CAPE TOWN FORMULA E’S BILLION RAND BOOST TO THE ECONOMY
Cape Town’s inaugural ABB FIA Formula E event has proven to be the jewel in the City’s illustrious events crown. According to a new report, the February E-Prix had an economic impact of over R1bn, in addition to catapulting Cape Town to the top of many international tourists’ must-visit lists.
The Nielsen Sports study, which examined the economic impact of the 2023 Cape Town E-Prix, found that the race generated R1.084bn in economic activity and drew nearly R70m in media value globally, making the Formula E event one of the biggest economic impact and global media exposure events hosted in the city in the last 10 years.
The race, which took place on the streets of the picturesque Green Point precinct, attracted thousands of visitors from all over the world, including fans, teams, and media. This influx of visitors had a positive impact on the city’s hospitality industry, with hotels, restaurants, and bars experiencing a surge in business.
“The Formula E race was a huge success for Cape Town, both in terms of the international exposure it brought to the city and the economic benefits it generated,” says Cape Town Mayor Geordin Hill-Lewis. “It surpassed all expectations, and we are proud to have hosted such a prestigious event. We look forward to welcoming the series back in the future.”
In addition to the economic benefits, the study found that the race also had a positive impact on the environment. Formula E cars are powered by renewable electricity, making them a more sustainable alternative to traditional racing vehicles, while providing the thrill that motorsports fans have come to love and expect. The E-Fest which was co-located at the race village also provided an opportunity for Capetonians to experience a variety of E-mobility options and learn more about the future of alternative energy sources.
Chairman of e-Movement Iain Banner says, “We are delighted – but not surprised – with the findings of the Nielsen Sports report, showing that Formula E Cape Town delivered over R1,080,000,000 of economic impact. Additionally, the global media coverage was close to R70m. We always knew the event would provide a massive boost to the economy at a time when it was badly needed. It can only go up from here”.
Large-scale events greatly contribute to job creation, and one of the most tangible examples is Quebeka Fencing, the company appointed to produce the 7.8km of debris fencing. Quebeka ran two teams, 24/7 for 61 days. 30 of the 40+ team would not have had work if it was not for the Cape Town E-Prix contract.
In addition, local labour formed part of the race compound, grandstand, and garage construction teams, and served in various essential crew capacities like security and marshalling, while local businesses received a boost through selling food and beverages from their food trucks and mobile eateries across the two Fan Villages.
Staging an event of this magnitude is no small feat and was years in the making. Despite a year’s delay due to logistical challenges arising from the Covid pandemic, the February 25th event was flawless in its execution – leaving drivers, teams, sponsors, and fans with a burning desire to return to Cape Town for more in 2024.
Alberto Longo, Co-Founder and Chief Championship Officer, Formula E, says, “The race was a spectacular event for the City of Cape Town and for the millions of viewers that tuned in around the world. The track created perfect conditions for high-speed racing action including the fastest lap in Formula E history. Our drivers would love the chance to beat that next season and we look forward to receiving the commitments to make that happen.”
City and Provincial authorities are delighted with the economic boost the E-Prix provided. Western Cape Premier Alan Winde added, “This motoring extravaganza once again confirms the Western Cape’s status as the region of choice for events that suit everyone’s interests. It has added to the boost our province’s economy needed post-Covid-19. We cannot wait to welcome Formula E back to our province. Its success here in Cape Town is astounding and helped showcase the city and province’s ability to host world-class events.”
Nielsen Sports Managing Director Jean Willers explains the process of quantifying an event on a scale such as this one, “Nielsen Sports Host City evaluation assessed the impact on its host city across three critical areas. Firstly, fan attendance, based on ticketing data & fan research, with 53% of spectators from outside of Cape Town and 69% of all fans indicating that they would advise others to visit Cape Town. Secondly, economic impact, through expenses of event attendees, event organizer, teams, sponsors, media, and hospitality guests. Lastly, media impact, through analysis of the global TV exposure, social media, online, broadcast and print media coverage for the host city Cape Town.”
