Formula E brought R1 billion boost to Cape Town’s economy

Formula E brought R1 billion boost to Cape Town's economy
Formula E brought R1 billion boost to Cape Town's economy

Africa-Press – South-Africa. Cape Town hosting a Formula E event earlier this year proved a major financial boon for the city.

The Mother City hosted its first FIA Formula E event in February, and, according a Nielsen Sports study, the race generated R1.084bn in economic activity and drew nearly R70m in media value globally.

The race took place on the streets of the picturesque Green Point precinct, with thousands of motorsport enthusiasts from around the world flocking to Cape Town.

This 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,” Cape Town mayor Geordin Hill-Lewis said in a statement.

“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.”

The Nielsen study also found that the race 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.

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.

Iain Banner, the chairperson of e-Movement, added: “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.”

The hosting of the event was planned years in advance, and it was delayed by a year due to logistical challenges arising from the Covid-19 pandemic.

“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 for Formula E, said.

Western Cape Premier Alan Winde added that the successful hosting of the Formula E confirmed the province’s status as the region of choice for hosting high-profile events.

“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.”

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