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Economic Impact of Optus Stadium Venueswest Economic impact of Optus Stadium VenuesWest June 2019 Economic impact of Optus Stadium Attracting Supporting Creating jobs in WesternEconomic Australia impact of Optus Stadium Economic more visitors to Western Western Australia Australian 8,600 businesses First 12 months people employed during the impact In 2018 construction of Optus Stadium 23,700 and related transport infrastructure additional visitors 3,300 of Optus $47.1 million 85.8% 367.8 additional people employed in of all supplier spend additional FTE jobs visitor spend operations at Optus each year to date went to Western Stadium each year Expected over the next Australian businesses 231.3 Stadium 29 years additional FTE jobs each year over the 38,000 next 29 years Optus Stadium also additional visitors More Western Australians generates additional each year experiencing world-class events $42.5 jobs in the broader million Western Australian $75.4 million economy 1.97 million additional visitor event attendees in the first 12 months spend each year to 278 local businesses including 805,000 people who would not have attended an event Economic impact for Western Australia if Optus Stadium had not been built $129.7 million increase in the economic output of Western Australia to date 68.9% increase $653.6 million in event expected increase in economic attendance output over the next 29 years $19.8 million 25.6 million average annual increase in economic additional attendees expected output over the next 29 years over the next 29 years Note: Additional attendees and visitors refer to people who would not have attended an event or who would not have visited Western Australia if Optus Stadium had not been built. ii iii Economic impact of Optus Stadium Economic impact of Optus Stadium Contents Executive summary 1 1 Introduction 7 2 Building a world-class sports and entertainment precinct 12 3 Highlights of the first year 18 4 Looking into the future 27 5 Flow-on economic impacts 32 Appendices 35 Appendix A: Methodology 36 Appendix B: CGE modelling 40 Appendix C: Key assumptions 44 End notes 50 Limitation of our work 52 Optusiv Stadium from under the arbour Economic impact of Optus Stadium Economic impact of Optus Stadium A year of records and • The exhibition soccer match between achievements Chelsea Football Club and Perth Glory In its first year, Optus marked the first time the Chelsea Optus Stadium recorded numerous Football Club had visited Perth in over Stadium achieved record achievements during its first year of 40 years.1 At the time, the event set a operations, including being awarded Western Australian record for the highest attendance at a 33 local, state and international awards soccer match in Western Australia, with attendances for football, in the areas of tourism, architecture, 55,522 attendees. catering, landscaping, design, building cricket, soccer, rugby and construction. This included the • The NRL double header event on 10 league and concerts. ‘Project of the Year’ award at the world’s March 2018, which at the time set a leading stadium industry awards – record for the highest attendance at an TheStadiumBusinessAwards. NRL match in Western Australia with 38,824 attendees. In its first year, Optus Stadium also saw • Ed Sheeran’s ÷ (Divide) Tour attracted substantial increases in overall patronage more than four times the audience for major events compared to previous compared to his 2015 show at HBF Park facilities, hosting over 1.97 million patrons (formerly known as nib Stadium), with a across 43 major live entertainment and total attendance of 120,979 across two sporting events. This represents an shows. His Saturday night show (3 March additional 805,000 attendees (or a 68.9% 2018) holds the record for the highest increase) who would not have attended an attendance at a single event at Optus event if Optus Stadium did not exist. Stadium, with 62,622 attendees. Key highlights of the first year include: • Taylor Swift’s Reputation Stadium Tour • Nearly 1.2 million people attended the concert was attended by 48,405 people. 13 West Coast Eagles and 12 Fremantle This was more than twice the size of her Dockers home games hosted at Optus 2013 Red Tour concert at HBF Park. Stadium during the 2018 AFL Premiership • More than 1.5 million people used public season. This represents a 57.5% increase transport to access events at Optus on attendance at matches hosted at Stadium, representing 75.7% of all event Domain Stadium during the 2017 AFL attendees. Public transport usage was Premiership season, or an additional 79.1% for football events – a significant 437,000 fans. The preliminary final hosted increase on the 42.3% of attendees that at Optus Stadium between the West used public transport to access Domain Coast Eagles and Melbourne Football Stadium in 2016.2 Club holds the record for the highest Executive summary attendance at a stadium sporting event