F1 Race To Give Boost To Shops And Restaurants

Source : The Business Times, October 10, 2007

Ex-sponsorship chief sees property price hikes along route

Business will race ahead for shops and restaurants along the Formula One (F1) circuit, and tenants in office buildings in the area also stand to benefit, a sports management specialist said yesterday.

Mark Gallagher, who heads Eden Rock Sports and was sponsorship and marketing chief for the Jordan and Red Bull F1 teams, reckoned retailers and F&B operators will see business spiking during race week in September 2008, as tens of thousands of tourists flock into town.

He said that restaurants can be expected to offer week-long race promotions. And office tenants with a view of the circuit can either hold corporate parties on race day or allow outside operators to use the space.

Mr Gallagher, who has more than 20 years' experience of F1, was in Singapore yesterday to speak to tenants of One Raffles Quay (ORQ) and future occupants of Marina Bay Financial Centre (MBFC) to help them consider the impact and opportunities arising from Singapore's addition to the F1 calendar.

ORQ tenants that BT spoke did not rule out the idea of holding parties in their offices, but most said they would prefer to lock down trackside hotel venues with luxury facilities not found in their offices.

'We are looking at organising something around the race but nothing has been fixed up yet because it is still early,' said a foreign bank with its headquarters in ORQ. The bank said it is considering only hotels at the moment.

Mr Gallagher estimated that major companies could fly in 10,000 to 12,000 corporate guests for the race. The race is expected to bring in about 80,000 tourists in all.

He also said residential and commercial property prices could get a boost - especially in the immediate vicinity of the race track.

'In Monte Carlo, for example, there is no question that most people who buy property now try to buy property near the track,' he said.