 61.4% 100.0%
  • 40. Q6. What are the factors that would discourage you to attend or watch the race event? Frequency table - Not interested at all Cumulative Frequency Percent Valid Percent Percent Valid Not interested at 47 22.6 100.0 100.0 all Missing System 161 77.4 Total 208 100.0 Frequency table - Venue inconvenient with road closure Cumulative Frequency Percent Valid Percent Percent Valid Venue inconvenient with 29 13.9 100.0 100.0 road closure Missing System 179 86.1 Total 208 100.0 Frequency table - No time; busy with other more important activities Cumulative Frequency Percent Valid Percent Percent Valid No time; busy with other more important 46 22.1 100.0 100.0 activities Missing System 162 77.9 Total 208 100.0
  • 41. Q6. What are the factors that would discourage you to attend or watch the race event? Frequency table - Ticket price too expensive and no cable TV at home Cumulative Frequency Percent Valid Percent Percent Valid Ticket price is too expensive 102 49.0 100.0 100.0 and no cable TV at home Missing System 106 51.0 Total 208 100.0 Frequency table - Others Frequenc Cumulative y Percent Valid Percent Percent Valid None. Will sure be 5 2.4 41.7 41.7 there! Safety concern 2 1.0 16.7 58.3 Too old for such event 1 .5 8.3 66.7 Too crowded and limited 3 1.4 25.0 91.7 space Limited audience 1 .5 8.3 100.0 Total 12 5.8 100.0 Missing System 196 94.2 Total 208 100.0
  • 42. Q7. By hosting Formula One Grand Prix race in Singapore, do you think it would enhance our international image that we are capable of hosting world-class sporting events here? YES (91%) NO (9%) Frequency table Cumulative Frequency Percent Valid Percent Percent Valid YES 190 91.3 91.3 91.3 NO 18 8.7 8.7 100.0 Total 208 100.0 100.0
  • 43. Q8. By having the Grand Prix race event held in Suntec City and City Hall area, do you think it would attract more visitors (both local and overseas) and provide more business opportunities to the retail shops, hotels and restaurants nearby? YES (95%) NO (5%) Frequency table Cumulative Frequency Percent Valid Percent Percent Valid YES 198 95.2 95.2 95.2 NO 10 4.8 4.8 100.0 Total 208 100.0 100.0
  • 44. Q9. If given a chance, would you like to play a part in making this event successful? YES (59%) NO (40%) Others (1%) Frequency table Cumulative Frequency Percent Valid Percent Percent Valid YES 123 59.1 59.4 59.4 NO 84 40.4 40.6 100.0 Total 207 99.5 100.0 Missing System 1 .5 Total 208 100.0
  • 45. Q10. So far, have you ever purchased and owned any products or services with their brand names that sponsored and associated with Formula One? YES (74%) NO (25%) Others (1%) Frequency table Cumulative Frequency Percent Valid Percent Percent Valid YES 154 74.0 74.4 74.4 NO 53 25.5 25.6 100.0 Total 207 99.5 100.0 Missing System 1 .5 Total 208 100.0
  • 46. oss- tabulation - Age category vs employment status vs have you ever purchased and owned any products or services with their brand names that sponsored an associated with Formula One? So far, have you ever What is your employment status? purchased and owned Employed : Employed : Self-empl any products or services Full time Part time oyed Unemployed Student Retired Total ith YES th i b d Which age Less than 18 Count 0 0 0 0 18 0 18 category do % of Total .0% .0% .0% .0% 11.7% .0% 11.7% you fall 18 to 24 Count 16 1 1 1 14 0 33 under? % of Total 10.4% .6% .6% .6% 9.1% .0% 21.4% 25 to 34 Count 68 0 5 1 3 0 77 % of Total 44.2% .0% 3.2% .6% 1.9% .0% 50.0% 35 to 44 Count 15 1 2 1 0 0 19 % of Total 9.7% .6% 1.3% .6% .0% .0% 12.3% 45 to 54 Count 4 0 0 1 0 1 6 % of Total 2.6% .0% .0% .6% .0% .6% 3.9% 55 to 64 Count 0 0 0 0 0 1 1 % of Total .0% .0% .0% .0% .0% .6% .6% Total Count 103 2 8 4 35 2 154 % of Total 66.9% 1.3% 5.2% 2.6% 22.7% 1.3% 100.0% NO Which age Less than 18 Count 0 0 0 10 0 10 category do % of Total .0% .0% .0% 18.9% .0% 18.9% you fall 18 to 24 Count 2 2 0 4 0 8 under? % of Total 3.8% 3.8% .0% 7.5% .0% 15.1% 25 to 34 Count 20 2 2 0 0 24 % of Total 37.7% 3.8% 3.8% .0% .0% 45.3% 35 to 44 Count 5 0 0 0 0 5 % of Total 9.4% .0% .0% .0% .0% 9.4% 45 to 54 Count 2 1 0 0 0 3 % of Total 3.8% 1.9% .0% .0% .0% 5.7% 55 to 64 Count 1 0 0 0 1 2 % of Total 1.9% .0% .0% .0% 1.9% 3.8% 65 and above Count 0 0 0 0 1 1 % of Total .0% .0% .0% .0% 1.9% 1.9% Total Count 30 5 2 14 2 53 % of Total 56.6% 9.4% 3.8% 26.4% 3.8% 100.0%