in • Over 53,000 interstate and overseas Western Australia, with 59,608 attendees. visitors attended events at Optus Stadium, collectively spending an • The AFLW match between the Fremantle estimated $105.0 million during their Dockers and Collingwood Football A new home for all Western Australian fans stays in Western Australia. This includes Club holds the record for the highest 23,700 visitors who would not have Optus Stadium is a world-class, multipurpose facility capable of hosting football, cricket, soccer, rugby league, rugby attendance at a female sporting event in visited Western Australia had Optus union and live entertainment events. Officially opened on Sunday, 21 January 2018, Optus Stadium is the culmination of Western Australia, with 41,975 attendees. Stadium not been built – these visitors three years of construction and over a decade of planning and design. The stadium is the third largest in Australia, with • Nine cricket matches were hosted in generated an estimated $47.1 million in seating for 60,000 patrons in the main stadium and a further 18 specially designed function spaces. the first year of operations with almost additional visitor spend. In 2018 alone, more than 2 million people attended events at Optus Stadium. This included 1.97 million attendees at 362,000 attendees. Overall, patronage for • Patrons to major events collectively major live entertainment and sporting events and nearly 58,000 attendees at functions and other special events hosted cricket matches hosted at Optus Stadium spent over $52.3 million on food and at the venue. Optus Stadium has quickly become a home for Western Australian fans to come together and celebrate. was 47.1% higher than what would have beverage purchases from outlets located been expected if these matches were throughout the venue. By value, 68% Optus Stadium is owned by VenuesWest on behalf of the WA Government. With the opening of Optus Stadium, hosted at the WACA ground. The One of Optus Stadium’s food and beverage VenuesWest now owns and manages a portfolio of 13 venues across Perth, which are valued in excess of $2 billion. The Day International match played between supplier contracts are with Western addition of Optus Stadium to its portfolio has enabled VenuesWest to increase patronage across its venue portfolio from Australia and England on 28 January 2018 Australian businesses, supporting local 3.7 million in 2016-17 (prior to the opening of Optus Stadium) to an estimated 5.1 million patrons in 2018-19. was attended by 53,781 people, marking jobs and businesses. the highest attendance for a single-day cricket event in Western Australia’s history. 1 2 Economic impact of Optus Stadium Economic impact of Optus Stadium Chart 1: Total patronage at Optus Stadium events, 2018-19 to 2046-47 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - 2018-19 2022-23 2026-27 2030-31 2034-35 2038-39 2042-43 2046-47 Football Cricket Rugby union Soccer Rugby league Concerts Major Total incremental attendees Source: VenuesLive; Deloitte Access Economics Looking forward Cricket attendance is expected to Over the next 29 years, attendance at contribute 22.3% of total patronage over Visitors to Optus Stadium major sporting and live entertainment the next 29 years with over 12.8 million fans expected to attend matches at are estimated to spend events is forecast to increase. Chart One Day International cricket match: Australia vs England 1 illustrates the number of attendees Optus Stadium. over $3.8 billion during expected to attend events hosted at Optus Over the next 29 years, almost 2 million A venue for the community The result is a precinct which incorporates Stadium from 2018-19 to 2046-47, including their stays in Western interstate (87.0%) and overseas (13.0%) Optus Stadium was designed to be Aboriginal artwork to recognise the the number of incremental attendees. Australia over the next Optus Stadium will visitors are expected to attend events accessible and enjoyed by all Western significance of the Optus Stadium site These incremental attendees are those hosted at Optus Stadium, representing Australians. To deliver on this objective, to Aboriginal people. Stadium Park also host almost 2 million that are expected to attend a sporting or 29 years. over 1.1 million additional visitors who the Optus Stadium project team worked offers a range of outdoor event spaces, live entertainment event at Optus Stadium, interstate and overseas would otherwise not have visited Western collaboratively with working groups made playgrounds, picnic and barbecue facilities but who would not have attended an event Australia in the absence of Optus Stadium. up of members from the community. As and a network of walking and cycling tracks. visitors over the next if the stadium had not been built. In aggregate, these visitors are estimated a result of consultation with the Sports The unique ‘fans first’ approach to the 29 years.
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