Budget must replace MotoGP or Gippsland pays the price

One Gippsland has called on the state government to use the 2026 budget to replace the Phillip Island Australian Motorcycle Grand Prix with a new internationally recognised anchor event to save the region's bottom line.

One Gippsland chair and South Gippsland Shire Mayor Cr Nathan Hersey said a new plan was needed to maintain the region's leading destination status.

"When an event of that scale is lost we are not just losing bikes off a track, we are losing many economic multipliers that impact businesses small and large and are facing a deficit of global attention that has drawn international visitors to Gippsland," Cr Hersey said.

Bass Coast Shire Mayor Cr Rochelle Halstead said the loss of MotoGP has left a gap that will reverberate across the whole regional economy.

"For nearly 30 years the MotoGP has been one of the biggest drivers of visitation and economic activity in Gippsland," Cr Halstead said.

"Gippsland's visitor economy is worth $2.5 billion to Victoria every year. We simply cannot afford for the upcoming budget to not address the loss of the MotoGP with a new international event, a year-round events calendar and more investment into cultural tourism infrastructure."

Independent analysis shows the event contributed $54.6 million in economic benefit to Victoria including $29.4 million in direct local expenditure, supporting 284 jobs and generating $37.1 million in global media exposure.

With more than 10.5 million visitors annually Gippsland is a powerhouse of regional tourism but Cr Hersey said new interventions are needed.

"This is the last state budget before the election and state spending decisions today can absolutely shape what the next few years will look like for the Gippsland economy," Cr Hersey said.

One Gippsland has prepared a pre-budget submission including a Destination Gippsland investment package covering a new anchor event for Phillip Island, expanding the Gippsland Regional Events Fund, investing in First Nations cultural tourism and strengthening nature-based tourism infrastructure.

The submission also calls for $1.2 million for planning and design of the Leongatha Heavy Vehicle Alternative Route Stage 2 and a $2 billion regional roads maintenance package.

"Gippsland has all the fundamentals to continue to be a world-class destination," Cr Hersey said.

"With the right investment Gippsland can not only recover from this loss but come back stronger."