AUSTRALIAN MOTORSPORT IS AN ECONOMIC POWERHOUSE
A study recently revealed motorsport’s significant contribution to the Australian economy, with a total gross annual output of $8.6 billion
With the national economy looking to rebuild after a difficult two years, Australian motorsport
is primed to lead the charge for the sporting industry.
Ernst and Young prepared the global study on four-wheeled motorsport together with the FIA and Motorsport Australia, Karting Australia and the Australian National Drag Racing Association (ANDRA).
Locally, it was found that the motorsport industry provides $3.1 billion in direct output, while providing $5.5 billion of indirect output based on pre-COVID figures.
The industry also supported 16,900 direct jobs and a further 29,900 indirect jobs in 2019, the year the study was based on.
The sport also enjoyed support from approximately 18,900 unpaid officials and volunteers, creating a total workforce of 65,700.
The Ernst and Young study looked at a range of factors, further emphasising the importance of the Australian motorsport industry on the country’s overall economy.
Between Motorsport Australia, ANDRA and Karting Australia, the sport has a strong foothold across the country with a reported 188,112 people participating in the sport in 2019.
The financial contribution of each competitor and their input to the overall economy is estimated at approximately $20,000 per year on expenses related to their involvement in the sport (not including vehicle purchases) such as travel, maintenance, food and beverages, as well as race meetings.
At a state level, New South Wales and Victoria were the biggest contributors in 2019, with the two states responsible for more than 50 percent of the sport’s national economic value with around 97,000 active participants.
In 2019, prior to the COVID shutdowns, 9650 events were held throughout the country via the three Governing bodies with events in both rural and metropolitan regions attracting thousands of competitors each week.
Given the high level of events, a variety of industries outside of the sport such as tourism, hospitality, retail and entertainment venues at local, state and national levels all benefit from motorsport’s presence, providing a significant and positive impact on a large number of communities.
The findings compare favourably to the most recent survey undertaken in 2014. That survey revealed motorsport had a direct output of $2.7 billion dollars to the Australian economy, highlighting the rapid rise of the sport’s growth, with approximately $400 million more now being spent on an annual basis.
With COVID impacting 2020 and 2021, Motorsport Australia, ANDRA and Karting Australia say motorsport has a unique opportunity to play a key role in the economic recovery of Australia, stating that competitors are ready and eager to start racing, travelling and spending in the coming 12 months.
For more information, visit www.motorsport.org.au