For 33 years, the Circuit de Barcelona-Catalunya has not known what life is like without Formula 1. In 2026 its contract with Liberty Media ends, the year in which it will coexist with the premiere of the Ifema urban circuit in Madrid, with an agreement until 2035 The negotiations, still open: a project led by the Generalitat of Catalonia that aims to save the economic impact of F1 in the territory. The event – which brings together 284,066 visitors in four days, almost half of all the tourists received in 2023 at the Circuit – generates 200 million euros in indirect return, according to the Department of Business, and 2,670 jobs, many of them temporary, according to a Circuit study with data from 2019. “Losing F1 would be catastrophic,” predicts the president of the Vallès Oriental Hospitality Guild, David Vázquez. He adds: “For the hotels closest to the Circuit it would mean closure.” For the majority of hotels in the region, the dates of the Grand Prix represent between “30 and 35% of their annual results”, although for the closest ones it increases to “70 or 80%”, shares the Guild. “The Circuit acts as a point of attraction as an economic engine for the entire Vallès Oriental area,” says its director, Josep Lluís Santamaria.
The impact of the world’s top motorsport competition transcends the circuit. “The Grand Prix has an economic, employment and image impact on the territory that must be preserved,” says the mayor of Granollers, Alba Barnusell. According to the mayor of Montmeló, Pere Rodríguez, F1 currently has an economic impact of “400 or 450 million euros.” “It is very important to position Catalonia in the world and that is why there is a global fight,” says the head of Business, Roger Torrent. The Government is “convinced” that they will be able to renew the contract beyond 2026, without comparing themselves “with anyone,” said the president of the Generalitat, Pere Aragonès. And from Barcelona City Council, the mayor, Jaume Collboni, showed his willingness to do “everything possible.”
From the Hotel Montmeló they agree on the importance of the Grand Prix: “As soon as the calendar comes out there are already reservations. “Fridays and Saturdays we are always full, and the rates are 300% higher than usual.” Without availability since December, with the season not yet started, they feel that they have left the pandemic behind, as they have reached 2019 figures. “A very large percentage of attendees are international audiences, and they not only come for the race, but they stay longer,” explains Rodríguez. Visitors to the Circuit spent, in 2019, 108 million euros – without taking into account tickets -, according to Torrent. “The type of tourist who comes to F1 has a lot of money and is willing to spend it. While the economic impact of MotoGP is more direct to small businesses, F1 reaches another level,” analyzes Vázquez.
The Circuit de Barcelona-Catalunya belongs to Montmeló – it occupies 25% of its municipal area –, a town of just over 8,000 inhabitants 27 kilometers from Barcelona. “The Circuit puts Montmeló on the map, but also Catalonia and Spain. The estimated audiences of one day of F1 are a marketing campaign that cannot be paid for in any other way,” says Rodríguez, its mayor. For a few days a year, the Vallesan people go all out, he says: “We facilitate the processing, the granting of activity licenses – occupation of public roads, works, etc. -, local police, cleaning brigade…”. Even Renfe, to reach the town, doubles its frequency of passage. “The Montmeló City Council is the only one that has always clearly and directly supported the Circuit and fills the town to overflowing,” says Vázquez.
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But the drawback of the circuit is the deficit. Although the Generalitat and the Circuit do not want to talk about the economic situation of the facilities – “we are calm and things are going well” -, the Guild does not appear optimistic: “If F1 disappears, will we be able to maintain a deficit structure, right now, of more than 60 million euros?” Although from Montmeló, the diagnosis is different, and according to Rodríguez, “there are no debts.” “The Circuit is counterintuitive, because there is a contribution of public money, but the return is basically private. Although it also generates taxes, fees and contributions. But the economic impact on the territory more than justifies the negative balance it has had in the past,” shares the mayor.
To safeguard the future of the premier category in Catalonia, on March 21 they will meet – the Guild assures – to discuss the renewal and advance a common project. “We are spending a lot of time and money going separately,” says Vázquez. “The Government has sometimes questioned it,” Rodríguez recalls. Both the Circuit and Montmeló and the Business Department share the “coordination, commitment and complicity” that exists between the City Council, the Generalitat and the Provincial Council to extend the contract. “F1 is one of the icons of sport in Barcelona and Catalonia. The Generalitat is the one who must lead the negotiations,” Collboni shared.
In 2026, the iconic Circuit and the Ifema rookie will coincide on the calendar. For the Catalan circuit, the two events “are compatible and complementary.” Positivity also reigns in the Generalitat and the town councils of Montmeló and Granollers. Although the Vallès Oriental Hospitality Guild suspects that it is “a strategic move by Liberty Media.” “They are going to keep Barcelona until they can prove that Madrid is not a failure, like Valencia was: if Madrid works, we will lose Barcelona,” he predicts.
Although the streets of the capital will not host a Grand Prix for another two years, there are already the first reports on the potential profits for the Community. Annual income would exceed 450 million euros, 8,200 jobs would be created and more than 85,000 tourists are estimated, according to Ifema and in accordance with a preliminary study carried out by Deloitte. A project that, according to the Community of Madrid, will not have public financing, something “strange” for the mayor of Montmeló. And an advantage for the Circuit, which it does have. “Public investment is what gives legal security to investors that the project will continue,” says the politician.
“Entering a competition with Madrid could mean that all Catalan institutions reaffirm their commitment to maintaining the GP for many more years,” Rodríguez considers. Although most parties are optimistic about reaching an agreement, the future is uncertain. “If we lose F1, we will surely lose the Circuit. There will be no type of career that can replace that large amount. We are at risk, that’s for sure,” says Vázquez.
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2024-01-30 05:20:23
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