KERRY
THE ECONOMIC IMPACT OF BREEDING AND RACING IN YOUR COUNTY CONTENTS
FOREWORD 04
REGIONAL ANALYSIS 06
THE ECONOMIC IMPACT 15 OF ONE RACEHORSE
ECONOMIC IMPACT OF 17 BREEDING AND RACING IN IRELAND
SUCCESS OF IRISH 20 BREEDING AND RACING
REPORT PREPARATION 22 METHODOLOGY AND LIMITATIONS
2 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY DERRY KERRY DONEGAL ANTRIM
TYRONE
FERMANAGH ARMAGH DOWN
MONAGHAN REGIONAL SUMMARY SLIGO
LEITRIM 245 Direct, indirect CAVAN and secondary MAYO LOUTH ROSCOMMON employment LONGFORD
122,656 Attendees MEATH at racing WESTMEATH DUBLIN
€64m Total direct and GALWAY stimulated OFFALY
expenditure KILDARE
LAOIS WICKLOW
CLARE
CARLOW TIPPERARY KILKENNY LIMERICK WEXFORD LISTOWEL
KERRY
WATERFORD
KILLARNEY CORK
Racecourses
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 3 FOREWORD
COUNTY KERRY’S TWO RACECOURSES, LISTOWEL AND KILLARNEY, ARE AMONG THE MOST FAMOUS AND POPULAR IN EUROPE AND CONTRIBUTE TO AN INDUSTRY THAT PROVIDES ALMOST 250 JOBS IN THE COUNTY, AS WELL AS NEARLY €65m IN ANNUAL EXPENDITURE. OVER 120,000 PEOPLE GO RACING IN KERRY EVERY YEAR, AND THE COUNTY HAS PROVIDED SOME OF THE WORLD’S MOST FAMOUS RIDERS.
4 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY KERRY
It is a great privilege to introduce Deloitte’s Deloitte estimate in this new report that This document first provides a specific Economic Impact Study into the Breeding and Breeding and Racing is an integral part of the overview of the contribution of horseracing Racing Industry in the south west, for the first rural economy of County Kerry, contributing to the county of Kerry. This is followed by an time capturing the contribution this industry almost 250 jobs in direct, indirect and overview of the Irish Breeding and Racing makes to life – social and economic – in secondary employment, and almost €65m of industry including the economic impact of County Kerry. expenditure per annum. the industry and the success of the industry on an international scale. Two years ago, in spring 2017, Horse Racing The popularity of the racecourses at Listowel Ireland commissioned Deloitte to quantify the and Killarney underpins the tradition of racing This document up-to-date economic impact of Irish Breeding excellence in the county and across this vital incorporates and Racing, and Deloitte’s report confirmed rural industry the contribution made by Kerry summarised findings the incredible dividend provided by the natives can be felt everywhere. from the Economic industry with almost 29,000 direct and indirect Impact of Irish Breeding jobs across the country, and over €1.8 billion It all makes more relevant the issue of a long- and Racing 2017. in expenditure. term and sustainable funding structure for the industry, which can allow it develop to its The full report can be From that report in 2017 – a summary full potential, increasing both the economic downloaded at https:// of which is contained at the back of this and social dividend for Kerry, and to that end www.hri.ie/press-office/ document – we were able to measure the we would ask politicians from all parties to economic-impact/ phenomenal international success of Irish- provide the necessary policy support for this bred horses and its export reach. to happen.
