Thailand’s cabinet approved a plan to bid for five consecutive Formula One grand prix weekends in Bangkok, but an internal government analysis found the country is expected to lose money on the deal under every financial scenario modeled.
The cabinet gave the green light on June 17 for Thailand to submit a formal proposal to host the races from 2028 to 2032, at a total projected cost of more than 41.3 billion baht, or approximately $1.2 billion, according to several news sources. The proposed 5.7-kilometer street circuit would run through the Chatuchak district, passing eight landmarks including Krung Thep Aphiwat Central Terminal, Chatuchak Weekend Market, and Queen Sirikit Park. Each race weekend would run from Friday through Sunday, with March or September listed as possible timeslots.
The problem is that the numbers, by the government’s own accounting, don’t add up.
A cost-benefit analysis circulated by the Cabinet Secretariat found that across all three financial scenarios modeled, the event generates less revenue than it costs to run. In the base case, the projected deficit over the five-year hosting period is 9.788 billion baht. In the most optimistic scenario, it still comes to 6.824 billion baht. The worst case puts the shortfall at 10.752 billion baht. The Cabinet Secretariat flagged the proposed budget from the Ministry of Tourism and Sports as too high and warned the outlay could affect Thailand’s fiscal position going forward.
The structure of the deal compounds that risk. Thailand’s current proposal calls for 100 percent public sector funding across the entire five-year contract. That stands in stark contrast to Singapore’s model, where the government covers 60 percent of costs annually while a private promoter, Singapore GP Pte Ltd., covers the rest. The Cabinet Secretariat acknowledged explicitly that if the Bangkok event underperforms, the fiscal burden on the country could become significant.
Despite those warnings, the secretariat stopped short of recommending the bid be scrapped. It called for deeper impact assessments, a push to bring in private sector partners to reduce the government’s exposure, and strict adherence to Thailand’s State Fiscal Discipline Act, which requires any government action incurring financial obligations to go through rigorous cost-effectiveness review.
Malaysia’s experience gives Thailand a useful benchmark, and it’s not a flattering one. The country dropped its Formula One race after 2017, having concluded that hosting fees and infrastructure subsidies were no longer justified by the returns. When the idea resurfaced in 2025, Malaysia’s sports minister ruled it out, noting the annual financial commitment would exceed the government’s total budget for 20 separate sports programs combined. Thailand is moving forward where its neighbor stepped back.
The government’s case for the race goes well beyond ticket revenue. Officials have pointed to goals that don’t show up in a direct cost-benefit analysis, including raising Thailand’s international profile, developing what the government calls its soft power capabilities, and generating long-term growth in sports tourism. Tourism Minister Sorawong Thienthong confirmed discussions with Formula One Group are already underway.
Political momentum behind the bid has been building for over a year. The idea gained traction when then-Prime Minister Srettha Thavisin met F1 Group CEO Stefano Domenicali in Bangkok in April 2024. His successor, Paetongtarn Shinawatra, continued pushing the project, with Domenicali returning to Thailand in early 2025 for further talks. Williams driver Alex Albon, who in 2019 became just the second Thai national to compete in Formula One since Prince Bira’s final race in 1954, has publicly supported the project and met with government officials on more than one occasion.
No contract with Formula One Group has been signed. The FIA has not confirmed Thailand’s place on any future calendar. The June 17 cabinet approval authorized Thailand to submit a formal proposal, not to finalize a deal. Further feasibility work is expected to continue through 2028, and annual budgets will require separate cabinet approval each year.
What sets Thailand’s position apart is that the government made the bid public, secured cabinet approval, and began detailed circuit planning before settling the most important question: whether the country can afford to host the race without private partners absorbing a share of the financial risk.
