NOVEMBER 7, 2003
Melbourne happy despite loss of $7.5m
The Australian Grand Prix made a loss in 2003 of $7.5m but the state authorities are happy that the event is a big success for Victoria. The Australian Grand Prix Corporation's 2002-03 annual report shows the Albert Park race cost $42.5m to stage but brought in only $35m to the corporation. The extra money was paid by the local government. The loss was up by $1.4m compared to the previous year. The Corporation also organizes the Australian Motorcycle Grand Prix, held at Philip Island, which lost $4.8m.
"The operating result should be considered in conjunction with substantial benefits to the state of Victoria both in the form of economic benefits and the significant branding and advertising exposure generated by widespread television coverage," the report stated.
An independent analysis of the economic impact of the race on the state of Victoria was that it boosted direct revenues by $92m. The government gets tax on that money.
One of the problems faced by the AGPC is that while it bears the brunt of all the costs of staging the event, it does not get all the revenues, however the local tourist industry views the Grand Prix as the biggest and most important event of the year.
It should also be noted that some of the extra cost this year was as a result of new safety measures insisted upon by the Melbourne coroner after the accident in 2001.
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