Formula 1’s Madrid debut now has some important economic numbers attached to it.
A new study by PwC, the global professional services firm, puts the TAG Heuer Spanish Grand Prix’s economic contribution to the region at €467 million and 8,850 jobs.
That figure equates to 5.7 per cent of the direct gross value added generated by Madrid’s recreational activities sector.
The report also estimates the event will generate close to €83 million in tax revenues and social security contributions.
The study was built on real sales and investment data from the event’s build phase, rather than projections alone.
Ticket sales have already passed 120,000, with more than 80,000 spectators expected to travel from outside Madrid, including 45,000 international visitors.
The race takes place at MADRING, a new 5.4-kilometre street circuit around the IFEMA centre, its 22 corners include La Monumental, a 550-metre bend with 24 per cent banking designed as the track’s signature section.
The circuit sits within the city itself, five minutes from the airport, with a metro station at its main entrance alongside train and bus links, and organisers expect at least 80 per cent of attendees to arrive by public transport.
“The Grand Prix’s extraordinary ability to generate economic value confirms our organisation’s commitment as one of the main economic drivers of the region,” said José Vicente de los Mozos, Chairman of IFEMA Madrid’s Executive Committee.
“This analysis is particularly valuable because it is based on verified data rather than assumptions.
“It shows that for every Euro of economic activity directly linked to the Formula 1 Spanish Grand Prix, around €3.90 is generated across the wider Madrid economy.”
The impact splits across sectors closest to the fan experience and those behind the scenes building it.
For every Euro of economic activity directly linked to the Formula 1 Spanish Grand Prix, around €3.90 is generated across the wider Madrid economy.
José Vicente de los Mozos
Hospitality accounts for €59 million, transport €22 million and retail €18 million.
Behind the event itself, manufacturing contributes €72 million, construction €50 million, professional services €33 million and information and communications €19 million.
“Preliminary estimates suggest the Formula 1 Spanish Grand Prix in Madrid will have a very significant capacity to generate socio-economic value,” said Jordi Esteve, PwC Economics Lead Partner.
“Not only through its direct activity but also through its ability to drive growth across other sectors of the regional economy.
“It is important to underline that this remains a preliminary assessment of the impact the Grand Prix is expected to generate.
“Once the event has taken place, a further study will be conducted to validate these forecasts and provide a more precise measure of the true scale of its socio-economic contribution.”
