As the excitement grows for the Canary Foundation Grand Prix of San José, July 28-30, so does the size of the positive impact on the local and regional economy. source: paddocktalk.com In 2005, City managers reported that the inaugural Grand Prix had a total economic impact of $41.6 million. For 2006, the impact from the city's second downtown street race is looking strong again. Positive indicators of the strong impact include Grand Prix direct regional spending, Corporate Partnerships and downtown hotel bookings. Direct Regional Spending by the Grand Prix already exceeds $5M: Direct spending by the Grand Prix with local and regional entities for goods and services has already surpassed $5 million. By the end of the race, direct spending is expected to equal last year's figure of $7M. The Grand Prix expenditures are made with large and small local companies, contractors and individuals. The Grand Prix is a local company headquartered here in San Jose and employs people year round to prepare the annual event. Grand Prix Corporate Partnerships at 55 up 52% from 2005: The Grand Prix has reached corporate partnership agreements with 55 companies, up 52% over last year. These companies not only bring clients, customers and employees to the race but they also engage in additional spending to activate their marketing programs. This means local merchants and businesses will directly benefit through the sale of a wide array of activation products and services including advertising, hospitality and promotions which reach beyond of the race itself. The corporations which have committed to participate in 2006 include returning partners and new friends of the race. They range from companies traditionally associated with racing, like Toyota and Bud Light, to nationally and internationally known businesses, such as presenting sponsor Taylor Woodrow Homes, AAA, Costco, Comcast Cable, FedEx, Hertz, Togo's and Redback Networks as well as local businesses including Autobahn Motors Mercedes Benz, Il Fornaio, the City of San José, The Sainte Claire Hotel, and Westfield Corporation to name just a few. Grand Prix weekend Hotel Room Bookings: One strong indicator is the occupancy level and pricing of downtown hotel rooms. For the 2006 Grand Prix the hotels situated in and around the race track have benefited from rate premiums averaging 35 to 40% over 2005 levels. Also, they have booked more rooms already this year for race weekend than they did last. "At this time the Hilton hotel has as many room nights booked for the race as it did in its entirety last year, so our expectation is that the race will exceed last years numbers," stated John Southwell, General Manager of the San Jose Hilton and Towers. "Obviously race fans are coming back to San Jose." Commenting on the overall economic benefit to San Jose, Director of the Office of Economic Development Paul Krutko said, "In 2005, Grand Prix delivered an economic impact of almost $42M for San Jose. We're working with businesses to maximize the benefits again in 2006. We plan to deliver a detailed, robust economic impact report for all of our downtown events this summer. We'll have those reports available early in 2007 and will continue to assess the benefits." "While we are pleased with these early indications for 2006, our focus remains on planning and delivering a great experience for the fans who come out for the Canary Foundation Grand Prix of San Jose. As long as we continue to deliver a great event for San Jose and the fans support it, then the economic benefits for the City and the region will continue," said Dale Jantzen, President of the San Jose Grand Prix.
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