Motorsport worth $3.1b to Aussie economy

Four-wheeled motorsport has once again proved to be a lucrative contributor to Australia’s economy with a new study by Ernst and Young revealing the industry contributed $3.1 billion and directly supported 16,900 jobs in 2019.

Combined with 29,900 indirect jobs and approximately 18,900 unpaid officials and or volunteers, the report found a total workforce of 65,700 supported a 188,112-strong participant base.

Prepared in collaboration with the FIA, Motorsport Australia, Karting Australia and the Australian National Drag Racing Association (ANDRA), the study estimates that each competitor contributed around $20,000 in motorsport related expenses.

These including travel, maintenance, food and event costs in addition to the inevitable vehicle purchase(s), which averaged out to around $42,100 per participant, with a further $25,900 being spent on ‘fit-for-purpose related modifications’.

Before the onset of the coronavirus pandemic in 2020, 9650 sanctioned events were held at 618 venues around the country with New South Wales and Victoria predictably being the biggest financial contributors thanks to the roughly 97,000 active participants.

Compared to the previous study of this kind analysing the economic contributions of motorsport in 2014, the industry’s direct financial output grew some $400 million over the five-year period ($2.7 v $3.1 billion).

Motorsport Australia president Andrew Fraser said the study provided a detailed “analysis of motorsport’s strong economic impact and the importance” it has on local economies and communities.

“As Australia embarks on its economic recovery, we know motorsport will continue to be an economic powerhouse, creator of jobs and boost for local economies, particularly in rural areas, where many motorsport events take place,” he said.

“Australia is such a diverse country and we are eager to see more people enjoying more motorsport more often.

“Sport can bring people together and we’re working hard to embrace those who want to be involved and see the potential to grow these numbers even further by ensuring our sport is welcoming and accessible to all.”

ANDRA chairman Nathan Peirano echoed these sentiments and added the findings were “no surprise to those who are responsible for steering” the sport across all its forms. “The local and regional events we have seen held with such success over the last 12 months as we have adapted and worked within COVID-19 restrictions will soon be accompanied by a sustained return to national-level competition and we can’t wait for what is shaping up as a bright future ahead which will continue to make important contributions to the economy,” he said.