Phillip Island tourism sector seeks support as MotoGP exit threatens visitor revenue

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Highlights

The MotoGP's final event at Phillip Island this month threatens over $80 million in annual economic activity and significant trade for local operators.
Loss of the MotoGP from 2027 is expected to leave an economic gap, with accommodation and hospitality—key local employers—at risk of reduced demand.
Destination Phillip Island and Bass Coast Shire Council are requesting government funding for new festivals and infrastructure to offset tourism losses and drive year-round visitation.

Final race sharpens push for replacement events

As reported by ABC News, businesses, councillors and Destination Phillip Island are calling for government backing as the island prepares for its final MotoGP later this month. The event has long marked the transition from the quieter winter period into the summer tourism season, bringing large motorcycle convoys, high accommodation demand and stronger trade for local cafes, restaurants and other operators.

Bass Coast Shire Council Mayor Brett Tessari says the race has been part of the island's identity for decades and describes the final edition as both surreal and sad. Samantha Hampstead, who runs a tattoo business in Cowes with her husband and helps organise the annual community motorcycle convoy, says the weekend is the busiest period of the year for many operators and remains deeply tied to the island's culture.

San Remo Fisherman's Co-Op chief executive Wolfgang Platzer says the Grand Prix also serves as a gateway for visitors who may later return for broader regional tourism. That repeat-visitor effect is adding to concerns over the economic gap the event could leave once it relocates to Adelaide from 2027.

Tourism and jobs face broader adjustment

According to Destination Phillip Island, more than $80 million in annual economic activity is linked to the MotoGP and World Superbikes. Data cited from the Australian Bureau of Statistics shows accommodation is the island's largest employer, accounting for almost 4 per cent of jobs, while cafes and restaurants are the third-largest employer.

DPI chief executive Kim Storey says the loss of the MotoGP is accelerating efforts to broaden the island's appeal beyond motoring events, even as the circuit's role in providing stability for local businesses remains significant. The tourism body has identified economic uncertainty, limited infrastructure including the lack of a car ferry, and the potential effects of the H5N1 virus on wildlife as key barriers to future growth.

DPI and Bass Coast Shire Council are seeking funding to help build alternative attractions and events, including The Hills are Alive music festival, the Island Whale Festival, the island hot springs and a new motorsports festival designed to build on Phillip Island's racing heritage.

In our earlier article on Tasmania’s A$20 million Recovery Fund for Regional Resilience, we explained how the state plans to use gains from its stake in Group 6 Metals’ Dolphin tungsten mine to create a long-term buffer for communities facing industrial disruption. We noted the fund is aimed at supporting economic diversification, workforce transitions and investment attraction, while also directing part of the windfall toward reducing state debt.

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