Azerbaijan Grand Prix 2025: driving sport, tourism, and profit Formula 1 returns to Baku

Today in Baku, the Azerbaijan Grand Prix Formula 1 race — a world-class event of the highest profile — has kicked off for the ninth time. Having accumulated vast experience in hosting major international forums and spectacular sporting events, Azerbaijan is striving to turn global interest in the race into tangible benefits for domestic tourism and the wider economy.

In 2025, around 13,000 foreign visitors are expected among the Grand Prix spectators. Their spending on accommodation, dining, and related services in Baku during the race period alone is projected to reach approximately $30 million, providing a substantial boost to the country’s hospitality sector.

A month ago, the American media conglomerate Liberty Media reported the financial results of its Formula One Group division for the second quarter of 2025. Revenue from the global Formula 1 racing series, held across major cities worldwide, together with the premium events company Quint, reached $1.34 billion — a 35% increase compared to the same period last year.

The main income streams — broadcasting rights, race advertising, and sponsorship — jumped from $739 million in 2024 to $1.03 billion this year. Ticket sales also saw a sharp rise, while other revenue categories (hospitality, licensing, real estate) posted strong gains as well, climbing from $132 million to $194 million.

In short, as a world-class sporting spectacle, Formula 1 remains a highly profitable enterprise. For Azerbaijan, too, the Grand Prix has proven increasingly lucrative in recent years. Beyond the direct economic returns, it plays a vital role in attracting foreign visitors and promoting the country’s image abroad, strengthening its position in global tourism rankings.

It is worth recalling that the Formula 1 Azerbaijan Grand Prix entered the world’s TOP-10 races as early as 2017. Moreover, according to data published by Baku City Circuit in 2020, the first four editions of the race generated $506.3 million in profit for the country.

From 19 to 21 September, Baku is once again hosting — for the ninth time — one of the world’s most prestigious sporting spectacles, drawing a global audience of several billion. According to the Baku City Circuit Operating Company, last year’s race in the Azerbaijani capital was watched live by over 86 million viewers, while engagement across social media and other online platforms surpassed 3.9 billion interactions.

This year, coverage will be provided by around 300 media representatives, two-thirds of whom represent leading international outlets. Among them are globally renowned organisations such as Netflix, Reuters, Agence France-Presse, Sky Sports, Motorsport.com, Associated Press, CANAL+, and ESPN Disney Latin, all set to broadcast the excitement of the Baku Grand Prix.

To support this extensive media presence, the race promoter has established a state-of-the-art media centre with a capacity of 450, offering modern facilities designed to provide journalists with a comfortable and efficient working environment.

Given the strong demand for the Azerbaijan Grand Prix, two new grandstands were added in 2025, with most tickets already sold out. The expanded seating, now accommodating more than 20,000 spectators, further cements Baku’s status as a key destination on the Formula 1 map.

Beyond the spectacle on the track, the technical and organisational work surrounding the race also delivers important economic and professional benefits. Preparations and guest services not only generate temporary employment but also help local specialists gain valuable expertise. While in the early years much of this work was handled by foreign contractors, today the entire process is managed by Azerbaijani companies — ensuring revenues stay within the country and reducing reliance on foreign firms.

This year alone, more than 2,000 engineers, installation technicians, and logistics experts have been engaged in construction and assembly. During race week, they are joined by an additional 1,500 staff, 2,000 volunteers, and 1,400 marshals, underscoring the scale of local involvement in hosting the event.

Beyond creating new jobs, the Azerbaijan Grand Prix generates significant direct revenue for the tourism sector, particularly for hotels and restaurants catering to Formula 1 guests and participants. According to research by the international auditing firm PricewaterhouseCoopers (PwC), indirect revenues also play a crucial role, including sales of merchandise, souvenirs, and a wide range of services such as transport, telecommunications, and utilities provided to fans and participants.

“Foreign tourists who came to Azerbaijan for the 2024 Formula 1 race spent 85% more than the previous year,” noted Emil Zeynalov, Mastercard’s manager for Azerbaijan. “The number of foreign visitors increased by 87%, their spending by 85%, and banking transactions by 77%.” He added that this growth was largely driven by spending on goods and recreational services: for instance, tourists from Türkiye tripled their hotel expenses, while visitors from the UK quadrupled their restaurant spending.

Once again, Baku’s hotels are set to be the primary beneficiaries of this year’s races. Across the country, there are 760 hotel-type establishments offering roughly 57,000 beds, more than a quarter of which are located in Baku and its surroundings — perfectly positioning the capital to host guests of the Azerbaijan Grand Prix.

This year, more than 13,000 foreign tourists are expected to attend the races in Baku’s grandstands. According to official statistics, with an average stay of five nights, each tourist spends over $2,200, meaning that even by conservative estimates, foreign visitors alone will generate around $30 million in revenue for the hospitality sector.

“Formula 1 races contribute not only to the tourism sector but also to expanding the country’s international investment opportunities,” noted Azerbaijani MP and economist Vugar Bayramov. “They boost revenues for hotels, restaurants, and service industries while promoting the development of luxury tourism by attracting high-income visitors. Each tourist returning home shares positive impressions of Azerbaijan, which, over time, drives further growth in tourist flows.”

According to Vusal Hajiyev, a member of the Outbound Tourism Committee of the Azerbaijan Association of Travel Agencies, signing a long-term contract will further amplify the race’s impact on tourism: “Hosting Formula 1 in Baku makes an unprecedented contribution to the country’s international image. Extending the contract will bring even greater benefits to tourism and enable the annual flow of foreign visitors to grow.”