INDEPENDENT ECONOMIC IMPACT STUDY OF YORK RACECOURSE
YORK RACECOURSE SWELLED CITY’S ECONOMY BY £44M LAST YEAR, SAYS INDEPENDENT EXPERT REPORT
York Racecourse increased the city’s spending by £44m in 2007, according to a new report by independent experts that analysed the net inflow of increased expenditure into the area.
Economists led by Dr Bernard Stafford of the Department of Economics and Related Studies at the University of York, have also estimated that the venue was responsible for sustaining more than 1,350 full-time job years of work last year.
Their findings have been published in the report The Local Economic Impact of York Racecourse in 2007, after a detailed study lasting four months, commissioned by York Racecourse.
The researchers have also reported that York Racecourse attracted almost 347,000 visitors from outside the city last year, more than eight per cent of the total inflow into York. Subsequently, these people contributed around 15 per cent of the increase in spending and employment, as their average outlay was almost double that of other visitors.
Dr Stafford and his team have also separately estimated that York Racecourse boosted spending in Yorkshire and the Humber as a region by almost £26m last year and generated over 800 full-time job years of work.
The figures for the region are lower than for the city of York itself because visitors to York Racecourse from within the area of the study are excluded from this analysis as the focus is only on spend brought into the area. Many racegoers who attend York Racecourse come from within the region, therefore their spend is included within the York figure but excluded from the Yorkshire and the Humber figure. Even excluding racegoers from this region, such is the attraction of racing and other events on the Knavesmire, that £26 million was brought into the region from visitors living further afield.
Figures quoted in the report are based on all activities at York Racecourse in 2007. In addition to racedays during the year, the venue is home to conference, exhibition, banqueting and hostel facilities. The sums also cover spending, not just at the course but away from it by the visitors it attracted, on purposes such as accommodation, eating out and shopping, for example on the high fashion for which York Races is known.
Welcoming the report, William Derby, York Racecourse chief executive and clerk of the course, said: “We commissioned the study from the University of York because, although we are widely regarded as a significant racing venue, we have always been conscious of our additional role as part of the economy of York and the wider region, yet the contribution we made in this capacity had not previously been quantified.
“Racing has taken place on the Knavesmire since 1731 and we are proud of our position in the sporting, cultural and economic landscape of the city and region.”
“The team here are proud that through their efforts, the standing of York Racecourse has continued to appreciate within the sport of racing over recent years, through our staging of Royal Ascot at York in 2005, the St Leger Festival in 2006 and the quality of racing on the Knavesmire. We are also delighted that racegoers are continuing to enjoy racing at York with six racedays in 2007 securing record attendances.
“That said, an evaluation of our impact on the economies of the city and wider region as a whole was always, in a sense, the missing piece of the jigsaw and this report means we can now see a wider picture.
“As the team who work here permanently and those who work on events and racedays live locally, we are proud of the wealth and consequent jobs we bring to our community. Given this responsibility, we need to continue to succeed and evolve as a modern sports and events venue.”
The work of Dr Stafford and his team is well known and respected in the York area and beyond. They were the authors of studies on the economic impacts of the Royal Ascot at York three years ago, commissioned by First Stop York, as well as on tourism in York last year, for the City of York Council, for example.
Dr Stafford said: “In order to estimate the expenditure and job gains we applied a multiplier model which has been extensively used by economists to estimate the local economic impacts of a range of institutions in the UK including museums, art galleries and universities.
“The model allows estimates to be made of the economic gain to the local area as a whole, which is not the same thing as the economic gain accruing to the institution or activity in question.
We were fortunate in being able to draw on extensive data on users of the racecourse and their spending patterns provided by the Racecourse and the Economic Development Unit of the City of York Council, without which we could not have produced robust estimates we are very grateful to them."
YORK RACECOURSE ECONOMIC IMPACT IN 2007 FACTS AND FIGURES
Among the contents of the report by Dr Bernard Stafford and economists at the University of York, which contains the conclusion that York Racecourse boosted total spending in the city by £44m and led to more than 1,350 job years of employment there last year, are:
Racing Alone
- Racing generated about £39.2m in additional spending within York overall, including on hotels, shopping and transport, creating 1,206 full time job years of work.
- Some 15 per cent of racegoers were from the immediate York area, with 42.5 per cent coming from the wider Yorkshire and Humber region and a similar percentage from further afield.
- In Yorkshire and Humber, racing at the venue triggered extra spending of about £23.9m and was responsible for 743 full time job years of work.
Conferences, Banqueting and Other Events
- There were 180,000 visits to the course by people attending conferences, banquets or events. Of these, about 75,000 (42 per cent) were by non-York residents, with 17,000 (nine per cent) being by attendees from outside the Yorkshire and Humber region.
- Conferences, banqueting and events at the course brought a total spending boost of about £4m within York and 126 job years of work. Direct spending under this heading included around £1.25m at the venue, £1.6m additional outlay by attendees staying in the city overnight and £603,00 in other visitor spend away from the Knavesmire.
