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Ernst and Young finds Newcastle 500 city’s top event, delivering $36.2m in economic output

An economic report has found the Newcastle 500 delivers jaw-dropping value, ahead of the event’s return to the city next year.

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A major global accountancy firm has reinforced Newcastle’s position as an events city, finding the Supercars 500 event alone delivered more than $36 million in value.

The Newcastle 500, which will return to the city in March, was the top event among 650 residents and businesses surveyed.

Jamie Whincup drives the #88 Red Bull Holden Racing Team Holden Commodore ZB during race 2 of the Newcastle 500 as part of the 2019 Supercars Championship on November 24, 2019. Picture: Daniel Kalisz/Getty Images.
Jamie Whincup drives the #88 Red Bull Holden Racing Team Holden Commodore ZB during race 2 of the Newcastle 500 as part of the 2019 Supercars Championship on November 24, 2019. Picture: Daniel Kalisz/Getty Images.

From City of Newcastle’s $1.6 million Supercars budget, Ernst and Young found every $1 spent resulted in a $22.60 returned to the local economy.

EY, which the council engaged for the assessment, measured the impact of the 2017, 2018 and 2019 Newcastle 500 events.

It found an upward trend in international and interstate visitor spending offset a slight decline in total spectators from the inaugural event.

Newcastle Lord Mayor Nuatali Nelmes said the feedback would help shape the council’s approach to events into the future.

“Newcastle’s position as an events city has been growing since the early days of Surfest in the 1980s, but it was only after delivering our first Newcastle 500 in 2017 that the rest of Australia has really taken notice,” Ms Nelmes said.

“Research tells us that events deliver both an immediate and ongoing benefit for the community and economy, with greater visitation, investment and liveability outcomes.

“Major events in Newcastle, be they motor racing, music festivals or world-class surfing, are here by design, not by chance. On the back of research like the EY reports, we’ll continue working to build Newcastle’s position as a global events city.”

Surfest director Warren Smith, Newcastle lord mayor Nuatali Nelmes and Business Hunter chief executive Bob Hawes. Picture: Supplied.
Surfest director Warren Smith, Newcastle lord mayor Nuatali Nelmes and Business Hunter chief executive Bob Hawes. Picture: Supplied.

EY found the Newcastle 500 delivered an average of $36.2 million in economic output and created 149 jobs.

More than 80 per cent of residents thought major events were beneficial for the city, while 88 per cent of businesses believed major events benefited businesses across the local government area.

Business Hunter chief executive Bob Hawes said business owners were preparing for the return of events as Covid restrictions continue to ease.

“Events bring a significant amount of economic stimulus, particularly through the visitor and hospitality sectors, which are those that are hurting the most right now because of Covid-19,” Mr Hawes said.

“Confirmation from Supercars Australia that the Newcastle 500 would be returning in March 2022 has been very positive news for the Hunter’s businesses, and the research released by City of Newcastle matches the feedback we are receiving from many of our members.”

The economic impact of the Newcastle 500 was determined by estimating the direct and indirect expenditure of people who visited the city for the event or extended their stay following the event.

Scott McLaughlin driver of the #17 Shell V-Power Racing Team Ford Mustang celebrates during the Newcastle 500 as part of the 2019 Supercars Championship on November 24, 2019. Picture: Daniel Kalisz/Getty Images.
Scott McLaughlin driver of the #17 Shell V-Power Racing Team Ford Mustang celebrates during the Newcastle 500 as part of the 2019 Supercars Championship on November 24, 2019. Picture: Daniel Kalisz/Getty Images.

EY partner Erik Heller said the statistics-driven approached aimed to measure awareness, perception and sentiment.

“To capture a robust sample of people who live in the LGA, quotas and weighting have been applied to provide results that are representative of the population of Newcastle based on age, gender and ward populations,” Mr Hellier said.

“The weighting process has also been applied to collecting data from businesses, considering 17 per cent of businesses are located in the City Centre and 83 per cent are in the wider Newcastle LGA.”

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Original URL: https://www.dailytelegraph.com.au/newslocal/the-newcastle-news/ernst-and-young-finds-newcastle-500-citys-top-event-delivering-362m-in-economic-output/news-story/7286c98e9705e5c1020b5687867c5314