By Sara Israfilbayova
Azerbaijan’s revenues from the Formula 1 races amounted to $277.3 million. A report issued by “PricewaterhouseCoopers” (PwC) says that the Formula 1 races in Baku had a considerable positive impact on the country’s economy.
The final figure of $277.3 million is a combination of the direct and indirect results of operational spending linked to the arrival of F1 in Baku, 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 biggest beneficiary of this direct spend - defined in the report as the change in sales in those industries directly engaged in providing goods and services to F1 guests and participants (e.g., hotels, restaurants, transportation services, etc.) and most directly associated with spending carried out by visiting guests and participants of the Formula 1 Grand Prix of Europe (2016) and Azerbaijan Grand Prix (2017) - was the tourism industry which has seen an impact of $22.7 million over the course of the two Grands Prix to have taken place in Baku to date.
The total impact of direct spend came to $164.2 million across the two Grands Prix.
Indirect spend – defined here 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 – had an equally beneficial impact on Baku’s burgeoning tourism industry with a collective total of $14.9 million since the first race was staged on the streets of Baku in 2016.
The combined indirect spend that can be attributed to F1’s arrival in the Azerbaijani capital over the race weekend comes to an impressive $113.1 million.
Baku City Circuit’s Executive Director Arif Rahimov commenting on the results said that results are encouraging and satisfying.
“Ever since we brought this major sporting event to our capital city, we have been keen to stress that this wonderful spectacle is more than just a showpiece event but instead a catalyst for economic, social and cultural change that will continue to drive this city – and indeed this country – forward and provide increased opportunities and benefits for everyone living and working here,” he noted.
Unlike 2016, when the race was for the first time held in the Land of Fire, since 2017, the country joins the race with a different name, as Formula 1 Grand Prix in Baku was renamed to the Grand Prix of Azerbaijan.
The 2017 F1 race weekend in Baku was widely recognized as the most exciting and unpredictable race of the season by fans, media and the Paddock. The 2018 Formula 1 Azerbaijan Grand Prix is scheduled for April 27-29.
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