Measuring the economic impacts of major sports events: the case of Formula One Grand Prix (F1)

Abstract

This study was examined the new money generated from Formula One Grand Prix (F1) and the economic impacts of this new money on the host economy using input-output analysis. We find that the impact of the new money from non-local attendees or international attendees is more pronounced compared to that from local attendees. Also, F1 event appears to influence on sports-related industry as well as other industries such as manufacturing industry. Our findings suggest that the host cities should focus on increasing the non-local and international attendees in order to enhance the economic impacts of a sport event.