Measuring economic impact: Quantifying the value of a global sporting event

The Formula One Bahrain Grand Prix is organised and promoted by the Bahrain International Circuit and partially funded by the Government of Bahrain, as part of a wider national strategy to enhance global visibility, stimulate inward investment, and support tourism and infrastructure development.

Despite the event’s clear strategic importance, the organisers faced a key challenge: how to robustly measure and evidence the full economic, social, and developmental benefits generated by hosting the Grand Prix.

This required a structured assessment of the event’s impact across multiple dimensions, including:

Economic contribution to GDP and business activity
Tourism generation and international visitor spend
Employment creation and labour market effects
Broader social and urban development outcomes

The grmc Solution

grmc was commissioned to undertake a comprehensive Economic Impact Assessment of the Formula One Bahrain Grand Prix, with a focus on quantifying the net additional benefits to the Bahraini economy.

The study evaluated the full spectrum of impacts generated by the event, including:

Direct, indirect, and induced economic impacts across multiple sectors
Inter-sectoral linkages and economic interdependencies within the national economy
Tourism expenditure generated by international and regional visitors
Employment creation and wider labour market effects
Social and community benefits associated with hosting a global sporting event

This integrated approach enabled a robust measurement of both the immediate economic contribution and the wider multiplier effects of the Grand Prix on Bahrain’s economy

Results Achieved

grmc has been the retained advisor on the Formula One Bahrain Grand Prix since its inception, supporting the client across multiple evaluation cycles.

The findings provided a clear evidence base demonstrating the event’s value in terms of:

International exposure and destination branding for Bahrain
Tourism growth and associated visitor expenditure
Employment generation and expansion of business activity
Catalyst effects on infrastructure development and urban regeneration

The analysis was used to brief the Government of Bahrain, sponsors, and key stakeholders on the measurable economic and social value created by the event.

Building on these insights, and underpinned by the success of the Grand Prix, the wider circuit area has continued to attract significant investment resulting in approximately US$2 billion of mixed-use leisure and entertainment developments adjacent to the Bahrain International Circuit.

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Measuring economic impact: Quantifying the value of a global sporting event

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