Phillip Island reels from MotoGP loss amid hopes for replacement event

Phillip Island tourism groups and businesses are ruing the loss of the Australian Motorcycle Grand Prix to South Australia, but the prospect of a replacement event has sparked a glimmer of hope.

The multi-day race has lured thousands of visitors annually to Phillip Island since 1997, injecting money into local restaurants, shops and accommodation providers.

The race was typically held in October, providing an economic boost for businesses during an otherwise quiet part of the year. But this year’s MotoGP will be the last at Phillip Island.

Sport and Major Events Minister Steve Dimopoulos said Phillip Island now had a “blank canvas” from 2027 to host another event at the venue.

Dimopoulos said he had already received phone calls from figures in the sport and motoring events sectors about holding future events at Phillip Island.

He also told radio station 3AW while he was disappointed about Dorna Sport’s decision to move the race interstate, his government changed legislation last year enabling the Grand Prix Corporation to host general events rather than just motor races.

Dimopoulos said the MotoGP replacement might be a motor race or a different kind 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 for Victoria.”

An economic assessment of the 2023 MotoGP by Ernst and Young found the race generated $29.4 million in direct expenditure, attracting almost 6620 visitors from overseas and just over 13,730 from interstate.

Pino’s Trattoria manager Romina Scarlato said spectators, competitors and their teams visiting Phillip Island for the race had become long-term customers of the family’s Italian restaurant in Cowes.

She said the loss of those relationships was more upsetting than losing the income the event provided.

“It’s sad to see it go,” she said.

The restaurant is adorned with motorcycle racing paraphernalia with the race becoming synonymous with Phillip Island.

Destination Phillip Island chief executive Kim Storey said the decision was a serious blow because the race delivered widespread benefits for the local economy.

“It’s challenging to even think about how we could replace the event,” she said.

However, Storey hoped whatever comes next will also encourage interstate visitation to Phillip Island.

Phillip Island used to be a prominent part of the Supercars calendar, but the series hasn’t raced there since 2019. The 2026 Repco Supercars Championship begins in Sydney on Friday February 20 and has a spot as an F1 Australian Grand Prix support card event.

A Supercars spokesperson told this masthead there was no confirmation of plans, however if the stars aligned, they would be interested in returning to Phillip Island.

A Victorian government source familiar with the negotiations with Dorna Sports said any deal to retain the MotoGP on Phillip Island was always a remote prospect.

“It wasn’t actually much of a negotiation. Once the government made it clear it wouldn’t consider a move to Albert Park, the deal was virtually scuppered. Dorna was adamant it wanted a street circuit and wouldn’t budge.”

The source took a swipe at the South Australian government and branded Premier Peter Malinauskas a “baby Kennett”, referring to former Victorian premier Jeff Kennett, who famously poached the Formula One Australian Grand Prix in 1996 after it was staged in Adelaide for a decade.

“He’s gone after the bogan, kick-a-Vic vote, which has obviously gone down well if talk-back radio [in Adelaide] is anything to go by. But I don’t think they’ve actually considered what it will mean for the city and the impact on its parks,” said the government source.

Victorian Tourism Industry Council chief executive Lisa Patroni urged the state government to focus on long-term tourism that strengthened year-round visitation to Phillip Island.

“The loss of the MotoGP will have serious consequences for regional jobs and small businesses, with many young people choosing to live locally due to the opportunities that arise from the major event,” she said.

In January, The Age revealed that Dorna had held secret discussions with the Malinauskas government, after the Victorian government had baulked at the substantial upgrades required for the event to be moved to Albert Park, while also increasing its financial offer to retain the event at Phillip Island.

At a press conference on Thursday, Malinauskas trumpeted 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 nation for the world’s best events – and winning,” he said.

“Hosting the world’s first MotoGP race on a street circuit will give Adelaide a truly unique offering that is sure to attract visitors from interstate and overseas.”

Since the Spanish-based Dorna Sports was purchased by US-owned Liberty Media last year, the long-term future of the MotoGP staying on Phillip Island appeared doomed.

The acquisition led to a sharp focus on street-circuits around the globe, which attract higher attendances, corporate sponsorships and branding opportunities.

The decision to stage the event at the Adelaide Street Circuit raises concerns about the viability of the Phillip Island circuit, which has hosted the MotoGP for almost 30 years and received a series of significant upgrades by its owner Lindsay Fox.

Andrew Fox did not respond to requests for comment on Thursday, but recently told The Age that the event made a massive economic contribution to the Bass Coast, and he was desperate to retain it.

“We will do whatever they need us to do to keep the event at Phillip Island… you’ve got people like Valentino Rossi [seven-time championship winner] who have said this is the best circuit in the world and a lot of the riders have the same view,” he said.

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