Do Local Businesses Benefit from International Sports Event? The Alignment of F1 Powerboat Championship in Lake Toba, Indonesia, with SDG 8 and 10

Objective: International sports events are expected to affect the economic development of the host region, hence aligns with SDG 8. This study aims to investigate the impact of F1 Powerboat in Lake Toba, Indonesia, on local businesses, to assess the inclusivity of the economic impact as mandated by SDG 8 and 10. Theoretical Framework: Sport tourism and sports event in tourism destinations have significant potential to advance multiple Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 10 (Responsible Consumption and Production). Hosting international sports events can drive economic growth by boosting the sales of local business, which in turn may increase their employment, inventory, assets and managerial know-how. Method: The data descriptive method is used, utilizing primary data collected through a survey yielding 51 responses from local businesses. Results and Discussion: The research findings show that the event generate a considerable additional revenue for those businesses participating in the event. However, the challenges are also identified from the survey, including ineffective socialization of business opportunity, inadequate formal external fundings for MSMEs, insufficient products and services quality to meet international visitors’ standards, the less strategic use of profits by local businesses, and lack of sustainability of the event and the infrastructure built. Research Implications: The use of multiple channels for socialization, ease of procedure, assistance for working capital and product/services quality are essentials. The government also need to foster series of events throughout the year to utilize the hype of the F1 Powerboat. The local businesses must actively search for information on business opportunity of the events, seeking assistance in product/services quality improvement, and reinvest the additional profit on capitals or knowledge/skills for long-term growth, and use the event to expand outreach to international customers. Future research should explore collaborative governance between central and local governments and capture the perspectives of international participants to maximize the event's long-term impact. Originality/Value: The study contributes to the limited studies on the impact of single international sports event on local business, especially with reference to remoted tourism destination and paves the way to develop the model of sports event that maximizes the benefit to local businesses.