A new report by PwC estimates that the upcoming Formula 1 Spanish Grand Prix in Madrid will generate an annual economic impact of €467 million, exceeding the previous €450 million forecast by the Madrid Chamber of Commerce.
According to the consultancy, the race will account for 5.7% of the direct gross value added (GVA) of Madrid’s recreational activities sector while also generating approximately €83 million in taxes and social security contributions and creating around 8,850 jobs.
Demand for the event has already been strong. Of the 120,000 tickets sold, more than 80,000 spectators are expected to travel from outside Madrid, including 45,000 international visitors.
José Vicente de los Mozos, chairman of IFEMA Madrid’s Executive Committee, said the figures confirm the Grand Prix’s ability to generate wealth while strengthening both the Madrid and Spain brands globally. He noted that the event has already achieved 73 billion global media impressions since its launch.
Manufacturing and hospitality lead the impact
PwC expects the largest economic benefits to flow into:
- Manufacturing: €72 million
- Hospitality: €59 million
- Construction: €50 million
- Professional services: €33 million
- Transport: €22 million
- Information and communications: €19 million
- Retail: €18 million
PwC’s Economics partner Jordi Esteve emphasized that the figures remain preliminary and will be updated after the inaugural race to measure its actual contribution to the regional economy.
Tourism spending to top €90 million
Separate research by Palco23 estimates that the 54,000 international spectators, representing around 45% of total attendance, will spend an average of €949 per person during their stay, contributing €51.2 million to Madrid’s economy.
Overall, visitors are projected to generate €90.8 million in direct tourism spending, excluding ticket purchases and travel costs to Madrid. In other words, one out of every five euros of the Grand Prix’s projected economic impact will come solely from visitor spending during their stay.