While Malaysia hosts a replacement Formula 1 race at no cost and expects revenue of 500 million ringgit, Croatia seeks ways to turn its own major events into a tourism asset, writes Forbes Croatia.
When it was confirmed on Sunday, July 26, 2026, that the Malaysian Grand Prix would return to the Sepang circuit for the first time in nearly ten years, 37-year-old Malaysian Kevin Lee was determined to get tickets. "I'm really excited. Many Malaysians wouldn't have thought they'd see the 'new Formula 1' arrive at Sepang," Lee told Channel News Asia (CNA). The race on October 4 will replace the canceled Bahrain Grand Prix, whose date was scrapped due to the conflict in the Middle East that erupted in February.
Lee, who works in performance marketing, expects a full Sepang circuit with a capacity of 130,000 spectators. Interest in Formula 1 has grown in recent years, especially after Netflix's 2019 series 'Drive to Survive.' As Professor Hans Westerbeek from Victoria University in Australia told CNA, the series made the event extremely popular among audiences who had not previously followed motorsport.
The excitement has already translated into concrete numbers. Hotels near Sepang are fully booked from October 1 to 5, and prices have jumped up to four times, from usual rates to RM1,000 per night. Malaysian brands on social media post models of F1 cars in their colors, and fans share announcements; one Instagram post gathered 7,000 likes and 5,000 shares.
The key factor is that Malaysia does not pay astronomical hosting fees. Prime Minister Anwar Ibrahim confirmed on Monday that Bahrain has taken over the registration and organizational costs, and Malaysia only needs to allocate up to 16 million ringgit for minor track repairs. "So we are effectively hosting it for free; imagine that," Anwar said in a speech in Negeri Sembilan, adding that Malaysia will become 'the focus of the world.'
For comparison, the annual fee to Liberty Media, owner of Formula 1, is about 300 million ringgit (73.3 million USD), and multi-year contracts could reach up to 1.5 billion ringgit. Former sports minister Hannah Yeoh stated back in 2025 that Malaysia had no plans to return precisely because of the high costs.
Now analysts estimate the race will bring around 500 million ringgit in tourism revenue. The last Malaysian GP in 2017 attracted 200,000 international visitors, with ticket prices ranging from 58.68 to 613.68 ringgit. "Race weekends fill hotels throughout the Klang Valley, increase demand for restaurants and transport, and typically boost spending for three to four days," Professor of Tourism Economics Mohd Hafiz Hanafiah from UiTM Selangor told CNA.
Jake Abdullah, director of the marketing agency Malaysian Dynamic Media, believes a significant percentage of visitors will return: "...next time they will bring people and stay longer." However, analysts warn that Sepang is about 1.5 hours' drive from downtown Kuala Lumpur and suggest packages that combine tickets with accommodation. The proximity of Singapore, where the next race is the following weekend, further facilitates the arrival of fans wanting to attend two consecutive races.
While Malaysia capitalizes on a free opportunity, Croatia is looking for ways to turn its events into a strong tourism asset. "Croatia already has almost everything needed to develop a strong event destination," writes Damir Vranić, director of Eventim Croatia and Slovenia, in a column for Forbes Croatia. Historic arenas, fortresses, coast, and cities attract audiences willing to travel for performers, but the key difference is between a calendar of events and a true strategy.
As examples, Vranić cites three autumn-winter concerts at Arena Zagreb. A$AP Rocky on October 6 attracts fans from Slovenia, Austria, Hungary, and Bosnia and Herzegovina; André Rieu and Johann Strauss Orchestra on November 20 gather a regional audience from Slovenia, Bosnia and Herzegovina, and Serbia; and Miroslav Škoro on December 19 naturally ties into visits by the Croatian diaspora and Advent trips. Each can open a different market for the city, but it is necessary to know where the audience comes from, how early they plan their trip, and whether they stay overnight.
"An event destination is not created when the calendar is filled. It is created when the city knows why it brings a certain event, what audience it attracts with it, and what it wants to retain after the stage is dismantled," concludes Vranić for Forbes Croatia. The Malaysian example shows how much a major sporting event, especially when the host is spared huge costs, can mean for tourism. Croatia, with its infrastructure and existing events, has the opportunity to build a similar story, but only with a strategic approach that goes beyond merely filling the calendar.
