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

Nothing is less obvious, says economist Daniel Dennis. There is a lack of available analyzes economically on an ongoing basisconfirms during an appearance on the show economic zone on ICI RDI. Because we must not hide it, the Formula 1 Grand Prix has had a bad patch a few years ago.

” These ratings are often hidden and not known to much. We are told: “Yeah, it’s worth it,” but we don’t really know the results. »

Especially since the authorities are investing huge sums of money to hold this competition. Between 2009 and 2031, the three levels of government spent $400 million just on fees paid to constituency holders, according to the Institute for Social and Economic Information and Research (IRIS).

Ignoring environmental, social and governance standards

Nevertheless, the event is still very interesting for companies in the city. In particular, I would say, for private stakeholders in the Montreal tourism sector, there is no doubt that this is a really much appreciated and anticipated event.Remarks by Daniel Dennis.

Data from Moneris shows that during the last Montreal Grand Prix, turnover increased 31% for the city’s bars, 24% for restaurants and 13% for tourist attractions.

The 2019 edition generated nearly 900 jobs and attracted 290,540 visitors who each spent an average of $936 during their stay, according to Tourisme Montréal.

However, a full analysis of the benefits, which would take into account a wide range of criteria, is still missing, and Mr. Dennis regrets. For example, more and more investors are considering ESG standards, which include environmental and social dimensions in addition to the governance aspect.

A report issued by the Formula 1 Federation in 2019 revealed that the Grand Prix is ​​responsible for the emission of more than 250,000 tons of carbon dioxide.₂ annually.

And the well-documented phenomenon of sexual exploitation during this event doesn’t help her recovery either. Younger and younger girls are in demandrecently alerted Jenny Laurie Soule, community organizer at Ceremony Against Sexual Exploitation (CLES).

Radiate at any cost

Montreal prides itself on the influence it gets from the auto competition each year. However, a cost-benefit study must take into account the influx of tourists that this radiance really brings to the capital, stresses Daniel Dennis.

With this media coverage we get over the weekend, with articles published in Montreal during that period, does it interest people other than those who come specifically for the jackpot? asks the economist. It is not measured, as far as I know, enough.

Mr. Dennis also notes that sporting events are increasingly being used by countries to highlight them on a global scale and hide some of their shortcomings. phenomenon known as Sports wash.

Witness the recent merger between the PGA golf circuit and its rival LIV Golf, funded by the Saudi National Investment Fund, or the recent World Cup in Qatar.

Formula 1 is no exception.

” There are undemocratic authoritarian countries, […] Grands Prix winners, and more. There are Gulf states, one might think of Azerbaijan, and even in some ways Singapore. These countries sought the Formula 1 Grand Prix because it was an event of great international impact. »