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The Economic and Social Contribution of the Zoological Industry in Australia V

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The Economic and Social Contribution of the Zoological Industry in Australia V 192 THE DEVELOPING ZOO WORLD Int. Zoo Yb. (2010) 44: 192–200 DOI:10.1111/j.1748-1090.2009.00104.x The economic and social contribution of the zoological industry in Australia V. BERI1, A. TRANENT2 & P. ABELSON3 1Aegis Consulting Australia Pty Ltd, 18 Wigram Road, Glebe, NSW 2037, Australia, 2Aegis Consulting Australia Pty Ltd, PO Box 739, Bulimba, Qld 4171, Australia, and 3Applied Economics Pty Ltd, Level 3, 101 Sussex Street, Sydney, NSW 2000, Australia E-mail: [email protected] This paper is based on a report that Aegis Consulting the zoo and aquarium community. To be Australia and Applied Economics prepared for the Aus- effective, an association needs to define its tralasian Regional Association of Zoological Parks and Aquaria (ARAZPA) in March 2009. We discuss the approach by ‘what is in it for the government’ zoological industry’s contribution to the Australian econ- rather than purely the environmental value of omy and society in terms of the following items. ex situ conservation and its supporting activ- ities. Moreover, any approach to government Economic value, that is Gross Domestic Product, has to be robust to withstand external public employment and tourism. Value for consumers, based on visitor survey results, scrutiny. In 2008, Australasian Regional As- financial support for zoos and consumer surplus. sociation of Zoological Parks and Aquaria Conservation value, including the type and results of (ARAZPA) set a strategy to ‘establish and in situ and ex situ programmes and research. maintain a Government and stakeholder Education value, including success in raising conserva- tion awareness and motivating behaviour change. campaign’ so that it could influence govern- Value of contribution to bio-security. ments, build partnerships and notably miti- gate the influence of industry opponents. In Our research is based on surveys and interviews with a order to build a campaign, ARAZPA needed range of stakeholders, including zoos, governments, con- to have credible facts and consequently com- sumers, industry representatives and conservation organi- zations. In the report, comparisons are drawn between missioned a socio-economic study into the government and private-sector contributions to the finan- value of the zoo and aquarium community in cial upkeep of zoos and the contribution of zoos to the Australia. This paper provides an overview of governments’ conservation obligations and priorities, and the study with some remarkable and interest- the resultant savings to the public sector. In conclusion, the report finds that there is a strong case for governments to ing findings. Martin Phillips, Executive increase their contributions to zoos to assist in ongoing Director, ARAZPA. education, conservation and bio-security services to the Australian and international community. Key-words: biodiversity; conservation; consumer INTRODUCTION value; economic value; education; environmental In October 2008, ARAZPA commissioned contribution; social value; zoo contribution Aegis Consulting Australia to prepare a re- FOREWORD port to help to determine the economic and social value that wildlife parks, zoos and A key role of a regional zoo and/or aquarium aquariums contribute to Australia. The report association is to advocate on behalf of its is being used by ARAZPA as a key platform membership, particularly to governments to promote the profile and community con- where it aims to exert influence to shape tribution of zoos in Australia, demonstrate the legislation and policy. However, this is often value of sponsoring zoo activities and affirm in the context of strong lobbying from groups the benefit of government funding and reg- with markedly opposing positions to that of ulatory support for the role of zoos. Int. Zoo Yb. (2010) 44: 192–200. c 2010 The Authors. Journal compilation c 2010 The Zoological Society of London SURVEY/REVIEW: ECONOMIC/SOCIAL VALUE OF AUSTRALIA’S ZOO INDUSTRY 193 Aegis Consulting Australia assessed five Overall, for preparing this report, data and ways by which zoological organizations information were gathered directly from 30 (zoos) contribute their value to Australia. zoos (28% of all 107 zoos) of which 22 were ARAZPA members (56% of the 39 total Economic value, measured in terms of contri- institutional members) and eight were non- butions to gross domestic product, employ- members. ment and tourism (production value). Value for consumers, measured via visitor THE SURVEY AND FINDINGS survey results, the revenue and financial support provided to zoos, and consumer The zoo survey questionnaire was divided surplus (recreational value). into five sections. Value of the contribution to conservation, measured by the nature and results of in situ Finance and production: financial details and ex situ programmes and research. for the years 2006–2007 and 2007–2008; Value of the contribution to education, mea- business activity; staffing. sured by the nature and results of school, Consumer values: visitor numbers; consu- tertiary and visitor