Formula 4 race: organisers expect event to boost Chennai’s economy

Chennai Formula 4 race set to boost city's economy and global profile, aiming to become a premier racing destination.

With Chennai, known as the ‘Detroit of South Asia’, set to host the Formula 4 race from Saturday, the organisers are expecting that the event would boost the city’s profile and economy.

Chennai Formula 4 Racing Circuit, along with the Indian Racing Festival, is set to feature India’s inaugural, first-ever night street circuit. The event is hosted by the Sports Development Authority of Tamil Nadu (SDAT) in partnership with Racing Promotions Pvt. Ltd., which holds the licence for Formula 4 races.

“We will submit a report on the economic impact of the event on the city, after a month. Chennai is going to be one of the top 12 cities worldwide to have a night race...,” Abhinandan B., co-founder, Racing Promotions Private Limited, said.

Greenko Hyderabad E-Prix, hosted in collaboration with the Telangana government and Ace Nxt Gen, had an economic impact of nearly $84 million on Hyderabad’s economy, according to Nielsen Sports Analysis. “We anticipate a similar impact in Chennai, as there has been a multi-layer publicity for the event...,” he further said.

Mr. Abhinandan pointed out that over 1,000 people had been employed on contract for the race. “There are 8-10 verticals in the making of the circuit, including aspects such as electronics, safety and security. About 85% of the employed people are from the local populace,” he added. The State would get revenue in the form of taxes for ticket sales, food and beverages.

He further said that in Singapore or Monaco, the stretch where the race is held has a significantly higher real estate rate than the other parts of the city. If such events become an annual fixture, it is a big deal for the city. Besides, there is a lot of tourism potential [in holding such events]. People from across India and the world would come to watch, once it becomes an annual event, he added, adding that the race was insured, including the drivers and the cars.

J. Meghanatha Reddy, Member Secretary, SDAT, said the idea was to aim for the elevation of city, and put Chennai on the global map. “This time, our intent is to show the world that we are capable of hosting such an event. We strongly believe that as the race matures year on year, there will be a lot of potential. Many will come to the city to watch the race from overseas and other States; this will boost tourism,” he said, adding, “We are confident that the event would boost Chennai’s global profile, and more people would be open to collaborate in the future....”