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Wakefield Park Economic Impact Assessment FINAL

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Wakefield Park Economic Impact Assessment FINAL WAKEFIELD PARK RACEWAY ECONOMIC IMPACT ASSESSMENT BENALLA AUTO CLUB | SEPTEMBER 2020 Neither Urban Enterprise Pty. Ltd. nor any member or DISCLAIMER employee of Urban Enterprise Pty. Ltd. takes responsibility in any way whatsoever to any person or organisation (other than that for which this report has been prepared) in respect of the information set out in this report, including any errors or omissions therein. In the course of our preparation of this report, projections have been prepared on the basis of assumptions and methodology which have been described in the report. It is possible that some of the assumptions underlying the projections may change. Nevertheless, the professional judgement of the members and employees of Urban Enterprise Pty. Ltd. have been applied in making these assumptions, such that they constitute an understandable basis for estimates and projections. Beyond this, to the extent that the assumptions do not materialise, the estimates and projections of achievable results may vary. COPYRIGHT © Copyright, Urban Enterprise Pty Ltd, 2020 This work is copyright. Apart from any uses permitted under Copyright Act 1963, no part may be reproduced without written permission of Urban Enterprise Pty Ltd. L1 302-304 Barkly St, Brunswick VIC 3056 +61 3 9482 3888 urbanenterprise.com.au CONTENTS EXECUTIVE SUMMARY 1 1. INTRODUCTION 3 1.1. ENGAGEMENT 3 1.2. BACKGROUND 3 1.3. METHODOLOGY 5 2. WAKEFIELD PARK RACEWAY PROFILE & CONTEXT 6 2.1. INTRODUCTION 6 2.2. LOCATION 6 2.3. TRACK AND FACILITIES 7 2.4. ACTIVITIES & EXPERIENCES 8 2.5. WPR EVENTS CALENDAR 9 3. ECONOMIC IMPACT ASSESSMENT 10 3.1. INTRODUCTION 10 3.2. ECONOMIC IMPACT OF WPR EVENTS IN 2019 10 3.3. ECONOMIC IMPACT OF WPR REDEVELOPMENT 11 APPENDICES 13 APPENDIX A WAKEFIELD PARK EVENT, RACE TEAM AND SPECTATOR INFORMATION 13 APPENDIX B RACE TEAM ENTRANTS 18 FIGURES F1. CONCEPT PLAN & SECTIONS, WPR REDEVELOPMENT 4 F2. ECONOMIC IMPACT AREA, GOULBURN REGION 5 F3. LOCATION OF WAKEFIELD PARK RACEWAY 6 F4. WAKEFIELD PARK RACEWAY, CIRCUIT AND ON-SITE FACILITIES 7 F5. SPECTATOR ORIGIN 14 F6. WAKEFIELD PARK RACEWAY SPECTATORS - TRAVEL GROUP 15 F7. WAKEFIELD PARK RACEWAY - SPECTATORS STAYING OVERNIGHT 15 F8. OVERNIGHT LOCATION OF SPECTATORS 16 F9. RACE TEAMS STAYING OVERNIGHT 20 F10. LOCATION OF OVERNIGHT VISITORS 20 TABLES T1. EVENTS AT WAKEFIELD PARK RACEWAY, 2019 9 T2. ECONOMIC IMPACT OF EVENTS HELD AT WPR, GOULBURN REGION, 2019 10 T3. ECONOMIC IMPACT, CONSTRUCTION PHASE, WPR REDEVELOPMENT 11 T4. ECONOMIC IMPACT, OPERATIONAL PHASE, WPR REDEVELOPMENT 12 T5. SUMMARY OF ECONOMIC IMPACTS, WPR REDEVELOPMENT 12 T6. ITEMISED SPECTATOR EXPENDITURE (PER PERSON) – WAKEFIELD PARK RACEWAY 16 T7. SPECTATOR EXPENDITURE BY LOCATION ON TRIP 16 T8. SPECTATOR EXPENDITURE BY ITEM AND LOCATION 17 T9. ITEMISED RACE TEAM EXPENDITURE (PER TEAM) – OVERNIGHT VISITORS - WAKEFIELD PARK RACEWAY 21 T10. LOCATION OF RACE TEAM EXPENDITURE – OVERNIGHT VISITORS - WAKEFIELD PARK RACEWAY 21 T11. ITEMISED RACE TEAM EXPENDITURE (PER TEAM) – DAYTRIP VISITORS – WAKEFIELD PARK RACEWAY 22 T12. LOCATION OF RACE TEAM EXPENDITURE – DAYTRIP VISITORS – WAKEFIELD PARK RACEWAY 22 T13. ITEMISED RACE TEAM EXPENDITURE (PER TEAM) – ALL VISITORS - WAKEFIELD PARK RACEWAY 23 T14. LOCATION OF RACE TEAM EXPENDITURE (PER TEAM) – ALL VISITORS – WAKEFIELD PARK RACEWAY 23 ACRONYMS FTE Full Time Equivalent I-O Input-Output WPR Wakefield Park Raceway GLOSSARY OF TERMS As output increases, so too does employment, and wages and salaries paid to local employees. A portion of this Consumption Impacts additional income to households is used for consumption in the local economy which leads to further increases in demand and output region. Direct Impacts Direct output or value of development or construction activity. Employment Represents the number of people employed by businesses / organisations in each of the industry sectors in a defined region. Employment data presented in this report is destination of work data. That is, no inference is made as to where people in a defined region reside. This employment represents total numbers of employees without any conversions to full-time equivalence. Retail jobs for instance represent typical employment profiles for that sector, i.e. some full time, some part time and some casual. Industrial Impacts The increased output generated by servicing industry sectors in response to the direct change in output and demand. Output Represents the gross revenue generated by businesses / organisations in each of the industry sectors in a defined region. Gross revenue is also referred to as total sales or total income. Value-Added Represents the marginal economic value that is added by each industry sector in a defined region. Value-Added can be calculated by subtracting local expenditure and expenditure on regional imports from the output generated by an industry sector, or alternatively, by adding the Wages & Salaries paid to local employees, the gross operating surplus and taxes on products and