Melbourne Cup Carnival delivers reported $533 million boost to Victoria

The 2025 Melbourne Cup Carnival has delivered the strongest economic result in its history, generating a gross economic benefit of $533 million for Victoria, according to independent research.

The record outcome represents a six per cent increase year on year and reinforces the carnival’s position as one of the most economically significant major events in Australia.

Melbourne Cup Day alone contributed an estimated $848 million uplift to the national economy, also marking a six per cent annual rise.

National economic growth was driven by increased attendance at hospitality venues, corporate functions, and public celebrations across the country.

A record 71,690 visitors travelled to Victoria specifically to attend the carnival, the highest number recorded since 2017.

The studies, prepared by well-established firms IER and Quantum Market Research, and published by the Victorian Racing Club, revealed a surge in event-driven travel, highlighting the Melbourne Cup carnival’s expanding role in supporting Victoria’s visitor and tourism economy.

Interstate visitation from NSW reached a six-year high, with 40,272 residents attending across the four days.

New Zealand recorded its strongest turnout in 15 years, with 12,375 visitors travelling to Melbourne for the event.

International reach also expanded, with visitors arriving from 37 countries, creating the most diverse global audience since 2014.

The influx of interstate and international guests generated substantial spending across a wide range of industries.

Fashion, grooming and retail spending reached $63.4 million and accommodation expenditure totalled $46.6 million, supported by 248,500 commercial bed nights across the state.

Food and beverage spending contributed a further $35.9 million to the Victorian economy.

Fashion purchases alone accounted for more than 343,000 transactions across Victoria.

Economic analysis shows that 81 cents of every dollar spent by carnival visitors delivered benefits to the broader Victorian economy.

National involvement also reached record levels, with 7.4 million Australians engaging with Melbourne Cup day.

That figure represents 37.5 per cent of the adult population and is the highest ever recorded for the event.

Overall, the research revealed 11.7 million Australians watched, listened to or participated in activities celebrating Melbourne Cup Day.

Attendance among 18 to 29-year-olds continued its upward trend, reaching levels not seen since 2015.

The younger demographic increased by 49.5 per cent compared with 2019, marking three consecutive years of growth.

“These figures confirm the Melbourne Cup Carnival’s position as one of Victoria’s most valuable major events,” VRC chief executive Kylie Rogers said.

“A $533 million economic impact demonstrates the carnival’s vital contribution to the state economy,” Rogers said.

“Melbourne Cup Day’s reach of 7.4 million Australians and $848 million in national uplift shows this event transcends racing and delivers returns across the country.”

VRC chairman Neil Wilson said the record result reflects the Carnival’s evolution with growing appeal across generations.

“The record visitor numbers, particularly the growth in younger audiences and the resurgence in interstate and international visitation, reflect the VRC’s strategic focus on continuing to deliver world-class racing and the ongoing evolution of Australia’s original major event,” he said.

Racing Minister Anthony Carbines said the outcome highlights the strength and global standing of Victoria’s thoroughbred racing.

“Nobody does spring racing like Victoria and the Melbourne Cup Carnival once again showcases our city at its best while highlighting the strength of our $4.7 billion racing industry, supporting thousands of jobs and attracts visitors from across Australia and the world,” he said.