2023-06-18 14:36:52
Nothing is less clear, says economist Daniel Denis. There is a lack of analyzes available on the economic level on a continuous basis, he underlines during his appearance on the show Economy zone on ICI RDI. Because we must not hide it, the Formula 1 Grand Prix, it experienced a bad patch a few years ago.
“Often, these assessments are hidden, little known. We are told: “Yes, it’s worth it”, but we don’t really know the results. »
— A quote from Daniel Denis, economist
Especially since the authorities invest huge sums for the holding of this competition. Between 2009 and 2031, the three levels of government will have spent $400 million just for fees paid to circuit owners, according to the Institute for Socioeconomic Research and Information (IRIS).
Environmental, social and governance criteria ignored
However, the event remains interesting for businesses in the city. Particularly, I would say, for private stakeholders in the tourism sector in Montreal, there is no doubt that this is an event that is really greatly appreciated and expected, notes Daniel Denis.
Data from the Moneris company indicates that during the last Montreal Grand Prix, the volume of sales rose by 31% for bars in the city, 24% for restaurants and 13% for 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 complete analysis of the benefits, which would take into consideration a wider range of criteria, is still missing, deplores Mr. Denis. For example, more and more investors are taking into account ESG criteria, which encompass environmental and social dimensions as well as the aspect of governance.
A report produced by the Formula 1 federation in 2019 revealed that Grands Prix are responsible for the emission of more than 250,000 tonnes of CO2 per year.
The well-documented phenomenon of sexual exploitation during this event does not help to restore its image either. There is a demand for younger and younger girls, recently alerted Jennie-Laure Sully, community organizer at the Concertation des fights contre l’exploitationsexual (CLES).
Radiate at all costs
Montreal prides itself on the influence it receives from automobile competition each year. A study of the costs and benefits should, however, consider the influx of tourists that this radiation truly brings to the metropolis, affirms Daniel Denis.
Through this media coverage we get over the weekend, through the articles that are published on Montreal during that period, does it interest people other than those who come specifically for the Grand Prize? asks the economist. It has not been measured, to my knowledge, enough.
Mr. Denis also remarks that sporting events are increasingly used by States to gain visibility on a global scale and hide certain shortcomings. A phenomenon known as sportswashing.
Witness the recent merger between the PGA golf circuit and its rival LIV Golf, financed by the Saudi national investment fund, or the last World Cup in Qatar.
Formula 1 is no exception.
“There are authoritarian countries, not very democratic, […] who hold Grands Prix, and even more and more. There are Gulf countries, one can think of Azerbaijan, and even in some respects Singapore. These countries have sought to have the Formula 1 Grand Prix because it is an event that has great international influence. »
— A quote from Daniel Denis, economist
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