An independent 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.
There was an estimated 54,450 visitors to the city over the course of the event, not all attending the V8s itself.
Main areas of spending by visitors were 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.
Hamilton mayor Bob Simcock says that the results of the economic impact study were very pleasing, particularly given they are 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.“
The full V8 review undertaken by independent chair Peter Stubbs is due to be reported to Council at the end of August.