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The Economic and Social Value of Sport and Recreation to New Zealand

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The Economic and Social Value of Sport and Recreation to New Zealand AERU The Economic and Social Value of Sport and Recreation to New Zealand Paul Dalziel Research Report No. 322 September 2011 CHRISTCHURCH NEW ZEALAND www.lincoln.ac.nz Research to improve decisions and outcomes in agribusiness, resource, environmental and social issues. The Agribusiness and Economics Research Unit (AERU) operates from Lincoln University, providing research expertise for a wide range of organisations. AERU research focuses on agribusiness, resource, environment and social issues. Founded as the Agricultural Economics Research Unit in 1962 the AERU has evolved to become an independent, major source of business and economic research expertise. The Agribusiness and Economics Research Unit (AERU) has four main areas of focus. These areas are trade and environment; economic development; non-market valuation; and social research. Research clients include Government Departments, both within New Zealand and from other countries, international agencies, New Zealand companies and organisations, farmers and other individuals. DISCLAIMER While every effort has been made to ensure that the information herein is accurate, the AERU does not accept any liability for error of fact or opinion which may be present, nor for the consequences of any decision based on this information. A summary of AERU Research Reports, beginning with number 235, is available at the AERU website http://www.lincoln.ac.nz/aeru. Printed copies of AERU Research Reports are available from the Secretary. Information contained in AERU Research Reports may be reproduced, providing credit is given and a copy of the reproduced text is sent to the AERU. The Economic and Social Value of Sport and Recreation to New Zealand Paul Dalziel September 2011 Research Report No. 322 Agribusiness and Economics Research Unit P O Box 84 Lincoln University Lincoln 7647 New Zealand Ph: (64) (3) 321 8280 Fax: (64) (3) 325 3847 www.lincoln.ac.nz/aeru/ ISSN 1170-7682 (Print) ISSN 2230-3197 (Online) ISBN 978-1-877519-17-8 Table of Contents ACKNOWLEDGEMENTS vi FOREWORD vii KEY MESSAGES viii KEY FACTS AND ESTIMATES ix GLOSSARY OF TERMS AND ABBREVIATIONS xiv CHAPTER 1 INTRODUCTION 1 1.1 Measuring the value of sport and recreation 2 1.2 Previous New Zealand research on valuing benefits 2 1.3 International research on valuing benefits 5 1.4 Structure of this report 8 CHAPTER 2 PARTICIPATION IN SPORT AND RECREATION IN NEW ZEALAND 11 2.1 Young people’s participation in sport and recreation 12 2.2 Adult participation in sport and recreation 15 2.3 Time spent taking part in sport and recreation 18 2.4 Trends in participation 20 2.5 Physical activity levels 20 2.6 Volunteers 21 CHAPTER 3 PROFESSIONALS AND VOLUNTEERS IN THE SPORT AND RECREATION SECTOR 23 3.1 Sport and recreation industries 26 3.2 Sport and recreation occupations 27 3.3 Personal income earned in sport and recreation occupations 29 3.4 The market value of sport and recreation volunteers 33 CHAPTER 4 PRODUCERS OF SPORT AND RECREATION GOODS AND SERVICES 35 4.1 Value added by sport and recreation industries 36 4.2 Enterprise incomes and the annual enterprise survey 40 4.3 Household spending and the household economic survey 41 4.4 Sport and recreation imports and exports 44 CHAPTER 5 PROVIDERS OF SPORT AND RECREATION INFRASTRUCTURE 47 5.1 Sport and recreation incomes outside sport and recreation industries 48 5.2 Central Government 49 5.3 Local Government 57 5.4 Private enterprise 60 5.5 Sport and recreation clubs 61 5.6 Other sources of funding for sport and recreation 65 5.7 Summary 70 i CHAPTER 6 PROMOTION OF SPORT AND RECREATION TO SPECTATORS AND SUPPORTERS 73 6.1 Broadcasting 74 6.2 Merchandising to spectators and supporters 75 6.3 International tourism 77 6.4 Accommodation and hospitality 79 6.5 Designer clothing 81 CHAPTER 7 PERSONAL AND SOCIAL NET BENEFITS FROM SPORT AND RECREATION 83 7.1 Estimates of personal and social benefits 86 7.2 Estimates of net benefits 88 7.3 The opportunity cost of time in sport and recreation activities 92 CHAPTER 8 CONCLUSION 99 8.1 An estimate of tax revenue 99 8.2 An indicator dashboard to track progress 100 8.3 An agenda for further research 102 REFERENCES 105 APPENDIX: DATA SOURCES FOR THE CORE ESTIMATES 111 ii List of Tables Table 2.1: Top five sports and recreation activities by boys and girls, 1997/98-2000/01 13 Table 2.2: Secondary school students involved in sport, by region, 2010 14 Table 2.3: Top five sports by secondary school students, 2010 15 Table 2.4: Sport and recreation participation over 12 months, all adults, 2007/08 16 Table 2.5: Sport and recreation participation over 12 months, males and females, 2007/08 17 Table 2.6: Time