- The total spending boost for Yorkshire and Humber beyond the city from conferences, banquets and events at the venue totalled about £1.3m, which provided 41 job years of work. Direct spending included £269,000 at the course, £663,000 by those staying overnight and £91,000 in additional spend away from the venue.
The Hostel
- Commended by the Racing Post, the hostel provides accommodation for over 1000 hard working stable staff in proximity to their thoroughbred charges.
- Outside racing the hostel accommodates visiting groups especially school parties. There were around 11,000 overnight stays at the course’s hostel, which generated additional spending in the city of £715,000 – equal to 22 full time job years of work.
- The equivalent benefits for the Yorkshire and Humber region outside the city from these stays were £644,000 and 20 job years.
Facts and Figures Beyond the Study Itself
- Over £4,600,000 in prize money will be contested this season, with 14 seperate races valued at £100,000 or more.
- Over 40 per cent of prize money from 2007 went to horses trained in Yorkshire
- York Racecourse has been voted Northern Racecourse of the year for 18 consecutive years and was the number one flat racecourse in surveys by The Times and Racing Post.
- The richest race at the venue, the Juddmonte International, offers £550,000 in prize money and is ranked in the world’s top 10 races.
- The hostel provides a base for 9,000 school children who enjoy visiting the Minster, Jorvik, NRM and other attractions of the city.
- Over 14,000 Christmas meals are served during the festive period
The hostel is located on Tadcaster Road and shares its site with the racing stables.The 21e rooms in the modern two storey building serve a variety of visitors to the city as well as providing accommodation for stable staff during racing.
YORK RACECOURSE ECONOMIC IMPACT : WHAT THEY SAID ABOUT IT
The key findings of a recent study conducted by Dr Bernard Stafford and his team about the economic impact of York Racecourse were circulated to key stakeholders in racing, the region and the city of York. Their response is set out below;
“Racing is one of the most popular events in York. Last year it attracted around 347,000 people. Many racegoers choose to stay in York and enjoy the other benefits York has to offer. I have always recognized that tourism is an essential part of the local economy and this study highlights the important contribution the racecourse makes to this in terms of expenditure and job creation."
Hugh Bayley, MP
“British Horseracing, the best in the world: That’s our starting point for all that we do. York is known for attracting the world’s best horses, with its prestigious and valuable race programme, its consistent high level of investment in facilities, and its reputation for looking after the visitor. The course has seen its ambitious plans rewarded with growing recognition and crowd numbers. We are always keen to demonstrate through quality research what we all believe to be true, that racing is a leading sport, a vital part of British life and a significant part of the economy. It is no surprise to see proof of York’s wider role in the economy of the region, and this study is a real asset to the whole of racing to drive home our case.”
Nic Coward, chief executive, British Horseracing Authority
“Sporting and cultural events – like those held at York Racecourse - have the capacity to directly add to our regional economy by attracting new visitors and jobs to our region – as this report outlines. They also have the ability to raise the profile of our region with new audiences, helping us to attract new investors and show that Yorkshire and Humber is a great place to live, work and invest.”
Tom Riordan, chief executive of Yorkshire Forward
"I've been racing in major cities all over the world and so can confirm that the York experience is truly world-class, on and off the track. It makes me proud of our racing to hear the positive comments about our flagship racecourse so I'm delighted but not surprised to learn about the significant boost that it provides to the regional economy"
Simon Channon, chairman, Go Racing in Yorkshire
“York Racecourse is an hugely important component of the city economy and its leisure industry. It is highly regarded within the racing industry and recent investment in facilities means that it is well placed to rise to future challenges and opportunities. The work done on the economic impact of the racecourse confirms what a prize economic asset it is to the local area and wider region. York has recently enjoyed significant growth in its tourism economy and related visitor spend and the racecourse has played a role in achieving this. The racecourse's related conference and hostel facilities are also playing an important role in providing good quality additions to York's leisure offer.”
Bill Woolley, director of City Strategy at City of York Council
“As a flagship attraction in the region, York Racecourse has always been a major draw for visitors and the importance of tourism in the regional economy is further highlighted by the impressive contribution made by the racecourse. Such a study is a welcome addition to our information base when talking tourism outside of the region.”
David Andrews, chief executive, Yorkshire Tourist Board
“We welcome the findings of the York Racecourse Impact Study. The significant contribution that horse racing makes to the cultural life of the City is obvious for all to see, but this report shows us in some detail the extent of the Racecourse’s positive contribution to the economy of York and the surrounding area.”
Len Cruddas, chief executive, York & North Yorkshire Chamber of Commerce
'' These impressive results show the continuing importance of top class racing at York to the local economy and tourism in particular. Congratulation are due to all at York Race Course for these terrific results and we at Visit York will do everything we can to support their future success.''
John Yeomans, chairman, Visit York
