Malaysia’s hosting of the relocated Formula 1 Gulf Air Bahrain Grand Prix is expected to generate MYR1bn ($250mn) in direct economic activity, as the country leverages the October event to boost tourism under its Visit Malaysia Year campaign, Focus on Travel News reported on August 22.
The race, scheduled for October 2 to 4 at the Sepang International Circuit, could fuel a further MYR2.5bn ($616mn) in wider indirect economic activity, according to projections cited by the outlet. International flight bookings to Kuala Lumpur have more than doubled year on year since the event was announced, alongside a sharp rise in local hotel and homestay reservations.
Ticket sales revenue from the race will go directly to Bahrain, which is covering the estimated $70mn to $80mn hosting fee and retains full commercial control and revenue rights. Malaysia’s financial commitment is limited to local circuit preparations and operational costs capped at around MYR40mn ($9.86mn).
Professor Emeritus Dr Barjoyai Bardai estimated the event could draw around 50,000 additional international visitors under a base-case scenario. Tan Sri Mokhzani Mahathir, president of the Motorsports Association of Malaysia, said around 30% of F1 and MotoGP spectators are typically foreign visitors, meaning a race of the scale Sepang drew in its peak years, between 80,000 and 100,000 attendees, could bring 24,000 to 30,000 international visitors to the circuit alone.
Assuming 90% of visitors travel by air, the event could generate around 90,000 additional passenger movements in total, according to Mahathir, who said the increase could help raise airline load factors on regional routes from Singapore, Thailand, Indonesia, China, Japan, Australia and the Middle East, with additional benefits for airport retail and ancillary services.
The race lands as Malaysia runs its Visit Malaysia Year campaign, targeting 47mn visitors, with tourism officials aiming to convert F1 spectators into longer-staying visitors exploring destinations including Kuala Lumpur, Penang and Langkawi.