ASSESSMENT OF THE IMPACT OF THE FORMULA 1 AZERBAIJAN GRAND PRIX ON TOURISM DEVELOPMENT IN THE CONTEXT OF EVENT TOURISM

Abstract

This article examines the impact of the Formula 1 Azerbaijan Grand Prix on event tourism, Baku's tourism sector, and the urban economy. Its purpose is to compare the indicators reported for 2016-2017 and explain what these figures mean for tourism.
The analysis draws on data released by Baku City Circuit with reference to a PwC assessment. For the two races, the total economic impact was reported at USD 277.3 million, including USD 164.2 million in direct impact and USD 113.1 million in indirect impact. Direct impact in the tourism sector amounted to USD 22.7 million, while indirect impact was USD 14.9 million. These figures suggest that the effects were not limited to businesses serving visitors but also reached local suppliers and related services. The higher direct impact indicates that accommodation, food services, transport, and other tourism activities benefited most directly from the races.
The article considers these indicators together and shows how the Azerbaijan Grand Prix contributed to Baku's visibility, tourism services, and economic activity. Its main contribution lies not in repeating the available figures, but in interpreting them through the relationship between tourism and the urban economy.