Clark County, Nevada has released a report detailing the staggering economic impact of the inaugural Las Vegas Grand Prix, with the first Formula 1 race held on the iconic Strip in more than 40 years bringing in more than $1.5 billion USD (~$2.3 billion AUD) in revenue for the city… and this is just the beginning.
For all the talk surrounding the inaugural Las Vegas Grand Prix throughout the 2023 season, the event, from the opening ceremony to the bizarre driver’s parade, was an immense sporting spectacle like no other.
Critics, including DMARGE, questioned the mammoth scale disruptions caused to the iconic Nevada town in preparation for this racing event, with scheduled protests and local backlash threatening to overshadow the proposed Formula 1 Grand Prix before Max Vertstappen’s Championship-winning car had even entered the track.
But the race was a huge success, bringing the sport to an entirely fresh and emerging market in North America and ultimately growing the global profile and popularity of the Formula 1 brand… and a recent report from Clark County, Nevada has published the astronomical numbers to prove it.
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According to the report, the Las Vegas Grand Prix generated more than $1.5 billion USD (~$2.3 billion AUD) in revenue, including $884 million USD (~$1.5 billion AUD) spent by the hundreds of thousands of Grand Prix visitors (and that’s not even including the increased price of the race day ticket).
The Las Vegas Grand Prix certainly attracted a different type of clientele to the Strip, something of an accomplishment in itself given the notorious spending habits of those who frequently visit Sin City, with the typical LVGP attendee spending 3.6 times more than the typical Vegas visitor, averaging $4,100 USD (~$6,300 AUD) per trip.
Elsewhere, Formula 1 spent $88 million on improvements to public infrastructure to accommodate a sporting event of this magnitude and the direct economic impact, not including the money spent on acquiring the disused land in the first place, totalled $329 million USD (~$507,000 AUD).
Finally, local workers were paid $52 million USD (~$80 million AUD) in the first full year, with the Las Vegas Grand Prix supporting more than 7,300 jobs in the local area, including 2,200 for race-related infrastructure and 5,100 jobs when including event operations and wider visitor spending.
It’s reported that the Las Vegas Convention and Visitors Authority (LVCVA) pays $6.5 million annually to F1 for the Grand Prix, which is contracted to race on the iconic Vegas Strip through 2025, and with a projected 10-year agreement in place, this is just the beginning for what promises to be a lucrative endeavour for all parties concerned.