The Economics Of Street Racing
The Economics Of Street Racing – The Formula 1 Grand Prix is not just a thrilling motorsport event. It is a global phenomenon that has a significant economic impact on the host city and country. Beyond the roar of the engines and the excitement on the track, hosting a Formula 1 Grand Prix can have far-reaching effects on the local economy, from tourism and infrastructure development to brand exposure and job creation. are
One of the most immediate economic benefits of hosting a Formula 1 Grand Prix is the influx of tourists. These events attract not only motorsport enthusiasts but also curious travelers from around the world. The thrill of watching world-class drivers compete on famous circuits can draw a significant number of international visitors to the host city. This influx of tourists increases hotel bookings, restaurant visits, and other spending at local attractions, boosting the local hospitality and entertainment sectors.
The Economics Of Street Racing
Hosting a Formula 1 Grand Prix often requires significant investment in infrastructure. To accommodate the event and its participants, cities must upgrade transportation systems, roads, and other critical facilities. While these investments can be substantial, they can also lead to long-term benefits for the host city. Improved transportation networks and modern amenities can enhance the overall quality of life for residents and create a lasting legacy that extends far beyond the race weekend.
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The global appeal of Formula 1 ensures that the host city receives wide international brand exposure. As millions of viewers tune in to watch the race on television and online, the city’s landmarks, culture and lifestyle are showcased, creating a powerful marketing opportunity. This exposure could attract future tourists, investors and businesses, and cement the city’s position as a global destination.
The preparation and execution of a Formula 1 Grand Prix requires a variety of skills and competencies, creating jobs in a variety of sectors. From event management and hospitality to security and logistics, event hosting creates temporary employment opportunities. Additionally, increased economic activity and improved infrastructure can also stimulate long-term job growth, benefiting local communities even after the race weekend.
Local businesses, from souvenir shops to restaurants, experience a surge in demand during a Formula 1 event. Entrepreneurs often capitalize on the influx of visitors by offering ethnic merchandise and unique experiences. This not only generates additional revenue but also helps establish the city as a dynamic and vibrant destination for future travelers.
Beyond the high-speed drama on the track, hosting a Formula 1 Grand Prix has tremendous economic potential for the host city and country. The combination of sports, tourism, and infrastructure development creates a ripple effect that can be felt across multiple sectors. As the world watches, the host city reaps the benefits of increased tourism, improved infrastructure, increased brand exposure, job creation, and increased local business activity. While the immediate benefits are obvious, the lasting impact can be seen in the legacy left behind, transforming the host city into a globally recognized destination that benefits for years to come.
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Michael Luzich is a Las Vegas businessman, founder of Luzich Partners, and an international racer and race car collector. Learn more at http://.org For international expansion, NASCAR’s Grant Park race—similar to popular global events like the Monaco GP—boosts Chicago’s economy with a $109M impact.
Start your engines. NASCAR’s Grant Park 165 Street Race is being held once again this summer. From July 6-7, Grant Park will not only host the race, but also concerts by The Black Keys, Keith Urban, and Lauren Alaina.
Many other global cities host street races, most notably for Formula 1. In fact, some famous races take place on city streets, such as the Monaco Grand Prix, the Singapore Grand Prix, and the race held at the Baku City Circuit in Azerbaijan.
But in America, street racing is relatively less common. While Formula 1 has hosted races in the U.S. market on several occasions, it wasn’t until the debut of the Grant Park 165 last summer that NASCAR — historically the more popular sport with American audiences — took to the street. Dipped his toe into the racing scene.
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This story first appeared in the Chicago Global Newsletter, a joint project of Crain’s Chicago Business and the Chicago Council on Global Affairs.
Which begs the question: Of all the cities NASCAR could bring street racing to first, why Chicago?
“The priority for us was a popular location,” NASCAR executive in charge of the race, Julie Gase, told Checa.
Global “You talk about Monaco and these ideas — whether you’re familiar with [the Monaco Grand Prix] or not, you have a visual of it, right? I think Chicago would have lent itself well with that place. That’s what we’re running in, around Buckingham Fountain, around Grant Park. You have this amazing skyline Work very closely with
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Giese emphasized that the event was designed to appeal to a broad audience and was produced with the goal of expanding NASCAR’s potential audience. That’s why the Chicago Street Race, as NASCAR calls the weekend of festivities, includes not only the Grant Park 165 race, but also a music festival.
While NASCAR has often hosted pre-race and post-race concert events at races around the country, Geese said the Chicago street race offers a larger scale of entertainment than other venues by design.
“When we look at concert talent specifically, we want to make sure we have something for everyone,” he said. “So you don’t just have one specific genre. We try to make sure we have a number of different genres represented.
It also includes house music, which Gaze calls “an important part of Chicago culture.” To honor the Chicago-born genre on its 40th anniversary, one of the race’s music events will be a house music showcase featuring more than a dozen artists.
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Such efforts are important for a city like Chicago, which is culturally and demographically different from the southern markets that traditionally provide the bulk of NASCAR’s fan base. As Gaze noted, 85% of last year’s street race attendees were at their first NASCAR race, with about a third attending because of the live music.
The purpose of the race is to provide a boon to the local economy, as are similar races around the world.
The Monaco Grand Prix, for example, reportedly generates €102 million each year during its week. Singapore’s Ministry of Trade and Industry estimates that, since the country began hosting the Formula 1 Grand Prix in 2008, the race has generated S$1.5 billion (about $1.1 billion USD) in increased tourism receipts. Similarly, in the first four years Baku City Circuit hosted the Grand Prix (2016-2019), the Azerbaijani capital benefited $506.3 million directly and indirectly. Local tourism and hospitality businesses benefit the most from the race.
After last year’s NASCAR street race, Temple University’s Sport Industry Research Center estimated that Chicago had a $109 million economic impact from the event — $4 million shy of NASCAR’s original estimates — as well as an estimated $24 million worth of races. By broadcasting and advertising across the country. . This makes it the Chicago Sports Commission’s second-highest-impact event of all time behind the 2020 NBA All-Star Game.
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According to the study, Chicago street races last year supported 750 jobs and generated $8.3 million in local and state taxes. The race drew an estimated 47,405 unique participants, with more than half (52%) traveling to Chicago solely or primarily for the event. On average, participants spent $684 per day. This year, NASCAR hopes to expand that impact by launching a resource guide for local businesses to get their message out to attendees.
Geese also noted that the weekend’s impact on tourism in Chicago doesn’t end when the race is over. That said, for example, last year 77% of non-local participants said they would recommend Chicago as a travel destination, with nearly two-thirds (64%) planning to return to the city for the holidays. with.
All that being said, it’s unclear whether last year’s relative success will be enough to warrant criticism heading into the event’s second year. The inaugural race was not met with universal acclaim from Chicagoans, with many expressing frustration over traffic issues, the closure of Grant Park, and the postponement of the Taste of Chicago, which is usually scheduled for 4 Held around July through Labor Day weekend in Grant Park. A poll conducted by Aldermen Bill Conway (34th) and Brandon Riley (42nd) after the race last summer found that residents were split on wanting to see the Chicago Street Race return for a second year, and that Mayor Brandon Johnson did not immediately take any steps to bring it back. The event followed its conclusion last July.
Still, despite last year’s inaugural race being inundated with nine inches of rain, the positive results described by Geese came. As such, it was only possible to get about 20 minutes of live music, although the race itself was less impressive. If the weather is better this year, the attendance and impact of the event could be even greater.
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