The race for the 2026 Grand Prix: a look at the contenders and the implications

As Formula 1 looks to 2026, competition for hosting rights is heating up, with four circuits vying for contract extensions. Countries such as Thailand and South Korea have submitted bids, while nations such as India and Rwanda are working diligently to improve their infrastructure to secure a place on the prestigious F1 calendar. The stakes are high, not only for sport but for the economies of the countries involved.

F1 CEO Stefano Domenicali underlined the intensity of the application process, stressing that the interest in hosting a Grand Prix transcends sport. “We are getting calls from prime ministers and governments who want to host the Grand Prix,” he said in an interview with CNBC. This request highlights the significant economic benefits associated with hosting an F1 event.

For countries currently on the calendar, the potential loss of a race is a matter of political importance. For example, the Belgian Grand Prix contributes approximately $248 million to the national economy annually. When the Belgian Prime Minister addressed Domenicali at the end of 2023, it was clear that maintaining a balanced calendar, particularly between Europe, the Far East and the Americas, is a priority that should not be to the detriment of Belgium.

However, with so many countries eager to host, someone will inevitably lose out. Middle Eastern nations, recognizing the strategic importance of F1 for economic diversification, have invested heavily in the sport. Abu Dhabi, which debuted the Grand Prix in 2009, has spent an astonishing $40 billion developing Yas Island, turning it into a major attraction for both motorsports and tourism. Saif Rashid Al Noaimi, CEO of Ethara, highlighted the Grand Prix’s transformative impact on the region, highlighting that it has transformed a blank canvas into a thriving destination.

Saudi Arabia has also positioned itself as a key player in the F1 landscape, reportedly considering an outright purchase of the sport. The kingdom’s efforts to promote itself as a tourist destination have been met with success, as a 2023 YouGov survey indicated that US racing fans were significantly more likely to visit Saudi Arabia than the general American population. This trend illustrates how F1 can increase a city’s global appeal, as noted by Robin Fenwick, CEO of Right Formula: “Formula 1 doesn’t just show the race; showcases the city.

The economic impact of hosting an F1 race is evident in cities like Monaco, where the event coincides with the Cannes Film Festival, making it a focal point for media and tourism attention. Guy Antognelli, director general of the Monaco government’s Tourism and Convention Authority, highlighted that local businesses can earn a significant portion of their annual revenue during this race weekend.

However, Monaco’s financial commitment of around $20 million per race is significantly less than newer venues such as Saudi Arabia are willing to invest. McLaren CEO Zak Brown has suggested that F1 could continue without Monaco, arguing that other venues are offering similar or better returns on investment. This raises questions about traditional racetracks and whether their historical significance might outweigh the financial benefits offered by newer, more profitable locations.

Traditionalists may lament a shift toward commercialism, especially as ticket prices rise due to increased demand. The implementation of “dynamic pricing” has led to high ticket costs, with Silverstone Grandstand tickets set to reach £600 ($774) in 2024. This trend has attracted criticism from the likes of Lewis Hamilton, who has expressed concern about accessibility for families.

Despite these challenges, the growing popularity of F1 weekends among diverse audiences is undeniable. Big concerts featuring international stars have transformed race weekends into multi-faceted events, attracting larger crowds and further cementing F1’s place in mainstream culture. The Las Vegas Grand Prix, for example, generated an impressive $1.2 billion in economic activity, demonstrating the financial clout of F1 events.

To sustain this growth, F1 must carefully balance its appeal to new audiences while maintaining the loyalty of traditional motor racing fans. This will involve strategic decisions about which events to keep on the calendar and which to replace, as sport’s expanding economic influence means the changes will have profound effects on various stakeholders.

As competition for the 2026 Grand Prix intensifies, the implications of these decisions will have resonance far beyond the track. The future of F1 will depend on its ability to manage these complex dynamics, ensuring it remains a major motorsport while promoting economic growth and tourism in host cities. The outcome of this race for hosting rights will undoubtedly shape the Formula 1 landscape for years to come.