spent participating in sport and recreation activities, adults by age, 2007/08 19 Table 2.7: Time spent participating in sport and recreation activities, young people by age, 2008/09 19 Table 3.1: Carded athletes as at 11 February 2011 24 Table 3.2: Employment in sport and recreation industries, 2006 26 Table 3.3: Top ten industries ranked by employment, 2006 27 Table 3.4: Employment in sport and recreation occupations, 2006 28 Table 3.5: Distribution of incomes in sport and recreation occupations, 2006 30 Table 3.6: Estimated average incomes in sport and recreation occupations, 2006 32 Table 4.1: Sport and recreation industries and their employment ratio, 2006 38 Table 4.2: Contribution to GDP of sport and recreation industries, 2006/07 39 Table 4.3: Enterprise incomes in the sport and recreation sector, 2008 40 Table 4.4: Relevant classifications of NZHEC Group 9 Recreation and Culture 42 Table 4.5: Other relevant NZHEC subsections and items 43 Table 4.6: Household spending on sport and recreation goods and services, 2006/07 44 Table 4.7: Exports and imports of sport and recreation commodities, 2010 45 Table 5.1: Central Government spending on sport and recreation, 2009/10 50 Table 5.2: Secondary school teachers involved in sport, by region, 2009 53 Table 5.3: Visitor numbers to the great walks, 2008/09 55 Table 5.4: Summary of themes in a case study of a New Zealand sports club 63 Table 5.5: Membership ratios of specific club or centre types, 2007/08 64 Table 5.6: Key statistics for sports non-profit institutions 64 Table 5.7: Income and expenditure for sports NPIs, 2003/04 65 Table 5.8: Gaming funding for sport and recreation according to purpose, by subsector, 2010 67 Table 5.9: Gaming funding for sport and recreation according to purpose, total, 2010 68 Table 5.10: Contribution to GDP of the broad sport and recreation sector, 2008/09 70 iii Table 5.11: GDP including the value of volunteered services, 2008/09 71 Table 6.1: Attendance at Westpac Stadium sport events, 2009/10 76 Table 6.2: Sport and recreation activities of international visitors on holiday, 2009 78 Table 6.3: Number of events and attendance level by type, Auckland, 2008 80 Table 6.4: Examples of New Zealand fashion clothing exporters 82 Table 7.1: Direct benefits and costs from participation, 2009 85 Table 7.2: NZIPS estimate of the total cost of all injuries ($millions), 2007/08 90 Table 7.3: Estimate of the quality of life loss from injuries ($millions), 2007/08 90 Table 7.4: Estimate of other losses from injuries ($millions), 2007/08 91 Table 7.5: Direct benefits and costs from participation, 2009 92 Table 7.6: Non-market benefits of outdoor recreation by activity 93 Table 7.7: Average time spent in organised sport by young people 94 Table 7.8: Average time spent in sport and recreation by adults 94 Table 7.9: Value of time spent in sport participation and volunteering for adults 96 Table 7.10: Estimate of personal net benefits 96 Table 8.1: Five principles for monitoring the sport and recreation sector 100 iv List of Figures Figure 2.1: Participation by young people in sport and recreation, 1997/98-2000/01 12 Figure 3.1: Employment in the sport and recreation sector, 2006 25 Figure 3.2: Employment in sport and recreation occupations, 2006 29 Figure 3.3: Income distribution in sport and recreation occupations, 2006 31 Figure 4.1: Calculating a sector’s value added 36 Figure 4.2: Sports and recreation industry income, 2005-2008 41 Figure 4.3: Exports and imports of sport and recreation commodities, 2010 45 Figure 5.1: Public conservation areas administered by the Department of Conservation 54 Figure 5.2: Local Government operating expenditure on recreation and sport, 2003- 2009 58 Figure 5.3: Local Government operating expenditure on recreation and sport: Depreciation and amortisation, 2003-2009 59 Figure 5.4: Local Government estimated value of fixed assets for recreation and sport, 2003-2009 59 Figure 5.5: Local Government net additions to fixed assets for recreation and sport, 2003-2009 60 Figure 5.6: Estimated market value of sport and recreation in New Zealand, 2008/09 72 Figure 6.1: Average audiences for television sports programmes, 2009/10 74 Figure 6.2: Average daily reach for television sports programmes, 2009/10 75 Figure 6.3: International visitors, main purpose is holiday/vacation, 2000-2010 77 Figure 6.4: Tourism New Zealand poster leveraging off the America’s Cup 79 Figure 7.1: Personal benefits and costs of participation 86 Figure 7.2: Number of fatalities in sport and recreation 88 Figure 7.3: Number of ACC entitlement claims for sport and recreation injuries 89 Figure 7.4: Estimated total value of sport and recreation in New Zealand, 2008/09 97 v Acknowledgements The author is pleased to acknowledge the contributions of many people who provided data and expertise for this report.
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