Bahrain International Circuit BIC Bahrain Grand Prix Formula 1 Bahrain Tourism

What is the central role of BIC in Bahrain’s economy and how do you view the growth of motor sports in the region?

Bahrain International Circuit has delivered a huge level of awareness and profile for the Kingdom of Bahrain in the last five years. The Gulf Air Bahrain Grand Prix has helped put Bahrain on the world map and staging of six FIA Formula One Grands Prix and the global television exposure that it brings has certainly cemented the country’s place as a sporting and business destination. The race has also made a significant impact on the direct and indirect revenue associated with the race. Last year the Grand Prix generated almost 600 million USD of direct and indirect economic impact and on top of that it has also changed people’s perceptions of how they view the Middle East. Bahrain is a very friendly and hospitable place that has a lot to offer both in business and tourism. Motor sport has benefited greatly from the construction of the Bahrain International Circuit in 2004. Previously circuit racing had little following whereas Drag racing was the primary sport because of its ease of access. The construction of the Bahrain International Circuit with its Grand Prix circuit and international Drag strip, have seen both sports grow considerably over the past few years. Bahrain International Circuit is now the leading facility of its type anywhere in the region with a tremendous reputation for the organisation and development of motor sport and a fast growing corporate entertainment business.

In 2008 the grand prix at BIC was the platform upon which the Kingdom of Bahrain generated direct and indirect economic benefit of almost 600 million dollars. This represents a 9% increase in value from 2007, what are your expectations for 2009 and have you seen any negative effects as a result of the global economic downturn on your operations?

We have seen varying levels of corporate interest in the Grand Prix this year. Clearly the bank community didn’t use the Grand Prix in the way they have in the past but we did see a massive growth in business sectors that have not attended the race in previous years. Our individual grandstand ticket sales from the general public has been very good and I think it is fair to say that we have faired better in comparison to other Grands Prix this year. Overall, I think we did a very good job given the economic conditions and I think the atmosphere and the focus on entertainment ensured that we had a good crowd.

You said in 2009 the F1 Grand Prix was remarkable and a memorable one, how special was it this year and how does this event compared to other circuits?

Obviously Bahrain International Circuit is a smaller circuit than others and we don’t have general admission because of the heat (every seat is in a covered grandstand) but I think for us it was very successful this year and our entertainment met the needs of the people in attendance. The culture is different here and people attend the event for a day out; a day to entertain the family, so we put an emphasis on the entertainment we deliver for the fans. It was also used as a networking platform to develop new business by many major companies in Bahrain, including the Mumtalakat holding Company and the EDB. It attracts people from all walks of life, but most notably the business sector.

The BIC is a venue for corporate hospitality and entertainment, with over 400 events held each year at the track, how challenging is it to keep busy during the off season?

The Grand Prix is only once a year and it is a hook that we hang the rest of the year on. However, it is not just a Grand Prix circuit but also a corporate events venue and we are very proud that we are able to hold so many events here during the year. You mentioned the figure of 400 but we also organize over 150 charitable and community events with a focus on schools and their field trips. We are also the only Grand Prix circuit in the world that is an FIA Centre of Excellence and we set special standards with Bahrain International Circuit safety and medical care. We are at catalyst for business development in the community. Of course it is difficult to stay busy throughout the year but we have an active sales and marketing team that is constantly trying to raise the bar to reach our objectives and we have been kept honest by others in the region developing their own circuit as well and creating competition (Abu Dhabi, Qatar, Saudi Arabia and Dubai). There is more and more focus on motor sport locally, regionally, and internationally.

Are there any new venues or attractions planned for 2009-2010?

We are always looking at new initiatives that will create further interest in the Bahrain International Circuit and generate revenue. Right now we are looking at the development of a new Kart circuit. Karting is very important not just in terms of the development for young drivers but it is also an important corporate entertainment tool, leisure pursuit, hobby, and sport. In the last six months our existing Kart circuit, the Kart Zone, has been the home for Karting and is key to the development of grassroots motor sports and helping us discover a young Bahraini who will go right to the top of the sport. It is open three evenings a week and we regularly see 350 people a night out on the track enjoying themselves.

Are you going to try to attract some of the F1 teams to come here for their testing?

We already do a lot of testing here for Formula 1 and we’ve had major tests here where almost every single team has tested. The great thing about testing in Bahrain is that the conditions are generally always the same and you can’t do that in Europe due to rain or cold conditions. The short hours of daylight and cold temperatures mean that testing in Europe can be difficult. As a result testing in a climate where the track is ready from 07.00 in the morning and teams can run through to 17.30 at night is extremely attractive. Earlier this year we had BMW, Ferrari and Toyota all have tested here and this is very important to us as it also helps increase interest from the spectator point of view.

Abu Dhabi has built an F1 track, how will this track impact your operations and can it be viewed as a threat?

I certainly don’t see it as a threat but of course it will create competition for us. However, healthy, internal competition doesn’t do anybody any harm, whether it’s within an F1 team between drivers or two circuits being close to each other. I think it will help grow the fan base for motor sport in this part of the world and may help us create more international events with the benefit of cost-effectiveness of running double-header international events. Of course, they will be competition but we believe we have a sound product base here and we have a heritage stretching back six years. I’m confident that we will be able to coexist and most importantly there are things that we can develop together for the good of the sport within the region in the future.

Have you started working with Abu Dhabi?

