Local economist says F1 money will trickle down to all of us

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by SHELTON GREEN / KVUE News and photojournalist MATT OLSEN

Bio | Email | Follow: @SheltonG_KVUE

kvue.com

Posted on November 19, 2012 at 11:20 PM

Updated Monday, Nov 19 at 11:21 PM

AUSTIN --- The U.S. Grand Prix may have zoomed in and out of the Austin area, however, the money spent by Formula 1 race fans remains behind.

The City of Austin has estimated that the international event could mean a $300 million dollar boost into the local economy.

Numbers from sales receipts, hotel tax, rental car tax, TABC liquor sales tax, etc. were not available Monday.

A City of Austin spokesperson said it could be weeks before the data is available, however, one local economist said we could all start to see a trickle down impact from F1 by then.

“In an indirect way it could mean more money in your pocket. The dollars don't stop at that one particular point, it gets shared with the supplier of a restaurant, it gets shared with the staff who turn around and spend it on groceries and rent and that can have an impact on businesses and residents throughout the economy,” said Michael Hennig with Angelou Economics.

Hennig said he and his colleagues studied the financial impact of the Austin City Limits in 2011. The $60 million spent on hotels, restaurants, etc. during the music event wound up having an overall $106 million impact, Hennig said.

“The city and county are able to invest those funds towards expenditures on everything from roads to new street lights to new events to a new staff person's job. So that might diminish the need for the city or county to have to raise funds through other means,” Hennig said.

Our economic expert also said the international exposure Austin received this weekend could prove invaluable when it comes to putting the city on the global map.

“This is yet one more asset that the City of Austin is able to hang out there and show to the world why Austin is a great place,” added Hennig.

 

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