Domestically, the report calculated that 92% Brian Kavanagh of the 6,777 registered breeders in the country Chief Executive have fewer than five mares, and with breeders Horse Racing Ireland in every county, trainers in most counties and 26 racecourses dotted around the country, it made sense to dig deeper and assess the impact of Breeding and Racing in counties and regions across Ireland, and explore the spread of that economic reach.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 5 REGIONAL SUMMARY: KERRY
245 122,656 DIRECT, INDIRECT AND SECONDARY ATTENDEES AT RACING EMPLOYMENT
€64m TOTAL DIRECT AND STIMULATED EXPENDITURE
6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY KERRY
THE BREEDING AND RACING Listowel is best known for its annual Harvest In predominantly rural regions such as Festival which attracts significant numbers of Kerry the Breeding and Racing industry INDUSTRY IN KERRY CENTRES visitors each year, whilst Killarney is one of does not only contribute directly to the local AROUND THE COUNTY’S TWO the most picturesque racecourse in Ireland, economy through the c.100 full time jobs complementing the county’s rich tourism that it supports, but also through the many RACECOURSES, LISTOWEL offering. In addition to the racecourses, ancillary suppliers that rely on the industry for AND KILLARNEY. Kerry boast a number of Breeders and other the majority of their business – Healy Racing industry employees, meaning all areas of the Photographers being based in Listowel for wider industry are represented. example.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 7 KERRY
Indirect Direct RACECOURSES 1 1 There are two racecourses in Kerry, Listowel and Killarney. Together these two racecourses attract in excess of 120,000 attendees over 6 the 21 fixtures held in the racing season 33 €64m 31 €31m with an estimated expenditure of over €6m 2 attributable to their on-course activities. The main components of this are the general 21 admissions and catering spend of racegoers alongside media rights payments for provision of pictures to the betting industry. Breeders Betting Owners Off-course Racecourse RACECOURSES Listowel, Killarney
A total direct expenditure of €31m is working in the core industry spend their CODE estimated to be generated by the Breeding wages on local goods, services and amenities. Flat and Jumps and Racing industry in Kerry each year. The This results in a total economic impact on largest components of this are racecourse Kerry of €64m. ATTENDANCES 2018 and related off-course expenditure, primarily 122,656 being a function of the Listowel Harvest The core racing industry is estimated to Festival which attracts significant numbers of employ approximately 100 people (FTE) in FIXTURES 2018 visitors each year. Kerry. 21
The €31m of direct expenditure in turn leads AVERAGE ATTENDANCE 2018 to an additional indirect expenditure of €33m, 5,841 composed of the secondary business-to- business spending of suppliers to the core MAJOR FESTIVALS Breeding and Racing industry and secondary Listowel Harvest Festival, consumer expenditure, as those people Killarney Summer Festivals
8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY KERRY
Killarney Killarney is renowned as one of the leading tourist destinations in Ireland, with “Ireland’s most scenic racecourse” providing one of the town’s major attractions. All meetings are incorporated into three Summer Festivals in the months of May, July and August which regularly attract quality fields in races such as the Kingdom Gold Cup, the Cairn Rouge States and the Ruby Stakes (Flat) plus a number of valuable races over Jumps.
The summer festivals at Killarney and related tourism in the area will be a significant contributor to the off-course expenditure generated by racing in County Kerry.
Killarney is renowned as one of the leading tourist Listowel The Listowel Harvest Festival is one of the One of the highlights of the Irish racing best attended in the Irish racing calendar, destinations in Ireland, calendar, the seven-day Listowel Harvest contributing significantly to the €21m of off- with “Ireland’s most scenic Festival draws crowds from all over the course expenditure generated by racing in country each September, peaking at more Kerry with attendees coming from not only all racecourse” providing than 26,000 for Ladies Day. The festival over Ireland but also internationally (see case one of the town’s major includes both Flat and National Hunt racing, study overleaf). the feature race being the Guinness Kerry attractions. National Handicap Chase.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 9 LISTOWEL RACECOURSE for each day of the seven-day September The racecourse also relies heavily on local Listowel Racecourse is home to the world- meeting. All staff employed directly by the suppliers for its upkeep and maintenance renowned Harvest Festival which is run over racecourse are local to Listowel town. throughout the year. IT support is sourced seven days in September. In all, the North in the town as is printing, signage, cleaning, Kerry venue races for nine days every year Significant additional employment on window cleaning, photography services, and employs two people on a full-time basis racedays is provided by the racecourse’s flowers and shrubbery. Machinery and and a further two full-time staff from late largest contractors, with the racecourse tool hire are provided by local businesses. March to early November to cover the racing caterer, Kate Brownes of Ardfert, and Listowel Racecourse has ongoing season. The Chairman, Vice-Chairman and security company Atomic Security, connections with over 40 suppliers based ten Directors act in a voluntary capacity. All Dunmanway, County Cork, both employing in Listowel, Adare, Ardfert, Ballybunion, profits are re-invested in the racecourse. 15 people for the June festival with this Ballyheigue, Castleisland, Killarney, figure rising to 90 and 40 respectively for Killorglin, Limerick, Newcastlewest and These employment figures rise considerably the September meeting. Raceday plumbing Tralee. on a raceday, 82 people being employed services, carpentry services, electrician, directly by the racecourse for each of the two cleaning, medical and veterinary services are days of the June meeting increasing to 127 all supplied by local teams.