We have already an agreement with the circuit that is designed to help the promotion and create greater PR for motor sport in general. I can see in the future that perhaps we can develop ideas that benefit both circuits; dual tickets, joint marketing activities, development of TV magazine programmes for regional broadcast etc. However, I think that right now in 2009 I think the focus for Yas Marina is the construction of the circuit because they have a big job to do and I think that the PR and promotion will take over as we enter 2010 and beyond.

The surrounding area is changing with new developments. How are these developments going to transform the area and what is your central role?

I think there are two ways of looking at it. The first is that this area is already an important sports tourism destination. If you think about it we have a brand new Colin Montgomerie Golf Course with a vibrant Club, a Tennis Academy, the Lost Paradise of Dilmun Water Park, a spa and resort, horse racing, show jumping, endurance horse racing, sailing clubs, cycling, off-roading and other things. It is a very active sports destination and we are promoting that during this part of the year because we see the opportunities for corporate guests to come to Bahrain to have a weekend driving the circuit, going on the off-road course, and maybe playing some golf or sailing and also staying at a top-rate 5-6 star hotel. In terms of the business generation, I think the business that is coming to this part of the island is very significant and I think it will lead to many business opportunities especially at the circuit. The development of the new @Bahrain business park over the next few years with its convention & exhibition centre, hotels, motor sport club house and manufacturing/servicing facilities is extremely exciting and will drive fresh new and imaginative business to the area and the Kingdom.

How do you view the controversial decision to introduce diffusers where it benefits certain teams and puts other teams at a disadvantage?

I’m not sure as a circuit promoter I have a particular view on it as long as I have 20 or more F1 cars on the grid. I think the diffuser issue has gone away and I know a number of teams read and interpreted the regulations in a very clever way; exploiting the regulations is what the sport is all about and if one or two teams can do this to their advantage then good for them and good for the sport. Certainly the results of the last view races have been very good for the sport and I think we are in for a great season.

How do you see the future of F1 if Ferrari pulls out of F1 following a plan to put a cap on spending?

I don’t think they will. I think motor sport in general has always enjoyed controversial issues of this nature and that there is a lot of shifting for position right now. I think the teams recognize there has to be a cap on budget and the problem is agreeing on what that should be. I think they all agree that they have to do more for the furthering and betterment of the sport in terms of entertainment and making it more approachable and open for the general public. Formula 1 enjoys massive audiences both from TV and from spectators and it is very important to ensure that drivers and teams become more immersed in the sport and with the spectators. People come to the races to be entertained and to be involved with the races and the drivers, the drivers spend hours signing autographs and there is a very friendly and open environment here. On the back of this the teams will also enjoy far greater use of the sport as a business generation platform.

Do you think too much regulation is good for F1 or do you think that less regulation would be better?

There always have to be regulations. Formula 1 is the technical pinnacle of motor sport and it’s the sporting pinnacle everybody aspires to and to be a winner you have to not only be clever with the way in which you apply the regulations but you have to be sure to read the rules the right way and that is the challenge. I think that Formula 1 should always drive the boundaries of competition and if that means seeking out the last 1/1000th of a second due to some change in regulation or interpretation of the rules then I think it should always be that way.

What is your policy/strategy towards environment and sustainable development? How do you behave in these sectors and what sort of policies do you have for the people who come here and use your circuit?

We take a very strong view about environmental issues. We are the only circuit in the world that has a direct working relationship with the United Nations Environmental Program (UNEP) and we have an intern who works with us throughout the year. As a result we have done a lot of work with school and within the community, launching something called Go Green and a Project in a Box for local schools. The new Kart circuit will include an environmental area with a walk through trail so that children from the schools can come and conduct environmental, geography, and science projects here at the track. On top of that we are working with local farmers and horticulturalists in developing the growth of indigenous plants, shrubs and trees to make sure they do not disappear from the environment in which we live. We are heavily involved with a planting program here and we have our own nursery. We are also looking at recycling and waste management with the track so we have done and are doing a lot of work to make sure we are doing our part to ensure environmental sustainability. The FIA for instance does a lot of work with the environment. The sport’s governing body has an extensive reforestation project in Mexico, they are growing millions of trees, designed to fix the carbon created by Formula 1. We are actively working with the FIA on environmental projects as part of our FIA Center of Excellence programme. I think we are doing a lot to raise environmental awareness, particularly with schools, to demonstrate we are doing our own bit to use the circuit as a catalyst for greater environmental awareness.

Finally, how would you describe your main strategies for the next three years and what is your dream for BIC? Also, can you give our readers a final message about the tourism potential in Bahrain?

In terms of tourism potential, I think it is very exciting and growing fast. I think it is encouraging to see the Minister of Culture & Information taking such a stance and under her guidance we will see a new level and focus on the tourism opportunities that exist here. Bahrain has a lot to offer. This is a niche destination with great boutique hotels. There is a rich culture and heritage in Bahrain with interesting tourism opportunities. Bahrain is also a great transportation hub and that is key for attracting more people. Regarding the circuit, the circuit has raised the bar in this part of the world for motor sport. In the next three years we will continue to raise the bar in a far greater way and continue to develop at a grass roots level with the young people and create greater spectator interest/awareness and grow the sport from there. As far as Grand Prix racing is concerned, we have a long term contract with the FIA and FOM until 2016. This gives us the security to build a strong base here for motor sport. Most importantly and finally, using motor sport and the circuit as a catalyst to develop greater business and corporate entertainment; using it as an international catalyst for business generation and changing the perceptions of how companies and individuals see the chance of doing business in Bahrain.