Singaporeans can expect to fork out hefty sums if they want to see Fernando Alonso and Co speeding along Esplanade Drive in Formula One cars on race day.
According to an investment research report released by DMG & Partners Securities yesterday, "the cost of attending the race will almost certainly be high".
"The cost of a grandstand seat at any of F1?s 17 races this year starts at $600," said the report.
"Most circuits charge at least $350 for a normal ticket."
DMG is a partnership between the OSK Group and the Deutsche Bank Group, with over 19 years in the stock-broking business here.
Talk of Singapore hosting an F1 race has been brewing, especially in the last few weeks.
Last month, F1 supremo Bernie Ecclestone was in town for discussions with hotel tycoon Ong Beng Seng.
A deal could be sealed as early as this week.
A night race on a 4.8-km Hermann Tilke-designed street circuit in the Marina and Esplanade area is being proposed.
Cost is not the only issue. Putting the race together will be a 'logistical nightmare'.
The report noted that the circuit would take at least 10 days to set up, and 25 days to be dismantled.
It said: "If the race does come, the public will have to come to terms with road closures and diversions, delays, traffic jams, big crowds and security checks for at least a week."
Safety is another major concern, as it will be held in the downtown area in front of over 100,000 spectators with cars hitting speeds of 300 kmh.
Those concerns notwithstanding, a grand prix here will provide spin-offs for several sectors of the economy.
Hotel owners are set to benefit, as room rates are known to double or triple during such an event. An influx of tourists and spectators will result in higher occupancy rates.
This will boost companies such as Singapore Land, which owns an effective 26.5 per cent in three hotels - Pan Pacific, Oriental and Marina Mandarin. The three are situated along the race route.
Hotels in the peripheral area - along Orchard Road and Beach Road - also stand to gain.
Another sector is the night spots. Said the report: "With the circus in town, and the paparazzi in tow, we can expect flash inputs and glamour."
Thus, companies such as FJ Benjamin, which has a 33 per cent stake in mega nightspot St James Power Station, are expected to thrive.
An F1 race will also benefit construction and logistics contractors.
Roads will have to be resurfaced, repaired and maintained to meet competition standards. Hospitality tents and marketing stalls need to be set up.
The transport sector will also have reasons to smile, with airlines such as Singapore Airlines and taxi operators set to benefit.
