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

5. Direct economic impacts of the Grand
Prix
5.1 Introduction
This section presents estimates of the direct economic impacts of the Grand Prix to the
Victorian economy. Direct impacts are defined as the immediate (or first round) changes in
revenues in the Victorian economy as a result of the event. In economics parlance, they are
the ‘shocks’ to the economy.
The direct impacts of the event are assessed relative to two hypothetical scenarios of a
Victorian economy without the Grand Prix:
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Scenario 1: The event not held in Victoria but held in another state of Australia; and
Scenario 2: The event not held in Victoria but in another country.
These two scenarios have different implications for the amount of ‘retained expenditure’ in
Victoria generated by the event.
5.2 Visitor expenditures
The spending by people, teams and organisations visiting the State specifically for the
Grand Prix is a direct impact to the State. In the absence of the Grand Prix, these
expenditures in the State would not have occurred.
Expenditures by people, teams and organisations that attended the Grand Prix, but would
have travelled to Victoria regardless, are not counted as part of the direct impact estimate.
For these visitors, the only expenditures that are counted are their purchases of event
tickets (which are counted in the AGPC operations – refer to section 4.9) and any
expenditures arising from an extension of their stay due to the event.
The direct impacts from interstate and overseas specific and extended stay visitors for the
Grand Prix are outlined in Table 40.
For the total of the retained expenditures of applicable Victorian residents and
organisations under both scenarios outlined in section 3, refer to section 5.3.
Tourism Victoria
The economic impact of the 2011 Formula 1 Australian Grand Prix Ernst & Young ÷ 45