THREE REA­SONS WHY

High-pro­file events such as the Grand Prix are eco­nom­i­cally ben­e­fi­cial

Arabian Business English - - CONTENTS -

The Grand Prix month marks a re­mark­able spike in ho­tel oc­cu­pan­cies and rev­enues in the UAE cap­i­tal

Vis­i­tors

In the last 10 years the Abu Dhabi Grand Prix has at­tracted a whop­ping 1.3 mil­lion vis­i­tors. Last year 135,000 peo­ple were in at­ten­dance fill­ing the grand stands over the three days of the event. Sixty per­cent of all tick­ets were pur­chased by non-res­i­dents of the UAE. The vis­i­tors spend an av­er­age of five days and spend more than AED7,500 ($2,041) per per­son dur­ing their stay.

Hos­pi­tal­ity

Ten years ago, Abu Dhabi just had 65 ho­tels and to­day it has 115. Ho­tel oc­cu­pancy in Abu Dhabi was 83 per­cent in Novem­ber 2015 com­pared to 75.4 per­cent for the full year of 2015, ac­cord­ing to a re­port from the Abu Dhabi Tourism & Cul­ture Author­ity. To­day, in spite of the ho­tel rates be­ing up by 20-30 per­cent, many ho­tels now wit­ness 100 per­cent oc­cu­pancy dur­ing the race week­end.

Money spent

Ac­cord­ing to For­mula Money, Mid­dle East busi­nesses have gen­er­ated $2.6bn for the F1 since it was first hosted in Bahrain in 2004. Host­ing fees com­prise the largest por­tion of F1’s $1.8bn an­nual rev­enue and last year came to $608.3m. Host­ing fees come to an av­er­age of $30.4m an­nu­ally per coun­try though Abu Dhabi is un­der­stood to be pay­ing much more as it hosts the sea­son-end­ing fi­nale.

The Grand Prix month marks a re­mark­able spike in oc­cu­pan­cies and rev­enues in the UAE cap­i­tal

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