Forbes – Christian Sylt
Published: June 5th, 2017
The following article describes the financial impact of the Montreal Formula 1 Grand Prix on the local economy. The author uses the increased relative cost of hotel rooms, as well as general revenue data to display this impact.
Christian Sylt is a journalist specializing in reporting on the business of Formula 1. He is also in charge of “Formula Money”, a site which provides a financial breakdown of many aspects of Formula 1, including the local economic impact of each Grand Prix.
- Formula 1’s Global Media Report
Analysis of Potential Bias
This is an example of a more analytical piece than one where arguments are provided, however when given the opportunity to present bias, the author tends to avoid it. For example, he avoids passing judgement on Lance Stroll’s impact on Formula 1 in Canada at the end of the article, instead describing the potential impact that he could have. Most of the content is either supported by cited figures, or serves to provide wider context for the impact of the Montreal Grand Prix.
Due to the accessibility of Montreal’s Formula 1 track, local hotels are some of the biggest beneficiaries from the event, with average hotel prices accelerating as much as 114% the night before the race, and accelerating between 81% and 34% before and after the race.
Additionally, during the 2017 Grand Prix, there was reduced supply of hotel rooms due to renovations of the Fairmont Queen Elizabeth hotel. Once renovations are completed by the following year’s Grand Prix, average hotel rates are expected to rise.
The economic impact also extends past the hotel industry. Nearly 70% of admissions to the track were from outside Montreal, generating a total of 90 million dollars in spending. Furthermore, jobs created or maintained by the Grand Prix generate millions of dollars in tax revenue for multiple levels of government.
The increased tax revenue contributes to offsetting the state’s annual investment in hosting the Grand Prix, which includes millions of dollars in contributions from the federal, provincial, and municipal levels.
The Montreal Grand Prix will continue to be hosted in Montreal until 2029, with the potential for Canadian newcomer Lance Stroll to further boost domestic interest in the sport.
Something important to note with this article is that it was written in 2017, so many figures and key information may be out of date. Additionally, developments in the sport have since been advanced and this article is no longer representative of the present-day Formula 1 landscape.