United States Grand Prix set to deliver $1 billion economic boost to Austin

The United States Grand Prix is on course to deliver approximately $1 billion in economic activity to Austin, according to Tom Noonan, president and chief executive of Visit Austin, as Formula 1 returns to the Circuit of the Americas.

Noonan told local broadcaster KXAN that the impact begins well before lights out on race day. “These [F1] teams get in town like seven to nine days in advance,” he said. “It’s the equivalent of having like a citywide convention in town even before the race even starts.”

The global television audience is another draw for the city beyond the gate receipts. “Think about all the eyeballs in Austin, Texas, around the world during Formula 1,” Noonan added. “It’s incredible. It’s a great marketing platform for us too.”

Austin hotels are expected to reach 95% occupancy across the race weekend. Hotel manager Joanna McCreary said the event has become one of the most significant dates in her property’s calendar. “This is the best October we’ve ever actually had on record since we’ve been open since 2010,” she said. “Formula 1, just those four days, is about 7% of our annual revenue. And obviously we’re open for 365.”

McCreary also noted that uncertainty elsewhere on the F1 calendar may have concentrated demand in Austin. “The race, I think, this year was impacted by the fact that some of the global destinations were either cancelled or a little more touch and go,” she said.

The broader picture for Central Texas is already substantial. Travis County reports the race has generated more than $10 billion for the region since its debut in 2012, including more than $1 billion a year in the county alone.

That financial relationship looks set to continue for some time. The Circuit of the Americas secured an eight-year contract extension last year, keeping Formula 1 in Austin until at least 2034. The deal will make COTA the longest-serving F1 venue in the United States, surpassing the record previously held by Watkins Glen.