10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY KERRY
OWNERS AND TRAINERS Racehorse owners represent the largest single contributors to the Breeding and Racing Mares Foals industry via their purchase of bloodstock and 80 51 subsequent expenditure on keeping horses in training. As well as supporting trainers and jockeys, other industries throughout the BREEDING Irish rural economy such as vets, farriers and The Irish Breeding industry is the first step transport companies also ultimately rely on in the ‘production line’ of racing. Nearly the expenditure of Owners. 50 breeders are located in Kerry, with any bloodstock sale proceeds flowing back to Horses in Training the region each year. Breeders are spread There are approximately 40 horses in training across the county and their expenditure and in Kerry, mostly Jumps focused. This number HORSES IN TRAINING associated employment form an important represents the number declared in training at 39 part of the local economy. some point of the year, so the total number of horses based at training yards is likely to be TRAINERS The region has 80 broodmares, producing higher than this as horses are only required 6 c.50 foals p.a., with the majority of these sold to be registered in training just before being as foals or yearlings unless remaining in the entered for a race. OWNERS TOTAL EXPENDITURE region for breeding or racing purposes. €1m
Breeding revenue in Kerry is mainly generated TOTAL PRIZE MONEY WON from bloodstock sales, estimated at almost €0.1m €1m in direct economic impact per annum.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 11 KERRY
Kerry has produced more than its fair share of EMPLOYMENT In addition to the core industry workforce, leading jockeys in recent years. These include The core industry is estimated to employ c. there are a significant number of individuals Jim Cullotty, who rode Best Mate to win three 100 people (FTE) in Kerry. These are split employed in activities which, whilst being successive Cheltenham Gold Cups before approximately as below: reliant on the Breeding and Racing industry, going onto train a Gold Cup winner himself, will also serve other economic sectors. and more recently Jack Kennedy, best known Role FTE Estimated at c.60 FTE positions in Kerry, for his association with Gigginstown House these will include roles such as vets and Trainers and stable staff 20 Stud and leading Flat jockey Oisin Murphy farriers in addition to those working in other who is based in Britain. Jockeys (inc. agents and valets) 1 sectors such as leisure and hospitality. Healy Racing Photographers, based in Listowel is a Breeders 24 Owners’ cost and prize money good example of this (see case study overleaf). After bloodstock purchases, the majority of Racecourses 20 the expenditure of racehorse owners goes Secondary employment represents those jobs On-course betting (bookmakers and Tote) 15 to trainers. The trainers then pass it on to which are supported by the spending of the other stakeholders both within the core racing Racecourse catering 20 core industry participants in other areas of industry and elsewhere in the local economy. the economy, commonly known as the ‘ripple TOTAL 100 effect’. This will include, for example, people The total owners’ expenditure for horses employed in the service industry in Kerry in training in Kerry is estimated as c.€1m. who serve racing’s participants as they spend Financial return is not the main driver of Whilst the c.100 roles described above are their wages in shops, bars and restaurants. racehorse ownership, either in Kerry or any Full Time Equivalents (FTE), due to the Secondary employment is estimated to equal other region, with most owners not expecting seasonal nature of the Breeding industry and approximately 85 FTE positions. to recoup their acquisition or training costs. event-focused nature of racing these include However, prize money plays an important role a considerable number of part-time roles. Around 130 individuals are also employed in both attracting new owners and keeping As such the total number of individuals with in LBOs (Licensed Betting Offices) in Kerry. existing ones by ensuring owners feel they are some form of employment in the core industry Whilst the staff in LBOs also take bets on being fairly treated, the sport largely being is likely to be significantly more than this. other sports, racing remains the primary built on their investment. Total prize money product, especially in counties such as Kerry earned by horses trained in Kerry is estimated where the sport is ingrained in the local as approximately €0.1m p.a. community.