education programmes mer reactions and activities; sponsorship. and their links to raising conservation aware- Conservation activities and achievements: ness and motivating behaviour change. in situ and ex situ conservation activities; Value of the contribution to bio-security, sponsorship of animal rescue or preserva- measured by the role zoos play in protect- tion organizations. ing Australia’s biodiversity and environ- Education services: school, vocational and ment, and primary production industries. tertiary programmes; informal education. Bio-security services: disease and pest The consultant’s assessment of these identification and control. values was based on the following factors. The findings presented here are based on the A formal survey of all 107 zoos in Australia, data provided by the participating zoos and to which 20 organizations (representing 24 extrapolations drawn from these data about the zoos) responded. The respondents represent economic and social contributions of the total the major government-owned and private zoo sector. Even though the participating zoos zoos in Australia. The other zoos, which represent 28% of all Australian zoos, they did not respond, are mainly small privately constitute almost all the major government- owned, family-run businesses. owned and private zoos. The activities of these Visits to 18 zoos (of which 12 responded to major zoos make up the bulk of the total zoo the formal survey and six did not respond sector contributions in the five areas examined. to the formal survey). Zoos that did not participate in the formal Advice and opinion from over 30 conser- survey are chiefly privately owned zoos that vation and education experts from govern- are small-scale organizations, which make a ment, academia and non-government minimal contribution to the total conservation, organizations (NGOs). education and other economic and social out- Literature and data reviews, including put of the total zoo sector. information from the Australian Bureau of Statistics. Economic value of zoos The zoos responding to the survey and visited The estimated total production by zoos in by the consultants reflected a wide cross Australia is c. AU$424 million per annum. section of large, medium, small, government, This consists of an annual operating expendi- private, not-for-profit, urban and regional ture of about AU$358 million and a capital zoos in each State and Territory of Australia. expenditure of about AU$66 million. Int. Zoo Yb. (2010) 44: 192–200. c 2010 The Authors. Journal compilation c 2010 The Zoological Society of London 194 THE DEVELOPING ZOO WORLD (Australian Bureau of Statistics, 1998, 2006, ARAZPA and respondents to the formal sur- 2008a; Aegis Consulting Australia, 2009.) vey carried out by Aegis Consulting Australia. Zoos employ about 5300 people, including Consumer surveys indicate that the value 3700 full-time employees and 1600 part-time that consumers place on zoos and the benefits employees. they provide (like education and conservation) International visitors to zoos may create are typically greater than what consumers pay an estimated net benefit to the Australian for admissions. As a result, consumer surpluses economy of about AU$58 million per annum (where benefits to consumers exceed the prices in addition to their payments for admissions they pay) occur, although the consultants do to zoos. Allowing for a multiplier of up not have data on the possible magnitudes for to 2 Á 0 (i.e. the multiplier that is acceptable such surpluses. In response to the formal to the Australian Treasury for use in econom- survey, six organizations provided results of ic assessments), this could convert to a total their own consumer surveys, providing infor- value of about AU$116 million per annum mation for two large public organizations (Australian Bureau of Statistics, 2008b). representing three zoos, two large private zoos, one public small/medium enterprise (SME) zoo and one private SME zoo. Value for consumers State governments contribute about a quarter There are an estimated 15 Á 4 million visits of the revenue of zoos. On a per capita basis, to zoos per annum, which include about 3 Á 3 their contribution is only AU$2 Á 92 across million visits by international tourists and Australia or AU$4 per visitor (Australian Bu- 12 Á 1 million visits by Australian residents reau of Statistics, 2008c). Between 2006 and (Australian Bureau of Statistics, 2008a; Aegis 2008 the Commonwealth government allocated Consulting Australia, 2009). only AU$1 Á 1milliontothreezoos(twoof In 2005–2006, nearly 36% of the popula- which are State government owned zoos) (Ae- tion over 15 years of age visited a zoo at least gis Consulting Australia, 2009). These contribu- once. More Australians visit zoos each year tions are very low compared with government than any other form of cultural entertainment, subsidies provided to other cultural activities, apart from going to the cinema (65%). Zoos such as libraries, museums and art galleries. have maintained this rate of visitation for An analysis of general surveys conducted over 10 years (Australian Bureau of Statistics, by zoos show a particularly high level of 2008a; Aegis Consulting Australia, 2009).
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