The Business of Sports… Full Throttle

Business is booming in Bahrain – and the signing of an agreement to build a circuit and stage a round of the FIA Formula One World Championship was crucial to raising the global profile of the kingdom.

When F1 supremo Bernie Ecclestone awarded the Best Organised Grand Prix trophy to Bahrain International Circuit a few years back, his words were telling. “The great thing about doing business in Bahrain,” he said, “is that nothing is too much trouble.” It’s a perception that Martin Whitaker, CEO of the Bahrain International Circuit and one of the key figures in bringing Formula One to the region, has worked hard to reinforce. “Our Grand Prix is known throughout the world as the friendly race,” he says, backing his statement up with a confident smile. “Prior to the first race, the perception of many involved within the sport as to what the Middle East had to offer was unclear. However, the exponential growth of the race and the sell-out crowds and corporate lounges in the past two years has underlined the transformation that has occurred. Bahrain is now seen as a must-attend venue for many chairmen, CEOs, managing directors and corporate guests due almost entirely to the ease of access and the ability to do business in the country.”

Indeed, hosting the Formula One Grand Prix has done much to promote the diverse range of business and leisure opportunities that exists within Bahrain and across the region as a whole. Formula One’s TV figures make the Gulf Air Bahrain Grand Prix the focal point of the sporting world for the weekend of the race, while a regular place on the international calendar ensures that the kingdom is part of an exclusive club of countries that stage the largest annual sporting event in the world. “A new long-term contract up to the end of the next decade ensures that the race will continue to be a catalyst for building awareness, while the economic impact from events of this nature are increasing year-on-year,” confirms Whitaker. “In 2007, the value of the Gulf Air Bahrain Grand Prix in terms of direct and in-direct economic impact was US$548 million, while the V8 Supercars Championship in the same year delivered almost US$85 million.”

And while the Grand Prix is the hook on which to hang everything else, Bahrain is now the self-dubbed “home of motorsport in the Middle East” and has staged countless international races at its state-of-the-art circuit over the last few years. Major events include the Australian V8 Supercars, FIA GT Championship, GP2 Championship, Bahrain 24 Hour, International Drag Festival, the BMW World Final and the F3 SuperPrix, to name a few.

Clearly, business is booming. During 2007 alone, Whitaker’s team organised 441 revenue-generating events and a further 120 community and charitable events. “Not all of them are large events, but significantly our corporate business has grown dramatically over the last three years,” he explains. “In 2004 the circuit staged the Grand Prix and little else; now we are running a business that is focused on expansion and the delivery of successful and entertaining events for the individual as well as the corporate sector.”

The circuit is now the venue of choice for automobile product and component launches, with global multinationals such as VAG Audi, Mitsubishi, BMW and General Motors using the facilities for major media and consumer projects. In addition, the construction of the region’s first BMW Performance Centre, the first Hummer Academy outside the United States and Adventure Drive Arabia, the region’s leading off-road course, have added to the opportunities that already exist on track for corporate and leisure activities. The newly constructed Kart Zone has also opened the circuit up to a completely new audience, with over 300 people a day enjoying the on-circuit entertainment. “The sales team is now actively selling a diverse range of just about everything from Formula One testing to weddings and birthday parties,” says Whitaker. “We have to work at being ahead of the game, but we believe BIC is now a benchmark for other circuits around the world.”

And it’s not just the motor racing community that is switching on to the benefits Bahrain has to offer. “The circuit is just a catalyst – a showcase, if you like – for people to get excited about the development of many new business ventures and developments such as the Bahrain Financial Harbour, Bahrain Bay and the new World Trade Centre,” says Whitaker. “Additionally, it has driven considerable interest in residential developments such as Durrat Al Bahrain, Amwaj and Riffa Views, where further sporting initiatives such as the Colin Montgomerie Golf Course and Boris Becker Tennis Academy have raised even more interest.”

Most important of all, however, Whitaker believes the success of the Grand Prix has helped change perceptions so that the Middle East is now seen as a safe area, not only for tourism but also for business. “The organisation at the track has complemented the business-friendly approach of the country, and the economic impact year-on-year – as well as the number of events that are run at BIC – underlines the success that can be achieved with such a project. Let’s not forget that the Bahrain Government’s US$150 million investment has been repaid many times over within an incredibly short period of time.”

So what’s next for Whitaker and his team? “Our vision is to maximise the opportunities that exist at the circuit for the growth of corporate business as well as regional and international racing, endorse our place as a leader in the community with a responsibility towards education and charitable activities while ensuring that we develop stronger links with the Bahrain business community,” he concludes. “The success of the last two Grand Prix events has done much to encourage the business community, not just in Bahrain, but around the Gulf. Events such as the Grand Prix and the V8 Supercars Championship generate networking opportunities the like of which were not available before the circuit was constructed. Trade missions and business seminars are now commonplace and, linked with organisations such as the Ministry of Industry and Commerce, the Economic Development Board and the Bahrain Chamber of Commerce and Industry, we can grow the opportunities exponentially over the coming years.”