LAS VEGAS (KSNV) — As the countdown begins for the third annual Las Vegas Grand Prix, a local business owner is not thrilled about the return of the Formula One (F1) race to the iconic Las Vegas Strip. Jimmy Singh, owner of Las Vegas Souvenirs & Gifts, expressed concerns over the impact on his business. “My sale is coming down and every year we have to go through struggles,” said Singh.
Construction for the race began on September 15 in front of the Bellagio Fountain, leading to lane reductions and fewer visitors to Singh’s off-Strip gift shop. Singh reported a significant drop in sales during the race months, stating, “Every year we drop in sales during the months. So, big time. So at least, 30-40 percent. Sometimes it is more than that, like closer to when we have F1.”
In previous years, the racing event has reportedly caused some businesses to lose upwards of $1 million, with three businesses recently settling with F1. Singh continues to see a decline in customers. “Business is very slow,” he said.
Jeremy Aguero, principal analyst at Applied Analysis, noted improvements in F1’s local impact. “The issues that we saw in 2024 were substantially less than what we saw in 2023. And we would expect more of the same heading into 2025,” said Aguero. He highlighted the economic benefits, including job creation, stating, “There are full-time people that are working all year-round to make this race possible. And so the economic impacts are happening throughout the entirety of the year.”
Despite the economic activity generated by the race, Singh is forced to cut employee hours due to slow business. “We are slow so I am cutting hours for everybody. Nobody is coming here to my business and I do not need that many employees,” he said. Singh hopes for recognition from F1, stating, “Nobody cares. That is the thing. If they cared, it would be like OK we could keep going and that is not right.”
F1 was not available for an interview but a spokesperson did provide the following statement when asked about their economic impact and impact on construction in Las Vegas amid this year’s decline in tourism:
“Last year, the Formula 1 Las Vegas Grand Prix hosted its second event, which was a spectacular three-day fan experience that put Las Vegas on a global stage. It also served as Southern Nevada’s largest recurring mega-event, generating $934 million in local economic activity, including $45 million in tax revenue.
As we continue to plan for an extraordinary week of events, live entertainment, local community activities, and, of course, great racing, we continue to work closely with Clark County, public safety officials, and hundreds of local businesses, organizations, and stakeholders to ensure this event is good for our community.”
To learn more about the upcoming construction and F1’s schedule this Fall, click here.
