LAS VEGAS (KTNV) — The second annual economic impact report for the Formula 1 Las Vegas Grand Prix has released. While it's a significant drop from the previous year, the races still hold a top spot among Las Vegas' annual event earners.
Applied Analysis, a Nevada-based data research firm, reported a $934 million economic impact resulting from F1 in 2024. For comparison, the inaugural event in 2023 kicked off with a larger impact approaching $1.5 billion, according a report presented by Clark County last year.
Click here to see how they calculated economic impact
According to Applied Analysis, understanding the "Ripple Effect" is a key component in breaking down the numbers that move through F1's economic impact for Southern Nevada.
- The direct impact of F1 is generated by F1 themselves, their partners and visitor spending directly on goods and services to bring about the actual event.
- The indirect impact is brought about by businesses spending money on supplies and services to support F1 economic activity. These businesses received their money through direct spending (i.e. F1 paid them).
- The induced impact is generated by employees spending their earned wages in the local economy.
- The total impact is the sum of all these impacts.
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Visitor Spending
Once race week hit in November 2024, F1 said they saw a net visitor spending amount of about $336 million, with a total economic impact of $556 million when you apply spending from sources like other businesses and employees. By comparison to 2023, net visitor spending was $501 million with a total impact of $884 million.
F1 said visitor spending supported leisure and hospitality businesses the most, but this also rippled through the local economy and supported neighborhood businesses like grocery stores, medical facilities and auto shops when employees spent their wages.
Last year, the report shows the average F1 visitor to Las Vegas spent around $2,400 (about twice the typical, non-F1 visitor). In 2023, that number was $4,100 (3.6 times higher than your typical traveler).
Economic Impacts
- 2023: $884 million
- 2024: $556 million
Infrastructure & Operations
If you've driven down the Strip during the fall for the last two years, you'll know all about the extensive roadwork and infrastructure that goes into building the track, fixtures and event spaces for F1.
2024 was no different according to the report, bringing a total economic output around $378 million and 2,025 local jobs. Compared to 2023, infrastructure and operation spending was higher in both fields — $587 million for economic impact and about 2,200 local jobs.
F1 noted that when comparing 2023 to 2024, the inaugural economic impact included a one-time investment for the 39-acre land acquisition for the Grand Prix Plaza and first-year circuit infrastructure.
Economic Impacts
- 2023: $587 million
- 2024: $378 million
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Wages to Local Workers
2024 saw a massive jump in salaries and wages for local workers, according to the report. Combined with overall visitor spending and operations, $284 million in salaries and wages were paid to 4,502 total local workers. By comparison to 2023, Applied Analysis only reported $52 million paid salaries and wages across 2,200 local infrastructure jobs and 5,100 additional jobs in operations and visitor spending activities.
Economic Impacts
- 2023: $52 million
- 2024: $284 million
Fiscal Impact
With mega-events like F1 come mega-taxes. 2024 saw F1 add $45 million to state and local tax revenue through tax sources like live entertainment, rooms, sales and use, gaming, property and commerce.
2023 saw the biggest intake of tax revenue at $77 million. In fact, Clark County said the inaugural race generated more state and local taxes than any event in the history of Las Vegas.
Economic Impacts
- 2023: $77 million
- 2024: $45 million
Where is this tax money going?
State agencies get the lion's share of the tax revenue followed by local agencies. The smallest percentage goes to Clark County. For example, in 2023, 61.8% of tax revenue generated by F1 went to the state. 32.5% went to local agencies like the Clark County School District and Las Vegas Metro police. 5.7% went to county funds, service districts and assistance programs.
For 2024, F1 said $15.5 million of tax revenue will benefit schools throughout the state.
Attendees & Viewers
Hundreds of thousands of attendees packed the Strip and surrounding areas during F1. We brought you a live look at the crowds, peaking to around 306,000 total attendees for 2024, according to the latest report. For the inaugural year, attendees reached upwards of 315,000.
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According to F1, they had 56.1 million viewers watching the races on television for 2024. In 2023, it was 60 million.
Social Contributions
In addition to economic impacts, F1 said they made thousands of contributions to the local community through food, clothing and in-kind donations for 2024.
- 172,000 pounds of food and beverage items were donated to Three Square Food Bank and the After Market.
- 5,000 clothing items and essentials were donated to Shine A Light Foundation and Veterans Village.
- 76,000 pounds of food scraps were sent to Las Vegas Livestock following the event.
- 600 CCSD and UNLV students got the opportunity to participate in a behind-the-scenes tour and learn about F1-STEM careers from experts in the industry.
