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

Melbourne and somewhere else in Victoria spectators’ expenditures are currently ‘retained’
in Victoria relative to a scenario where the Grand Prix is staged overseas.
4.2.8.1 Summary of Victorian residents applicable for retained expenditure
Based on the information detailed in sections 4.1 and in 4.2.8 above, Table 19 below
indicates the number of Victorian spectators that contribute to the retained expenditure of
the Grand Prix under the scenarios where the Grand Prix is staged in another state or
country.
Table 19: Summary of Victorian residents applicable for retained expenditure
Item Grand Prix staged interstate Grand Prix staged overseas
Melbourne 25,914 12,896
Somewhere else in Victoria 5,285 1,530
Total 31,199 14,426
4.2.8.2 Expenditure
The average expenditure of Victorians attending the Grand Prix is illustrated in Table 20.
The expenditure has been categorised into industry groups (enabled by the design of the
questionnaire). The figures in Table 20 have been reduced to incorporate the amount of
people the expenditure covers (as determined from the Newspoll surveys). They have also
been reduced to take into account the AGPC receiving revenue from tickets, and a share of
food and beverage and merchandise sales at the Grand Prix (that will be considered in the
analysis of the AGPC’s revenue and expenditure). It should be noted that Melbourne
residents were only asked about their expenditure at the Grand Prix and getting to the
Grand Prix as other expenditure outside the grounds of the Grand Prix such as sustenance
before and after the event is assumed to not be directly linked to attending the Grand Prix.
That is, those expenditures would have taken place regardless of whether the Grand Prix
was staged or not.
Table 20: Average amount expended per Victorian attending the Grand Prix
Item
Average Melbourne visitor expenditure (spent at
the Grand Prix only)
Average somewhere else in Victoria visitor
expenditure
Accomm,
Cafés,
Restaurants
Transport Retail Total
$65 $12 $35 $112
$218 $46 $92 $356
Source: Ernst & Young calculation applying Newspoll survey data (based on the responses of 547 Melbourne and 80
somewhere else in Victoria spectators). The sample sizes were representative.
The above table confirms that Victorian patrons that live outside the Melbourne
metropolitan region spend additional amounts on accommodation and sustenance given
they often stay overnight when visiting Melbourne for the Grand Prix.
Tourism Victoria
The economic impact of the 2011 Formula 1 Australian Grand Prix Ernst & Young ÷ 26