SIA signs on as new title sponsor of Singapore GP

SINGAPORE — One of the Republic’s most iconic brands has signed on as co-pilot of one of the nation’s biggest and glitziest sporting events, the Formula 1 Singapore Grand Prix.

Singapore Airlines (SIA), the national flag carrier, was unveiled as the title sponsor of the race — to be held from Sept 19 to 21 — at the SIA Training Centre yesterday, signing a two-year deal with the Formula One Group that is believed to be worth between S$10 million and S$15 million a year. The title sponsor will have the option to renew the deal when it expires after next year.

Generally regarded as the crown jewel of the 19-race Formula 1 calendar, Singapore’s race, which is held at night, was previously known as the Formula 1 SingTel Singapore Grand Prix, with local telecommunications giant SingTel as the title sponsor since the inaugural race at the Marina Bay street circuit in 2008.

SingTel said yesterday the race had strengthened its reach as a global brand and that it was “pleased to see another flagship Singapore brand taking over the reins”.

A partner of the Singapore Airlines International Cup, SIA had also previously sponsored the Singapore Sports Awards and 2010 Youth Olympic Games. Its latest tie-up is expected to be the airline’s biggest sports sponsorship deal to date.

“Since the inaugural race in 2008, the Singapore Grand Prix has become known for its exciting street circuit in Singapore’s famous business district,” said SIA Chief Executive Officer Goh Choon Phong. “The benefits of the race weekend are numerous … it brings in lots of tourists and conferences that are also organised to coincide with the Singapore Grand Prix.”

All three parties — F1, Singapore GP and SIA — were in negotiations for about four months and Singapore GP Chairman Ong Beng Seng pointed out the Singapore GP would benefit from SIA’s global reach, which extends over 60 cities in more than 30 countries.

“Given the iconic brand’s phenomenal global reach, this synergistic partnership will provide the widest exposure and fantastic opportunities in the promotion of both Singapore and F1 around the world,” said Mr Ong in a statement.

Singapore GP Executive Director Michael Roche also believes that the partnership will help them reach out to tourists outside the traditional markets such as Australia and the United Kingdom.

A study by the Boston Consulting Group showed that the Singapore race attracted about S$560 million in incremental tourism receipts from 2008 to 2011, with 50 per cent of an expected S$2 billion in net economic benefits from 2013 to 2017 expected to come from direct tourism spending.

Mr Roche said: “There are still other markets that we want to develop more, but we don’t have the presence there or the ability necessarily, because of language differences and all, to really penetrate. Places like India, we’ll really like to develop and bring in more tourism. The alliance with SIA will really help.”

Aside from the adrenaline-pumping action on the circuit, the Singapore GP has also gained a reputation for delivering good entertainment acts off-track such as Beyonce, Justin Bieber and The Killers. Taiwanese rock band Mayday have confirmed their race-day gig on Sept 19 and Singapore GP told TODAY the new partnership with SIA will not affect the line-up of entertainment and fringe activities during the three-day event.

However, Mr Roche warned that it was crucial to maintain a “balancing act” between keeping ticket prices affordable and “making sure it (event) looks fresh”.

He said: “We don’t have that luxury of just jacking up prices all the time. It’s a balancing act all the time to do that.”

He also warned of rising entertainment costs. “We’re a car race and we have supporting entertainment,” he said.

“One of the problems with the music industry these days is, because of the whole business model of the demise of CD, the artistes’ fees have skyrocketed in the last two years and that’s something we are having to manage. So we’ve got to innovate all the time, but it’s not just about pouring money into it and spending more; that doesn’t necessarily get you what you need. But we always want some surprises.”