In a recently published report, the Monegasque Institute of Statistics and Economic Studies (IMSEE) assesses the economic benefits of the 2017 Formula 1 Grand Prix in Monaco at 90 million euros over a period of four days and within an area of two square kilometres (21.7 million in direct benefits and 68.3 million in indirect benefits).*
These numbers confirm that the Formula 1 Grand Prix is the most important event held in the Principality. Beyond the figures themselves, the economic benefits far exceed the four days of the event and Monaco’s borders alone.
The hotel sector benefits fully from this period, during which the Principality’s hotels enjoy occupancy rates approaching 100%. These four days are a decisive event in the industry’s calendar, and a “good Grand Prix” is synonymous with a good year for the sector.
The number of “participants” was estimated at between 50,000 and 65,000 depending on the day, with a total of more than 200,000 over the period from 25 to 28 May. The study shows that in addition to those in the stands, many more spectators watch this urban circuit from terraces, roofs, balconies and boats. These temporary stands generate significant income over and above ticket sales. Numerous service providers and intermediaries benefit from the event’s appeal (rental of terraces and boats, catering services, transport, event organisers, etc.). It is estimated that 40% of those present in Monaco during the Grand Prix do not have direct sight of the race.
Unlike other events, the Grand Prix has an impact on all of the Principality’s businesses; it is truly the Grand Prix of Monaco, an event involving an entire country and an entire city, which transforms and organises itself for the occasion.
Numerous events take place on the side-lines of the races themselves. Over the last few years, the audience arriving in Monaco for the Grand Prix, previously made up of motor-racing fans, has become more diverse and now includes some visitors who come to enjoy the atmosphere and the celebratory events around the races.
The Grand Prix is an integral part of how the Principality is perceived abroad. The benefits in terms of image and renown are difficult to quantify but each year, the event draws media coverage across all five continents.
Beyond the Principality’s borders, the Formula 1 Grand Prix has an economic impact on the neighbouring region, in terms of both the jobs that it creates and the accommodation and businesses used by participants.
In addition to the traditional race, other motor-racing events have been created in the wake of the Formula 1 Grand Prix: the Historic Grand Prix and the ePrix. While the economic impact of the ePrix has so far been muted, the Historic Grand Prix consolidates its success with each new event.
At the end of the day, this assessment offers a minimum evaluation of the overall economic impact of the Grand Prix, since the induced benefits are difficult to quantify but certainly match the importance and reputation of the event.
* The document features an assessment of the money spent by the event organisers (direct benefits) and by all participants and visitors to Monaco (indirect benefits). Only visitors arriving for the Grand Prix and during this four-day period (25 to 28 May 2017) have been taken into account.
Originally published at Government Portal