What's Good about F1 and the A's Stadium for the Little Guy?

I just read an article on how the Tuscany Hotel is getting outrageous room rates for the F1. I would assume the other hotels will follow suit. They sell it to the taxpayers that the F1 and A’s stadium are good for Las Vegas. Besides being inconvenienced with the roads, construction, use of our taxes, etc. I don’t see any “good” for us, the average Las Vegan. We know this is all good for the hotel-casinos, with million-dollar packages, sky-high room rates etc. Where is the “good”?

[Editor's Note: This answer comes direct from the smoking-hot keyboard of David McKee.]

We’ve been skeptical of some of the pre-race propaganda, especially when Wall Street began credulously making predictions to the effect that the Las Vegas Grand Prix would be “even bigger than Super Bowl 2024.” Nothing in America is bigger than the Super Bowl.

Even accounting for the extra lure of Sin City, there's room for skepticism about the economic-impact figures being quoted. Citing Applied Analysis' number, $1.3 billion, F1 analyst Vincenzo Landino told News 3 Las Vegas, “They put a value of over $350 million into Miami." In Austin, Texas, likewise, Formula One has pumped $7 billion into the local economy … over the course of a decade.

Formula One boosters don't help their cause with inveterate buck-passing. Queried politely about economic figures, the Las Vegas Convention & Visitors Authority punted to Applied Analysis, which in turn kicked the can to tight-lipped F1 headquarters.

By contrast, Applied Analysis economic-impact guru Jeremy Aguero was a veritable Chatty Cathy when News 3 came calling. “You’re talking about 150,000 people, some of the most affluent travelers anywhere in the world, descending on Las Vegas for what I think will be the single largest event on Planet Earth in 2023,” he said.

If that sounds like exaggeration, Aguero does make a good point when he says, “The only real piece of our visitor business that hasn't rebounded as much as we would like is international visitation. We're entirely underestimating the important side of that from our economic standpoint.” Whether Formula One represents a quick fix to that problem remains to be seen.

“We're experiencing incredible demand,” promises Las Vegas Grand Prix CEO Renée Wilm, hinting at a sellout of the tens of thousands of seats being set up for the race. Locals can attend, too, at a discounted price, but must content themselves with standing room only, $500 for a three-day pass.

“It’s a great opportunity to showcase your destination to a wide international audience,” argues Wesley Lucas, communications director for Visit Austin. “It’s a commercial for Vegas. We take a lot of pride in showing off our city and welcoming visitors from all over the world to our city and showcasing our businesses and live-music venues. Everyone in the community benefits from this race.”

Fair enough, but whether Las Vegas needs its profile lifted more than it already is would be another imponderable to be weighed in the last two-plus months of the runup to the Big Event.

Another of those imponderables is just what’s in the top-hush Applied Analysis report, whose $1.3 billion figure is an incessantly brandished shibboleth for race proponents. It would be interesting to know how one gets from a $350 million economic impact in Miami and $434 million in Austin to three times that number in Sin City. That $1.3 billion would be double the economic impact of the 2023 Super Bowl, by the way, which tells you something about the burden of expectations under which the race must labor.

In a rare breakout of the Applied Analysis figures, Wilm posted visitor spending at $966 million (or about three months’ gambling revenue on the Las Vegas Strip), plus infrastructural spending of $316 million. She also tempered the attendance figures to closer to 100,000. By contrast, Super Bowl 2024 is expected to bring only $600 million into Las Vegas and have none of the recurring-revenue impact that being on the Formula One circuit for 10 years does.

And while Super Bowl tickets will set you back an average $5,596, the Grand Prix covers quite a gamut, starting at $1,500 for the cheapest grandstand seats. The real economic impact is more likely to come from jacked-up ticket packages, such as the $100,000 deals that MGM Resorts International has announced. Not to be outdone, Resorts World Las Vegas (which isn’t along the race course) is touting The 888 Experience -- $888,000. And then there are the $1 million deal at Wynn Las Vegas Caesars Entertainment (until recently loath to discuss Grand Prix specifics) recently rolled out a $5 million Emperor Package.

As for hotel rooms, Tuscany isn’t leading the wave, but surfing its eddies. Wynn, Encore, and Venetian/Palazzo are already sold out. Caesars is marketing rooms for at least a $500 premium to normal rates and MGM hasn’t been shy about promising to jack up rates and cash in on F1. Increased rates at the Tuscany aren’t keeping anyone away: It’s already sold out for at least part of Formula One weekend, Nov. 16-18.

Finally, as for what's in it for the little guy, there’s the $40 million in Clark County budgetary outlays—a special budget item, passed 4-3, to make the streets between MGM Grand and Wynncore into Grand Prix readiness. Taxi riders will be feeling the bite too, in the form of an increased drop charge from $3.50 to $5.25. The new higher fees are supposed to be posted in cabs, but evidently haven’t been yet.

And don't forget! If you're liking the 2023 Las Vegas Grand Prix, you’ll love the one in 2024, and 2025, and 2026 ...

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Comments

Bob Aug-25-2023

Koval

Hey, at least a stretch of Koval will finally be smooth for a short while.

Vegas Fan Aug-25-2023

No map

Since they don't show a map(as qod is wont to do), Tuscany is east of the strip, on flamingo.

Kevin Rough Aug-25-2023

All Hype Not Worth It

When I visited in May, traffic which is normally bad was even worse.  Koval Lane was all torn up outside my condo complex and getting to and from was rough.  I can't imagine construction on every road at the same time was good for business.  On message boards I see gamblers are avoiding F1 weekend and the week before and after.  All of these international rich people won't be gambling during the race.

pivoss Aug-25-2023

Shibboleth!

Extra vocab credit for you!

