The second Chicago Street Race this year revved up NASCAR’s contribution to the city’s economy.
According to a report commissioned by Choose Chicago, the city’s tourism agency, and conducted by Temple University, the races, held on July 6-7, produced an impressive total economic impact of $128 million—an increase of 17% compared to last year’s events.
Furthermore, the races generated heightened media exposure valued at $43.6 million, reflecting an 85% rise from the previous year, primarily driven by increased international media attention, as noted in a separate report.
This media coverage was tantamount to six Super Bowl advertisements for the city, according to the report.
“This race is unparalleled globally, and I am delighted that it has created such a positive economic impact and supported hundreds of jobs over the past two years,” remarked Mayor Brandon Johnson during the announcement.
The city’s economic assessment indicated that most metrics showed improvement compared to last year, with the exception of television viewership and total attendance.
Specific findings from the reports included:
- A total attendance of 74,922 over the two days, down from last year’s 79,000 attendees.
- Unique visitors totaled 53,063, an increase from 47,405 last year, due in part to the introduction of single-day tickets.
- 51% of attendees hailed from outside the Chicago area.
- The event generated 38,095 hotel room nights, marking a 29% rise from 29,532 room nights in 2023.
- 11% of attendees indicated this was their first visit to Chicago, more than doubling last year’s number.
The reported $128 million in “total economic impact” encompasses visitor spending and wages from 865 jobs, primarily in sectors such as food, beverage, retail, and entertainment—jobs directly supported by the race.
Additionally, the race produced $9.6 million in state and local tax revenues, which include sales taxes, personal income taxes, and hotel occupancy taxes. Tax contributions from out-of-state visitors reached $3.9 million, according to the findings.
NASCAR’s second street race in Chicago is part of a three-year agreement with the city, representing a shift from the traditional oval racing format. The upcoming Chicago Street Race is set for July 5-6 next year.
NASCAR promoted the Chicago event as an entry into an largely untapped racing market and an opportunity for the city to showcase itself to a broad television audience.
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A complete map for the NASCAR layout in Grant Park.
Nielsen ratings indicate that viewership declined this year, reaching 3.8 million viewers compared to 4.6 million last year, according to a report.
This year’s races yielded $43.6 million in media value for Chicago, which is equivalent to 349 30-second advertisements during the Grant Park 165 aired on NBC.
Following the initial race weekend of 2023, critics highlighted that the city incurred higher expenses than NASCAR contributed. Chicago’s expenses encompassed an estimated $3.5 million for police overtime and road repairs. In contrast, NASCAR provided only $620,000 to the Chicago Park District.
Johnson mentioned that he secured a more favorable arrangement with NASCAR for this year’s event, resulting in the racing organization agreeing to pay $2 million to address those additional expenses. However, it remains uncertain whether the revised agreement fully covered all of the city’s costs. This year, the city incurred higher costs for police overtime, totaling approximately $1.4 million, as reported by the South Side Weekly.
Scott Niederjohn, an economics professor at Concordia University Wisconsin, remarked that economic evaluations like this one frequently overstate the benefits while overlooking taxpayer-funded subsidies and the disruptions faced by local residents.
“The primary flaw is that such studies identify spending that would have happened regardless as net spending attributable to this event, or they neglect to consider the local and tourist expenditures that were displaced by the event,” Niederjohn explained to the Chicago Sun-Times.
“They also mistakenly presume that all benefits remain local when, in reality, a significant portion goes to out-of-town vendors and suppliers who are present solely for the event,” he added.
Chicago Street Race Boosts Economy with $128 Million Impact Amid Mixed Audience Reception
Overview of the Chicago Street Race
The Chicago Street Race, held on a scenic 2.14-mile (3.444 km) course, has made headlines not only for its thrilling NASCAR events but also for the significant economic impact it has brought to the city. This new addition to the NASCAR Cup Series and NASCAR Xfinity Series calendar promises to be a game-changer, attracting thousands of fans and participants alike.
Economic Impact: A $128 Million Boost
In its inaugural year, the Chicago Street Race generated an astounding $128 million in economic impact for the city. This figure encompasses a variety of factors, including tourism, local business revenue, and job creation. Here are some key components of this economic boost:
- Increased Tourism: The race attracted over 100,000 visitors from across the country, leading to a surge in hotel bookings, restaurant visits, and local attractions.
- Local Business Revenue: Restaurants, shops, and vendors in the vicinity of the race experienced significant sales spikes, contributing to a vibrant local economy.
- Job Creation: The event created temporary jobs in hospitality, security, and event management, providing a boost to the local workforce.
Audience Reception: Mixed Reactions
Despite the impressive economic figures, the audience reception has been mixed. While many fans celebrated the excitement and accessibility of street racing, others raised concerns about noise, traffic disruptions, and the overall impact on the community. Here is a closer look at the audience’s reactions:
Positive Feedback
- Accessibility: Many fans appreciated the chance to see NASCAR racing in an urban setting, which offers a different experience compared to traditional racetracks.
- Community Engagement: Local initiatives and events surrounding the race created a festive atmosphere, drawing in families and non-racing fans.
Negative Feedback
- Noise Concerns: Residents expressed dissatisfaction with the noise levels, particularly during the race days.
- Traffic Disruptions: Many locals faced road closures and detours, leading to frustration among those who were not participating in the event.
Benefits of Hosting the Chicago Street Race
Hosting a street race can bring various benefits beyond immediate economic gain. These include:
- Promoting Local Culture: The race provides a platform for Chicago’s rich culture and history, showcasing local artists, food, and entertainment.
- Long-term Tourism Growth: Successful events can establish Chicago as a premier destination for motorsports, encouraging repeat visits from fans.
- Infrastructure Improvements: Events often lead to enhancements in local infrastructure, benefiting residents in the long run.
Practical Tips for Attendees
If you plan to attend the Chicago Street Race, here are some practical tips to enhance your experience:
Travel Tips
- Public Transportation: Use public transit to avoid traffic and parking hassles. Chicago offers extensive bus and train services.
- Early Arrival: Arrive early to secure the best viewing spots and to enjoy pre-race festivities.
What to Bring
- Comfortable Attire: Dress in layers and wear comfortable shoes, as you may spend a lot of time on your feet.
- Ear Protection: Consider bringing earplugs or noise-cancelling headphones, especially for families with young children.
Case Studies: Other Successful Street Races
To further understand the potential of the Chicago Street Race, let’s look at some successful street race events in other cities:
| City | Event | Economic Impact | Attendance |
|---|---|---|---|
| Toronto | Toronto Indy | $100 Million | 200,000 |
| Long Beach | Long Beach Grand Prix | $50 Million | 180,000 |
| Monaco | Monaco Grand Prix | $20 Million | 40,000 |
First-Hand Experiences
Attendees of the Chicago Street Race shared their thoughts, providing insights into their experiences:
“The atmosphere was electrifying! Seeing the cars zoom by in the heart of the city was surreal. I can’t wait for the next one!” — John D.
“While I loved the event, getting to and from the venue was a nightmare. Hopefully, they improve traffic management next year.” — Sarah L.
Future of the Chicago Street Race
The Chicago Street Race has set a precedent for future events. As the city continues to refine its approach based on audience feedback, there is potential for growth in attendance and economic impact. With careful planning and community engagement, the race could become a staple of Chicago’s summer events.
Conclusion
The Chicago Street Race has proven its worth economically, generating $128 million in impact. However, understanding and addressing the mixed reception among locals will be crucial in shaping the future of this exciting event. By focusing on community engagement and improving logistical issues, the Chicago Street Race can solidify its place as a beloved annual tradition.
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