Melbourne secures Formula 1 Grand Prix until at least 2025

The Victorian Government has secured the Formula 1 Australian Grand Prix in Melbourne until at least 2025, having locked in a two-year option on the Albert Park event with Formula 1 executives.

Confirming the new deal, Formula 1 Chairman and Chief Executive Chase Carey advised "the decision to extend the current relationship for a further two years stems from the fact this event has proved to be a resounding success for the capital of Victoria, for Australia and indeed around the world, proving immensely popular with fans and those who work in Formula 1.”

Victorian Tourism, Sport and Major Events Minister Martin Pakula advised the Grand Prix projected Melbourne to an international audience of 80 million people, including in the key markets of China, India and Japan, noting that the event was a "major boost" to the Victorian economy, particularly for CBD hotels, which enjoy about 94% occupancy on Grand Prix weekend.

Attendances show the 2019 event attracted an estimated crowd of 324,000 across four days, a 10% increase on 2018, making it the best attended Grand Prix since 2005.

Omitted from the Minister’s statement was the amount Victorian taxpayers will pay for the event under the new terms.

With the Sydney Morning Herald reporting that some circuits pay nothing to host the race, Melbourne is among the locations that pay a fee. (Editor's note: Australasian Leisure Management understands that the Monaco F1 Grand Prix is the only race not to pay a hosting fee). In 2013, Victorian taxpayers paid $34 million, a figure which has escalated in subsequent years.

The Sydney Morning Herald reported that including the payment, the event runs at a loss of about $60 million each year.

Victorian Minister Pakula added "beyond the direct benefits to Melbourne and Victoria, the contract extension provides confidence for our world-leading events industry and allows the Australian Grand Prix Corporation to further enhance and develop the event for the benefit of fans."

Melbourne will again be the first event on the F1 calendar in 2020, with race day confirmed for Sunday 15th March.