12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY Irish Breeding and Racing Industry core, directly related, secondary and betting employment
150 130 Total 125 375
100 HEALY PHOTOGRAPHERS – LISTOWEL are committed to being represented at 100 85 Established in 1975 by the late Liam Healy, every racemeeting and point-to-point in the renowned Healy Racing Photographers the country. That could mean being on two 75 continues to be based in Listowel, County racecourses and at three point-to-points on 60 Kerry. A family business, it currently has the same day. The team would be covering
50 a full-time staff of four, with five others over 130,000 kms in Ireland each year.” employed on a regular part-time basis. Those central to the racing and breeding 25 The company, run by Pat, Liam and Cathy industries are the backbone of the Healy’s Healy, are the only entity offering full customer base. Their ‘winners photographs’ 0 Core Directly Secondary Betting photographic services from all 363 race are much in demand from owners, trainers, Industry related meetings and 110 point-to-point meetings jockeys and stable staff while action shots Source: HRI; Deloitte analysis. in Ireland. They also cover the main are coveted by the media, both traditional meetings in the UK, including the festivals and new media, with many photographs at Cheltenham, Aintree and Royal Ascot. The regularly making their way onto the front annual Breeders’ Cup meeting in the US and pages of the national newspapers. Hong Kong’s International meeting are also serviced by Healy Racing Photographers. Healy added, “All our paper, stationery and printing services are sourced locally “Our photographs reach all over the world here in Listowel and we also make regular and it means so much that the North Kerry purchases of bigger equipment in Tralee stamp is on them all,” says Pat Healy. and Dublin. We get all our framing done by a “The office is based in Listowel and we company in County Wicklow.”
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 13 KERRY
Breeding and Racing industry capital expenditure 2007-2016 (€m)
1.0
€5m
4.0
Racecourse Breeders
Source: HRI; Deloitte analysis. Approximately €4m in CAPITAL EXPENDITURE capital expenditure has Approximately €5m is estimated to have been invested in capital projects in Kerry in the been spent on racecourse last 10 years, predominantly on racecourse improvements at Listowel improvements at Listowel and Killarney €4m, with smaller amounts from Breeders and and Killarney. Trainers.
14 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY THE ECONOMIC IMPACT BREEDERS OF ONE RACEHORSE TRAINERS
SALES HOUSE EMPLOYEES
OWNERS
FARRIER EXERCISE RIDER JOCKEYS FEED AND BEDDING RACECOURSE STAFF
JOCKEY’S GROOMS AND HORSEBOX AGENT DRIVERS
VETERINARIANS
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 15 The Breeding and Racing industry supports a diverse workforce encompassing the core industry, directly related industries such as vets and farriers and secondary employment. This workforce has a broad geographic spread, with breeders drawn from every county and racecourses and trainers also spread across the island, all supporting jobs in the rural economy.
