Report Bangkok's Formula One Ambitions Face Potential Financial Deficit

[snoop1130]

File photo for reference only

 

Thailand's plans to host a Formula One Grand Prix in Bangkok from 2028 to 2032 have gained momentum following Cabinet approval. The ambitious project aims to elevate Thailand's global standing through a five-year street racing event. However, a new analysis highlights significant financial risks, suggesting the endeavour could lead to substantial state deficits.

 

Costs and Concerns

 

With a projected cost of over 41.379 billion baht, the proposal relies entirely on public funding. This includes extensive infrastructure development and rights fees to host the championship. The Cabinet Secretariat has expressed concerns about the financial strain on state coffers, particularly amidst existing budgetary constraints and essential commitments.

 

Financial Risks

 

An internal analysis outlines bleak financial forecasts:

 

• Base Case: Deficit of 9.788 billion baht
• Better-than-Expected Case: Deficit of 6.824 billion baht
• Worse-than-Expected Case: Deficit of 10.752 billion baht

 

Each scenario predicts revenue falling short of the event's operational and investment costs, placing the entire financial risk on the government.

 

Policy and Objectives

 

Despite these projections, the Cabinet Secretariat acknowledges the policy's potential to boost Thailand's international image and foster sports tourism. However, to mitigate risks, several prudent steps are recommended:

 

1. Comprehensive Impact Assessment: Explore revenue-increasing and cost-reducing measures, engaging the private sector to share financial responsibilities.
2. Fiscal Prudence: Adhere to fiscal discipline laws, ensuring thorough cost-benefit analysis and fiscal sustainability.
3. Infrastructure and Community Impact: Conduct detailed studies on local infrastructure, environmental impacts, and community readiness, considering possible disruptions to daily life.
4. Public Engagement and Transparency: Ensure open public consultations and adherence to legal procedures to prevent long-term disputes.
5. Private Sector Support: Seek private financial backing and allocate surplus funds appropriately to minimise government burden.

 

As Thailand aspires to boost its global prestige through the Formula One event, these strategic measures aim to balance ambition with fiscal responsibility, ensuring a sound investment for the nation’s future.

 

  Adapted by ASEAN Now from The Nation 2025-06-23

 

 

[redwood1]

Some people enjoy watching disaster movies...

 

I have changed my mind about this race,The Land Bridge, and The ridiculous bridge to Koh Samui.....

 

Now

 

I hope they go ahead with all of them.....I have my popcorn and I am ready to watch some real epic disaster projects....

[quake]

Good luck.

 

[Upnotover]

Fools.

[dinsdale]

"We should try and get the F1." "Good idea. I'll get a team on it for costings." "No. We'll do the costings after we get it."

[newbee2022]

Is this the never ending story?

Not every week once only, but twice.

I would fancy DAILY.

[bg53]

Recoupment of expenses for mega-events like F1 is by no means guaranteed.

 

Good luck!

[Patong2021]

The only group which  makes a large profit with little risk are the owners of the F1 business. 

[Liverpool Lou]

1 hour ago, dinsdale said:

"We should try and get the F1." "Good idea. I'll get a team on it for costings." "No. We'll do the costings after we get it."

That's exactly what hasn't happened...well done.

[Liverpool Lou]

1 hour ago, newbee2022 said:

Is this the never ending story?

Not every week once only, but twice.

I would fancy DAILY.

...and is your exaggeration never-ending?

[LennyW]

The last thing F1 needs is another street race!!

[WHansen]

6 minutes ago, LennyW said:

The last thing F1 needs is another street race!!

Totally agree.

The cars have outgrown many circuits, they have one racing line and it turns into a boring procession.