More than 40 per cent of Newcastle businesses that participated in the online Supercars survey said they lost revenue as a result of the event.
City of Newcastle has released the findings of an independent survey on the Newcastle 500 completed by KPMG.
The survey took in responses from residents, race-goers and businesses.
A total of 1906 business responses to the online survey were included in the findings, along with 110 phone surveys results.
The online survey found 42 per cent of businesses across Newcastle reported a negative impact on revenue as a result of the race, 22 per cent said they had a positive revenue impact and 36 per cent said they had no change.
For the phone survey, 14 per cent had a negative revenue impact, 8 per cent had a positive and 78 per cent had no change.
"Overall, the proportion of business owners/operators who think that the event will negatively impact their business is larger than the proportion who think that the event will positively impact their business," the report said.
The report said two thirds of all business responses were from within Ward 1, which includes Newcastle East.
Rowena Foong, who chairs business collective Makers x Traders of Newcastle said the results of the survey echoed what she had heard and experienced.
"It showed that a lot of people don't want the race to continue in Newcastle," she said. "Even people outside of the event precinct are saying that, actually, we don't want this."
"So the survey feels like it is quite clear on that but it's kind of confusing because the way that it's being presented, it's highlighting that it's a positive, that people want the event to continue even though the data is actually saying no they don't."
For example, the report's summary on the business findings page says "59 per cent of Newcastle's LGA business owners/operators who participated in the phone survey were in support of the continuation of the Newcastle 500", but does not mention the larger online survey which found 41 per cent of businesses want the event to continue.
Ms Foong, who owns retail store High Tea with Mrs Woo in the East End precinct, said many businesses were not seeing that economic injection, as evidenced by the survey.
"We're investing a lot of our dollars and time into business in the city and we are not getting any of that sort of information," she said.
"If our businesses have to close for this event, that doesn't really benefit the city or the people.
"It's not like we haven't tried. The first few years, lots of businesses tried really hard. But after five years, we're closing our doors because it makes no business sense for us to be trading for the weekend when we get zero customers."
Ms Foong said business owners would be disappointed if the Newcastle 500 goes ahead again.
"As a small business group, we're invested in the city and we totally support any kind of event that actually helps us all thrive and brings lots of visitation to the city.
"Unfortunately, this is not that event.
"We hope that the council actually understands where we're coming from."
The future of the event is first a decision for the NSW government, which said "productive discussions" about the race were underway.
"The NSW Government is yet to make a decision on supporting a five-year extension of the Newcastle 500 and on identical financial terms as for the previous agreement," a City of Newcastle spokesperson said.
"Should the NSW Government commit to a five-year extension, the final decision on the event's future will go before CN's elected council."
