Driving Tourism: How Formula One Is Fuelling Russia's New Image

If ever there was an example of how sport can boost a destination’s visibility, Sochi is it. In 2014 it hosted the Winter Olympic Games and in 2018 matches of soccer’s World Cup will take place there. Just five years ago few people had heard of the small Russian ski resort but now it is known the world over. Although the Olympics and the World Cup appear to have put it on the map, in fact the most exposure has been driven by Formula One auto racing and Sochi would have fallen off the radar without it.

Unlike the Olympics and the World Cup, which are held every four years, the F1 championship takes place every year and is the world’s most-watched annual sports series with 400 million television viewers in 2015. Sochi has shared in this glow since 2014 when it hosted the inaugural Russian Grand Prix on the 3.6-mile Sochi Autodrom which snakes around the Olympic facilities. It gives the race a stunning backdrop but the synergy is much more than skin-deep.

The bill for hosting the Olympics came to an estimated $51 billion and left Sochi with facilities which are well-suited to F1. It has 47,000 hotel rooms and an airport capable of handling up to 3,800 passengers per hour which is four times its previous capacity.

In the race’s début season the sport’s rights-holder, the F1 Group, awarded it the trophy for the best-arranged Grand Prix of the year. The public agreed and it was a sell-out with a ticketed crowd of 65,000 on race day. It clearly serves its purpose and Sergey Vorobyev, deputy general director of the race organizing company NPJSC Center Omega, explains how Sochi really benefits.

How do you use the Grand Prix to promote the destination?

Sochi has traditionally been Russia’s largest resort city. It came to prominence after the XXII Olympic Winter Games in 2014 and got the new status of the sports capital of Russia. The FORMULA 1 RUSSIAN GRAND PRIX and Sochi Autodrom have boosted the image of Sochi as a great tourist destination with a variety of great sporting and entertainment events. The Russian Grand Prix has put the city on the map for hundreds of millions of motorsport fans. Furthermore, the efficient mix of marvellous landscapes, monuments, and extravagant architecture, on the one hand, and unique Olympic stadiums and a state-of-the-art motorsport venue, on the other, makes the city an attractive destination for tourists from around the world.

What are the benefits of using a car race, rather than any other type of sport, to promote the destination?

There are lots of exciting activities in Sochi taking place throughout the year. Nevertheless, the GP is an international competition with great coverage, attracting many people from every corner of the world, which makes the Russian round one of the most valued and highly anticipated events of the year for spectators, business partners and investors.

Moreover, for our country a car race such as Formula 1 has an important role not only for the promotion of the destination, but also for speeding up of the development of motorsport in Russia.

In addition, Sochi Autodrom is the only Russian circuit which operates on a year-round basis and allows us to deliver motorsport competitions of any level and other activities at any time. This is important for promoting Sochi as an all-season destination.

Which key countries and media outlets do you target for media coverage and why?

We focus on both Russian and international audiences as fans from all over the world come to the Russian GP every year. Most of them live in Europe and near countries abroad. We choose our marketing strategy based on these statistics giving preference to prominent general publications, business, sports and motorsport media outlets.

What impact does the Grand Prix have in terms of increasing the number of tourists and what influence does it have on the economy during the race weekend (and throughout the year if applicable)?

The Russian GP has surpassed all expectations. Its participants highly praise the level of the preparation and organization of the event. Sochi Autodrom got around 150 thousand visits over the first race weekend and the numbers are growing each year. These figures show that the interest in Formula 1 in our country has been growing and demonstrate that motorsport in Russia has been developing. The GP project encourages the tourism industry which brings extra benefits and delivers a positive effect for various businesses in Sochi.

Do you have a marketing budget for the promotion of the Grand Prix, and, if so, how much is it approximately?

We have marketing activities designed to promote the Russian GP. A marketing strategy is obviously a powerful asset, which allows us to attract people and increase the GP ticket sales. That impacts the economy of Sochi as a resort. However, the marketing budget is minimal as the GP on its own generates significant media coverage due to its obvious importance for our country and the Russian audience.

Do you have any promotional events related to the Grand Prix over the race weekend, and, if so, what are they?

During the race weekend we use our website and social media platforms to provide insight into the event and organize competitions for fans with prizes including visits to the paddock and the garages of Formula 1 teams. We also have promotional stands in Sochi. Every year we host tours for the media to show them some of the sights of Sochi.

How do you monitor and measure the tourism impact from the Grand Prix?

We monitor the tourism impact of the Grand Prix closely and are happy to see more and more people from across the world refer to Sochi as to the ‘Formula 1 city’. Many GP spectators stay at the resort after the Grand Prix and it is possible to quantify this not only with taxes but thanks to the stock of 9,000 guest rooms in the local Krasnodar-region which are owned by NPJSC Center Omega. Furthermore, the Russian round is held between the winter and summer tourist seasons which enables us to tempt many guests back to Sochi.