Over $2 million has been invested in ‘Formula 1’ on water — the economic impact has been estimated at $12.5 million

Hosting international sporting events can serve not only as a publicity initiative but also as a tool for economic development. The Kyrgyz government has allocated over $2 million to prepare the infrastructure for the ‘Formula 1 on Water’ event, whilst the preliminary economic impact of the competition is estimated at $12.5 million.

At a press conference today, Eduard Kubatov, Director of the State Agency for Tourism Development, explained that the revenue generated by the event was approximately six times greater than the government’s investment.

The investment was not limited to organising the three-day competition. In the village of Baet, two kilometres of roads, over one kilometre of cycle paths, pavements, a lighting system and coastal infrastructure were built. Facilities were also provided for spectators and official delegations, as well as a paddock for athletes and racing boats. All the work was completed in two months.

Following the conclusion of the championship, the facilities remained with the village. In future, the venue can be used for new sporting, cultural and tourist events, thereby increasing the potential long-term return on the initial investment.

According to preliminary figures, around 14,600 people attended the three-day event. The economic impact was assessed taking into account expenditure by guests and participants on accommodation, transport, food and other services.

“In Bayet, the cost of rooms, which usually rent for $70, rose to $400. The figure of $12.5 million includes expenditure on accommodation, transport, catering and participation in the event. Calculations are still ongoing,” said Kubatov.

It is important to note that the figure quoted is neither revenue for the state budget nor net profit from the races. It is an estimate of the total turnover that the sporting event generated for businesses and the economy of the Issyk-Kul region and the country.

As a reminder, the ‘Formula 1’ World Powerboat Championship round took place on Issyk-Kul from 31 July to 2 August.