Montreal, October 16 - Every June since 1978, the roar of engines and thrill of speed have drawn crowds to the Canadian Grand Prix at Montreal�s Circuit Gilles Villeneuve. Creating interest among tourists, this event has tremendous historical value. Thousands of Formula 1 fans worldwide are prepared to pay hundreds of dollars to attend, which generates significant economic benefits for Canada. Local small-to-medium-sized businesses, hotels, and restaurants especially.

The Canadian Grand Prix took place for the first time on what was formerly the Circuit de l'�le-Notre-Dame, won by Gilles Villeneuve. In 1982, Villeneuve died during the Belgian Grand Prix, inspiring Montreal to rename the circuit in his honour to the Circuit Gilles Villeneuve. Today, the track has 14 corners, 70 laps of 4.361 km and 3 Drag Reduction System (DRS) zones. A general admission ticket for the three days of the Grand Prix costs an average of $336, and the site has 170,000 seats. Organizers expect up to 120,000 fans each day.

In 2023, an international base of 70 million viewers watched each Grand Prix. In the same year, the sport reached a record 6 million spectators on-site across 12 races. In addition, F1 estimates that it has over 700 million fans worldwide. With the release of the Netflix series Drive to Survive and its popularity on TikTok, motorsport�s popularity has soared.

Global Economic Impact

Due to the COVID-19 pandemic, the $25 million agreement between the Government of Canada and the International Automobile Federation (FIA) was extended to 2031. Despite the upsets in 2020 and 2021, the number of spectators at the 2023 Grand Prix is estimated to have risen by 46% since 2019, including a 102% increase from the local region, representing 80,200 spectators. As for the rest of the world, there was an increase of 53% in English Canadians, 25% in residents of Quebec outside Montreal, and 9% from abroad. This increase in spectators represents 14% more revenue than in the pre-pandemic period, or $92 million, of which $51 million was spent by people in Montreal.

On a broader scale, these three days generate around 2% of total tourism revenue in Montreal. In 2023, this would represent $67.4 million for Quebec�s GDP and $16 million in federal tax for the two levels of government. According to Tourisme Montr�al's Mesure de l'impact �conomique du Grand Prix de Formule 1 du Canada �dition 2019 report, the event is estimated to have created 890 jobs. Foreign fans spend an average of $926 over three days in addition to their ticket.

A Helping Hand

The event significantly impacts hotel and restaurant sales. In 2023, 97% of hotel rooms in the region were booked, and the average price of a night rose from $322 to $568. According to a Moneris report, profits from bars in Montreal grew by 31%, restaurants by 24%, and attractions by 13% during the Grand Prix.

In 2024, Ziggy Eichenbaum, owner of Ziggy�s Pub in downtown Montreal, testified that some small businesses are counting on the event�s success to pay their bills. �It�s the beginning of the year when we start our summer, and what�s great is that customers come from all over the world. I get customers from Germany, Brazil, Australia, and every year they come here�, he says, �It�s one of the best times of the year. It allows everyone to start paying their rent again�.

Traffic in Montreal

Transportation companies profit from the surge in crowds during this June weekend. A few days before the 2023 Grand Prix, Martin Girard, spokesman for the Minist�re des Transports et de la Mobilit� durable, advised F1 fans to use public transport and to expect more traffic than usual. The metro, bus, and train systems saw increased use as a result. Parking on the streets of Montreal has always been difficult, but with the Grand Prix, it became impossible for most citizens. The closure of the main arteries around the circuit increased traffic. Crescent Street and Boulevard Saint-Laurent, between Beaubien and Jean-Talon for example were turned into pedestrian zones for the event's duration.

Profitability of the Sport

Despite this influx of money, the investment of public funds must be remembered when analyzing whether the Canadian Grand Prix is profitable. According to a Journal de Montr�al article by Sylvain Larocque in 2022, the event�s deficit amounted to nearly $4 million annually between 2015 and 2019. The Federal and Provincial governments spent up to $173 million on the races between 2017 and 2022, and between 2015 and 2031, more than $300 million of taxpayers� money will have been allocated to F1.

�It�s good to see that Montrealers are excited about this,� says Yves Lalumi�re, CEO of Tourisme Montr�al. Despite the ups and downs brought by the Canadian Grand Prix, much like the experience of watching a Canadiens playoff game at the Bell Centre, there�s no price tag on the thrill of witnessing the world�s fastest drivers compete for the Formula 1 World Championship on home turf.