AUSTIN, Texas — Formula 1 races back into to Austin this weekend with the U.S. Grand Prix (USGP) at the Circuit of the Americas (COTA).
Matt Patton with AngelouEconomics said the Austin City Limits Music Festival and Formula 1 events have a huge economic impact, with more than $400 million from ACL. As for the USGP, it's an even bigger number.
"This is an event that has impact over $1 billion. That's kind of crazy to think about," Patton said.
Patton said that includes everything from rental cars and restaurants to hotels.
"We see over a $110 million estimate in hotel impacts," Patton said.
He said that generates $27 million in sales and use tax and $4 million in hotel occupancy tax.
A lot of that money stays in the city. According to a City of Austin spokesperson, sales tax goes into the City's general fund and the hotel tax goes towards the convention center, live music fund, tourism and promotion fund.
"It generates money for our economy, and that always a good thing," Patton said.
The official race events at COTA don't start until Friday, but race fans were already in Austin on Wednesday. Ali Kinzie from Cincinnati is one of more than 100,000 fans expected to be at COTA this weekend.
"First one – I am super excited, especially love Checo [Sergio Pérez]," Kinzie said.
In addition to hitting the race, Kinzie said she is staying in Austin for the week and checking out the sights.
"We just had some brunch, then we are going to Tex-Mex and two-stepping," she said.
Businesses like Cooper's Old Time Pit Bar-B-Que in Downtown Austin are loving the additional crowds that came from ACL and now the USGP – fans who are coming from across the nation and around the world.
"We will be up-to-the-block busy, which is super awesome," said Dustin Thorne, an employee a Cooper's.
He said visitors help generate extra money for the business, and tips come in for himself.
"Keeps us busy, so definitely helps everyone’s pocketbooks a little bit more," Thorne said.