It is the F1 Sepang fever again this weekend, where Malaysia will host its annual Grand Prix race for the Formula One drivers and their speed machines from across the world. It has been a few years now, since Malaysia’s Sepang F1 circuit had been selected to feature the Formula One race, but one has to wonder, how does one run a business around this F1 craze? Well, we look at some of the ways how companies and businesses, especially those based here locally have been making money from the excitement of the speed machines, closest to the speed of sound, they call Formula One.
Its all Friendly Competition, but Great for the Brands
Remember, a few years back when AirAsia Chairman, Tony Fernandes made a surprise entry into F1 through his now rebranded Formula One team – Caterham F1, he did not aim to be the world champion at the first few seasons of the races, but instead, focused his attention in having a friendly rivalry with Virgin Racing, owned by his friend, Sir Richard Branson. What many people did not realize at that time was, Tony was able to rally up fellow Malaysians and Branson with his fellow British supporters alike to support each of their teams, which in turn created a loyal base of followers for their respective brands. The duo had managed to spark a new interest among their customers towards their brand, and subsequently their companies, being drawn to special offers and more alert with the upcoming roll-outs of products and services from their brands, simply by just being excited over their friendly rivalry in F1. For them, their introduction into the F1 may not have seen them becoming world champions at the pits yet, but at least, they got some Free and Viral publicity out of them.
You can read up on their full ‘Friendly Rivalry’ history here.
Catering Industry is Great and Hospitality is Booming!
According to F1India.org, hosting an F1 race in a country would also mean that more tourists and motorsports fans will be drawn towards participating in the race as spectators, hence giving opportunities for local catering companies and entrepreneurs to offer their products and services, especially in the Food & Beverage sector to an ever more hungry and attentive crowd. Just on record alone by F1India.org, 40,000 glasses with 30,000 plates were used only for catering purposes during the last F1 race, hence showing that there will be a boom in local consumer demands, not only for pottery but for food as well during such races.
A Great Boost to Local Tourism and Income
The race has achieved S$100 million in tourism receipts each year it has been run and more than 110,000 visitors came to watch the race in the first three years.
That was a statement made by Formula1blog.com, reviewing about the Singapore night Formula One race, to have garnered public attention with the profits that the Singaporean government and its backers were making from their several years of hosting an F1 race. Having an F1 race in your country would also see a rapid rise in tourism dollars spent locally by foreign tourists, where renowned F1 teams would have anyway attracted their loyal fans to follow and support them in the different countries where races were organised. The spillover effects of these tourists staying in local hotels, to dining in our local restaurants, to spending more dollars on our local tourist attractions would have also meant more income to our local providers in the tourism and hospitality fields. Let alone, ticket sales for the F1 would also grow by leap and bounds at this period, where as history dictates, F1 tickets are always on hot demand despite economic setbacks.
Malaysia is ready to kick off the 1st Season of the Formula One F1 Sepang race this weekend. For more details about the race, please do visit their official website here.
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