THE Singapore government’s recent move to raise liquor excise duties by 25 per cent will add to the F&B bill for corporate functions but DMCs in the city-state said it is still early days to determine how this will impact the way clients conduct their events.
The 25 per cent hike means a litre of beer than once cost S$48 (US$38) will now be S$60.
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World Express’s managing director Darren Tan, said: “This will definitely increase the expenditure of MICE events if organisers are budgeting for wine and beer in the programme.”
Tan explained that alcohol usually made up 25 per cent of the total dinner bill.
“However it is still too early to assess the real impact and, anyway, Singapore has been known to be an expensive destination for alcohol all along,” he added.
Dynasty Travel’s marketing communications director, Alicia Seah, believes that Singapore’s pricier alcohol will not affect clients much “as they are looking at an entire budget for MICE events”.
David Donald, general manager of Parkroyal on Beach Road, who estimates alcohol consumption to make up at least 15 per cent of the MICE event cost, also downplayed the impact of the tax hike.
“The increase is translated to approximately S$0.40 per glass of wine or S$0.20 per glass of beer,” he pointed out.
Having said that, Donald told TTGmice e-Weekly that the hotel intends to absorb any additional cost resulting from the higher liquor excise duties.
For clients who are concerned about heavier event bills as a result of the tax hike, World Express’ Tan suggested: “Go on consumption basis for small groups, and reduce the beverage package duration for larger groups.”
Seah also offered this advice: “We can look for cost savings in other areas such as complimentary meeting spaces, reduced room rates or free upgrades for VIP delegates.”
