V8s generate $28 million economic impact for Hamilton

An independent post-event analysis of the inaugural Hamilton 400 has shown that the economic impact on the city was approximately 40% greater than originally estimated. The study undertaken by Horwath HTL Limited during the week of the Hamilton 400 says that $28.3 million of new money was generated for the local economy as a result of the city hosting the event.

Horwath HTL completed an economic impact estimate prior to the event in 2006 as part of the resource consent application which predicted the impact would be around $20 million.

The incremental expenditure was generated by the estimated 54,450 visitors to the city. Of those, approximately 39,050 attended the event itself. (The remaining 15,400 visitors accompanied ticket holders to Hamilton but did not attend the event). Estimated numbers of visitors were based on a visitor survey undertaken after the event combined with information supplied by the event organisers.

Of the 39,050 visitors that attended the event, approximately 23,900 purchased tickets, 9,600 were corporate or sponsor guests, 250 were media (not from Hamilton), 1,300 were associated with the V8 teams and 4,000 were event organisers (officials, marshals, etc).

Main areas of expenditure by visitors were identified to be accommodation ($7m), food and beverage ($6.8m), merchandise ($2.1m), retail, entertainment and leisure not at the event ($3.8m), local transport ($2.2m) plus $6.2 for the purchase of goods and services associated with event management. The total excludes money spent by Council on the event circuit and infrastructure as the report measures only new incremental money coming into the city.

Hamilton mayor Bob Simcock says that the results of the economic impact study were very pleasing, particularly given they are significantly greater than originally estimated.

“The city took on the significant task of hosting the V8s for two primary reasons. First was to enhance our city’s reputation and second was economic benefit. Clearly hosting the event has delivered economically in year one. More importantly though, the data from the survey gives us reassurance that these benefits will continue for years to come with a very high percentage of visitors telling us they intend to return in future years.

“While our city’s reputation was enhanced from the day the event was announced, the research also shows that visitors’ perceptions of Hamilton have improved as a result of their stay. Verbatim comments talk about the city’s friendliness, vibrant atmosphere, good facilities and infrastructure, plus over 95% of visitors said that their overall experience of Hamilton’s performance as a host city was either quite good or very good.“

Other interesting facts about visitors to Hamilton for the event include:
# 45% of the surveyed visitors (excluding corporate and sponsor guests) who attended the event from other places in New Zealand stayed overnight in Hamilton
# Of those visitors that stayed in the city, 81% of respondents stayed with family and friends
# Of the corporate guests or guests of event sponsors surveyed, 74% stayed in hotel, motel or Homestay accommodation
# 83% of visitors to Hamilton said their satisfaction with the event was either as expected, somewhat better or significantly better than expectation
# 84% of visitors to Hamilton surveyed said they were either quite or very likely to return next year

The full V8 review undertaken by independent chair Peter Stubbs is due to be reported to Council at the end of August.