F1 comeback set to rev up revenue


Off to the races: Lewis Hamilton leading the rest at the Sepang International Circuit in 2016, a year before its final race in April 2017. — Filepic

PETALING JAYA: The sound of roaring engines will bring more than just excitement to Sepang, with hotels, restaurants and businesses across the Klang Valley expecting the return of Formula One (F1) to bring with it a fresh wave of tourism revenue.

With the 2026 Bahrain Grand Prix now officially confirmed to be rescheduled to the Sepang International Circuit (SIC) from Oct 2 to Oct 4, businesses are expecting the impact to extend beyond the race weekend.

Officials said the spin-offs will also benefit transport operators, retailers and local attractions.

SME Association of Malaysia national president Dr Chin Chee Seong said hotels in Kuala Lumpur, Putrajaya and areas with good connectivity to the SIC are expecting stronger bookings as the race approaches.

“F1 is a globally recognised sporting event that attracts international visitors, business travellers and motorsport enthusiasts.

“Although it is still early, we expect enquiries from travel agencies, corporate groups and international visitors to increase as the race date draws closer.”

Chin said the arrival of F1 fans would create a multiplier effect, with spending across various sectors, not just at hotels.

He said Malaysia should use the opportunity to encourage visitors to extend their stay by promoting attractions beyond the SIC.

“The objective should be to encourage them to explore Malaysia as a whole,” he said.

Yayasan Nishana chairman Nivas Ragavan, who is also Federation of Malaysian Business Associations (FMBA) vice-chairman, said the F1 could provide an immediate boost to the tourism industry with Malaysia hosting Visit Malaysia 2026.

He said Malaysia had the infrastructure and logistics capacity to accommodate the expected increase in visitors.

“We are able to mobilise immediately and accept more bookings.”

Nivas said the return of F1 would create opportunities across the tourism supply chain.

“There will also be a boost for luxury shopping as visitors coming for F1 are usually high-end travellers.”

He said Malaysia’s previous experience hosting F1 showed the importance of managing the financial commitment involved.

Nivas said the current arrangement was different as Bahrain would bear the cost of hosting the event, while Malaysia would provide the venue and facilities.

Malaysian Tourism Federation (MTF) president Dr Sri Ganesh Michiel said the return of F1 could strengthen Malaysia’s position as a sports tourism destination.

“F1 is not merely a motorsport event.

“It is a global platform that attracts international visitors, media attention, corporate participation and worldwide exposure.”

MCA Tourism Bureau chairman Lawrence Chiew Kai Heng said the return of F1 should be viewed as an opportunity to generate wider economic benefits beyond ticket sales, citing Singapore’s experience in hosting the Singapore Grand Prix.

“Singapore provides a good example of how a world-class sporting event can generate significant tourism receipts and benefit hotels, restaurants, retail, transport operators and other service providers.”

He said Malaysia should focus on maximising visitor spending by encouraging fans to extend their stay and explore more destinations beyond the race venue.

On Sunday, Datuk Seri Anwar Ibrahim announced that Malaysia would host the Formula 1 Gulf Air Bahrain Grand Prix at the SIC in October in collaboration with Bahrain, F1 and the Federation Internationale de l’Automobile.

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F1 , Bahrain , SIC , tourism , anwar

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