$600m economic race win

Last year's Grand Prix at the Bahrain International Circuit helped the kingdom generate a direct and indirect economic benefit of almost $600 million according to an independent valuation.

This represents a nine per cent increase compared to 2007 and despite the global economic downturn the organisers of this month's event are hoping for even more success.

Talal Al Zain, CEO of Mumtalakat Bahrain Holding Company, said: "The sixth Formula One Gulf Air Bahrain Grand Prix on April 24-25-26 2009 will be even better than last year with the new FIA rule changes that mean drivers will be chasing overall wins rather than just points for the Championship.

"The results of the economic impact survey prove that the Gulf Air Bahrain Grand Prix is an event that is becoming increasingly popular year-upon-year and is having a hugely positive effect on the economy of Bahrain and a beneficial impact on the entire Gulf."

Bahrain Mumtalakat Holdings Company announced the economic impact figures for the 2008 Gulf Air Bahrain Grand Prix on the kingdom at the weekend. The importance of the Formula One Gulf Air Bahrain Grand Prix, now in its sixth year, has been reflected in a significant jump in the wider economic impact of the region's flagship event.

Since 2004 the annual FIA Formula One World Championship GP has been the biggest international sporting and social occasion in the Gulf and with it has come a growing tide of revenues to Bahrain and the wider Gulf nations.

The construction of the BIC provided a platform for a range of diverse revenue generating activities that have benefited the kingdom greatly. The success of the Grand Prix, just one event in many that are run at the circuit every year, delivers vital awareness as well as hundreds of millions of dollars-worth of direct and indirect economic impact to the economy.

In 2008 the Gulf Air Bahrain Grand Prix saw a sell-out crowd, drawing almost 100,000 spectators and corporate guests over the three days for the first time in the event's history.

The success of the event, known as the 'Friendly Race' is one of passion for the sport and the quality of the overall event in terms of organisation and family entertainment. Its benefit to the kingdom in terms of awareness, exposure and significant economic impact is another reason why the contract to stage a round of the FIA Formula One World Championship in the country has been further extended to 2016.

Research that covered over 1,000 organisations illustrates that local and regional services and suppliers contributed almost $30 million to the total figure. This amount includes marketing, event infrastructure and operational costs among others.

These costs are, however, set against the income from the event, specifically $13.8 million in ticket sales and a further $36.7 million expenditure by race-goers on merchandise, food, drink and other items at the BIC. In addition the event brought in a projected $7.7 million through TV rights, commissions, facility rentals, sponsorship referrals and catering commissions.

The kingdom also benefited to the tune of $116.8 million of income from visitor expenditure on accommodation, food and beverage outlets, retail markets, travel services (airline, car rentals etc) and other products and services in the wider Bahrain economy.

"The Gulf Air Bahrain Grand Prix is one of the most cost effective sporting events in the global calendar," Mr Al Zain added. "The BIC portfolios of racing and corporate events along with its year-round activities, led by the Grand Prix, are dedicated to promoting awareness of the kingdom across the world."

The vast majority of the Grand Prix income is ascribed to travelling fans, with 22 per cent of them being overseas visitors travelling mainly from the UK, followed by those from the Middle East, to watch the race in 2008.

According to the World Travel & Tourism Council, Bahrain was expected to reach an economical impact of $4.6 billion from international tourism in 2008, representing five per cent of Bahrain's GDP and 10 per cent of the kingdom's employment.

The Gulf Air Bahrain Grand Prix contributed not only the figure of $596 million but also 586 employment opportunities directly, indirectly and induced by the event - an increase of 46 per cent from 2007.

Seventy six per cent of the overseas visitors to the 2008 Grand Prix travelled by air, bringing a boost to all the major carriers and many of the airports in the region. A survey of visiting race fans from overseas predictably saw 49 per cent flying Gulf Air, with a further six per cent travelling on British Airways.

The research was produced by the independent Godo Research and Marketing Consultancy based in Dubai, a company that is highly respected with over 10 years of experience in providing research and advisory consulting services to local, regional and international client entities.