A spot in the coveted Formula 1 calendar would bring a financial hit to the host city.
The most financially successful event to date was the inaugural Grand Prix in Las Vegas, which generated nearly $1.5 billion in economic value, according to local officials.
The numbers, which include visitor spending, job creation and tax revenue, also broke local records — generating more local and state tax revenue than any other event in Las Vegas history.
But long before F1 broke into the United States, communities were already feeling its local impact.
“This is a big shot in the arm for the local economy here,” said Stuart Pringle, chief executive of Silverstone, the venue for Britain’s first F1 race.
Pringle told CNBC’s “Inside Track: Formula 1 Business” that the British Grand Prix brought an additional £100 million ($130 million) to the local community.
“While we only have about 250 permanent staff at the track, at peak times, for the Formula 1 British Grand Prix, our workforce increases to 12,000. That’s a lot of extra jobs,” Pringle said. I said.
According to EY, the economic impact of the Australian Grand Prix will be approximately A$266 million (US$180 million) by 2023.
Travis Auld, chief executive of the Australian Grand Prix Company, said: “Melbourne has a reputation as the racing capital of Australia, so we attach great importance to hosting large-scale global events like Formula One.”
“We think this has a huge economic impact on Victoria and Melburnians,” he added.
From Melbourne and Monaco to Abu Dhabi and Silverstone, watch the video above to learn more about F1’s local impact.
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