It has been announced that the 2023 Melbourne Cup Carnival delivered a new gross economic record.
The total return to the state of Victoria was $468.3 million. That makes the Carnival Australia’s largest economic event.
The Victoria Racing Club are naturally delighted, and shows that despite some dissenting voices the Melbourne Cup and the surrounding carnival remain incredibly important to the country.
Lots of Industries Benefit
We’ve always known how important this race is. Another bunch of three-year-olds went on trial for the 2024 version of the Melbourne Cup last week as we look for the next Flemington superstar.
Now, we know that financially this event cannot be topped. The Carnival in 2023 moved the total economic contribution by Victorian events in the last ten years to above $3.7 billion.
The benefits of such racing carnivals positively affect a wide range of sectors. Retail industry, entertainment, accommodation and hospitality are all benefitted.
Over 500,000 Flock to Victoria for Cup in Last Decade
A number of different categories recorded increases on the back of the Melbourne Cup.
Accommodation spend went up to more than $43 million, a rise of 22%, with another $32m spend on food and drinks which is up more than 13%.
Melbourne Cup week brings lots of visitors to the state. The Carnival has been recorded as being the direct reason for attracting some 67,555 people to Victoria. That’s a rise of 10.9% versus 2022.
Over half a million people, interstate and international, have arrived into the state because of this race and its carnival.
Horse Racing Still Buzzing Despite Criticism
As well as the direct benefit to Victoria, Cup Day is wider reaching.
More than 50% of all adults in Australia watch or listen to the Melbourne Cup. That’s huge engagement and wonderful for our sport.
This weekend coming, Great Britain sees its single biggest betting event, the Grand National, run at Aintree Racecourse too. Horse racing, despite having its detractors, is alive and well.
IER, a market research company, has found that the economic benefit in terms of direct spend across Australia has now topped $605.7 million on Melbourne Cup Day. That figure may even be broken in 2024.
Racecourse Attendances Still Key
In soccer, or in major one-off events such as the Superbowl, most of the revenue generated is TV and sponsorship-based.
With horse racing, getting people trough the gates remains crucial. The record financial activity generated by the 2023 Melbourne Cup was backed up hugely by on-course activity.
Over 262,000 entered Flemington Racecourse during Cup week last year. That’s a rise of more than 7%.
The research conducted suggests that more 18–29-year-olds visited the Carnival. That age group now makes up for over 20% of racecourse attendances. Furthermore, around one third of first-timers coming to the course are from the same age group which is great to read.
The sport is very much alive and well with the Melbourne Cup leading the way.