production. Value-Added by industry sector is the major element in the calculation of Gross Regional Product / Gross State Product / Gross Domestic Product. EXECUTIVE SUMMARY OVERVIEW The purpose of this assessment is to: • Assess and quantify the economic impact of Wakefield Park Raceway’s (WPR) event calendar in 2019; and • Identify and estimate the economic impacts and benefits of the proposed redevelopment of WPRs facilities, which include an upgrade to its pit lane and corporate facilities. EVENTS HELD AT WPR IN 2019 • In 2019, WPR was occupied on 291 days (or 80% of the year). • WPR attracted an estimated 35,300 visitors in 2019, which included a mix of private track users, race entrants and competitors, spectators and accompanying travellers. • On average, WPR attracts 121 visitors per event, with peak visitation occurring in the months that include marquee events (February, March, May, September and October) Events held at WPR in 2019 generated a total economic output in the order of $16.95 million to the Goulburn regional economy. This includes $9.73 million in direct output and $7.22 million in indirect output. In addition, events held at WPR in 2019 generated and supported a total of 82 (FTE) jobs in the Goulburn region, including 58 direct jobs and 24 indirect jobs. REDEVELOPMENT PROPOSAL & EXPECTED ECONOMIC IMPACTS AND BENEFITS Currently, the facilities at WPR are not of a quality that satisfies user expectations and is not keeping pace with competing Raceway’s such as Sydney Motorsport Park. In order to create a more attractive experience for users, a complete redevelopment of the administration, off-track and spectator facilities is proposed. The $4.79 million redevelopment proposal (construction cost) includes new corporate and spectator facilities, with a new administration/amenities building. Improved facilities at WPR will not only help secure the Raceway’s existing calendar of events, but it will create opportunities to attract a more diverse range of clients, events and private hire days, in-turn attracting more visitors and expenditure to the Goulburn region. The upgrade will significantly improve the overall facilities that are offered at WPR, making it a more attractive destination for events and private users. The proposed redevelopment will deliver the following economic benefits: • Construction – A direct construction investment of $4.79 million will stimulate the regional construction industry and deliver direct and indirect output and employment (jobs) to the Goulburn regional economy during the construction period; and • Operational – Once the redevelopment is complete and operational, WPR will have the capacity and capability to attract a more diverse range of clients, events and visitors to the Raceway and the Goulburn region, in turn delivering additional output and employment (jobs) to the regional economy. 1 Wakefield Park Economic Impact Assessment ECONOMIC IMPACT OF THE REDEVELOPMENT PROPOSAL Construction Phase The construction phase is estimated to generate a total economic output in the order of $10.38 million, including $4.79 million in direct and $5.59 million in indirect output. Further, the investment will support a total of 26 jobs, including 10 direct and 16 indirect jobs. Operational Phase Once the redevelopment is complete and operational, it is estimated that will attract an additional 3,500 visitors per annum. It is important to note that this will not increase the number of people that attend events or peak visitation to WPR, but rather the number of smaller events and private hire days held at WPR may increase. The additional visitor expenditure is estimated to deliver an annual economic output in the order of $1.69 million and support 8 (FTE) jobs. This includes $0.96 million in direct output and $0.73 million in indirect output. Table S1: Summary of Economic Impacts, WPR Redevelopment Direct Impact Indirect Impact Total Output ($m) $4.79 $5.59 $10.38 CONSTRUCTION Employment (jobs) 10 16 26 (construction period) Value-added ($m) $1.51 $2.37 $3.88 Output ($m) 0.96 0.73 1.69 OPERATIONAL Employment (jobs) 6 2 8 (ongoing) Value-added ($m) 0.39 0.35 0.74 Source: Urban Enterprise, 2020 CONCLUSION WPR is as a critical economic asset for the Goulburn region. It attracts a significant number of users, competitors and spectators from outside of the region to visit the Raceway for competitive, corporate and casual events. The overwhelming majority of visitor expenditure is spent in the Goulburn region, indicating that businesses in the Goulburn region are the largest beneficiaries of visitation to WPR. The off-track and spectator facilities at WPR are outdated and are failing to keep pace with competing Raceway’s such as Sydney Motorsport Park. The proposed redevelopment at WPR is required to improve the competitiveness and attractiveness of the facility and satisfy user and visitor expectations. Importantly, the redevelopment of the Raceway will ensure the current calendar of events at WPR is secured and the annual economic benefits delivered to the Goulburn economy are maintained. 2 Wakefield Park Economic Impact Assessment 1.
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