Bangkok: The Cabinet has given the green light for Thailand to bid to host the Formula One (F1) races, approving a budget of 41,339 million baht over a span of five years from 2028 to 2032. The races are planned to be held over three days each year, either in March or September, with a dedicated committee set up to delve into the specifics of the project. Concerns have been raised by the Prime Minister’s Office regarding the substantial budget allocation, which may pose risks to the country’s financial stability, while the anticipated revenue is deemed insufficient to justify the investment.
According to Thai News Agency, Mr. Surawong Thienthong, Minister of Tourism and Sports, disclosed that the Cabinet’s decision reflects a commitment to proceed with the F1 bid. The policy entails submitting annual budget approvals to the Cabinet, with Mr. Thienthong appointed as the chairman overseeing the bidding process. The working group includes the Permanent Secretary of the Ministry of Tourism and Sports and key figures from the Ministry of Transport. Collaboration is underway with the Thailand Convention and Exhibition Bureau and F1 Company to ensure the feasibility of hosting the event.
Government spokesman Mr. Jirayu Huangsap confirmed the Cabinet’s endorsement of the Ministry of Tourism and Sports’ proposal to host the FIA Formula One World Championship in Thailand. The allocated budget includes an urgent design cost of 218.07 million baht, with efforts to secure private sector support to alleviate governmental expenses. Any remaining funds will be returned according to applicable laws and regulations.
The Ministry of Tourism and Sports presented a feasibility study indicating that hosting F1 could boost income, stimulate the economy, and elevate Thailand’s status as a hub for world-class sporting events. The races will be held over three days annually, targeting a March or September schedule from 2028 through 2032.
The proposed venue for the F1 event is the Chatuchak area, which includes eight main sites capable of accommodating necessary facilities and minimizing community disruptions. The venues range from Krungthep Aphiwat Central Station to the State Railway of Thailand, with a capacity to seat 108,200 spectators in various grandstand and VIP areas.
The estimated income from hosting F1 includes revenue from ticket sales, sponsorships, and other event-related activities, projected to reach 27,276.77 million baht over five years. An anticipated average of 407,132 participants per year, including international visitors, is expected to contribute to the local economy.
Economic benefits from hosting F1 are projected to include increased spending by tourists, generating 16 billion baht annually in economic activity, and contributing 14 billion baht in added economic value each year. The event is also expected to boost government tax revenues by 1.4 billion baht and attract 7 billion baht in new investments annually, alongside creating 8,000 jobs each year.
However, the Cabinet Secretariat has voiced concerns about the high budget and potential financial risks. The feasibility study indicates that government investments may not yield sufficient returns, with risks of fiscal burdens should the event not meet expectations. It is recommended that relevant agencies ensure comprehensive planning to mitigate potential impacts and enhance revenue generation, thus minimizing the fiscal strain on the government.