Tourism groups lament loss to South Australia, hope for replacement event
Phillip Island tourism groups and businesses are lamenting the loss of the Australian Motorcycle Grand Prix to South Australia, but the prospect of another event being held instead has offered a glimmer of hope.
The multi-day race has drawn thousands of visitors to Phillip Island each year since 1997, generating money for local restaurants, shops and accommodation providers.
The race was usually held in October, providing an economic boost to businesses during a quiet time of the year. However, this year’s MotoGP will be the last race at Phillip Island.
Minister for Sport and Major Events Steve Dimopoulos said Phillip Island now had a “blank canvas” to host another event at the venue from 2027.
Dimopoulos said he has received calls from people in the sports and motoring events industry about holding future events on Phillip Island.
He also told radio station 3AW that he was disappointed with Dorna Sport’s decision to move the race interstate, as his government changed legislation last year to allow the Grand Prix Corporation to host public events rather than just motor racing.
Dimopoulos said the MotoGP switch could be a motor race or a different type of event.
“It could be a motor race. It could be music. Whatever it is, I want it to be a legacy for Phillip Island and Victoria.”
An economic evaluation of the 2023 MotoGP by Ernst and Young found that the race generated $29.4 million in direct expenditure, with around 6620 visitors coming from abroad and 13,730 from interstate.
Pino’s Trattoria manager Romina Scarlato said spectators, competitors and their crews who visited Phillip Island for the race had become long-term customers of the family’s Italian restaurant in Cowes.
He said the loss of those relationships is more distressing than losing the revenue the event generates.
“It’s sad to see it go,” he said.
The restaurant is decorated with motorcycle racing paraphernalia, and racing has become synonymous with Phillip Island.
Destination Phillip Island general manager Kim Storey said the decision was a serious blow as the race brought extensive benefits to the local economy.
“It’s hard to even think about how we can replace the event,” he said.
But Storey hoped what happened next would also encourage interstate visitation to Phillip Island.
Phillip Island was a key part of the Supercars calendar but the series has not raced there since 2019. The 2026 Repco Supercars Championship kicks off in Sydney on Friday 20 February and features the F1 Australian Grand Prix as a support card event.
A Supercars spokesperson told this imprint that plans have not been confirmed but they would be interested in returning to Phillip Island if the stars align.
A Victorian government source familiar with negotiations with Dorna Sports said any deal to keep MotoGP on Phillip Island was always a long shot.
“It wasn’t really something to negotiate at all. The deal almost fell through after the government made it clear it would not consider moving to Albert Park. Dorna were adamant they wanted a street circuit and weren’t going to give it up.”
The source slammed the South Australian government and branded Premier Peter Malinauskas a “baby Kennett”, a reference to former Victorian premier Jeff Kennett, who missed the Formula 1 Australian Grand Prix in 1996 after it was staged in Adelaide for a decade.
“He went after the ridiculous vote that kicked Vic, which obviously worked out well if radio made a comeback. [in Adelaide] Is it something to go to? But I don’t think they’ve really thought about what this will mean for the city and the impact it will have on the parks,” the government source said.
Victoria Tourism Industry Council chief executive Lisa Patroni has called on the state government to focus on long-term tourism that strengthens year-round visits to Phillip Island.
“The loss of MotoGP will have serious consequences for regional jobs and small businesses, with many young people choosing to live locally due to the opportunities arising from the major event,” he said.
In January, Age It emerged that Dorna had been in secret talks with Malinauskas’ government after the Victorian government opposed the significant improvements needed to move the event to Albert Park, while also increasing its financial bid to keep the event on Phillip Island.
At a press conference on Thursday, Malinauskas announced the new deal alongside MotoGP Sports Entertainment Group sporting director Carlos Ezpeleta, who arrived in Adelaide on Wednesday evening.
“We are now competing with the rest of the country for the best events in the world and winning,” he said.
“Hosting the world’s first MotoGP race on a street circuit will offer Adelaide a truly unique proposition that is sure to attract visitors from interstate and abroad.”
Since the acquisition of Spanish-based Dorna Sports by US-based Liberty Media last year, the long-term future of MotoGP’s stay in Phillip Island has looked doomed.
This acquisition led to a sharp focus on worldwide street tours, which attracted higher attendance, corporate sponsorships and branding opportunities.
The decision to hold the event at the Adelaide Street Circuit raises concerns about the sustainability of the Phillip Island circuit, which has hosted MotoGP for almost 30 years and has undergone a number of significant improvements by owner Lindsay Fox.
Andrew Fox did not respond to requests for comment on Thursday but recently said: Age He said the event was a major economic boost to the Bass Coast and he was desperate to protect it.
“We will do whatever it takes to keep the event on Phillip Island… There are people like Valentino Rossi.” [seven-time championship winner] “There are people who say this is the best track in the world and many drivers have the same opinion,” he said.
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Benjamin Preiss is regional editor of The Age. He was previously a state tour correspondent and also covered education for The Age.Connect with: X or email.
Hannah Kennelly is an award-winning sports journalist and Formula 1 writer for The Age.Connect via email.
