Tuesday 6 June 2023

Formula E’s Cape Town E-Prix boosts local economy by R1bn, says study.

PHOTO CREDIT: ABB FIA Formula E World Championship.
Cape Town’s inaugural ABB FIA Formula E event has benefited the local economy to the tune of over R1bn, according to an economic impact study compiled by Nielsen Sports SA. 

The findings, released by the Data Analysis agency, which had examined the economic impact of the 2023 Cape Town E-Prix, revealed 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.

Nielsen Sports Managing Director Jean Willers has explained 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 organizers, 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.”

The E-Prix, which took place on the streets of the picturesque Green Point precinct in February this year, attracted thousands of spectators. 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."

Nissan's Sacha Fenestraz led the field at the start of the Cape Town E-Prix.
PHOTO CREDIT: ABB FIA Formula E World Championship.
In addition to the economic benefits, the study found that the E-Prix 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.

Chairman of e-Movement Iain Banner said, “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. 

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 marshaling, while local businesses received a boost through selling food and beverages from their food trucks and mobile eateries across the two Fan Villages.

“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,” Alberto Longo, Co-Founder and Chief Championship Officer, of Formula E, said. 

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