The future of the Manx Grand Prix is in the spotlight after Treasury concluded it was not bringing in enough money to the economy.

A cost analysis of the event has found it generates spending of £5.9m in the Manx economy overall. This figure is based on findings from a 2009 survey plus an estimated 10 per cent increase in visitor numbers since the survey was carried out.

But the Treasury says the event needs to bring in more and organisers have been told to make the event ‘a success’.

Based on the same survey, government income as a result of taxation such as VAT revenue associated with the event, is estimated to be £630,000 and further funds generated in the economy are thought to be about £125,000.

But actual costs of running the event ran to £834,166 in 2011 according to interim figures. The final figure for 2010 was £815,000. This amount covered direct contributions from government to the Manx Motor Cycle Club, the VMCC and the Classic and Two Day Trial Clubs.

These contributions, based on approved budgets, cover the costs of insurance, medical cover, awards and administrative costs, and take into account competitiors’ entry fees, merchandising revenue, trade sites, sponsorship, and other event income.

The analysis includes direct costs paid to the Manx Motor Cycle Club, the Vintage Motor Cycle Club and the Classic and Two Day Trials Clubs but not indirect costs such as government salaries for those who work on the event or costs shared with the TT Races course set up costs or marshals’ equipment for example. Nor does the study take into account any negative effect of road closures on businesses inside the course or the event’s overall impact on businesses.

In addition, 2011 MGP costs to the Department of Health were £182,247, to the Department of Home Affairs, £27,483 and to the Department of Infrastructure £80,145. An additional £40,000 was spent on advertising, trade shows, photography and press trips.

Chief executive of the Department of Economic Development Colin Kniveton said costs associated with staging events on the Mountain Course had seen a significant rise in the past few years.

"This is reflected in the current deficit of approximately £369,000," he said.

He said the view of Treasury was that the estimated £5.9m boost to the economy generated by the event was not sufficient. On current expenditure a return of nearer £10m was needed.

"But we are not going to get too hung up over these figures at the moment," he said.

"It does demonstrate a need to make some changes and we are looking at how we can improve returns – changing the promotion or changing the product to make it more promotable. But if in the long term we can't demonstrate a way forward it would be difficult to continue to sponsor an event that we can't show is creating economic benefit. But all our energies are devoted at the moment to making the August meeting profitable."

He said this years event would be unchanged but announcements about any changes to the 2013 festival would be announced before this years TT.

"We do expect to run the event in the future but we need to turn it around to make it a success," he said.

Reacting to the interim findings, Manx Motorcycle Club chairman Harvey Garton pointed out the interim financial findings were only one part of a much wider survey being undertaken.

He said it was important to remember the wider benefits to the economy provided by the 10,000 visitors the event had attracted last year, particularly given that the MGP supporters tended to be slightly older and hence slightly more affluent than the TT supporters. This provided a huge boost to businesses around the island.

"It is worth remembering that in the foot and mouth disease year (2001 when the racing was cancelled) the government gave grants to support a number of businesses," he said

"As far as the Manx Motorcycle Club is concerned we are pleased to be working with the government to find ways of increasing the profile."

Although the event will be 90 years old next year, Mr Garton said he believed it remained relatively unknown.

"There are whole swathes of the UK that are not aware of the event. We have all seen what happens as a result of promoting the TT," he said.

He added the festival as a whole had so much to offer – not just the racing itself which includes a variety of modern, classic and post classic races but the allied events such as the trials, vintage club rallies and the highly successful Festival of Jurby.

"You could say the TT has fans but the MGP has enthusiasts – people who would not come to the TT but like the MGP because it is less frenetic."

He said he felt the MGP still had huge untapped potential.

A spokesman for the Manx Hospitality Partnership said the Manx Grand Prix Festival was still important to members businesses especially with dwindling visitor numbers to the island overall.

He said: "Although, according to the released figures, the festival does not appear to have a tangible contribution to Isle of Man government funds, the partnership believes the MGP is an essential building block in the portfolio of events that make Isle of Man tourism a viable industry.

Advertising and promotion around £40k

Run the event around £900k

Government costs around £300k

errrrrrrrrm anyone else see an inbalance here.

The MGP is not promoted anywhere near enough.......I wonder how many people, outside of these forums, actually realise there are two roadrace events each year on the Isle of Man.
From my experience (having done the MGP a few times) the amount of times I am asked 'how come your here' when the TT is on...or I didnt realise they ran classics at the TT...or I thought the TT was earlier in the year how come your going over now (August) hummmmmm

Exactly, if they really want it to survive they have to give it half a chance.

(14-02-2012, 01:09 PM)shipleymanx Wrote: Exactly, if they really want it to survive they have to give it half a chance.

Do they really want it to survive ?