Vietnam is going to hose our first ever F1 race in April 2020. It will be a historic moment for my home country since as far as I can remember, we never have an international sporting event. As an F1 fanatic, I am excited about my fellow Vietnamese getting to know the sport I love. However, do host countries usually benefit from hosting an F1 event? Let’s take a look at a few cases
The bull case
In 2017, Singapore Tourism Board announced its plan to retain the race through 2021. STB outlined its rational below:
The announcement comes against the background of a year-to-date 19% increase in ticket sales, with the weekend sales still to be included. In its first decade, the race has yielded significant economic benefits, attracting over 450,000 international visitors to Singapore and about S$1.4 billion in tourism receipts. With more than 90% of the race organisation sub-contracted annually to Singapore-based companies, the race also contributes to the local economy, over and above the tourism outcomes. This event has also showcased Singapore as a beautiful, vibrant and attractive destination to over 780 million international broadcast viewers.Source: Singapore Tourism Board
If you watch F1 often enough like I do, drivers love to come to Singapore and it’s one of the most anticipated races on the calendar. In 2018, the race attracted the second biggest crowd, only behind the inaugural race in 2008. Hence, it is safe to say that Singapore benefits from having an F1 race.
Bahrain became the first country in the Middle East to host an F1 race in 2004. Since then, it has become one of the favorite tracks of drivers and fans. According to an E&Y audit report in 2015, the race generated a net gain of $95 million for the country and added multiple jobs directly. It was also reported that the race ignited some aspects of the country’s economy. As a result, Bahrain is a beneficiary of F1’s draw.
I didn’t know much about Azerbaijan or its capital Baku until 2016 when it first joined the F1 calendar. Since then, Baku has been responsible for some of the most exciting races. In 2018, a PwC report claimed that “more than $270 million has been added to the local economy as a result of the race, $164 million of which is “direct spend” or money spent by visitors and participants”. the 2018 race attracted 94,000 attendees and was watched by millions of viewers around the world.
The bear case
- Indian GP ran only for three years and was discontinued after 2013 due to the lack of attendance
- Korean GP was cancelled after three years as well after failing to generate interest and money
- Malaysian GP was stopped after almost 20 years of hosting a race since the “numbers don’t add up any more”
It is telling that two new Asian races were discontinued after 3 years due to financial infeasibility. Whether Vietnam will follow the footsteps of Singapore or become another example of the bear case category above remains to be seen. A lot will depend on the execution and whether the races will be good. For the sake of my country, I hope that we will strive to emulate the success that Singapore has had.