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Indonesia's Mandalika MotoGP could yield $15m: Organizer
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Construction work is in progress at the Mandalika Moto GP circuit in Lombok, West Nusa Tenggara, early this year. The circuit is expected to be ready in 2021. (The Jakarta Post/Tribunnews)
T
he MotoGP motorcycle race to be staged in Indonesia next year could earn the country US$15 million, say the organizers of the prestigious event.
The 2021 Indonesia MotoGP is to be held on a newly built street circuit in Mandalika, West Nusa Tenggara.
The income estimation is based on expected ticket sales as well as tourism revenue, Mandalika Grand Prix Association (MGPA) revealed on Thursday.
MGPA operations and support head Dian Delato said that, given the significant number of MotoGP fans in the country, the race was a good financial opportunity for Indonesia, which could outclass other Southeast Asian countries that staged the event in the past.
“At the Sepang MotoGP [in Malaysia], the average was 120,000 visitors [per series], with 60 percent of them being Indonesians.
"Can you imagine how much money we've wasted [overseas] for the Sepang MotoGP [all these times]?" Dian told the press during an event to launch motorcycle lubricant brand Motul in Sentul Circuit, West Java, on Thursday.
He went on to say that each Indonesian spent up to Rp 6 million ($438.4) only for one ticket for a Sepang series, plus funds for flights and accommodation.
Meanwhile, each MotoGP racer typically had a crew of up to 10 people per race, which Dian said illustrated the potential of their spending while competing in Mandalika.
He said the economic impact of hosting the MotoGP event, which is to be held from 2021 to 2025, would be different from other sports events, like the Asian Games or the Olympic Games, due to its annual nature. Meanwhile, the Asian Games and Olympics are both quadrennial events.
With regard to funding, the MotoGP event is covered by private-sector investment, including for the circuit construction.
According to the MGPA, the $15 million in potential economic impact, if it materializes, would surpass the Buriram MotoGP in Thailand's, which raked in $10 million generated from transportation and accommodation services, food and beverages as well as entertainment.
“The most important pertains to the image of our country. [Hosting the MotoGP race] means that Indonesia is no longer just a spectator,” he said.
Meanwhile, the construction of the Mandalika circuit, which is designed to have 17 corners, has reached 10 percent so far. According to the schedule, the circuit is to be asphalted in September.
“Dorna [the MotoGP commercial rights holder] expects Mandalika to be ready for pre-season testing. This is a good sign, as Buriram needed five years until it received the go-ahead for hosting the event,” he added.
Motul Indonesia managing director Carlo Savoca said the company was in discussion with the Mandalika MotoGP organizers for a future partnership. Motul has sponsored four MotoGPs, namely in Argentina, Japan, the Netherlands and Spain.
