As the UAE gears up for the 8th Abu Dhabi Grand Prix – the last race of the 2017 F1 calendar, Core Savills has released a new study which throws the spotlight on “Urban impact of Abu Dhabi Grand Prix”. The study analyses the Abu Dhabi Grand Prix’s effects on the domestic hospitality sector and sheds light on the long-term implications of such events for real estate in the city.
Along with the Grand Prix, Abu Dhabi’s growing tourism offerings are expected to sustain demand throughout the year, evidenced by the recent opening of the Louvre Abu Dhabi.
The spotlight states “Global events such as the Grand Prix add to a multitude of underlying factors which work in tandem to enhance the appeal of a city. As a focal point of international attention each year during the four-day event, cities on the F1 calendar enjoy increased exposure for their cultural attractions that contributes to their tourism longevity throughout the year.”
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David Godchaux, CEO Core Savills points out “Abu Dhabi is one of the only major cities where the Grand Prix has a significant effect on its tourism statistics. Grand Prix month – November – marks a distinct spike in occupancies and revenues.”
“As Abu Dhabi’s tourism offerings further diversify we expect to see hospitality rates across the city even out. Given that Abu Dhabi presently holds one of the most competitive yearly ADRs but the 2nd highest rates during the Grand Prix, hotel prices are likely to flatten over the long-term.” David Godchaux adds.
The spotlight further details “When compared to other host cities, Abu Dhabi’s Grand Prix poses an interesting paradox in the context of the surrounding real estate. Typically, the Grand Prix is held in the outskirts of host cities – which is understandable given the need to accommodate the construction and logistics of a large event venue. Barcelona, Kuala Lumpur and Sao Paulo, for example, all hold the Grand Prix at a notable distance from the city centre in non-prime areas. A few cities, such as Monaco and Singapore, do not follow this pattern and choose to hold the event in the city centre, relatively close to prime real estate. Abu Dhabi’s Grand Prix, however, represents a unique exception to both patterns. Although Yas Island – the central location of Abu Dhabi’s Grand Prix – is some distance from the city centre, it is a comparatively prime area that boasts world-class infrastructure and entertainment venues.”