2011 Melbourne Cup Carnival economic study
31 Jul 2012 | Victoria Racing Club The 2011 Melbourne Cup Carnival again proved to be a key economic driver for Victoria, especially for the fashion, retail, hospitality and tourism sectors, which are all feeling the effects of a high Australian dollar and a difficult trading environment.
In a study compiled by IER Pty Ltd, the four days at Flemington were found to have generated a value added contribution to Victoria’s gross state product of more than $164.5 million, a figure that quantifies the money injected into the Victorian economy from out of state visitors and a remarkable result for a fully self-funded event that did not benefit from government funding.
Victorian businesses also benefited from the $349.1 million in financial stimulus (gross economic benefit) generated by the Carnival. Nationally, the economic output generated by spending associated with the Carnival reached more than $746.1 million.
Fashion spending increased with racegoers spending $28.5 million ($26 million in 2010) in Victoria on fashion items to wear to the Melbourne Cup Carnival, representing an average spend of $149.78 for each racegoer at Flemington.
Attracting a total of 355,086 racegoers to Flemington over the four days (up from 353,178 in 2010), the Melbourne Cup Carnival attracted 125,833 out of state visitors (107,538 interstate and 18,295 international). Over $26.1 million was spent on commercial accommodation by event-motivated visitors and visitors who extended their stays to attend the Carnival. This represents 164,520 bed nights that would not have occurred without the Carnival and a significant boost to the hospitality industry.
The Emirates Melbourne Cup continues to stop a nation with coverage dominating television ratings ensuring over 95.9 per cent of all metropolitan in-home televisions switched on at 3pm tuned into the race. Those viewers and millions more around the world witnessed a record 11 international runners contest the $6.2 million Emirates Melbourne Cup, the richest handicap in the world and again the world’s highest rated staying race.
Definitions:
Value Added - the additional induced impact on industries resulting from the extra rounds of spending attributable to the MCC. Based on spending by out of state visitors, who were motivated either to travel to Victoria, or to extend their planned stay in Victoria in order to attend the MCC. Otherwise known as the value added impact on the Victorian economy.
Gross Economic Benefit - The amount of spending, including flow on impacts that is generated in the Victorian economy by all attendees and events held during the MCC.