The Formula One Grand Prix Baku, Azerbaijan

EDU 601 Research Methods - Assessment 1 – Literature Review Short Essay

Student No: 20025612
Student Name: Lakshan Mathota Rallage
Tutor: Philip Tubb
Word Count: 832
Intense adrenaline rush, excitement, and loud noises are typical to a Formula One race held in any
part of the world (Goldmeier, 2015). The world’s most elite calendar of events in the motor racing
world, Formula One, grabs the attention of an audience representing every age group. This thrill
towards fast cars, the glamour it follows, and the unbound excitement created by these major
events running around stunning locations of the world grabs the attention of the fans and also the
critics (Goldmeier, 2015). However, as with any major event, all the excitement of the formula one
come with a cost, a social cost. This short essay will examine various sources that look into positive
and negative impacts upheld by the Formula one grand prix towards tourism in Baku City,
Azerbaijan, since its inaugural racing event in 2016.

With only three years of running, off the 10 year contract the Baku City has bought from the FIA
(Federation Internationale de l’automobile), only a considerable amount of information of the
impacts on Baku Tourism is available (Bakucitycircuit.com, 2018). PriceWaterhouseCoopers (PWC), a
leading financial audits institute has conducted a study that reveals Baku City enjoying a total
consumer spending of US 277m just off its debut racing weekend held in 2016 (Bakucitycircuit.com,
2018). This quantitative evaluation suggests that the economic benefits off this major event
accounts to a significant amount. The research also suggest that most spending is off the guests who
visited the grand prix and all participants, implying that tourism has had a positive impact in Baku.
However, the report lacks specifics such as the details as to how much of an increase in tourism it
has created during the grand prix weekend over the same period in previous years. Gogishvili (2018)
explains how the event and its transformation to the city and the tourist arrivals affect the city and
the locals. This research involves some important qualitative information. In-depth interviews and
observations with the participants(Fairley, Tyler, Kellett, & D’Elia, 2011; Gogishvili, 2018; Goldmeier,
2015; Roberts, 2018; Valiyev, 2014) and event organisers were taken place to gather information
regarding the changes the grand prix weekend did to the Baku city and how it affected the
community (Gogishvili, 2018). Gogishvili manages to get some interesting insights of how the grand
prix affected the public and their day to day activities which can be useful for the event organizers as
they can improve on the set-backs. Valiyev (2014) speak about the efforts the government of
Azerbaijan has implemented over the years to present Baku as a tourist destination. And obtaining
hosting rights for a global event like the formula one grand prix gives Baku a very special attraction,
in tourism perspectives (Hamilton, 2016).

Fairley et al (2011) does a review on the impacts of the Australian Grand Prix to tourism in Victoria.
Uses a wide range of secondary data available over the years since the inaugural Melbourne grand
prix in 1996 various primary sources, Fairley was able to determine many aspects ranging from
expenditure patterns, hotel nights and extended stays, interstate travel information, expenditure on
grand prix related, expenditure by grand prix teams and fluctuations in travel to other Victorian
attractions by tourists during the weekend on the grand prix. A similar report expressing this form of
information is currently unavailable. Furthermore, Lowes (2004) explains how Adelaide lost hosting
rights to Melbourne due to the Formula One Group’s interest over the attraction towards the Albert
Park track as a location for a track. Similarly, the promoters of the Baku City made certain that they
reach the Formula One Group with a track that is eye catching with the best parts of the city that
they cannot refuse it. Hence, Osborn & Smith (2016) tries to explain how this type of an attempt by a
city to create a stunning track comes at a cost, a cost that causes the local community to be
disturbed off their day-to-day activities. Osborn and Smith (2016) also determined through
qualitative research how the London Olympic Village was later accessible to visitors without
additional costs and how the local community managed to accept the infrastructural changes made
to the city. The current reports available on the Baku GP only suggest the ideas of the disturbance
the track constructions had caused to the locals. Gogishvili (2018) who provides the most
comprehensive report to date is only able to recognise through its qualitative research how the city
was able to meet the demands of the tourists and the higher income earning participants who were
able to visit the grand prix. Despite its success, the negative impacts of this tourist boom to the
locals are still unclear (Roberts, 2018).

Moor (2016) explains that the grand prix increased Azerbaijan tourism by 20%. This number is based
on the Azerbaijan Statistical Committee report, it only provides quantitative data of the visitor
numbers. No specific Baku’s local visitor numbers can be plotted off this information. While the
overall numbers add up to show the event was a success, the perceptions and the impact the event
created on the local community needs more research. It is important obtain and understand these
gaps of information as it helps for the growth of the Baku tourism industry and also the welfare of
the local community.
Reference List

Bakucitycircuit.com. (2018). PricewaterhouseCoopers Study Reveals $277.3million F1 Benefit to Baku.

[online] Available at: https://www.bakucitycircuit.com/en/news/pwc-study-reveals-277-
million-usd-f1-benefit-to-baku [Accessed 22 Aug. 2018].
Fairley, S., Tyler, B. D., Kellett, P., & D’Elia, K. (2011). The Formula One Australian Grand Prix:
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Moor, R. (2018). Azerbaijan Tourism Pleased by Formula 1 Impact. [online] Tourism-review.com.

Available at: https://www.tourism-review.com/azerbaijan-tourism-boosted-by-formula-1-
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Lowes, M. (2004). Neoliberal power politics and the controversial siting of the Australian grand prix
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Osborn, G., & Smith, A. (2016). Olympic brandscapes: London 2012 and the seeping
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Roberts, J. (2018). "The Azerbaijan GP could be short lived". Motor Sport News: The Voice of British
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Valiyev, A. (2014). The post-Communist growth machine: The case of Baku, Azerbaijan. Cities, 41,
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