Hungarian GP Hopes for Tobacco Law Exemption

Organisers of the Hungarian Formula One Grand Prix said on Thursday they hoped the government would exempt the race from a proposed ban on cigarette advertising.

"It would be a serious problem if we lost the main sponsor (Marlboro)," said Ferenc Studniczky, chairman and CEO of race organiser Hungaroring Sport Rt.

"But I trust that there will be a solution, namely, the economics minister will waive the ban in special cases such as this major sports event."

The Grand Prix, the only Formula One race in eastern Europe and the first held in a former Soviet Bloc country, reaps billions of forints in tourism revenues each year.

The Hungaroring circuit, near Budapest, has a contract to host Formula One races until 2006 but the proposed ban has raised fears that the Grand Prix could be at risk.

Hungary's Parliament earlier this week accepted a modification to an advertising bill, which would prohibit the advertising of cigarettes in the printed media and on all street advertising, including billboards.

If the bill is passed by Parliament next week, cigarette advertisements can appear only in tobacco retail outlets.

Philip Morris, who own the Marlboro brand and also sponsor world champions Ferrari, have a share of around 32 percent in Hungary's cigarette market, which has estimated annual sales of 300 billion forints ($996.7 million).

A ban on tobacco advertisements in the printed media would come into force on July 1, 2001, and on January 1, 2002 for street advertising.

Formula One's ruling body, the International Automobile Federation (FIA), said in October it plans to introduce a global ban on tobacco advertising and sponsorship in Formula One and other motor sport from the end of the 2006 season.