Latest news with #AppliedAnalysis
Yahoo
06-03-2025
- Business
- Yahoo
How Las Vegas Grand Prix's economic impact goes beyond race weekend
LAS VEGAS (KLAS) — The Arts District, about three miles from the F1 track, features all sorts of locally owned stores, restaurants and breweries. Yovani Barrera owns one of those stores, Bring it Back, a buy-sell-trade store for hip shoes and clothing. 'Nothing crazy like 'F1 crazy' It's more like, if it's a fight weekend or some sort of other event happening on a weekend, big concert, that kind of traffic,' Barrera said. Applied Analysis principal Brian Gordon explained to 8 News Now how the Las Vegas Grand Prix's economic impact looks at a whole year of spending. Casinos and resorts get their chunk of change during race weekend, but everyone who gets paid for working around the track is a contributor, spending their money throughout the valley. 'They go to their doctor's office, they go to a grocery store,' Gordon said. 'All of that spending essentially ripples throughout the economy, and so it is impacting almost every corner of the market.' For example, if a race employee spends some of their paycheck on a pair of sneakers at Bring it Back, the grand prix now has an impact on a local business. Regardless, business owners like Barrera would like to see some more support downtown. 'It would be nice, get a lot more local support. Like I said, it's all holed over there,' Barrera said. Barrera said it's always good to have another busy weekend, but he's not sure if it's worth putting up with traffic and construction. The Las Vegas Grand Prix did make an effort to promote small businesses, with valley restaurants providing food around the track during the 2024 race. They also made a local business directory, listing different valley-based services for F1 teams or employees. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
05-03-2025
- Automotive
- Yahoo
Las Vegas Grand Prix adds $45M to tax base; $15M going toward Nevada schools
LAS VEGAS (KLAS) — The 2024 Las Vegas Grand Prix added $45 million to the tax base in Nevada, with more than $15 million of that set to go to schools, according to an economic impact report. According to a release from the F1 Las Vegas Grand Prix, attendance for race week reached 306,000 people, with 175,000 out-of-town tourists spending on average $2,400 on non-race-related expenditures during their visit to the valley. That number is nearly twice the amount an average Las Vegas visitor spends, according to a report produced by Applied Analysis for Grand Prix officials. Non-race-related expenditures include hotel rooms, food and beverage, local transportation, shopping, gambling, and entertainment. The $2,400 number does not include the cost of race tickets. In all, visitor spending from the event totaled $556 million. The total economic impact of the 2024 race exceeded $934 million. Spending from the 2024 race generated $45 million in tax revenues for state and local governments. The most significant beneficiaries of this revenue were the state general fund, the county's general fund, and the Clark County School District. Schools throughout the state are set to receive $15.5 million of the tax allocation. According to a race debrief following the first Las Vegas Grand Prix, the 2023 race estimated the event had a $1.5 billion economic impact on the area, with $77 million in taxes connected to the three-day event. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
New York Times
04-03-2025
- Automotive
- New York Times
F1 is now Las Vegas' largest annual event, reporting $934M economic impact in year two
Formula One has become the largest annual event in Las Vegas after recording an overall economic impact of $934 million in its second year, according to a new study. According to the study shared by the organizers of the Las Vegas Grand Prix and prepared by Applied Analysis, an economic analysis and consulting firm, the net visitor spend at the race came to $556 million, while a further $378 million was spent on operations. Advertisement The total of $934 million is over half a billion dollars down on the estimated economic impact from the first year in Las Vegas, which approached $1.5 billion, according to a report issued by Clark County following the 2023 race. That report estimated the total net visitor spend for 2023 at $884 million. The first year overall figure was boosted by the economic impact of construction for the inaugural race, meaning officials in Las Vegas always anticipated a drop for the second running of the grand prix, which was the site of Max Verstappen's fourth world championship victory in November. The study states that visitors to Las Vegas for the grand prix spent an average of $2,400 per person last year, not including their race tickets, which it claims is close to double the average spend for a visitor to Las Vegas. The race generated $45 million in tax income for the state of Nevada. The financial results have established the Las Vegas Grand Prix as the city's largest recurring event. When Las Vegas hosted the Super Bowl in 2024 at the Raiders' Allegiant Stadium, Applied Analysis estimated the economic impact to be around $1 billion. 'The economic impact of the 2024 race hitting at $934 million serves as Las Vegas's largest recurring event, and we are only bested by our inaugural year number, and coming in slightly less than Las Vegas hosting the Super Bowl,' Lori Nelson-Kraft, SVP for corporate affairs at the Las Vegas Grand Prix, told The Athletic. 'When you think of mega events in Southern Nevada, this rises to the top. It's not only here annually, but it's here in what is traditionally the slowest week for Las Vegas of the year, it's a real win to know that it's on the calendar in a meaningful way at a time when Las Vegas can really benefit from it.' There was a small dip in the overall attendance for the second Las Vegas Grand Prix, falling from 315,000 to 306,000 year-on-year. But the report did note an increase in the number of out-of-town attendees, drawing in 175,000 unique visitors. Nelson-Kraft said that hotel occupancy over the Las Vegas Grand Prix race weekend was also up year-on-year from 80 percent to 87 percent. Advertisement The organizers of the race in Las Vegas made a concerted effort to try and work closer with the local community for its second race after facing criticism through its inaugural year, particularly through the construction phase and repaving of roads that were used for the race track. This included staging a free fan festival, bringing local schools into the paddock and inviting local companies to bid on goods and services. But there was still some opposition from disgruntled locals and businesses on the ground in Las Vegas over the staging of the race. 'We're trying to make this an event that everyone here can be proud of, and I think we really had a great year inviting the community in to be part of the experience,' said Nelson-Kraft, who said $15 million of the tax relief would go to local schools. 'You see after an inaugural year things really normalizing.' Ahead of its third running on Nov. 22 this year, the Las Vegas Grand Prix has undergone some changes, both internally within the organization and regarding the timing of the race. The race start has been moved forward two hours to 8 p.m. PT. Emily Prazer has been appointed president of the event, in addition to her existing role as the chief commercial officer at F1. In a call with investors at the end of last month, Derek Chang, the newly appointed CEO of Liberty Media, F1's parent company, acknowledged that the Las Vegas Grand Prix had 'missed internal expectations on revenue' in its second year, which was primarily due to ticket sales. Chang said F1 had 'moved very quickly to enact changes that will benefit 2025 and support a financially successful race for F1 and continued growth and positive impact for the Las Vegas community.' The Las Vegas race operations team has also been fully integrated into F1's London office ahead of the 2025 race, while Chang said there would be 'further revisions to the ticket product and pricing strategy' based on the feedback and data gathered from the first two years. 'We have a clear handle on near-term priorities for Vegas to improve, and we are confident in the value it provides,' Chang said. Top photo:
