MANAMA, 5 April 2004 — With the 2004 Gulf Air Bahrain Grand Prix promoted widely throughout the region, young people in the GCC have been intensely exposed to a new medium for local cigarette advertising. Formula One racing is on a desperate search for new fans around the world and the Middle East’s large youth population is a perfect target for the fast, flashy motor sport. But Bahrain is also a perfect venue for another reason — liberal tobacco advertising regulations.

Half the Formula One teams, including the famous Scuderia Ferrari team, receive huge amounts of money from tobacco sponsors. Ferrari is thought to take in about $150 million annually from its association with Philip Morris’ Marlboro brand. Estimates by various business magazines of the total amount received by Formula One teams from tobacco companies runs from $244-$350 million.

In Europe, Formula One racing’s traditional home, the upcoming 2005 ban on tobacco advertising in the EU has landed the sport in trouble. The Austrian Grand Prix has been canceled. The Belgian Grand Prix was temporarily saved this year when the country’s tough new anti-smoking legislation was postponed. The race in Monaco is outside the EU’s control. Legislation coming into force in the UK, however, would enact serious penalties on the heads of British-based Formula One teams decked out with tobacco branding at any race, anywhere in the world. Outside Europe, the Canadian Grand Prix was saved after a last minute compensation package was put together. Basically, the Canadian race organizers will compensate teams unable to run tobacco advertising during the event.

Formula One teams have long depended on tobacco sponsors. In fact, tobacco companies were the first to sponsor F1 teams. F1 boss Bernie Ecclestone is reported to be furious about anti-tobacco legislation efforts and is determined to do whatever it takes to keep the money coming in — including relocating teams and events.

Not everyone involved in Formula One agrees with Ecclestone’s position. The five teams who do not accept tobacco sponsorships — Jaguar, Minardi, Sauber, Toyota and Williams — believe that the sport’s link with tobacco is unacceptable to many potential sponsors and spectators.

“Toyota arrived in Formula One with no sponsorship from tobacco companies,” said Andrea Ficarelli, speaking on behalf of Panasonic Toyota Racing. “This is due to the strategic decision of representing Toyota with a ‘clean’ image. This means no tobacco and no alcohol. Toyota is firm in this strategic decision and we will continue to pursue it. This is in line with Toyota’s concept of ‘clean cars,’ which we are pushing.”

BMW-Williams F1 Team is similarly positioned.

“We used to have tobacco sponsors, but since BMW came on board, we made the decision not to continue with tobacco sponsorship,” said BMW-Williams spokesperson Silvia Hoffer. “Since 2000 onward we have had no tobacco sponsors. In fact we took an exact opposite approach and are now sponsored by NiQuitin CQ, the brand name of a nicotine replacement therapy product. This new approach is because we believe it is healthy not to smoke.

“Secondly, we want to be in line with new sponsorship regulations that are coming into force around the world.”

And new regulations are springing up rapidly in nations globally as those countries sign on to the World Health Organization’s anti-tobacco advertising Framework Convention on Tobacco Control. New F1 venue China has signed the convention. Bahrain has not.

“No one can stop tobacco use just by banning advertising. People should have the choice to choose whether to smoke or not,” said Bahrain Grand Prix spectator Jassim BuAli. “Here in Bahrain they have cigarette advertising in theaters. Young people are certainly exposed there more intensely by actual video presentations than at a race. I don’t think there should be a problem with tobacco sponsorship of Formula One.”

Garna Ghandi, a vendor working at the Bahrain Grand Prix disagreed.

“I don’t think it’s right to have tobacco companies sponsoring Formula One because it makes those brands look exciting,” she said. “Advertising is a form of communication and young people are very responsive to it. Other events have turned away from tobacco sponsorships and survived. So can Formula One.”