FORMULA 1 SPARKS 77% RISE IN TRANSACTIONS: AZERBAIJAN’S TOURISM BOOM
While the accommodation and food services sector emerged as the star of F1, the interest from British visitors was particularly notable. This year, the largest growth was driven by tourists from the UK, but the country that contributed the most to total spending was Turkey. Meanwhile, Baku solidified its position as an attractive capital city.
Baku, Azerbaijan – October 2024 — An analysis by Mastercard highlights the significant economic gains brought about by tourist spending during the 2024 Formula 1 event in Azerbaijan. The data reveals a sharp rise in spending and the corresponding economic benefits. These results reflect Azerbaijan’s growing appeal as a destination during high-profile international events and underscore the positive impact these events have on local businesses and the broader economy.
During Formula 1 week, the number of tourists visiting Azerbaijan almost doubled compared to the same week in 2023 and by 40% compared to the 2023 F1 week. This surge in tourism translated into substantial growth in transaction volumes and spending across various sectors.
Overall, transaction volumes rose by 77% compared to the same period in 2023, and by 24% compared to the previous F1 week. Notably, regions outside of Baku saw a remarkable 241% increase in transaction volumes, highlighting the broader economic benefits beyond the capital.
Formula 1 Drives Growth in Accommodation and Food Services
Several key sectors experienced strong growth during F1 week:
• Accommodation and Food Services led the way, with transaction volumes more than doubling, showing a growth of over 100% compared to the same period in 2023. However, the accommodation sector's share of total spending decreased by 5% compared to the previous F1 week, indicating that spending was more evenly distributed across various sectors.
• The Clothing and Retail sector also saw significant growth, with spending increasing by 64% compared to the same week in 2023. Purchases at local markets grew by 29%.
• Transaction values reflected this overall growth, with larger purchases observed particularly in the hospitality and food sectors, as visitors opted for higher-ticket items.
International Tourists Drive Economic Activity: UK Leads in F1 Interest.
Azerbaijan’s position as a key destination during F1 week was further solidified by the spending habits of international visitors. Tourists from key markets such as the UK, Turkey, Kazakhstan, Germany, and Georgia played a pivotal role in driving economic impact. In summary, Turkish and Kazakh tourists increased their spending the most in clothing, while the British spent more in restaurants, and German and Georgian tourists increased their spending on accommodation:
• British tourists were the top contributors, tripling their spending during F1 week compared to the same period in 2023. Food-related transactions soared by more 3 times (275%), while accommodation spending increased by over than 5 times (440%).
• Turkish tourists, who accounted for 23% of total spending, increased their clothing spending by more than 2 times (145%). Additionally, Turkish visitors made substantial clothing purchases, with ticket sizes exceeding $100 in this sector.
• Kazakh tourists increased their clothing spending by over 4 times (305%), while spending in the food sector grew by more than 2 times (165%). Spending in the clothing sector saw a reduction in average ticket size, signaling a shift in spending habits.
• German tourists focused on accommodation, with spending rising by more than double (125%), while their clothing expenditure increased by 20%.
• Georgian tourists demonstrated strong spending in the food sector, where transactions grew by more than 2 times (151%). Accommodation ticket sizes for Georgian visitors exceeded $200, indicating premium purchases.
Baku Shines as the Economic Hub
While Baku remained the central hub of economic activity during F1 week, the most notable change was observed in regions outside the capital. Transaction volumes in these areas grew by an impressive 241%, capturing a larger share of total spending compared to previous years. This regional growth demonstrates the ripple effect of major events like F1, which generate opportunities for businesses beyond the main urban centers.
Mastercard's Role in Supporting Economic Growth
As a key player in the global payments industry, Mastercard is committed to fostering growth and innovation within Azerbaijan’s payment ecosystem. The company’s continued support for Azerbaijan’s digital infrastructure ensures that both businesses and consumers can benefit from secure, efficient, and seamless payment solutions. The impressive results during the F1 event underscore Mastercard’s dedication to helping Azerbaijan unlock its full economic potential.
