Thailand to pursue multi-year Formula One racing contract negotiations
Get ready, petrol heads! The Land of Smiles is revving up to host the glitz and glamour of Formula One racing. The Thai government has set its sights on securing a five-year contract for Grand Prix races in Bangkok, starting in 2028, and they're pouring a cool 40-41 billion baht into the project.
The cinch is set to unfold in the compound of the Krung Thep Aphiwat Central Terminal Station (Bang Sue Grand Station) and surrounding areas, with a 5.7-kilometre circuit winding its way from Chatuchak Park to the station. Race weekends will span three days, with pre-race preparations requiring the temporary closure of the area for approximately five days.
The government expects this high-octane event to generate around 16 billion baht in annual spending, paving the way for thousands of new jobs and a significant economic boost each year it's held. Beyond the direct revenue from the race, it's anticipated that the event will also promote tourism and enhance Thailand's global profile as an international tourism hub and destination for high-profile events.
To make the event even more enticing, the Thai government is aiming for an eco-friendly spectacle, dubbing it the "Sustainable F1." The race organizers are looking to attract investments in green technologies alongside the motorsport action, adding a touch of environmental consciousness to the thrill of the racing experience.
While the budget for this grand endeavour is substantial, the Thai government is confident that the event will be profitable within a year, breaking even on the initial investment. The cost of hosting a Formula One race varies widely, ranging from $200 million to over $1 billion for construction, with annual hosting fees potentially reaching $55 million. However, with ticket sales, sponsorships, and overall economic impact taken into account, many races generate substantial profits.
As Formula One Group CEO, Stefano Domenicali, paid a courtesy call on Prime Minister Paetongtarn Shinawatra at Government House in March, discussing the possibility of Thailand joining the elite club of Formula One hosts, it seems the wheels are well and truly in motion for a thrilling addition to Bangkok's calendar in the years to come. Buckle up!
Experience the adrenaline rush of Formula One right in the heart of Bangkok! With the Thai government investing a significant amount towards hosting Grand Prix races, sports enthusiasts can look forward to witnessing high-speed competitions and supporting eco-friendly initiatives.
