The financial crisis has prompted some companies to shy away from corporate marquees at the Melbourne Cup carnival.Victoria Racing Club general manager of sponsorship Brendan Ford says companies are clearly tightening their belts this year.Marquees in the Birdcage, the exclusive area at Flemington Racecourse for carnival sponsors, are down to 46 after peaking at 53 last year.And the total number of corporate marquees on course was down slightly on 2007, to 236.But, Mr Ford said this had followed
The financial crisis has prompted some companies to shy away from corporate marquees at the Melbourne Cup carnival.
Victoria Racing Club general manager of sponsorship Brendan Ford says companies are clearly tightening their belts this year.
Marquees in the Birdcage, the exclusive area at Flemington Racecourse for carnival sponsors, are down to 46 after peaking at 53 last year.
And the total number of corporate marquees on course was down slightly on 2007, to 236.
But, Mr Ford said this had followed two decades of growth.
"This year it has levelled off. We're experiencing minimal growth in sponsorship and corporate hospitality is running at the same level," Mr Ford said.
He said a number of financial and hospitality clients had scaled back their presence in the Birdcage this year, including James Packer's Ellerston Capital which had pulled the plug on its corporate marquee.
"There's been a lot more scrutiny on costs this year," Mr Ford said.
He said L'Oreal had kept its popular Powder Room at Flemington, but decided not to go ahead with its marquee.
Moet & Chandon had also decided against a Birdcage enclosure, but was still the exclusive French champagne sponsor and supplier, Mr Ford said.
But it's too early to say whether the global economic crunch will reduce visitor numbers to Melbourne during the carnival which starts Saturday with the Victoria Derby.
Most international visitors would have already locked in their travel, and the plunging Australian dollar made the trip cheaper, said Professor Leo Jago, the director of the Centre for Tourism and Services Research at Victoria University.
He said it would be interesting to see if levels of interstate visitors travelling to Victoria would be hurt.
The economic crisis could have a greater impact on events early next year, including the Australian Open and Australian Formula One grand prix, he said.
"I think it's still fairly early days.
"I'm not sure people will have changed their behaviour substantially as yet."
More than 100,000 people are expected at Flemington for Derby Day and next Tuesday for the Melbourne Cup, while Oaks Day on November 6 and the final meeting of the carnival, Emirates Stakes day on November 8, are likely to attract more than 80,000 each.
Australian Hotels Association chief executive Brian Kearney said there was no evidence yet to point to a downturn in accommodation bookings.
"We don't see any softening, but we are still a few days out."
Last year's Spring Racing Carnival injected more than $541 million into the Victorian economy, Racing Victoria figures show.