The return of Formula 1 to Madrid after a 45-year hiatus generated a total economic impact of 544 million euros, exceeding initial projections.
Held from September 11 to 13, the event created 10,948 jobs and increased regional tax revenue by 95 million euros, according to a report by PwC.
- Economic Multiplier: For every 1 euro of direct activity, the event generated 4.6 euros in the broader Madrid economy, exceeding the 3.9-euro forecast.
- Fiscal Contribution: Tax and social security revenue reached 95 million euros, a 14.5% increase over the 83 million euros originally anticipated.
- Employment Metrics: The Grand Prix supported 10,948 jobs, representing 0.31% of the total workforce in the Community of Madrid.
The economic footprint of the Grand Prix, as detailed by PwC, spanned multiple sectors of the regional economy. The hospitality, manufacturing, and construction industries accounted for 59% of the 425 million euros in indirect, tractor, and induced economic impact. Hospitality captured 114 million euros in activity, nearly double the 59 million euros initially estimated.
The fiscal impact was distributed across major tax categories, including personal income tax (IRPF), corporate tax, and VAT. “For every euro of taxes and social contributions directly linked to the event, the study estimates a collection of 5.9 euros in the Madrid economy,” the PwC report said.
The high utilization of public infrastructure—with 86% of attendees opting for public transit—mitigated potential logistical costs and maximized the efficiency of the regional transport network.
The Grand Prix attracted 352,618 attendees, with a distinct demographic shift toward high-value international tourists. Foreign visitors exhibited a daily expenditure of 591 euros, which is 1.7 times the average international tourist spend in the Community of Madrid and 2.9 times the national average for Spain. These visitors stayed an average of 4.7 days, more than twice the regional benchmark of 2.3 days.
| Metric | Actual Result | Projected Result | Variance |
|---|---|---|---|
| Total Economic Impact | 544M EUR | 467M EUR | +16.5% |
| Total Employment | 10,948 | 8,850 | +23.7% |
| Fiscal Revenue | 95M EUR | 83M EUR | +14.5% |
José Vicente de los Mozos, President of the Executive Committee of IFEMA MADRID, emphasized that the event validated the strategic importance of the Grand Prix for the region’s brand equity.
“These figures have validated the strategic importance that this Grand Prix has acquired since its first edition for the economy and the brand of Madrid by generating revenues equivalent to 0.16% of the GDP of the Community of Madrid,” de los Mozos stated.
The data suggests a high probability of repeat visitation, with 88% of foreign attendees indicating an intent to return. This sentiment is supported by the 95.2% of total attendees who reported that the Grand Prix enhanced the international image of the capital. Jordi Esteve, a Partner at Strategy& at PwC, said that the field research confirms the event attracted a profile of visitor with higher spending capacity than the habitual tourist.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