16 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY ECONOMIC IMPACT OF BREEDING AND RACING IN IRELAND
THE TOTAL DIRECT AND Overall economic impact – total impact
Racegoers off-course STIMULATED EXPENDITURE expenditure OF THE IRISH BREEDING Breeding €145m AND RACING INDUSTRY WAS Gross €583m Secondary Net €489m expenditure ESTIMATED AT €1.84 BILLION B2B IN 2016, AND WILL BE HIGHER €611m Core Irish Total direct and IN 2018. Breeding and Racing stimulated Owners Economic impact Gross €176m expenditure Net €134m Gross €1.05bn The core industry is estimated to generate Net €914m €1.84bn €914m of expenditure into the Irish economy made up of the following components: €86m Secondary consumer Racecourses • Breeding contributes €489m through €316m public and private sales of bloodstock, €60m nomination fees and keep costs for mares; Gross value Government/ Gross value added added off-course betting €378m €803m • Owners incurred gross expenditure of €176m, but received €42m back in
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 17 domestic prize money, resulting in a net • Secondary consumer expenditure of Overall economic impact of racing consists of: contribution to the economy of €134m €316m as people working in the core (not including expenditure on bloodstock); industry spend their wages on other goods • Core industry – expenditure generated and services within the Irish economy. by Racing’s participants and consumers, • Racecourses, via the spending by including other administrative media racegoers, sponsors and commercial organisations which work exclusively in partners contribute €80m to the core 2016 2018 +/- the Breeding and Racing Industry industry. Additionally HRI receives direct Bloodstock sales €318m €352m 10.7% media and data rights income of €6m; • Other direct impacts – primarily off-course Horses in Training 8,561 8,688 1.5% expenditure of racegoers e.g. on food, • Government, via betting tax from off- accommodation, transport. For economic Owners 3,663 3,817 4.2% course betting and the subsequent annual modelling purposes this expenditure is Horserace and Greyhound Fund payment Attendances 1.32m 1.27m -3.5% included in the core industry; and to HRI, represents a €60m contribution; Off-Course Betting €51m €52m 3.2% • Indirect and induced – Indirect = business Duty Receipts • Off-course expenditure by racegoers to business expenditure of suppliers (e.g. on food and drink, accommodation related to the racing and breeding and transport) is estimated to contribute industry; Induced = additional expenditure €145m. The data used in this report is from 2016 from consumer spending e.g. individuals to ensure consistency with the previously working in the Breeding and Racing This core Breeding and Racing industry input released Economic Impact of Irish Breeding industry spending their wages. of €914m is then augmented by secondary and Racing 2017. Analysis of changes in key input of €927m as the initial expenditure metrics from 2016 to 2018 indicate that the • Gross value added – an alternative filters through the economy, via: economic impact of Irish Breeding and Racing measure of the industry’s contribution in 2018 would be at least as large as that that can be compared to national • Secondary business-to-business (B2B) calculated in 2016 with all key metrics, bar indicators such as Gross Domestic Product expenditure of €611m as businesses attendances, increasing over this period. (GDP), based on data from the Central supplying the core Breeding and Racing Statistics Office. industry source their own goods and services from other providers;
18 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY The Breeding and Racing industry is also a Irish Breeding and Racing industry direct, indirect and secondary employment (FTE) – 2016 significant employer across all regions of Ireland. Core industry employment of 9,500 is Bloodstock Total: c.28,900 supplemented by an additional: 2 administration Media Governance and Administration 88 101 Betting - 5,700 directly related roles (i.e. heavily (inc. Education) c.6,000 340 1 reliant on Breeding and Racing but also On-course betting serving other sectors) Racecourses 175 333 Caterers - 7,700 secondary roles (supported by the Jockeys, agents 370 and valets spending of racing’s participants in other 225 Trainers 3 areas of the economy) 883 Stable staff - 6,000 betting industry employees, primarily Secondary Directly related in Licensed Betting Offices (LBOs). c.7,700 2,816 c.5,700
The economic impact of Breeders Irish Breeding and Racing c.4,100 in 2018 would be at least as large as that calculated in 2016 with all key metrics
CORE INDUSTRY Notes: 1. Includes Tote and on-course bookmakers. c.9,500 Source: HRI; Deloitte analysis. 2. Includes Weatherbys Ireland and bloodstock auctioneers and agents. 3. Includes Public Trainers, Restricted Licence Holders and point-to-point Handlers.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 19 SUCCESS OF IRISH BREEDING AND RACING
THE IRISH BREEDING Public auction bloodstock values, live foals and standing stallions – 2016 USA AND RACING INDUSTRY IS Public auction bloodstock sales GBR EXTREMELY COMPETITIVE AT IRELAND Foals Stallions €703m A GLOBAL LEVEL, DESPITE €258m FRA €338m JPN OTHER MAJOR RACING €127m 4,663 €138m AUS NATIONS HAVING MUCH 155 20,600 9,381 4,874 309 LARGER POPULATIONS AND 246 6,564 €323m ECONOMIES. 1,789 218
12,638
655
Source: Weatherbys; IFHA; HRI; Auction Houses; Deloitte analysis.
