SINGAPORE, March 6, 2009 (AFP) - Singapore on Friday slashed a levy collected from hotels to help fund the island's Formula One Grand Prix.

"This is a special measure for hotels this year, taking into consideration the current economic downturn," the Singapore Tourism Board said.

The levy was imposed for five days during last year's inaugural race - the world's first F1 night event - but this will be reduced to four days from September 24-27 in this year's edition.

The rates will remain unchanged at 30 percent of total revenues from rooms and room packages for 13 trackside hotels, and 20 percent for all other tourist hotels in the city-state, which is now entering its worst economic recession.

Last year's race on a street circuit in downtown Singapore generated tourism receipts of 168 million Singapore dollars (109 million US) and drew more than 40,000 visitors, the tourism body said.