Why hosting an F1 Grand Prix gives cities a multimillion-dollar boost
Securing a spot on the coveted Formula One calendar packs an economic punch for its host city.
The most financially successful event to date was the first-ever Grand Prix in Las Vegas, which generated close to $1.5 billion in economic value, according to local officials.
The figure, which included visitor spending, job creation and tax revenue, broke local records as well – generating more local and state taxes than any other event in Las Vegas history.
But communities had been feeling F1’s local impact even before it broke into the United States.
“It’s a real shot in the arm for the local economy here,” said Stuart Pringle, CEO of the Silverstone Circuit, home to the very first F1 race in Britain.
Pringle told CNBC’s “Inside Track: The Business of Formula 1” that the local community benefits from an additional £100 million ($130 million) as a result of the British Grand Prix.
“Although we are only a permanent headcount of 250 or so people here at the circuit, that scales up at its peak to 12,000 people to deliver the Formula One British Grand Prix. That is an awful lot of additional jobs,” Pringle said.
The Australian Grand Prix’s economic impact came in around 266 million Australian dollars ($180 million) in 2023, according to EY.
“Melbourne has a reputation of being the event capital of Australia, and so to have a big global event, such as the Formula One, it is something that we hold very dear to us,” said Travis Auld, CEO of Australian Grand Prix Corporation.
“We think it provides enormous economic impact to the state of Victoria and to Melburnians,” he added.
From Melbourne and Monaco to Abu Dhabi and Silverstone, learn more about F1’s local impact by watching the video above.
#hosting #Grand #Prix #cities #multimilliondollar #boost