20 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY BREEDING Percentage of Top 100 rated horses by breeding and training location (%) 2016 Irish thoroughbred breeding is highly successful and influential on the global stage 25% in terms of production levels and, more importantly, quality. 20% 21.1 19.3 19.3 17.4 17.4 Ireland is the second largest producer of 16.5 15% 15.6 bloodstock by value, at approximately €338m 13.8 12.8 in 2016, making up c.18% of bloodstock 11.9 11.0 11.0 auctions from major racing nations. 10%
6.4 6.4 In 2016, the progeny of stallions standing in 5% Ireland earned in excess of €43m in prize money, approximately 21% of the global top 0% Ireland USA Japan Great Britain Australia France Other 100 sire earnings, led by the “super sire” Galileo (€19.9m, 1st overall). Bred Trained Source: IFHA; Deloitte analysis.
RACING In the 2016 racing season, Irish trained horses While Ireland hosts significantly fewer races won a total of 29 Group 1 races (Flat) and 47 in a year than other major racing countries, Grade 1 races (Jump), while taking home and is the only major racing country where approximately €79m across all races globally. there are more Jump than Flat races, it is still Examining the top 100 rated Flat horses for well represented in the top rated Flat races the 2016 season demonstrates the Ireland with the QIPCO Irish Champion Stakes being is the most successful breeding nation with the equal second highest rated race in the more than 1 in 5 of the top 100 rated Flat world in 2016. horses being Irish bred, with approximately 13% also being trained in Ireland.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 21 REPORT PREPARATION, METHODOLOGY AND LIMITATIONS
INTRODUCTION AND SCOPE OF OUR REVIEW publication of this report to persons other the specific region in 2018. Therefore if a region OUR RELIANCE ON INFORMATION Horseracing Ireland (“HRI”) commissioned than HRI is for information purposes only contained 5% of the horses in training in 2018, In preparing this Report, we have used Deloitte to produce this Report, which has been and no person other than HRI should place 5% of Owners expenditure was allocated to that information and data extracted from various prepared in accordance with the contract dated any reliance on this Report; and region (values based on 2016 expenditure). published reports, which we assume to be 8 January 2019. The Report sets out the results reliable, to obtain the inputs into the economic of research and analysis of the Economic · We do not assume or accept or owe any Racecourses – Expenditure related to on- model which we used to estimate the economic Impact of the Irish Breeding and Racing responsibility or duty of care to any person course racecourse spend was apportioned to impact of the Breeding and Racing Industry. Industry on a specific region in the Republic of other than HRI. Accordingly, any person the region in which the racecourse is located. In addition, we have used information and data Ireland. Separate reports for 13 regions were other than HRI who, contrary to the above, which have been provided to us by a wide variety prepared in total. chooses to rely on this Report, does so at Betting – The industry’s income from betting of organisations including HRI, other Irish their own risk and we will not be responsible has been apportioned based on the population racing organisations, overseas Racing bodies, Details of the methodology of preparing these for any losses of any such person caused by of each region – the more people that live the betting industry and Government sources. 13 regional reports are set out below, but the their reliance on this Report. in a region, the more betting will take place The case studies included in this Report have overarching principle is to allocate the national there. The population of each region is closely been prepared by HRI. results of the Economic Impact of Irish Breeding correlated to the number of betting shops in and Racing 2017 report prepared by Deloitte for METHODOLOGY TO APPORTION NATIONAL each region, which provided another proxy to In all cases, we have relied upon such HRI between the 13 regions determined by HRI ESTIMATES INTO REGIONS validate this apportionment method against, information and data as being true, correct (and which exclude Northern Ireland). As noted above this report apportions the albeit not factoring in remote betting which and complete and have not audited, tested or metrics reported in the Economic Impact of now forms a significant proportion of total checked any such information or data. Details of the methodology of how the national Irish Breeding and Racing 2017, which reported betting turnover. economic