The astonishing fortune Las Vegas is set to accumulate from F1’s huge return

Henry Valantine 12 Nov 2023 4:00 PM

A rendering of the Formula 1 F1 Las Vegas Grand Prix.

A rendering of the Las Vegas Grand Prix.

Economic analysis has predicted that the Las Vegas Grand Prix could bring as much as $1.3billion (£1.06bn) of economic benefit to the city as a result of its inaugural running next weekend.

Construction has long been underway on facilities to make Sin City ready for Formula 1 to come back for the first time in over 40 years, but rather than the rather confined surroundings of the car park of Caesars Palace last time, the entire city has been taken over by the sport.

The Las Vegas Grand Prix will have a huge 1.9km straight on the iconic Las Vegas Strip itself, but far beyond its appeal on track has been its potential impact to the surrounding community.

Potential $1.3bn positive impact of Las Vegas Grand Prix estimated

Early estimates from economic solutions firm Applied Analysis predicts that the $1.3billion estimated impact of the Las Vegas Grand Prix will make it the largest sporting event ever seen in the city, more than double what the Super Bowl brought to Vegas back in February.

The figures suggest that around a third of the economic benefit, $360million, will be in the form of wages paid to those who have been employed as a result of the race coming to Las Vegas – such as in the construction industry where an all-new pit lane is being finalised.

This analysis also claims that tax benefits from the Grand Prix week will exceed $100m such as in city taxes and tourist tax, which will feed back into the local community in Las Vegas.

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While reports of hotel room rates having plummeted in recent weeks to try and fill up space have circulated, this could perhaps be attributed to the huge inflation of room prices surrounding the Las Vegas Grand Prix weekend.

Applied Analysis’ principal analyst, Jeremy Aguero, wrote for the Las Vegas Review Journal: “I have every expectation that Las Vegas will once again defy the critics and the can’t-do crowd.

“F1 will put on a race that will captivate the world; Las Vegas will report the best November in its history and will further solidify itself as the world’s premier host city for major events; and our community will reap the benefits economically, fiscally and socially.”