Las Vegas Grand Prix Senior VP Reveals Staggering Impact of 2023 Race

Alex Harrington | Nov 19, 2024

Nov 18, 2023; Las Vegas, Nevada, USA; Red Bull Racing driver Sergio Perez of Mexico (11) during the Las Vegas Grand Prix at Las Vegas Strip Circuit. Mandatory Credit: Gary A. Vasquez-Imagn Images / Gary A. Vasquez-Imagn Images

The Las Vegas Grand Prix of 2023 brought a tidal wave of transformation to Sin City as thousands of fans of the sport flocked to watch the inaugural race. This weekend, the race will unfold for the second time on the Strip, once again impacting the area hugely on an economic scale. The Grand Prix spotlighted Las Vegas internationally in ways unprecedented and truly put the city on the global stage, according to Lori Nelson-Kraft, Senior Vice-President of Corporate Affairs.

When the Las Vegas Grand Prix made its return after a 41-year hiatus, it brought along with it an unsurprising amount of anticipation. The inaugural run proved to be more than a spectacle—it was a game-changer. Nelson-Kraft reflected:

"Last year's inaugural event served to truly put Las Vegas on the world stage in a way that we had never experienced," she said.

Economically, the Las Vegas Grand Prix surpassed expectations by generating an astounding $1.5 billion in economic value, making it an unparalleled success compared to any event in Las Vegas history, including the Super Bowl's $1 billion impact. Its scheduling during the usually quiet weekend before Thanksgiving capitalized on the lull, offering Las Vegas a unique economic boost.

"So strategically, having the race on that calendar date is really a good move for Las Vegas," Nelson-Kraft continued. The taxes generated by the event hit $77 million statewide. An impressive $22 million of this was allocated directly to support local schools, covering essential community upliftment sectors.

The logistical feats achieved tell of the ambitious infrastructure developments that were put in place. Liberty Media’s front-footed action through the construction of the 300,000-square-foot Grand Prix Plaza aimed not just at supporting the race weekend, but at solidifying lasting benefits that extend all year round. This allowed the investment to see returns for the majority of the year.

The alignment with Formula 1 allowed Las Vegas to leverage an invaluable international presence. The integration with such a prestigious sporting event offered Las Vegas "an exciting opportunity to expand in helping to reach more of a global audience, drive more international visitation," Nelson-Kraft noted. The race not only increased visibility but also improved the image of Las Vegas as a premier destination for world-class events. Illustrated vividly was Las Vegas’s spirit as described by Nelson-Kraft:

"That fan experience in person was incredible, to see how the city integrated into the circuit, but even more spectacular was seeing the worldwide coverage of the race and seeing the full destination on display of its offerings and its entertainment."

The Grand Prix Plaza remains a crucial part of the Vegas machine, promising economic and community benefits through continuous use, thus creating new prospects and strengthening local employment. The initial contract for the race extends through 2025, with plans underway to continue it through 2033.

While challenges, such as logistical issues and local business disruptions, did hamper the race week, the lessons learnt last year allowed this year to be much more efficient.

The 2023 Las Vegas Grand Prix did more than just accelerate cars; it accelerated the local economy and international goodwill, further elevating Las Vegas as an epicenter of modern global sports culture. As Nelson-Kraft concluded:

"It really was such a beautiful sight to see Las Vegas in that way."