F1 Hosting in Singapore. A Catalyst for Economic Growth

F1 Hosting Case study - Driving Economic Impact and Global Prestige

HOW LIVING LAB helped MTI Singapore optimise their FORMULA 1 Grand Prix

Living Lab helped Singapore transform their F1 hosting renewal negotiation into political certainty and tangible action. We helped ensure Singapore’s Formula 1 investment delivered long-term value. Our strategic approach unlocked economic impact, sponsorship growth, and audience engagement while right sizing the government’s investment.

- Higher revenue per guest—optimised ticketing and hospitality strategies
- Enhanced corporate partnerships—expanding premium sponsorship and VIP engagement
- Sustainable economic benefits—maximising returns without additional marketing spend
- Cost efficiency maintained—driving impact while keeping acquisition costs low

What could this mean for your city? Let’s explore the possibilities.

Mark Alexander Founder and CEO Living Lab

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MAJOR EVENT HOSTING RENEWAL. A negotiation Blueprint

Singapore’s investment in Formula 1 hosting has cemented its status as a premium global destination and regional hub. This case study examines our experiences and the insights we gained while assisting the Ministry of Trade and Industry Singapore in this achievement. It serves as a guide for optimising F1 hosting, focusing on the economic impact, competitive positioning, and long-term strategic value. We also provide recommendations for sustaining and enhancing success for other host cities.

Step 1
Understand the Economic Impact of F1 Hosting

A successful F1 Hosting strategy requires a clear understanding of its economic impact. This means assessing direct, indirect, and induced benefits to ensure that the event delivers measurable value for the host city.

Direct Benefits

- We need to optimise pricing models and attract premium sponsors. Ticket sales, sponsorship revenue, and advertising income.
- Measure and increase Corporate hospitality & brand activations – Expand exclusive event offerings for high-net-worth attendees. Increased spending by attendees on accommodation, dining, and transportation.
- Local business revenue – Ensure hotels, restaurants, and entertainment venues benefit from race attendance.

Indirect Benefits

- Tourism growth – F1 can be a gateway event that encourages longer visitor stays.
- Infrastructure development – Smart investments in transport, accommodation, and venue upgrades drive long-term value.
- Business spillover – Boost economic activity in retail, F&B, and entertainment sectors.

Induced Benefits

- Foreign Direct Investment (FDI) – F1’s global exposure attracts corporate investments and sponsorship deals.
- Branding & reputation – A successful F1 Hosting strategy turns the host city into a global sports & business hub.
- Talent & job creation – Develop a skilled workforce to support motorsport, tourism, and event management industries.

💡 Actionable Takeaway

A well-executed F1 Hosting strategy is a powerful economic engine that can drive tourism, investment, and global branding for a city. But to truly unlock its full potential, hosts must understand the multi-layered economic impact and structure their approach according to clear data and insight. Without understanding the detail of the impact it is difficult to optimise the event efficiently and to defend in the press and political sphere.

Step 2
Competitive Positioning or What Makes Your Race Indispensable?

Once you’ve assessed the economic impact of your F1 hosting, the next step is to position your F1 event as a must-attend race on the global calendar. With Formula 1’s saturated market, simply hosting a race isn’t enough—you need to differentiate, innovate, and enhance the experience to stand out from rival Grand Prix destinations.

Create a Unique Selling Proposition (USP)

- Night races, street circuits, or city integration? – What makes your race visually and experientially unique? Singapore nailed this by introducing the first-ever F1 night race, which turned Marina Bay into a neon-lit spectacle that captivates global audiences.
- Work with top-tier national brands—telecoms, airlines, banks, and major corporations—to create immersive tech-driven activations (e.g., F1 VR experiences, AI-powered engagement, interactive fan zones).
- Leverage local culture & entertainment – Pair the F1 event with world-class concerts, luxury hospitality, and cultural experiences to make the weekend unmissable.

Optimise the Race Weekend for Spectators & TV Audiences

- F1 is theatre so race timing matters – Schedule your event for maximum global viewership. A primetime race in Europe or the Americas can boost international engagement.
- The point in the calendar matters too. How will it impact extended stays. What do the alternatives look like?
- Enhance track design & overtaking opportunities – Work with F1 engineers to ensure your circuit delivers thrilling, high-speed action that keeps fans engaged.

