The promoter of Formula One in China said in 2003 it would take three years to judge whether it could bring great profits to its organizers.

He also outlined hopes that a Chinese F1 driver would have emerged by then.

Three years on, it appears that things have not panned out exactly as Yu Zhifei had hoped but he is still happy and predicts a bright future.

While he refuses to reveal how profitable the F1 race has been for its organizer, Shanghai International Circuit Management and Development Co Ltd (SIC), a Chinese F1 driver still seems a long way off.

"F1 is a big party. China has just joined the party. It will take longer for China to accept the game and become fully involved in it," said Yu. "The economic benefits F1 brings cannot be measured solely in monetary terms."

The 2006 Chinese Grand Prix will be held in Shanghai from September 29 to October 1 at Shanghai International Circuit, where it has taken place since 2004. More than 10,000 TV and radio stations in over 200 countries and regions across the world will cover the event.

SIC has spent hundreds of millions of dollars on hosting the race. The track and related infrastructure cost US$3 billion to build, let alone the money required to maintain these facilities.

SIC has reportedly spent around US$20 million a year to gain the rights of holding the race from the Federation of International Automotive (FIA).

F1 and MotoGP, another leading global race, are the only two events held at the site that can attract large numbers of fans, with the facility set to be deserted for the rest of the year.

F1 attracted more than 150,000 spectators in 2004 and slightly more in 2005, nearly one-third of whom were foreigners.

This year, Michael Schumacher helped to save F1 ticket agencies from expected sluggish sales. The Ferrari legend announced his retirement from the sport earlier this month, giving a boost to ticket sales as Chinese fans were eager to see his last race in Shanghai.

The timing of the Grand Prix, during the National Day holiday, is making it tough for SIC to attract more spectators.

"F1 clashes with the long holidays, when most of professionals in China prefer to travel and hold other events such as weddings. That will put fans off from going to watch the event in Shanghai," said Zhang Rong, an analyst with Shanghai-based CeNet Consulting Co.

"Schumacher will not be there to save Shanghai in the years to come. China must make efforts to develop a much larger following for its racing events."

To win more fans, SIC is gradually increasing the number of low-price tickets every year to attract young people, especially university students.

Yu hopes a Chinese F1 driver will emerge in the next few years.

Despite a refusal to talk about the profits or losses SIC has made on F1, Yu said the benefits from F1 were not only financial.

"Besides the direct economic benefits SIC has gained from the sport including ticket sales and advertising, F1 has had a remarkable economic and social impact in Shanghai and China at large," Yu said.

F1 generated around 3.3 billion yuan (US$412 million) worth of benefits for property developers, hotels, tourism, catering, retailing and advertising companies in 2004, according to a survey by AC Nelson Corp.

The report pointed out that F1 has had a very positive effect on Shanghai's economic growth.

Over the course of the three-day event, every domestic tourist spent 200 to 500 yuan (US$25 to 82) every day, while those from overseas spent around US$62 to US$125 daily.

The report's findings were backed by both local and multinational enterprises. More than 80 per cent of enterprises surveyed by China Daily said they believe F1 will boost Shanghai's tourism, hotel and catering sectors and can create more jobs and further improve the investment environment.

Profits from F1-related sectors accounted for 2.2 to 2.8 per cent of the increase in Shanghai's gross domestic product in 2004.

Qiu Weichang, deputy director of Shanghai Sports Bureau, said: "The benefits of F1 should not be only evaluated by ticket sales. Like the Olympic Games, the real influence of any world-leading event is probably larger than that shown in any report."

He said F1 improved Shanghai's capability to host large international events and better prepared it to host the 2010 World Expo.