Formula 1 News: Las Vegas GP to add $1.2B to economy (Update)

The numbers are still being computed, but preliminary estimates are that the Las Vegas GP last November did indeed add $1.2 billion to the Las Vegas economy.

Visitors to Las Vegas during Formula One week in November spent $561 million, according to a preliminary economic impact report released Wednesday.

The week attracted 145,000 visitors, including 28,200 who didn’t attend the race, and they spent $561 million, according to the report shared during a Preview Las Vegas panel with Las Vegas Grand Prix executives moderated by Jeremy Aguero, principal of Applied Analysis.

The average visitor spent $4,128 ($2,662 by those not attending the race), and local tax coffers were enriched by an estimated $64 million, according to the report.

F1 officials say these early projections don’t include economic development multipliers (direct, indirect and induced spending) that will likely see the numbers jump closer to the $1.2 billion economic impact that had been projected for race week. More details are expected “in a few weeks,” F1 said.

He said many Las Vegans haven’t realized how successful November’s Formula One Las Vegas Grand Prix race was for the city with millions of dollars in hotel room taxes, sales taxes, gaming taxes and live entertainment taxes collected during race week.

Formula 1’s return to Las Vegas will be a major job creator and add more than $1 billion to the local economy, likely doubling the impact of the 2024 Super Bowl.

The $1.2 billion estimate is derived from an economic impact report conducted by Applied Analysis and includes $966 million in forecast visitor spending, along with $316 million from ancillary and support costs.

Meanwhile the Chicago NASCAR Cup street race, NASCAR says its first-ever street race in Grant Park in July could infuse $113 million into the local economy.

The races on July 1 and 2 should also attract many people from out of town — 65% of the expected 100,000 attendees — and finally lift the town from its pandemic slump, filling up downtown hotel rooms and broadcasting scenic parts of downtown across the world to millions.

“For us, being in Chicago is incredibly important,” NASCAR Chicago Street Race President Julie Giese told the Sun-Times Editorial Board on Tuesday.

It underscores just how important it is for a city to get an F1 race vs. a NASCAR or IndyCar race.

Mark Cipolloni reporting for AutoRacing1.com