Melbourne Formula One Grand Prix, Phillip Island’s MotoGP scrapped again

The decision to cancel Victoria’s Formula 1 and MotoGP events has been condemned as the state battles to retain its status as Australia’s events capital.

A massive hole will be blown in Victoria’s $1.8bn major events economy after the Andrews government slammed the brakes on the Formula 1 Grand Prix and MotoGP.

The government on Tuesday scrapped both blockbuster events this year due to the Covid-19 pandemic, in a significant blow to the events sector and the state’s sports reputation.

The move has shattered business, tourism and sporting leaders and raised doubts about Victoria’s ability to host other international showcase events, such as the Australian Open tennis in January.

Former premier Jeff Kennett said it was “a real kick in the guts’’ that could result in other states and countries trying to hijack the tourism drawcards.

“If we can’t host them, the people that own them will take them elsewhere,’’ he said.

“They are losing money, too, and they feel like they don’t owe us anything.’’

Spectators show their displeasure at last year’s Australian Grand Prix, after it was cancelled last-minute. Picture: Scott Barbour

Premier Daniel Andrews blamed the federal government’s slow vaccine rollout and cut to international arrivals as reasons the events had to be cancelled.

“Some things are possible in a pandemic, but some things aren’t,’’ he said.

But Mr Kennett, who helped lure the F1 Grand Prix to Melbourne, challenged Mr Andrews to allow fully vaccinated athletes and industry leaders to enter Victoria to kickstart the economy.

“My biggest worry now is the Australian Open tennis,’’ he said.

“If we don’t have a procedure in place by next year to allow vaccinated people to come in from overseas, I doubt a lot of tennis stars will want to come. And the Australian Open is the most important sporting event in Australia by head and shoulders.’’

Sports, Tourism and Major Events Minister Martin Pakula said it was too difficult to allow 1600 Formula 1 personnel into the state, given Australia’s low vaccination rates and reduced arrivals.

“We’re simply not in a position to give Formula 1 management or MotoGP the sorts of guarantees and assurances and comfort they need,’’ he said. “I understand that, for motorsports fans and major events fans, this is very disappointing news.”

Crews packing up in the pit lane after the 2020 Grand Prix was cancelled. Picture: AAP Image/Michael Dodge

Mr Pakula would not confirm whether taxpayers would have to foot the bill for multimillion-dollar licensing fees for the Albert Park and Phillip Island races, but said discussions were under way.

Australian Grand Prix Corporation chief executive Andrew Westacott said: “This is not the result we wanted, it’s not the result you want. This is life in a Covid pandemic.”

It is likely that next year’s Formula 1 race could take place in April – one month later than its usual slot – losing its status of being the first race of the season.

Aussie Formula 1 great Mark Webber was “shattered”. “It’s a shame as we’re world class at pulling these types of events off,’’ he said.

Australian F1 driver Daniel Ricciardo said it was “a huge disappointment’’.

“For me, I can’t wait to have the chance to race at home again, and it’ll be even sweeter when we do because it’s been so long,’’ he said.

“Fingers crossed things can change for 2022 and we get to see the awesome fans at Albert Park again and put on a good show for them.”

An economic impact study of the event in 2011 estimated it increased Victoria’s gross state product by between $32.04m and $39.34m and created 411 full-time jobs.

Australian driver Daniel Ricciardo says he is ‘gutted’ by the decision.

Restaurant and Catering Australia chief executive Wes Lambert said the cancellations would hit businesses hard. “This will certainly cost the hospitality industry tens of millions of dollars in lost revenue that just can’t be made up in any other way,’’ he said.

Aussie MotoGP star Jack Miller said riders from around the world were “really disappointed”. “It’s a tough thing for everyone, but we understand the situation and it’s the correct decision,’’ he said.

Aussie five-time 500cc Motorcycle Grand Prix champion Mick Doohan said: “I’m totally devastated that we’re not hosting the Australian MotoGP again this year at Phillip Island.’’

Melbourne’s season opening Formula 1 race was postponed from March to November, with organisers hoping the shift would allow time for a Covid-safe plan to be implemented and the public to be vaccinated.

Formula 1 chiefs submitted a safety plan to the government but it is believed the reluctance of teams to enter a hard two-week quarantine was a major factor.

Major events traditionally generate about $1.8bn of annual economic benefit for Victoria and 4700 full-time equiv­alent jobs. The Grand Prix is locked in for Melbourne until 2025 and the MotoGP is contracted to Victoria until 2026.

CANCELLATION A ‘BIG HIT’ TO MELBOURNE

Business, sports and political leaders have condemned the cancellation of Victoria’s Formula 1 and MotoGP events as the state battles to retain its status as Australia’s events capital.

Victorian Tourism Industry Council chief Felicia Mariani said the decision would damage the state’s reputation as a sports mecca.

“I have no words any more, because the consistent disappointment for our industry is just becoming overwhelming,” she said.

“We really do need to see a very definitive strategy and strong investment in re-establishing Victoria’s position as the events capital of Australia. All of these things contribute to that reputation taking a big hit.’’

A group of 600 suppliers and 12,000 staff managing everything from food and drinks to transport and logistics will be affected by the cancellation of the Albert Park event alone.

Federal Treasurer Josh Frydenberg said it was a “devastating blow to the Victorian economy and businesses that rely on our status as the events capital of the nation”.

“We need to start to move our focus from suppressing the virus to living with the virus and preventing hospitalisations, fatalities and serious illness,” he said.

Grand Prix organisers announcing the cancellation of the Australian Grand Prix last year. Picture: AAP Image/Michael Dodge

VECCI chief executive Paul Guerra said a “quarantine bubble” could have allowed drivers and crews to travel to Melbourne for the F1 Grand Prix, if vaccination rates were high.

“While we want to protect our events, that can’t come at the risk of further lockdowns and restrictions for every Victorian business,’’ he said.

“We have to make sure this is the last international event cancelled and we need to see the vaccination program step up a gear. The Formula 1 Grand Prix and MotoGP are hallmarks of our events calendar and provide a reputational and economic boost to our state.’’

Fan Nathan Corbani has been to every Melbourne GP since it began in 1996 and said “it’s a real shame” the event was cancelled for the second year in a row.

“It’s a kick in the guts … especially when other sporting events like Wimbledon and the British Grand Prix are still happening,” he said.

Albert Park cafe owner Anthony Erm said it was “quite sad” officials couldn’t come to an agreement on the Grand Prix.

“I don’t want to say it’s another nail in the coffin, but it’s definitely a minus,’’ he said.

Opposition Tourism, Major Events and Sport spokeswoman Cindy McLeish said Tuesday’s developments showed Melbourne, previously the world’s most liveable city, had become “the world’s most leaveable city”.

Save Victorian Events spokesman Simon Thewlis said the state government should “put the time and effort into the many events that can be happening now”.

Restaurant and Catering Australia chief Wes Lambert said the move would hurt.

Originally published as Melbourne Formula One Grand Prix, Phillip Island’s MotoGP scrapped again