Sustainability & Innovation as a Differentiator

- Green tech & carbon neutrality – Future-proof your event by adopting sustainable race operations, following Formula 1’s Net Zero 2030 goal.
- Smart city integrations – Use AI-driven mobility, smart ticketing, and next-gen fan engagement to enhance the event experience.

💡 Actionable Takeaway

F1 is the chance for your nation to be the lead in a piece of global theatre. So we want some main character energy! What makes it a global spectacle is combining innovation, entertainment, and business opportunities. Differentiate your race with a standout USP, create a theatrical experience for fans and media, and make sponsors & teams integral stakeholders. Integrating sustainability & smart city solutions ensures your event is future-proof. When done right, your Grand Prix becomes an unmissable fixture on the F1 calendar, driving sell-out crowds, major sponsorship deals, and global brand impact.

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Step 3
The Economic Engine - Unlocking Value Across Sectors

A successful F1 hosting strategy doesn’t generate massive commercial value without host cities working at it. Maximising your event’s economic impact is a series of active measures – Sponsors, teams, and media are the economic backbone of an F1 event, and the best hosts create high-value opportunities for them that help turn their race into a economic engine.

Supercharge Sponsor & Team Engagement

- So much of the economic effect of F1 is delivered by teams, sponsors and media- Engage with them directly. Make your Grand Prix the one that they focus on regionally can result in tens of millions of upside.
- Tailor sponsor activations – Develop unique sponsorship propositions with your local leader companies. National telcos, retailers, airlines, banks, and transportation companies can help promote your race and create immersive brand experiences using F1 tech, VR, and AI-driven content to maximise engagement. These are also the organisations you want to thrive so embedding them early and working with them to optimise marketing and FDI makes a ton of sense.
- Make it a hub for F1 teams – Encourage teams and manufacturers to use your city as a regional base for media, hospitality, or R&D partnerships.

TOURISM & F1 Hosting

- Tourism growth – F1 can be a gateway event that encourages longer visitor stays and de-risks your tourism portfolio with new markets.
- F1 in our research doesn’t so much lend its brand values to host nations as heighten awareness of those that already exist. Having a clear idea how you communicate yourself is essential to success.
- Infrastructure development – Smart investments in transport, accommodation, and venue upgrades drive long-term value.
- Avoid the reputational risk and price gouging by consolidating and packaging airlines, hotels and transportation.
- Travel & Tourism Optimisation: Creating multi-day visitor experiences through packaged flights, hotels, and cultural events.
- Smart Ticketing & Remarketing: Using data-driven insights to extend stays, drive repeat visits, and retain F1 fan engagement beyond race weekend.

F1 Hosting & FDI

- Foreign Direct Investment (FDI) – The businesses in F1’s paddock create more than 12% of the global GDP. Their CXOs are in the paddock. Use that!
- FDI Branding & Reputation – A successful F1 Hosting strategy turns the host city into a global business hub.
- Talent & Job Creation – F1 can be a significant factor in top-class talent moving to your nation.
- Develop a skilled workforce to support motorsport, tourism, and event management industries and use that as a platform for growth.

💡 Actionable Takeaway

A well-executed Formula 1 (F1) hosting strategy leverages the F1 paddock, attracting global business leaders and provides your city with access to 12% of the world’s GDP. This platform draws foreign direct investment (FDI) and top talent. By engaging leadership, sponsors and teams, cities can generate significant hospitality revenue and build lasting partnerships. Designing smart tourism strategies prevents price gouging and ensures F1 positively impacts the local economy. It’s important to create a structured commercial plan involving your FDI specialists, tourism officials, and local leaders, focusing on economic growth and optimisation.

F1 Hosting Beyond the Race
Long-Term Economic & Strategic Impact

Our analysis not only justified the economic, tourism, and branding impact but also helped optimise the terms of the hosting contract. Since 2008, the Singapore Grand Prix has driven $130M in annual tourist spending, attracted 550,000+ international visitors, and delivered $70M–$75M in media value. With 30+ MICE events anchored around race week, it reinforces Singapore’s global business and sporting stature, ensuring long-term economic and strategic returns that outweigh government investment.