Melbourne Cup Carnival An Economic Winner

Thursday, 10 June 2010 02:37

As the Victoria Racing Club gears up for the 150th running of the Melbourne Cup, research undertaken by IER Pty Ltd confirms the positive economic impact the Melbourne Cup Carnival has each year on the state of Victoria and the nation.

The world renowned four-day Carnival featuring the AAMI Victoria Derby Day, Emirates Melbourne Cup Day, Crown Oaks Day, Emirates Stakes Day attracted more than 389,000 attendees.

Attendance by non-local racegoers remarkably increased to 73,825, up 6.8% on last year’s Carnival.

The ability of the Melbourne Cup Carnival to attract tourists to Victoria has been a major driver of economic benefits for Victoria.

Over 26,000 international and interstate visitors attended last year’s Melbourne Cup Carnival despite being in the midst of a global financial crisis, when these figures would be expected to be down, and contributed more than $155 million to the state during this period.

The report also revealed that racegoers in Victoria spent more that $29 million on fashion items to wear to the 2009 Melbourne Cup Carnival.

This represented an increase of almost $2.7 million on 2008.

The 2009 Melbourne Cup Carnival is directly responsible for the following economic and tourism impacts:

• Increase in attendance by out-of-state-visitors +6.8% (from 69,125 to 73,825)
• Value added contribution to gross state product increased by +5.2% (from $148.1 mil to $155.8 mil)
• Motivated 21,000 interstate and 5,000 overseas visitors to travel to Victoria to attend the MCC
• Generated more than $3.3 million in spending on other tourist attractions during their stay in Victoria
• Delivered more than 114,000 bed-nights in commercial accommodation throughout Victoria
• Out-of-state visitors delivered more than $6.2 million spending for the retail sector
• The economic activity generation by the Melbourne Cup Carnival sustained more than 2,240 full time equivalent jobs in Victoria with much of this employment stimulated as a result of increased demand on the retail, hospitality and accommodation sectors

The unique cultural and social significance of the Emirates Melbourne Cup is evidenced by the fact that more than 4.3 million people nation-wide celebrated the event without necessarily making it to Flemington.

The combined Melbourne Cup Carnival, including national expenditure on Melbourne Cup Day is responsible for stimulation of State and Territory economies around Australia to the value of $714.1 million.

This represents an increase of 2.1% on the 2008 result.

VRC Chief Executive Dale Monteith says that the national economic impact study sheds light on the true reach of the Melbourne Cup Carnival.

"Not only does the Melbourne Cup Carnival deliver considerable economic impact to the state of Victoria, but the event's ability to encourage spending in other parts of the Australian economy, such as in retail and hospitality, delivers considerable economic stimulus to local business.”

“Tourists around the nation and across the globe embark on the pilgrimage to Flemington to experience Spring Racing at Flemington. It is their embrace of the Melbourne Cup Carnival and its history that sets it apart from all other great national sporting and social events,” he added.

The momentum in the lead up to the 150th running of the Melbourne Cup is showing no signs of slowing.

Sponsorship numbers are on the increase and dining and hospitality package sales to this year’s Melbourne Cup Carnival are up over 65% compared to the same time last year and which are likely to sell out early.

A number of hospitality options have in fact already sold out.

Mr Monteith added that corporate marquee sales are up by 20% from this time last year with Derby and Cup Day corporate marquees almost sold out.

“Sponsorship numbers are on the increase. All 2009 MCC sponsors are returning with many increasing their investment and broadening their involvement. Also, several sponsors who dropped out last year because of the GFC are returning.”

“Clearly, the excitement generated by the staging of the 150th Cup is translating into an increase in hospitality sales. It’s important that those people who plan to attend this year’s Melbourne Cup Carnival on one or more racedays, organise purchasing their tickets sooner rather than later,” he
advised.