AUSTRALIA'S Most Famous Rodeo will inject a staggering $7 million into the regional economy during the week-long event.

An independent report on the direct impact of the annual rodeo shows the event brings in $5.1M, as well as a further $2.3M in flow-on spending.

Mayor Tracy Dobie said the flow-on figure was generated by all things not necessarily associated with the rodeo.

"Many people who come to town are self-contained," she said.

"So they need to purchase all of the normal things like groceries, petrol, food, drink and other items. There's that huge amount of spending from visitors and competitors - and the ticket prices from everyone who comes through the gate, accommodation for people staying in town."

Cr Dobie said Tourism and Events Queensland classified the Warwick Rodeo as a major event.

"As a result, they work closely with the Warwick Show and Rodeo Society, providing support to ensure the event is a success," she said.

"We're proud of our rodeo and proud to be the horspower capital of Australia."

Show and Rodeo Society president Gerard O'Leary said profits from the rodeo went into facility upgrades at the showgrounds and were all spent locally.

"In rodeo week, and over the whole year, any work we need done is done by local tradies - plumbers, builders, electricians," he said.

"So many local businesses are involved his week, from stock feed to printing and food and drink.

"Most of accommodation in town is booked out well in advance and local vets, petrol stations, restaurants and even retail shops all get a massive boost from the influx of visitors to town."

Mr O'Leary said the only contractors they needed to seek afield were security and cleaning.

"And that's due to the sheer scale of the job we need done," he said.

"There's little doubt the economic benefit of the rodeo is enormous and far-reaching."

In 2016 more than 20,000 people visited the Warwick Rodeo, shelling out a whopping $160,000 on tickets alone.