Interview: Bahrain Expects Big Return from F1

Bahrain expects a state-of-the-art motor racing circuit being built in the Gulf Arab state to generate more than $50 million a year, an official said today.

The $150 million circuit outside the capital Manama in the south of the island kingdom is to host the first Formula One Grand Prix in the Middle East in April, 2004.

"European racetracks have minimum revenues out of Formula One of around $50 million a year. I think the revenues here in Bahrain will be even higher because many visitors will come from outside," Hans Geist, the circuit's general manager, told Reuters in an interview.

Geist said this return would come from spending on hotel rooms, transport, flight tickets, merchandising and other utilities used by visitors during their stay in Bahrain.

"That means in maximum three years the investment (in the circuit) should be paid back," Geist said.

He said another $150 million is to be spent to improve the country's infrastructure in preparation for the Grand Prix.

"The circuit is located on the edge of the (developed) area, so a lot of development will have to come later with the circuit, like more roads, better customs services, developing the airport, etc," Geist said.

Bahrain has a contract to host the Formula One races for more than five years but Geist said the track would not depend only on the Grand Prix for its revenues.

"We will have the circuit busy ... 360 days of the year. Beside Formula One we will have three or four other big events," he said.

He said there were negotiations to bring various race series to Bahrain and to build up national and regional motor sports. Officials expect about 100,000 overseas visitors for the Grand Prix, mainly from nearby countries and Europe.

But Bahrain might not have enough accommodation for them.

"We have about 12,000 rooms in hotels plus private apartments and villas," Geist said. "Visitors coming form nearby Saudi Arabia...can leave at the end of the day but we also have the structure to host guests in neighbouring countries and provide shuttle flights."

Other solutions being explored include using ships as hotels and renting rooms in private homes to visitors.