The impact of Formula 1 on regional economies in Europe

Abstract

Tangible effects of hosting major sporting events have been thoroughly examined in recent years. The consensus among scholars is that effects on tourism, inbound foreign investments and GDP from hosting – for example – the Olympic Games or the soccer World Cup are absent. Further, only a few studies have been conducted on one of the most commercially successful (major) sporting events, Formula One (F1). This paper applies regression models to test effects on GDP, employment and tourism in European regions that have hosted F1 races from 1991 to 2017. The output from the models suggests that hosting F1 races does not produce positive effects.