Hosting the Red Bull Air Race is too expensive for Perth.
Perth will not host the next round of Red Bull Air Race events, with the Tourism WA management deciding not to put in a bid to host the event from 2014..
Tourism WA's board cited high costs and diminishing returns for this decision.
According to Tourism WA chief executive Stephanie Buckland, the overall cost to the state government would have been around $26.5 million across three years, a significant increase on the last Red Bull Air Race in Perth in 2010.
Competitors in the Red Bull Air Race World Series fly in formation over part of the Western Australian coast. Photo: HO
She said this, coupled with a lack of guaranteed broadcast coverage of the event, meant the new series did not represent good value for money.
The overall costs consist of the event fee, event infrastructure, security, public areas, air operations support, event approvals and hospitality facilities.
"This decision wasn't taken lightly as Perth is a great natural location for the event and we won international acclaim for the air races that were staged here between 2006 and 2010 before the series folded," Ms Buckland said.
"The feasibility assessment showed that the overall cost to taxpayers to stage the 2014 event would increase by about 60 per cent on the 2010 investment, but the economic benefit to the state would actually fall by 33 per cent.
"It just can't be justified on those figures."
Ms Buckland said Tourism WA was committed to developing an exciting and diverse events calendar for Western Australia.
"In the past couple of months we have seen the successful debuts of two new major events, with the Perth International golf tournament at the Lake Karrinyup Country Club, and the Margaret River Gourmet Escape international food and wine festival. Both have received wide acclaim," she said.
"Later this month we will see the Hyundai Hopman Cup move into a new era and a new home at the state-of-the-art Perth Arena, and in January the inaugural BHP Billiton Aquatic Super Series will be held featuring a world-class pool competition, international water polo, and elite and mass participation open water swimming."