By Olivia Lindsay
International racing-series Formula 1 is set to take on Las Vegas and aims to bring spectacular cars as well as economic benefits to the City.
Las Vegas Grand Prix scheduled for Nov. 16 to 18, 2023 will showcase the best cars and fan experiences that Formula 1 offers. The F1 race is Nov. 18.
Formula 1 is a massive entity on its own, generating $2.5 billion in 2022, according to Motorsports.com, which tracks major races and drivers across NASCAR, Formula E, Formula 1, WEC, IndyCar and IMSA.
“Max Verstappen was the highest paid Formula 1 driver in 2022, earning around $20 million in bonuses on top of a salary of $40 million,” according to Statista.
The prestigious and expensive sport coming to Las Vegas already showed how much it can affect the economy.
Kevin Raiford, a business professor at the College of Southern Nevada, says, “The F1 race weekend, slated for Nov. 16-18, is estimated to bring $1.3 billion in spending to the city, according to Applied Analysis.”
According to Sports Destination Management, consultants for big sporting events, to put the numbers in perspective, Formula 1 will bring in more money than the upcoming Feb. 11, 2024 Super Bowl LVIII. “According to Jeremy Aguero, principal analyst with locally based financial consultant Applied Analysis and a member of the Las Vegas Super Bowl Executive Committee, the big game could bring in $1 billion to the City. That includes an estimated $600 million economic impact from the Super Bowl, plus revenue generated by visitors who will in town to watch the game at different properties.”
Raiford says that the F1 race will help large and small businesses, including many in the hospitality industry. “This event could help bring Major League Baseball and Soccer to Las Vegas. It would be great for the local economy by providing jobs and tax revenues for schools.”
Samuel Sarri, economics professor at CSN, says, “Moreover, F1 Vegas — we are told — is a multi-year event and will start with a new labor formation of 7,700 jobs as well as an expanded infrastructure, new and added physical construction, plus a socio-economic superstructure, private and public new jobs and associated services.”
Sarri shares other advantages to the event. Local consumption expenditures and capital investments will benefit. There will be an influx of international tourism as well.
While the benefits of the Las Vegas Grand Prix are admirable, attending the event itself is costly.
Robert Bay, a CSN business professor who was an usher for a previous F1 race in Las Vegas, notes the expense. “It is a great event for Las Vegas…the bad news is the tickets go for $2,000 to $10,000.”
Tickets for the event are mostly sold out, with few remaining options.
Las Vegas Grand Prix and the benefits that come with it are highly anticipated. Las Vegas Strip is being repaved in certain areas to ensure a good racing surface. Construction of the paddock is underway, and a live feed of the construction site is available on the official website of the Las Vegas Grand Prix.
Coyote Student News at the College of Southern Nevada 