PETALING JAYA: Malaysia should look beyond the chequered flag and measure the success of the Formula 1 event by how far its economic benefits spread – from hotels and restaurants to homestays, small businesses and local communities.
Tourism and economic experts believe F1 can become a long-term growth catalyst if it is positioned as a national sports tourism campaign rather than merely a three-day racing spectacle.
Malaysian Tourism Federation president Dr Sri Ganesh Michiel said the race should not be judged solely by spectator numbers, but by whether visitors stay longer, spend more and generate wider economic benefits.
“The objective should be simple: bring visitors to Malaysia for F1, but give them enough reasons to stay longer and discover Malaysia beyond the circuit,” he said.
Ganesh said visitors should be encouraged to venture beyond the airport, hotel and race circuit to explore nearby towns and communities.
He added that success should be measured by visitor spending, length of stay and whether tourism revenue reaches licensed operators and local communities.
“If international arrivals increase, but our legal and licensed tourism operators do not meaningfully benefit from the additional spending, then we cannot consider the event a complete success,” he said.
Economist Prof Dr Yeah Kim Leng said Malaysia’s previous experience hosting F1 provides a solid basis for assessing the race’s commercial viability and the country’s negotiating position.
He said key indicators should include whether the event generates sufficient returns while contributing to the maintenance and upgrading of the Sepang International Circuit (SIC).
“The socio-economic benefits from tourism spillovers and enhancing Malaysia’s international image would justify government support, but not direct involvement,” he said.
He added that as the SIC is already a sunk investment, increasing its utilisation could generate positive returns if the event is managed on a commercial basis.
Malaysian Inbound Tourism Association president Mint Leong Hoon Min said F1 should be treated as a national initiative involving both the tourism and sports sectors.
Leong said the race should be packaged with accommodation, shopping, cultural attractions and domestic tours to encourage visitors to extend their stay.
She added that communities in Sepang, Dengkil, Sungai Pelek and Bagan Lalang should also share in the economic benefits.
She said registered homestays could offer authentic village experiences, while nearby towns could attract visitors through traditional Malay villages, cultural performances, fishing activities, cooking classes, fruit farms and night markets.
Leong also called for priority to be given to local vendors and suppliers, supported by training and skills development to build a stronger F1 ecosystem.
“Fans are looking for more than just the race. They also want festivals, concerts, entertainment and premium experiences. Malaysia needs to better promote our diversity, value-for-money experiences and unique culture,” she said.
This year’s Bahrain Grand Prix will be hosted at the SIC from Oct 2 to 4.
