Economic Impact of Formula One Grand Prix
Click here to view our Economic Advisory Services
Formula One Grand Prix plays an important role in promoting the client's country to the world and generates significant economic, social and cultural benefits to the country. Our client, the government authority of the host country partially funds the Grand Prix and supports it as part of its broader strategy to globally promote the country and generate employment, inward investment, tourism attraction and infrastructure development.
The Grand Prix organisers’ challenge was to measure and demonstrate the benefits of hosting the event on the country's economy.
The grmc solution
grmc was commissioned by the client to undertake Economic Impact Assessment of the Formula One Grand Prix event. A significant component of this exercise was to monetise the net additional economic and social benefit the Formula One event attributes to the country.
We individually assessed the direct, indirect and induced economic impacts associated with the event, allowing for the precise evaluation of economic interdependencies between sectors within the catchments area. In addition, our research measured the employment and social effects of staging the event.
grmc has worked with the client from the inception stages of Formula One racing in the country and has been the retained advisor on the project going forward. In essence, our work assisted the client in assessing the international exposure gained by hosting the event; the economic value of international tourism; employment generation and growth in broader business activity; and the sports infrastructure and urban regeneration.
Our findings were used by the client to brief the government, sponsors and key stakeholders regarding the benefits, and the economic and social value created as a result of staging the event. Underpinned by the success of hosting the Formula One Grand Prix, and its continued contribution to the economy has prompted further development of the area. Organisers and stakeholders have attracted US$ 2 billion in investment to create mixed-use leisure and entertainment facilities adjacent to the circuit.