IPA Noah Aug-25-2023

Have to say it

There is no benefit to the average resident of Las Vegas in subsidizing billionaire profits. Local impact statements are usually complete BS and never really pan out on the flip side.
The building and operating of the Smith Center has had much more local economic impact than sports teams and billionaire boondoggles will have on Las Vegas.

Henry Aug-25-2023

“Finally, as for what's in it for the little guy...”

Street work and higher taxi fees.

CLIFFORD Aug-25-2023

TO THE QUESTIONER

You answered your own question within your question.  Aside, I heard a rumor that the baseball stadium will be the top floor of the world's largest hotel/casino. Can anyone verify?

jay Aug-25-2023

MonteCarlo

For the cost of it, I would skip vegas in the fall and head to Monte Carlo in May. For 7k/head you can get a flight, room for 2 nights and a pass to the grand stand. My buddy said he practically had to camp out all night to get a decent spot in the grandstand, but it sounds better than standing room only.

Hoppy Aug-25-2023

Digg Deep

F1 looks to be for those with deep pockets. That is, unless, Deep fried Turkey legs are to your liking. They were a real attraction, at F1 in Indianapolis (longest line).

Luis Aug-25-2023

No upside

I see no benefit for the regular folk, the benefit is only for the gauging organizers of the event and the Resorts ( which are being forced, bullied into participating by the organizers charging enormous amounts of money or they block their view). for the local and the common tourist it's just an inconvenience , the traffic,the blockage, the ugliness of bloquing the facades of the resorts , the over pricing of rooms, the unavailability of rooms, because you have to buy in to the F1 packages or else. No, there is no upside for the common public.as for being a "commercial for Vegas", Vegas doesn't need that kind of commercial, Vegas has done very well in that department without any help of the F1 organizers thank you.

[email protected] Aug-25-2023

F1 in Austin? Yawwwnnnn..

Was a HUGE deal the FIRST year for everybody including locals. Rooms in small towns 30 miles away that typically sold for $50 a night were over $500 a night! Every year since then its dropped off a LOT to the point where in the past few years it was barely a blip on anybody's radar. F1 is REALLY old news in Austin BUT the NASCAR race there is still a big deal.

Ray Aug-25-2023

You guys cry too much

Everything that happens in Vegas gets pooped on by all of you...until it's a success. All the high room rate when large conventions show up don't seem to bother you...anymore. The Golden Knights, whose arrival was bashed here have now become Vegas darlings. Keep crying. If Vegas didn't do the things they do, you'd be living in an empty desert. And how many free rooms would be offered in the slow times if they couldn't balance them against the profits of the special high rate weeks? Also, where's the outcry about the rates on New Year's Eve? As I said, quit crying.

Kevin Lewis Aug-25-2023

"Benefits"

SURE there will be eleventy squillion bucks pumped into the pockets of the casino megatoilets, removed from the pockets of those who have so little regard for money as to coug h up a million bucks to watch an auto race. But for the average dude who couldn't give a rat's rectum about the SFR (Stupid Fucking Race)? Nothing. Nothing. NOTHING.

O2bnVegas Aug-25-2023

party on

Yeah, Ray.  This site is pity-party general. If you like to stay in a high end hotel, play $15 blackjack (gasp) or higher because you've saved your money for a real Vegas vacation, pay $2.50 more for your favorite hot dog, c'mon in but don't expect any friendly chit chat.

And now (Deke please note) QoD is starting to sound like Kitchen Sink II.

I don't expect lecture/rules about keeping the comments polite (hasn't worked at all regarding KS).  But IMHO it is creeping in that direction.  Would hate that to escalate.

Candy

Doc H Aug-25-2023

showcase?

“It’s a great opportunity to showcase your destination to a wide international audience”

So this race is going to make the world more aware of Las Vegas now to those outside the US and more people will magically show up for years to come because of the race? Not that it's a major international magnet for years and people around the world are more than aware of Las Vegas but hey, the marketing comment was worth a laugh anyways. But maybe they know something I can't imagine.

In the end once again, regardless if money arrives from low, mid, upper mid, high, or ultra high income strata, the only word that matters is money. If I ran a publicly traded company, that's my job to maximize bringing it in, and would be your job too. We may not like it, or downright hate it, but feelings about it don't matter here. And if it brings in big money, they'll do it again and again. And that's reality.

DwWashburn9 Aug-25-2023

The questionner is right

In your long answer, you addressed how this can be beneficial to the tourism bureau and to casinos but never explained how it helps residents.  Because there IS no benefit to residents. Just inconvenience.

David Miller Aug-25-2023

Only Real Benefit

 I say, once again,the only real benefit I can see is the fact that several miles of street/roadways have been paved/repaved. Much ado, expense, and inconvenience about nothing.If this is scheduled to be an annual event, I will block that time frame on my calendar not to visit Vegas.

Michael Crunk Aug-25-2023

No Income Tax

I think every event that pumps money into the casinos and other businesses is beneficial to all Nevada citizens. I pay many thousands of dollars in State taxes because I live in another state. If all of the money flow was cut off then Nevada would need your money to stay in business instead of the money they get when people flock there for the attractions.

Peter Bijlsma Aug-25-2023

Las Vegas Grand Prix proceeds

Las Vegas is not like Miami or Austin. These multi millionaires flying in with their private jets are not eating at McDonalds and playing the nickel slots. They will bring a lot more money into the economy than just the proceeds from F1 ticket and package sales. 

Even advertising banners along the circuit will bring in a fortune since so many people worldwide will be watching it on TV.

And like Bob said we will have smooth surface streets for at least the next 10 years not just on Koval, but also on parts of the Strip, Sands and Harmon after decades of patching cracks and potholes.

Question of the Day - 25 August 2023

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