F1 brought $1.3 billion to Bahrain’s economy

As the teams have just arrived in Bahrain to prepare for this weekend’s race, local authorities were keen to discuss the economic impact the sport has had since its arrival in the country.

Shaikh Salman bin Isa Al Khalifa, the president of the Sakhir circuit, commented to the local newspaper Gulf Daily News: « More than 100,000 visitors, including 15% Europeans, come to Bahrain every year, and the hotel and restaurant sectors earn between 100 and 150 million dollars annually. » Over nine years, this contribution could therefore reach 1.35 billion dollars.

He also recalled that the race is the main annual event in the country, which explains why the kingdom spends nearly $40 million per season to have the right to be part of the exclusive club of F1 hosts. Indeed, between 2004 and 2010 (the last year before the protests that led to the cancellation of the 2011 edition), tourism growth in the country increased by 52.9%, an essential factor in a country that no longer has any natural resources. This resulted in the creation of 3,000 jobs during the race weekend and also 400 throughout the year.

The media impact is also very significant for the national airline, Gulf Air, which is also the title sponsor of the event: « The valuation of global media exposure for Gulf Air in 2012 was 22.3 million dollars, thanks to the Grand Prix. Nearly 17.2% of the media exposure in 2013 will concern local brands. Partner hotels of the Bahrain International Circuit are also fully booked during the Grand Prix, and between 45% and 50% of visitors use Gulf Air as their main airline. »

Nevertheless, the Bahrain race now faces significant competition, especially with the arrival of Abu Dhabi in 2009. Sponsors prefer to bring their guests to the magnificent Yas Marina rather than Sakhir, located in the middle of Bahrain’s rocky desert. Jim Wright, a consultant specializing in sponsorship, told Reuters: « Abu Dhabi has taken a lot from Bahrain. Even without the unrest in Bahrain, the Abu Dhabi race is more appealing to sponsors. Being at the end of the year is also an advantage for Abu Dhabi. Now, spring is arriving in Europe, and sponsors will be able to bring their guests to the races in Barcelona and Monte Carlo next month. »

A number of sponsors have decided to be very discreet during this weekend’s race. For instance, Reuters, one of Williams’ sponsors, has decided not to appear on the cars of Pastor Maldonado and Valtteri Bottas, while UBS, the title sponsor of the event in China, announced it would not invite anyone to Bahrain. Similarly, Shell, one of Ferrari’s major backers, has opted for minimal presence by sending only three technicians. Vodafone prefers to highlight its partner in the Middle East, Zain, rather than its own brand. Nevertheless, this strategy is not unique to the Bahrain event, as the telecom operator also adopts it in Canada with Verizon.

With the participation of www.Racingbusiness.fr