Even with no definite date for the Singapore Grand Prix, hotels on the proposed F1 route are already reporting a huge number of requests for room bookings for likely weeks.

The phones started ringing within minutes of the official announcement that Singapore will be hosting the race from 2008, hoteliers said.

Industry sources also told BT that corporates like Daimler-Chrysler and some of the banks had made big block bookings for their premium clients at Swissotel The Stamford, one of the hotels along the route, while other hotels have reported heavy corporate bookings even though there is no word on when the motor race will he held.

At the Pan Pacific, public relations manager Cheryl Ng said: 'The hotel began receiving inquiries for accommodation shortly after the announcement was made.' Other hotels along the route include Marina Mandarin, The Oriental, Ritz-Carlton, Conrad, Raffles Hotel, and The Fullerton.

The money will not all be flowing one way. The hotel trade will, however, be expected to help stump up some of the $150 million the event is expected to cost - but reactions to the F1 cess announced yesterday were generally positive. 'We're supportive of it,' said Ritz-Carlton's director of public relations Evelyn Yo.

Marina Mandarin's general manager Tony Cousens said: 'F1 will be a great event for Singapore, fantastic international positioning for Singapore and, as such, as with other destinations for events, a levy to support it will be understandable.'

Likewise at Pan Pacific, where Ms Ng said: 'The confirmation of this event is extremely encouraging, not only for the hotel but for the outlook for the hospitality industry on the whole and with this news, the hotel will be starting a committee to begin preparations for this event.'

The general manager of Royal Plaza on Scotts, Patrick Fiat, said: 'It's definitely a big boost for tourism in Singapore and one of the best things that can happen for the branding of the country.'

Hoteliers were, however, unwilling to comment immediately on how room rates will be affected by the levy and by the race it is intended to help pay for. While acknowledging that the Grand Prix will be an excellent opportunity to boost business, most said they would need more time to assess the supply and demand situation at the time.

'Although it is too early to predict the rate changes at this stage, we expect an increase,' said Ms Ng.

'This will become clearer once we have an idea of the final concept - day or night - which will generate the expected tourist arrival numbers and subsequently, the demand. This is encouraging for local hotel rates in general, which are still behind other Asian cities like Shanghai and Hong Kong.'

Even without this new attraction, hoteliers were already looking forward to a 20 per cent year-on-year rise in room rates.

Clearly, with the addition of the race cess, they can be seen to rise by at least 50 per cent - although the experience in other F1 cities like Monaco and Melbourne suggests that rates could be at least 2-3 times the normal charges during the race period.