EVERYONE has always known York Racecourse brings money into the city and creates jobs. It’s a dead cert. But how much? No one has ever before calculated just what it is worth to York’s economy – until today.

The racecourse commissioned economists led by Dr Bernard Stafford, of the department of economics and related studies at the University of York, to carry out a comprehensive study of the racecourse in 2007 – with figures adjusted to take account of the exceptionally wet summer weather which led to the cancellation of some meetings.

The Local Economic Impact of York Racecourse in 2007 was produced after a detailed study lasting four months.

It shows that the racecourse attracted almost 347,000 visitors from outside the city last year, more than eight per cent of the total coming to York. But they also spent almost twice as much as the average visitor.

The report stressed that it isn’t only on racedays that the racecourse is generating revenue. It is also home to conference, exhibition, banqueting and hostel facilities. Visitors don’t only spend at the racecourse, but also at bars, restaurants, shops, hotels and bed and breakfasts.

William Derby, York Racecourse chief executive and clerk of the course, said the study had been commissioned because, although the racecourse was already widely regarded as a significant racing venue, he had always been conscious of its additional role as part of the economy of York and the wider region. Yet the contribution made in this capacity had not previously been quantified.

“Racing has taken place on Knavesmire since 1731 and we are proud of our position in the sporting, cultural and economic landscape of the city and region,” he said.

“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 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.”

Dr Stafford explained how he and his team had crunched the numbers: “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 City of York Council, without which we could not have produced robust estimates We are very grateful to them.”

A new survey examines the assorted ways the city benefits.

LEADING figures in York have hailed the importance of the racecourse to the city’s economy – particularly the tourism sector – in the wake of today’s report.

Bill Woolley, director of city strategy at City of York Council, said the racecourse was a “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,” he said.

“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.”

John Yeomans, chairman of Visit York, said the report showed the continuing importance of top-class racing at York to the local economy and tourism in particular. “Congratulations are due to all at York Racecourse for these terrific results and we at Visit York will do everything we can to support their future success.’’ Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said the contribution horse racing made to the city’s cultural life was obvious for all to see, but the report showed in some detail the extent of its positive contribution to the economy.

York MP Hugh Bayley said he had always recognised that tourism was an essential part of the local economy. “This study highlights the important contribution the racecourse makes to this in terms of expenditure and job creation,” he said.

Tom Riordan, chief executive of Yorkshire Forward, said that sporting and cultural events such as those held at York Racecourse had the capacity to directly add to the regional economy by attracting new visitors and jobs to Yorkshire.

“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.”

David Andrews, chief executive, Yorkshire Tourist Board, said that as a flagship attraction in the region, York Racecourse had always been a draw for visitors, and the importance of tourism in the regional economy was 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.”

Meanwhile, Nic Coward, chief executive of the British Horseracing Authority, said York was known for attracting the world’s best horses, with its prestigious race programme, consistent high level of investment in facilities, and a reputation for looking after the visitor.

“The course has seen its ambitious plans rewarded with growing recognition and crowd numbers,” he said.

“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.”

Simon Channon, chairman of Go Racing in Yorkshire, said he had been racing in cities all over the world, and could confirm that the “York experience” was truly world class, on and off the track.

“It makes me proud of our racing to hear the positive comments about our flagship racecourse. I’m delighted but not surprised to learn about the significant boost that it provides to the regional economy.”

Facts and figures.

*Where York’s racegoers come from…

Some 15 per cent of racegoers come from the immediate York area, with just over 40 per cent coming from the wider Yorkshire and Humber region and a similar percentage from further afield.

* How conferences and banquets at the racecourse also bring in revenue…

About 180,000 attend conferences, banquets and other events at the racecourse, about 75,000 of whom come from outside the city. They spent of about £4 million within York, about £1.25 million of this at the racecourse, £1.6 million on staying in the city overnight and another £600,000 spent on other items away from Knavesmire.

* The racecourse hostel also brings in money and visitors…

Then there’s a racecourse hostel, which provides accommodation for more than 1,000 stable staff close to their thoroughbred charges. Outside racing, the hostel accommodates visiting groups especially school parties, with around 11,000 overnight stays at the course’s hostel, which generated additional spending in the city of £715,000.

* Not forgetting the prize money…

More than £4,600,000 in prize money is being contested this season at York, with 14 separate races valued at £100,000 or more. The richest race at the venue, the Juddmonte International, offers £550,000 in prize money and is ranked in the world’s top ten races. More than 40 per cent of prize money from 2007 went to horses trained in Yorkshire
* And the prestige…

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 The Racing Post.

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.
(Source: York Press)