The Galway Races Festival contributes more than €58 million to the economy of Galway city and the local region, according to a study commissioned by the Galway Race Committee, writes Siobhán Creaton Finance Correspondent

During last year's seven-day festival, more than €11 million was spent inside the racecourse with a further €23 million spent in the Galway region.

The "economic impact" of this spending is equivalent to €58 million, according to the study.

Research by the marketing development programme at University College Dublin's Michael Smurfit Graduate School of Business established that, during the 2002 Galway Races, €22.8 million was spent by race-goers on accommodation, beverages, travel, eating out and entertainment during that week.

Inside the racecourse, those attending spent €7.9 million with a further €3.1 million placed in bets.

During the week the total amount gambled was €20.4 million, according to the research.

Announcing the study's findings yesterday, Mr John Coyle, Galway Race Committee chairman, said that everyone benefits from the festival.

"Businesses throughout the city experienced massive increases in turnover during the week, which translated into additional employment of almost 200 among those businesses surveyed last year.

"This doesn't include the hundreds of people employed on-course for the week of the festival," he said.

The Galway Race Committee has invested €22 million over the past 10 years in developing the festival.

This year it will attract sponsorship of more than €1 million with Diageo and Hewlett-Packard sponsoring the two big races.

The biggest day at the racecourse in Ballybrit is Thursday, when the maximum crowd capacity is 45,000.

More than 180,000 are expected to attend this year's festival, which will run July 29th to August 4th.

The research shows 66 per cent of respondents who visited the Galway Races last year came to the city specifically to attend the event. About 31 per cent were living in Galway.

Some 65 per cent of those who attended were aged 18-34 years, and 42 per cent were professionals.

About 67 per cent earned more than €25,000 a year. The research found that 63 per cent of those attending the races were single and 65 per cent of them were male.

Mr Coyle hoped this year's festival would be bigger and better and that it would comfortably exceed last year's economic contribution of almost €60 million.