Azerbaijan GP claims $500m boost from hosting F1 race

Azerbaijan GP organisers claim that their Formula 1 race has contributed over $500m to the local economy over its four-year existence.

Azerbaijan GP claims $500m boost from hosting F1 race

The numbers were compiled by global accounting giant PricewaterhouseCoopers on behalf of Baku City Circuit in a follow-up to a review conducted after the first two races at the street venue.

The race, which ran under the European GP title in 2016, is known to pay one of the highest annual hosting fees of the season, and the report will be a useful tool to help justify the ongoing expense of holding the race.

Last February, its deal with the F1 organisation was extended to 2023.

The numbers will also provide a PR boost for other would-be race promoters are trying to put deals together.

According to BCC, the total figure of US$ 506.3m "is a combination of the direct and indirect results of operational spending linked to the arrival of F1 in Baku for the past four race weekends, taking into account the spend across various sectors including the professional services, hotels and general accommodation, catering, transport, social and cultural services, agriculture, post and telecommunications, wholesale trade and electricity, gas and water amongst others".

The figures are divided into two main categories. Direct spend on goods and services such as hotels, restaurants and transport services was valued at $300.6m over the four years of the race.

Indirect spend, defined as "any additional revenue received by those companies and businesses that sell goods and services to other organizations that are, in turn, direct suppliers for the Formula 1 Grand Prix," and which includes the construction, manufacturing, business and social services sectors, reached a total of $205.7m.

BCC points out that the race created 5-10,000 medium-to-short term jobs in the first two years, and up to 7,500 over the past two seasons, adding that its focus "was to give young Azerbaijanis their first taste of working on such a major international events, thus providing a new generation with unprecedented work experience opportunities as well as a crucial step on the career ladder in the process".

The company says that the event has also contributed to the "intangible fields of national brand reputation and raising global awareness of Azerbaijan as a modern, dynamic country capable of staging world class sporting and entertainment events".

BCC stressed the value of global media exposure, with 82.3m TV viewers in 2018, and 90.2m in 2019.

"We have always emphasised that F1 in Baku is more than just a showpiece event," said BCC executive director Arif Rahimov. "But instead a spark for economic, social and cultural change that will create increased opportunities and benefits for everyone living and working here.

"As made clear in this report, the past few years have exceeded our wildest expectations in this regard.

"Now that we have agreed our new contract with F1, which guarantees racing in this city until 2023 at least, we look forward with increased confidence and optimism to many more years of success hosting the pinnacle of motorsport here in Baku."

shares
comments
Nissany gets Williams practice outings in new test driver role
Previous article

Nissany gets Williams practice outings in new test driver role

Next article

Only "rabbit out of a hat" can cost F1 its 2020 "classic"

Only "rabbit out of a hat" can cost F1 its 2020 "classic"
Load comments
Spanish Grand Prix Driver Ratings 2022 Prime

Spanish Grand Prix Driver Ratings 2022

In an unusually hectic Formula 1 Spanish Grand Prix, Charles Leclerc was denied a dominant performance by his Ferrari engine letting go which allowed Max Verstappen to pick up the pieces. But numerous flashpoints kept the race twisting and turning throughout, with one perfect score from an emerging contender

How Verstappen overcame his and Red Bull’s errors to win in Spain Prime

How Verstappen overcame his and Red Bull’s errors to win in Spain

Charles Leclerc’s Ferrari engine disaster offered an open goal for Max Verstappen and Red Bull to strike, but the reigning Formula 1 world champion still had to solve multiple errors and profit from a begrudged assist from team-mate Sergio Perez, which created an unexpectedly eventful Spanish Grand Prix

Why Red Bull can win a Spanish GP that looked perfect for Ferrari Prime

Why Red Bull can win a Spanish GP that looked perfect for Ferrari

Formula 1's return to Spain on Friday ended with Ferrari leading the way from Mercedes, while Red Bull could only manage third fastest overall courtesy of Max Verstappen. But its chances of victory are far from remote with a deeper dig into the times despite Ferrari's strong start...

Formula 1
May 20, 2022
The key aspects of Porsche and Audi's planned F1 entries Prime

The key aspects of Porsche and Audi's planned F1 entries

The VW Group’s German superpowers of sportscar racing have all but confirmed they are coming to F1 when the next set of engine rules come into force in 2026. Here's why both manufacturers are all set to take the plunge, and crucially how it might work

Formula 1
May 19, 2022
How Vegas went from byword for F1 indifference to grand Liberty coup Prime

How Vegas went from byword for F1 indifference to grand Liberty coup

Holding a race in Las Vegas – party central, a city of dreams and decadence and, yes, more than a smattering of tackiness – has been on Liberty Media’s most-wanted list since it acquired Formula 1’s commercial rights. But, as LUKE SMITH explains, F1 has been here before and the relationship didn’t work out

Formula 1
May 18, 2022
Why de Vries' FP1 outing could add a new path to his current crossroads Prime

Why de Vries' FP1 outing could add a new path to his current crossroads

A Formula 2 and Formula E champion, Nyck de Vries is currently considering where his future in motorsport lies. Continuing in WEC and Formula E is possible and he's also courted glances Stateside after impressing in an IndyCar test. But ahead of his Formula 1 FP1 debut with Williams, he could have another option if he impresses...

Formula 1
May 18, 2022
Why Leclerc's crash shouldn't put off F1 drivers tasting history Prime

Why Leclerc's crash shouldn't put off F1 drivers tasting history

OPINION: For a demo run ahead of Monaco's Historique Grand Prix, Charles Leclerc was blessed with the opportunity to drive Niki Lauda's former Ferrari 312B3 - but a brake failure at Rascasse suggested Leclerc's Monaco hoodoo transcended contemporary F1. Although an awkward incident, Leclerc deserves credit for embracing F1's history.

Formula 1
May 18, 2022
Why the lack of "needle" between Red Bull and Ferrari is a mirage Prime

Why the lack of "needle" between Red Bull and Ferrari is a mirage

OPINION: The fight for the 2022 Formula 1 world titles between Red Bull and Ferrari so far features little of the public animosity that developed between the former and Mercedes last year. But that isn’t to say things are full on friendly or won’t get much worse very quickly…

Formula 1
May 17, 2022