September 21, 2023

The Queens County Citizen

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Canadian Grand Prix: Do the economic benefits still justify its holding?

Canadian Grand Prix: Do the economic benefits still justify its holding?

Nothing is less clear, says economist Daniel Denis. There is a dearth of available analytics On a financially sustainable basisHe underlined during his appearance on the show Economy zone In ICI RDI. Because let’s not hide it, the Formula 1 Grand Prix, which suffered a bad patch a few years ago.

Often, these evaluations are hidden, little known. We are told: “Yes, it’s worth it”, but we don’t really know the results. »

A quote from Daniel Denis, economist

Officials are investing a huge amount of money especially for the management of this competition. According to the Institute for Socioeconomic Research and Information (IRIS), between 2009 and 2031, the three levels of government spent $400 million on fees paid to circuit owners.

Environmental, social and governance criteria are ignored

However, the event is interesting for businesses in the city. In particular, for private stakeholders in the tourism sector in Montreal, there is no doubt that this is indeed a highly appreciated and enviable event.Daniel Denis comments.

According to data from the Moneris company, during the last Montreal Grand Prix, sales volume increased by 31% for the city’s bars, 24% for restaurants and 13% for attractions.

According to Tourisme Montréal, the 2019 edition created nearly 900 jobs and attracted 290,540 visitors.

However, a complete analysis of the benefits, which takes into account a wide range of criteria, is still lacking, Mr. Denise was interrogated. For example, more investors are considering ESG criteria, which include environmental and social dimensions as well as the aspect of governance.

A 2019 report by the Formula 1 Federation revealed that Grands Prix are responsible for more than 250,000 tonnes of CO emissions.2 per annum.

The well-documented phenomenon of sexual exploitation during this incident does not help to revive its image. Younger and younger girls are in demandJenny-Laure Sully, a community organizer at the Fight Against Sexual Exploitation (CLES), warned recently.

Radiate at all costs

Montreal prides itself on the impact it receives from automobile competition each year. However, if the costs and benefits are studied, the influx of tourists that this radiation really brings to the metropolis should be taken into account, confirms Daniel Denis.

Through the media coverage we get over the weekend, through articles published in Montreal during that period, is there interest for anyone other than those coming specifically for the Grand Prize? asks the economist. This, to my knowledge, has not been adequately measured.

Mr. Denis commented. A phenomenon called Sports washing.

Witness the recent merger between the PGA Golf Circuit and its rival LIV Golf with the Saudi National Investment Fund or the recent World Cup in Qatar.

Formula 1 is no exception.

There are authoritarian and undemocratic countries. […] Who owns the Grands Prix and more. There are Gulf countries, Azerbaijan and in some cases Singapore can also be thought of. These countries sought to host the Formula 1 Grand Prix because it was an event with great international impact. »

A quote from Daniel Denis, economist