estimates were derived are set out data relating to 2016, into a specific region. in the Economic Impact of Irish Breeding and The data in this report therefore related to 2016 Off-course expenditure – the expenditure of SPECIFIC LIMITATIONS OF OUR REVIEW Racing 2017 (available at www.hri.ie) hence are unless otherwise stated, and the approach racegoers away from the racecourse has been In accordance with our terms of engagement, not replicated in this Report. to apportionment below has been taken for apportioned according to the proportion of total or due to our findings when performing our the following areas of expenditure and other racecourse attendance in that region, adjusted work, the following specific limitations should economic metrics: for the major racing festivals where enhanced be noted. As a simplification of any industry USE OF THIS REPORT AND LEGAL expenditure per attendee associated with these an economic model of this type can only ever RESPONSIBILITY Breeding – An analysis of the location within festivals takes place. be expected to represent an approximation Some of the matters discussed in this Report Ireland of the ultimate vendor of all Irish sales of a real-life outcome. The model relies upon are by their nature technical. The intended at Tattersalls sales in Great Britain and Ireland Due to the nature of these festivals attracting information provided by stakeholders as well recipient of the report, HRI, is familiar with the and the major French sales was carried out, racegoers from significant distances (including as data published by the Central Statistics issues, facts and other matters addressed and so that the proportion of total sales for each overseas) some of this expenditure will actually Office. It is possible that industry linkages have the Report was written with that in mind. region could be estimated. The proportion was take place in other regions as racegoers travel changed since the publication of the Domestic then applied to the total Irish sales figure for into transport hubs and stay in hotels etc. Use Matrix, but as the latest available data on This Report is prepared for the sole and 2016 to give an estimated bloodstock sales However, the level of information available which to base our analysis the data used is the confidential use of HRI and for the purposes figure for that region. For example if the sales means that analysis to this further level of most appropriate. set out in the terms of engagement. In analysis showed that the proceeds from 20% detail has not been possible. preparing this report our only responsibility of Irish horses sold went to a specific region, and duty of care is to HRI. We did not, and do that region was allocated 20% of the total Irish Indirect expenditure – total indirect EXCHANGE RATES not by consenting to publication of this Report, sales figure. expenditure calculated in 2016 has been For the purpose of the international analysis assume or accept or owe any responsibility or apportioned to the specific region in the same and comparisons we have converted the figures duty of care to any other person. The only exception to this is private sales, where proportion as the direct expenditure of that into euros using the average exchange rate for known values were allocated to specific regions. region compared to the total expenditure for the respective year ending 31 December. HRI has asked for our consent to making this The remainder was then apportioned as per the the industry in the Republic of Ireland. For The sterling to euro exchange rate used for report publicly available by posting it on HRI or public sales methodology described above. example, if a region constitutes 10% of the 2016 was (€1 = £0.79). other Racing websites, and other appropriate Stallion nomination income was apportioned total direct expenditure of the industry in distribution methods as agreed with Deloitte. to the region in which the stallion was standing the Republic of Ireland then 10% of the total We have agreed to provide such consent on the in 2016. indirect expenditure for the country has been following conditions: apportioned to it. It is therefore possible that for Owners – The expenditure of Owners on some regions this indirect expenditure may be · This report may not be suitable for the use keeping horses in training was apportioned significantly over or under stated depending on of any person other than HRI. Accordingly, based on the number of horses in training in the nature of the local economy.
22 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KERRY 23 HORSE RACING IRELAND Ballymany, The Curragh, Co. Kildare. Telephone: 045 455 455 Fax: 045 455 456 Email: [email protected]
www.hri.ie