The Political and Economic Impact of Formula 1 Races in Azerbaijan: Myths and Realities
Abstract
Since 2016, Azerbaijan has been hosting the Formula 1 Grand Prix. Due to COVID-19, the
race was not held in 2020 and was conducted without spectators in 2021. The initial
contract for the event was supposed to end in 2020, but it was extended for another three
years. In 2023, Azerbaijan secured the continuation of its hosting rights until at least 2026 1.
Apart from Formula 1, the country has hosted several other prestigious international
events, including the Eurovision Song Contest in 2012, the first European Olympic Games
in 2015, the 4th Islamic Solidarity Games in 2017, and the European Youth Olympic
Festival in 2019. In 2024, Azerbaijan will host COP29, the most significant event in its
history since independence, further adding to its diverse event portfolio.
Despite some questions surrounding Baku's role as a host for Formula 1 compared to
other international sports events, the Azerbaijani government has regularly organized
the race for the past seven years and has yet to address these questions. The 2024 Formula
1 Azerbaijan Grand Prix is scheduled to take place again in Baku from September 13 to
15. In this paper, we examine the myths and realities regarding the economic impact of
Formula 1 races.
Keywords: Azerbaijan, Formula 1, economic impact, political impact, economic and
social benefits, corruption, tourism, service sector, travel agents, tour operators
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