## Thursday, October 02, 2008

### there's something about ..... sgp economics

This is more for my reference.

Cost to stage SGP= \$150m

Cost of Pit building = \$40m to be amortised over 5 years. so Annual cost is \$8m

So cost to stay SGP = \$118m annually.

50,000 tourists spent \$2000 not including shopping and tickets = \$100m
50,000 tourists spent approximately \$1000 on shopping = \$50m

RBS, DHL, Noble Grp Banner on track = reckon total sponsor to be \$10m to \$15m.

Drinks of \$3 for mineral water, \$8 for coke, \$10 for beer, assuming 100,000 spectators to spend averagely \$6 = \$600k per night. x 3 nights = \$1.8m, this tendered out to Raffles Hotel, assuming \$1m.

100,000 spectators. Reckon average ticket cost to be \$1000 = \$100m

Direct revenue = \$100m+1m+10m+10m = \$121m
Indirect government revenue = \$100m x 0.8 = 80m of hotel charges x 0.3 of hotel tax = 24m
GST on shopping = \$50m x 0.07 = \$3.5m

SGP is joint venture between Government and HPL 60% to 40%

Total cost to Government = \$90m
Direct revenue = \$121 x 0.6 = \$73m
Indirect revenue = 24 + 3.5 = \$28
Total revenue = \$101m
Free advert to 500m worldwide audience = free.

Total cost to HPL = 60m
Direct revenue = \$121 x 0.4 = 48.4m
Not possible. Assumption of revenue splitting inaccurate.

Total revenue = \$121 + 27.5 = \$148.5m
Total cost = \$118m
Profits = 30m