Formula 1 News: Las Vegas GP had huge positive economic impact

The full 113-page Formula One Las Vegas GP Economic Impact Report is complete, and the numbers are staggering.

The Grand Prix generated more tax revenue than any other event in Las Vegas history and the full economic impact was estimated at $1.5 Billion Dollars.

The average F1 tourist spent 3.6 times what a typical visitor would spend, with an average visit of 4 days at over $4000. 52 million in additional wages were paid for over 17,000 man-hours in preparation for the big event.

The full Formula One (F1) Las Vegas Economic Impact Report is complete and the numbers are in. The Grand Prix generated more tax revenue than any other event in Las Vegas history and the full economic impact was estimated at $1.5 Billion Dollars. The average F1 tourist spent 3.6… pic.twitter.com/lVqsT4e1CG

— Jen G. (@vegasstarfish) March 28, 2024

Last week, a mammoth report produced by various Clark County agencies was debriefed amongst officials, with the economics of the report put together by Las Vegas firm Applied Analysis.

The report stated that the Las Vegas GP produced the largest global TV audience in Las Vegas history.

This includes $77 million in state and local taxes, which is the highest figure ever recorded for a single event in Las Vegas.

Max Verstappen of the Netherlands driving the (1) Oracle Red Bull Racing RB19 leads Charles Leclerc of Monaco driving the (16) Ferrari SF-23 at turn one during the F1 Grand Prix of Las Vegas at Las Vegas Strip Circuit on November 18, 2023 in Las Vegas, Nevada. (Photo by Mark Thompson/Getty Images) // Getty Images / Red Bull Content Pool — Max Verstappen of the Netherlands driving the (1) Oracle Red Bull Racing RB19 leads Charles Leclerc of Monaco driving the (16) Ferrari SF-23 at turn one during the F1 Las Vegas GP at Las Vegas Strip Circuit on November 18, 2023 in Las Vegas, Nevada. (Photo by Mark Thompson/Getty Images) // Getty Images / Red Bull Content Pool

However, there were plenty of challenges and obstacles too. The report detailed various government agencies, law enforcement, and public works issues flagged – such as from the fire departments, and public transportation.

County staff spent over 17 thousand hours working on the Las Vegas GP, with 89 percent of these costs paid through licenses, fees, and permits.

The most major disruption was the track built, which took nine months in total, including resurfacing county-maintained streets and adding cement firewalls, lights, and track safety features.

This disruption resulted in bus routes needing diversions, affecting up to 25 thousand customers daily, and causing “up to” 60-minute” delays.

Betsy Fretwell: We’re working towards addressing many of issues highlighted

Other issues highlighted in the report included:

A lack of clarity as to which F1 entity was overseeing what area of organization, ie. FOM, the FIA, or the LVGP company.
Late permit applications
Sudden changes of plans in organization
Some facilities in infrastructure operating without the correct permits in place.
12 manhole covers are still awaiting upgrades to bring them up to code
Corrosion protection is also highlighted as a necessary task for the manhole rings before this year’s race.
Some local business owners near or on the racetrack have complained that construction and detours cost them millions of dollars in lost revenue, and are seeking compensation.

But, with the preparation and disruption for the 2024 event expected to be far less pervasive, especially with the track not needing and resurfacing work, Las Vegas GP’s chief operating officer Betsy Fretwell said she was fully aware of the challenges that the organization would be facing ahead of the first event.

“There were no surprises in that report,” Fretwell said.

“We were already working toward addressing many of those issues. We’re becoming more efficient, coordinating better with the county [and] enhancing our communication.

“It was a new event, and it was complicated because it was a street circuit,” she said. “We have to make sure all these businesses have openings and closings.”