Juan Maqueda and Marcelo Maurizio
Sports tourism: Miami and F1's mega positive impact
Juan Maqueda and Marcelo Maurizio
Sports tourism: Miami and F1's mega positive impact
The Formula 1 Grand Prix in Miami generates millions in revenue and a huge positive impact in every way. How much of an impact do many cities around the world wish they had?
Last year, the Formula 1 Grand Prix in Miami resulted in a huge economic boost for the city, generating around US$350 million in new spending alone, according to data compiled by Applied Analysis. Race fans spent an average of US$1,940 per person during the event, double what a typical tourist spends in Miami, it reported. Front Office Sports.
But this very responsible figure leaves a great deal of revenue unmeasured and clearly by 2023 it has been far exceeded.
The impressive logistics of the race allow the city's suppliers to receive unprecedented revenue. In addition to hotels, gastronomy and tourism, the city receives a huge injection of advertising, F1 sponsor activations around the perimeter of Miami. If you look at Miami today, companies such as Heineken, Jack Daniel's, Red Bull, Michelob Beer, Ray Ban and hundreds of other brands have made huge investments, generating jobs, improved venues and huge sales in the city, as has O.O.H. (billboard advertising and other public place advertising) where companies such as Outfront have made an impact with their development and the branding they have impeccably generated in the city, attracting a new economy for Miami.
"It's evident how the event comes alive in the city," said Charles Khabouth, CEO and founder of INK Entertainment, owner and operator of several restaurants in Miami. "I have experienced first-hand the huge impact that international events like this have on the local economy, with the influx of tourists and increased foot traffic for local businesses. The appeal of Formula 1 is undeniable.
During the Crypto.com Formula 1 Grand Prix Miami, 2023, ticket prices on the official race website started from US$880 for three-day passes and exceeded US$5,000 per person for three-day grandstand seats that included access to the track during the qualifying rounds.
However, the majority of tickets ordered this year ranged from US$1,400 for tickets. These prices make the Formula 1 Grand Prix of Miami the second most expensive race on the F1 calendar, surpassing even the Singapore Grand Prix, which offered US$70,000 bottle service at some clubs during last year's race weekend.
While the official figures of 250,000 visitors in 2022 seem close to those of 2023, where the strict number reported is 275,000 people, it is already being revised and all indications are that it is closer to 290,000, as clearly the super impact of this event, is the huge number of people working logistically on the grounds accompanying the corporate contingent experiences, package tours and experiences inside the Hard Rock.
But the reality is that in 2023, everything was boosted exponentially, from the fan sector to the thousands of experiences inside and outside the fabulous Hard Rock Stadium.
Additional accommodations arranged by Formula 1 at the Fontainebleau Miami Beach brought the total price to US$6,149.
Race-goers enjoyed major upgrades to the Paddock Club, an exclusive space offering Cincoro Tequila tastings and Petrossian Caviar pairings, among a hundred or so exclusive offerings of all kinds that F1 Miami sold out in 2023, and already has on sale for 2024.
The clubhouse, for example, provided the facility with three separate levels and could accommodate more than 6,000 guests in private suites overlooking the teams' garages.
While many cities today have the immense privilege of hosting an F1 event, few have the coordinated development that both the city and Hard Rock Stadium and Miami's entire economic, marketing and tourism ecosystem have deployed, generating billions of dollars in revenue that deserves to be valued and documented thoroughly and comprehensively.
But Miami has also received an invasion of celebrities, media and millions of photos and videos uploaded to instagram and tik tok that have gone around the world and have an incalculable value and a direct impact on its culture and economy.
What are the challenges for 2024?
Certainly to amplify the corporate experiences for companies from all over Latin America and the USA, and perhaps to generate F1 MIAMI experiences, outside the venue itself, that "replicate" in a similar way this enormous temple of sport and passion.
Miami today competes for the podium of the best F1 date and is in the race with the best times and the best racing team.
Miami today is already synonymous with F1 and mega revenues.
Author: Juan Maqueda in co-creation with Marcelo Maurizi
The authors are responsible for the choice and presentation of the facts contained in this document and for the opinions expressed therein, which are not necessarily those of Tourism and Society Think Tank and do not commit the Organization, and should not be attributed to TSTT or its members.
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