SHAH ALAM, Aug 1 — The return of the Formula One (F1) Grand Prix to Sepang is expected to deliver an immediate economic boost for Selangor, but its longer-term value will depend on the state’s ability to turn racegoers into repeat visitors through targeted tourism offerings and promotional campaigns.
Economist Datuk Seri Mohd Uzir Mahidin said the race would provide an immediate lift to the state’s economy through higher spending by international and domestic visitors on accommodation, food, transport, and other tourism-related services.
The former chief statistician added that benefits would extend beyond the three-day race, as hotels, homestays, and businesses hosting side events stand to gain from visitors who arrive early or extend their stay.
"For Selangor, it will immediately spark greater consumption through the additional visitors coming in.
"There will be many supporting activities. Visitors will come earlier for (race) trials and other programmes, so I expect the impact to be very positive because the infrastructure is already in place," he told Media Selangor.
Uzir was responding to the news that Malaysia will host the Formula 1 Gulf Air Bahrain Grand Prix at the Sepang International Circuit (SIC) from October 2 to October 4, marking the first time in F1 history that a race has been relocated to another country after being cancelled.
The race was moved to Malaysia following its cancellation in Bahrain earlier this season due to geopolitical tensions in West Asia.
SIC hosted the Malaysian Grand Prix from 1999 to 2017 before the race was dropped from the F1 calendar due to rising organisation costs and sanctioning fees.
Develop attractive travel packages
When asked about the race’s immediate spending impact, he said the government’s focus should be to maximise its multiplier effect by encouraging visitors to explore other parts of Selangor and Malaysia.
"The medium to long-term goal is to turn first-time visitors into repeat tourists. That means we must deliver quality hospitality, provide good service and showcase not just the sporting event, but also our culture and other attractions,” Uzir said.
He recommended that government agencies, tourism authorities, and the private sector work together to develop attractive travel packages that encourage race spectators to visit destinations across the country, including Selangor, before and after attending the Grand Prix.
"We need greater partnerships with the private sector, involving both big players and SMEs (small and medium enterprises). We do not want the impact to be enjoyed only by certain parties,” Uzir said.
Meanwhile, organisers should package the F1 event as a gateway for tourists to discover destinations beyond the circuit.
He added that although the race will be centred in Selangor, the economic benefits will extend nationwide as businesses across multiple sectors tap into the influx of visitors.
"There should be tourism packages. While they come to watch the race, they can also visit Borneo, the East Coast, our islands, and places in Selangor,” Uzir said.
Among the industries expected to benefit include hotels, event management companies, telecommunications providers, food and beverage operators, retailers, and small traders, as well as tourism-related businesses.
He observed that timing of the F1 return complements the Visit Malaysia Year campaign, with major sporting events serving as a significant boost for tourism by attracting dedicated international followers and encouraging visitors to stay longer in the country.
