The Formula 1 Australian Grand Prix is one of the most eagerly anticipated events on the global sporting calendar, and 2025 promises to be an exceptional year for Melbourne. The event, backed by the Allan Labor Government, is not only drawing in hundreds of thousands of motorsport fans but also positioning Melbourne as a central hub for tourism, entertainment, and local business. With attendance expected to break last year’s record of 452,000 fans, the Grand Prix continues to be a monumental event for Victoria, and a major catalyst for local economic growth.

As the Formula 1 Australian Grand Prix enters its second day, the excitement around the event is palpable. Minister for Tourism, Sport and Major Events Steve Dimopoulos joined Australian Grand Prix Corporation CEO Travis Auld to welcome fans, signaling the start of another successful year for the event. The Grand Prix’s popularity shows no signs of slowing, with fans flocking to Albert Park for a weekend packed with thrilling racing action, music performances, and family-friendly entertainment.

Hitting New Heights: Record Attendance and Increased Bookings

The Formula 1 Australian Grand Prix is one of the largest international sporting events in the southern hemisphere, attracting global attention and positioning Melbourne as a leading tourism destination. This year, the event is poised to break its previous attendance record, driven by heightened interest in the race, local performances, and major announcements from the organizers.

One of the key drivers of growth this year is the excitement surrounding the participation of Jack Doohan, son of legendary motorsport figure Mick Doohan, who will start the race alongside Oscar Piastri, a two-time winner and home-grown Australian star. Fans from around the world are making the trip to Melbourne to witness these rising stars, adding to the buzz surrounding the event.

The Crown Lakeside Festival, a prominent part of the Grand Prix, has been entertaining crowds since Wednesday, featuring local artists like Tones and I, Baker Boy, Anna Lunoe, and Spiderbait, alongside international DJ Fatboy Slim. The event has added an extra layer of vibrancy to the Grand Prix, with fans of all ages enjoying performances, entertainment, and a variety of festival activities.

Notably, the Fan Festival at Melbourne Park Oval has also been running since Wednesday, providing a free, family-friendly atmosphere for fans to enjoy. The Fan Festival has attracted thousands, featuring sports stars, opportunities to engage with F1® show cars, driver Q&A sessions, and big screens showing live action from the track.

Impact on Local Economy and Businesses

One of the key aspects of the Formula 1 Australian Grand Prix’s success is its proven economic impact on Melbourne and the surrounding region. The event injects significant value into the local economy, with fans filling hotels, restaurants, bars, and local businesses. As of Monday, STR forward bookings show that hotel occupancy for Saturday night of the Grand Prix is at 94%, a 15% increase from the same time last year. This surge in hotel bookings is a testament to the growing popularity of the event and the increasing demand for travel during this time.

The Grand Prix has long been one of the largest tourism drivers for Victoria, bringing in international and interstate visitors who contribute to local hospitality, retail, and tourism industries. The event also supports local jobs, as businesses across the state capitalize on the influx of visitors, from hotel staff and event coordinators to local food vendors and transportation companies.

The Formula 1 Australian Grand Prix is recognized as one of the crown jewels of Melbourne’s major events calendar, bringing a steady flow of revenue and boosting tourism in the region. With the event secured in Melbourne until 2037, the long-term benefits for the local economy are clear.

Tourism Surge and Rising Demand

The Grand Prix has helped to solidify Melbourne’s reputation as a global tourism destination, especially within the sports tourism sector. The event generates more than $3.3 billion in economic value each year, further cementing its status as a vital component of Victoria’s tourism sector. This surge in tourism is reflected in not only hotel bookings but also in increased demand for local attractions and dining experiences, with thousands of visitors enjoying all that Melbourne has to offer.

Local businesses that thrive on tourism are reaping the rewards of the event, with many restaurants, bars, and tourist hotspots experiencing a major uptick in foot traffic. As Melbourne becomes the epicenter of motorsport tourism during the Grand Prix, the city benefits from sustained interest throughout the year, with many visitors returning for other major events and festivals held in the city.

Looking Ahead: The Future of the Formula 1 Australian Grand Prix

The success of this year’s Formula 1 Australian Grand Prix only underscores the long-lasting impact the event has on Melbourne’s economy and its tourism industry. With attendance expected to surpass the previous record, the Grand Prix will continue to drive tourism and local economic growth in the years to come.

As one of the premier sporting events in the world, the Formula 1 Australian Grand Prix not only attracts passionate motorsport fans but also plays an integral role in promoting Melbourne to a global audience. The event helps bolster the local economy, creates thousands of jobs, and supports small businesses, further enhancing Melbourne’s status as a premier destination for both tourism and international sporting events.

Conclusion: Formula 1 Australian Grand Prix as a Key Driver of Melbourne’s Tourism Growth

The Formula 1 Australian Grand Prix is not just a motorsport event—it is a major driver of tourism growth and economic prosperity for Melbourne and the surrounding region. As the event continues to break records, it will remain a key fixture in Melbourne’s major events calendar, drawing in visitors from around the world and providing a significant boost to local businesses and industries. With the Formula 1 Australian Grand Prix secured in Melbourne until 2037, the city’s tourism sector is poised for continued success, with this iconic event at the heart of its thriving economy.