The economic impact of the 2011 Formula 1 ... - Tourism Victoria

that an economic impact analysis is different from a cost benefit analysis (CBA) – the latter
is outside the scope of the Assessment. Economic impact studies of events measure the
pertinent impacts to the economy (such as the number of jobs created, the market value of
production and income generated).
Costs and benefits that are outside the scope of the Assessment, and do not form part of an
economic impact analyses include (amongst others):
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Costs on the environment and amenity; and
Benefits to Victorians in terms of social cohesion, recreation and liveability.
Given this, caution should be applied in the interpretation of economic impact results as
they do not necessarily measure human progress or impacts on society’s wellbeing.
Nonetheless, output and employment figures generated from economic impact studies are
generally standard and accepted measures used by governments in Australia and in other
countries in evaluating economic progress. 4
2.3 Report outline
The remainder of this report is set out as follows:
► Methodology (section 3)
► Key inputs to determine direct expenditure impacts (section 4)
► Direct economic impacts of the Grand Prix (section 5)
► Wider economic impacts using the CGE approach (section 6)
► Other market research (section 7)
► Disclaimer (section 8)
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Appendices.
2.4 Commercial in confidence information
AGPC has indicated to Tourism Victoria and Ernst & Young that information in relation to
the ticket sales for the Grand Prix, and detailed information from the operating income and
expenditure statements of the AGPC, is considered to be ‘Commercial in Confidence’. That
is, AGPC considers that it would be exposed unreasonably to disadvantage if the detailed
information specifically relating to those identified areas were to be included in this report,
as competitors could use this information to improve their competitive position to the
detriment of AGPC and/or to undermine AGPC’s ticket sales processes.
Therefore this report excludes information enabling the reader to understand the number of
tickets sold (in total or by category) at the 2011 Grand Prix. It also excludes any information
that would identify the categorised or total income and expenditure of AGPC in staging the
2011 Grand Prix.
It should be noted that Ernst & Young has been provided with adequate information
enabling the estimation of the economic impact of the Grand Prix. Some potential
limitations have been noted and have been specifically referred to in sections 3.1.4 and
3.1.5 of this report.
3
That is, events above $10 million in annual government funding. Victorian Auditor-General 2007, State
Investment in Major Events, p.64.
4
Marsden Jacob Associates (2005) Frameworks for Economic Impact Analysis and Cost Benefit Analysis, Report
Prepared by Marsden Jacob Associates for the Economic Regulation Authority, WA, 22 July 2005.
Tourism Victoria
The economic impact of the 2011 Formula 1 Australian Grand Prix Ernst & Young ÷ 7