Formula 1's New Las Vegas GP Deal Reveals Staggering $1.5 billion Tourism Boost

Saajan Jogia | Jul 30, 2024

Nov 17, 2023; Las Vegas, Nevada, USA; The MSG Sphere is observed prior to the start of the qualifiers at the Las Vegas Strip Circuit. Mandatory Credit: Lucas Peltier-USA TODAY Sports / Lucas Peltier-USA TODAY Sports

Following the massive success of the inaugural Las Vegas Grand Prix last season, Formula 1 has inked a deal with the Las Vegas Convention and Visitors Authority (LVCVA) to celebrate the projected $1.5 billion economic impact on the Nevada region during the race weekend.

Last year, the Las Vegas Grand Prix was a monumental success, marking the largest sporting event in the city's history. It drew 316,000 fans and captivated a global television audience of 59.3 million viewers. Notably, the event generated a $1.5 billion tourism boost for the region, transforming what would have otherwise been an average weekend into a bustling, lucrative occasion.

The Las Vegas Convention and Visitors Authority (LVCVA) already champions an impressive array of events, including the National Finals Rodeo, NFL games, the Mint 400, and numerous annual trade shows across a diverse range of industries.

The new agreement between Formula 1 and the LVCVA, extending through 2025, aims to strengthen their collaboration from last year. This partnership will streamline race weekend operations in the city, a relationship already evident by the LVCVA banners adorning Formula 1 tracks worldwide this season.

However, the event faced several challenges last year. The construction of the track and the paddock building caused significant inconvenience for locals, with travel restrictions impacting their movement within the city. Several hotels and local businesses also reported reduced visibility from the road, potentially leading to a loss of revenue.

Additionally, the race's unusual timing, extended working hours, and potential negative impact on local businesses made it difficult for locals to fully embrace the grand event. However, many of those initially opposed to the idea of a Formula 1 road race on the streets of Las Vegas ultimately accepted the event with grace and joy after witnessing the excitement and success of the race weekend.

The shift in perspective occurred as small businesses and hospitality employees reaped significant benefits from the influx of visitors.