|
This afternoon, some 500 million people from around the world are expected to watch the third leg of Formula One's 2008 season unfolding at Bahrain International Circuit (BIC) at Sakhir.
This marks the fifth time that Bahrain hosts the Grand Prix. Bahrain's deal with the Federation International Automobile (FIA) to host the Formula One World Championship commenced in 2004 and extends to 2013.
One thing is for sure, F-1 is a contributor to Bahrain's economy. It is estimated that activities related to Grand Prix 2007 injected some $548 million into Bahrain's economy. The figure represents a hefty growth of 40 per cent over figures achieved in 2006.
Spending covers matters such as ticket sales, TV coverage, transport, accommodation, food and beverages, merchandise and souvenirs and other leisure activities. The figure includes about $11 million in ticket sales and $34 million expenditure by race-goers on merchandise, food, drinks and other items at BIC during the three-day event.
Also, TV rights, commissions, facility rentals, sponsorship referrals and catering commissions brought in almost $8 million. In addition, Bahrain's economy benefited by nearly $105 million from spending on accommodation, food and beverage outlets, retail stores and travel services
The statistics are trustworthy partly because they were released by an independent source. Mumtalakat Bahrain Holding Company commissioned Dubai-based Godo Research and Marketing Consultancy to carry out the research. With more than $10 billion in assets, Mumtalakat manages all state-owned investments, including BIC and Gulf Air.
Recently, Mumtalakat revealed an ambitious plan to develop the area near BIC, located southwest of the capital Manama. Amongst others, the plan calls for developing a business park capable of attracting some $350 million of investments in the first phase.
The figure could reach as high as $5 billion with the completion of the third phase. RUF of Germany is planning a $50 million facility to manufacture special cars for racers and collectors. The RUF Bahrain Automobile Manufacturing and Assembly are being built within the BIC complex.
Still, local commentators accuse the authorities of being uniquely slow in realising what F-1 offers to the country. These critics argue that Mumtalakat, together with Economic Development Board (EDB), only make such promises in the days leading to the annual event. EDB is mandated to develop and implement economic strategies for Bahrain.
The announcement was made during Motor Sport Business Forum Middle East in Bahrain last week. The fact that both Mumtalakat and EDB could not specify dates for phases one to three suggests that the plan was hastily arranged.
At any rate, Bahrain's economy gets direct and indirect benefits from hosting the annual event. These include expenditure by visitors during Formula One, private investors in terms of developing facilities and the public sector with regard to expanding road network.
Indirect advantages entail raising Bahrain's global profile. In addition, the event helps in raising Bahrain's profile as the country becomes the global focal point of motor sporting for three days.
Formula One is the third most famous international sporting event following the Olympics and World Cup. And unlike the other two events, F-1 is held annually.
It also provides Bahrain-based carrier Gulf Air with maximum exposure. At any rate, all indications suggest that Bahrain is committed to securing its position in motor sporting. Recently, Bahrain acquired a 30 per cent stake in the McLaren Group that included Mercedes team.
The writer is a Member of Parliament in Bahrain.
|
