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Victorian Racing Industry

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Victorian Racing Industry SIZE AND SCOPE OF THE Victorian Racing Industry Prepared by IER / 2013 01 01 SIZE AND SCOPE OF THE VICTORIAN RACING INDUSTRY IER PTY.LTD. 02 Key Impacts THE JOBS & PARTICIPANTS Thoroughbred Harness Greyhound Non-code specific 2013 Total 2006 Total Participants in racing Racing club volunteers 1,600 200 200 2,000 6,200 Owners 50,000 7,800 14,000 71,800 37,700 Breeders 1,800 3,000 700 5,500 4,900 Trainers 1,000 2,100 2,600 5,700 5,700 Total participants in racing 54,400 13,100 17,500 85,000 54,500 Employed directly in racing Employed by racing clubs/industry 10,700 1,400 1,300 3,500 16,900 12,600 Employed by participants 6,900 4,100 1,200 12,200 13,900 Total employed directly in racing (1) 17,600 5,500 2,500 3,500 29,100 26,500 Total jobs & participants directly 72,000 18,600 20,000 3,500 114,100 81,000 involved in racing Employed in support industries (2) 18,600 6,500 3,600 28,700 25,900 Total jobs & participants 90,600 25,100 23,600 3,500 142,800 106,900 Total employed directly and 36,200 12,000 6,100 3,500 57,800 52,400 in support industries (1) & (2) MORE THAN 114,100 PEOPLE ARE DIRECTLY INVOLVED IN THE RACING INDUSTRY AS AN EMPLOYEE, VOLUNTEER OR PARTICIPANT – 60.9% RESIDE IN REGIONAL VICTORIA 02 SIZE AND SCOPE OF THE VICTORIAN RACING INDUSTRY IER PTY.LTD. 03 RACE MEETINGS IN VICTORIA ATTRACT ATTENDANCES OF MORE THAN 1.8 MILLION THE VRI CONTRIBUTES MORE THAN $2.8 BILLION IN REAL GROSS VALUE ADDED TO THE INTRODUCTION & BACKGROUND & INTRODUCTION VICTORIAN ECONOMY THE ECONOMIC IMPACT 2013 2006 Economic value of racing $2.8 bil $2.1 bil Total jobs & participants 142,800 106,900 FTE employment in racing 26,600 18,700 Household income generated $1.6 bil $1.1 bil RACING’S CUSTOMERS 2013 2006 Overseas viewers 750 mil 700 mil THE RACING INDUSTRY IS DIRECTLY Australian viewers of Melbourne Cup Carnival 6.3 mil 6.0 mil Attendances at Victorian race meetings 1.8 mil 2.1 mil RESPONSIBLE FOR SUSTAINING MORE Racing club members 67,050 60,000 Victorians (18+) participating in race wagering annually 831,800 N/A THAN 26,600 FULL TIME EQUIVALENT Spring Racing Carnival attendances 706,800 730,000 SRC attendances by out-of-state visitors 165,400 101,600 (FTE) JOBS IN THE VICTORIAN ECONOMY Total attendances by out-of-state visitors 207,500 162,400 to Victorian racing 03 SIZE AND SCOPE OF THE VICTORIAN RACING INDUSTRY IER PTY.LTD. 04 Index 05 INTRODUCTION & BACKGROUND 09 OVERVIEW OF KEY RESULTS 13 ECONOMIC IMPACTS 18 EMPLOYMENT & PARTICIPATION 22 RACING CLUBS 36 OWNERSHIP 38 TRAINING 42 BREEDING 48 TOURISM & EXPORT 52 COMMUNITY & SOCIAL BENEFITS 68 WAGERING 70 REGIONAL SUMMARIES 94 APPENDIX 04 SIZE AND SCOPE OF THE VICTORIAN RACING INDUSTRY IER PTY.LTD. 05 Introduction & background BACKGROUND & INTRODUCTION The three codes of racing, through their peak racing bodies (Racing Victoria, Harness Racing Victoria and Greyhound Racing Victoria) and the Victorian Government have commissioned a study into the size and scope of the racing industry in Victoria. This study represents an update to the previous report completed in 2006 (which was based on the 2004/05 racing season). The 2006 study found that the three codes of racing in Victoria generated $2.1 billion in value-added contribution to Gross State Product. PURPOSE OF THE STUDY The primary purpose of this study is to determine the economic contribution made, to the Victorian economy, by the three codes of racing in Victoria. In addition to this, the study also aims to determine the following outcomes: + The number of jobs and level of full time equivalent employment generated by racing industry activities in Victoria + The number of participants in racing industry related pursuits, both professional and non-professional + The social and community importance of the Victorian Racing Industry + The economic value of the racing industry within each of the statistical divisions in Victoria STUDY METHODOLOGY 05 SIZE AND SCOPE OF THE VICTORIAN RACING INDUSTRY IER PTY.LTD. 06 Disclaimer: IER has prepared this report for RV, HRV and GRV, for its sole use and within the scope of work set out in the project terms of reference. In assessing the size and scope of the industry, In this regard, the key is to identify the final captured in other parts of this study. As such, its Much of the data provided the study will take into account a number of the expenditures - ensuring not to count the same inclusion would amount to double counting of by the industry, in particular traditional measures adopted by the racing industry expenditures as they flow between internal racing some expenditure impacts. the Racing clubs, has been such as foal and pup production, attendances, horse industry transactions. accepted without audit and and greyhound training activities and wagering The economic model used within this study follows in good faith. The study is activities. For the purpose of this study, thoroughbred, This study measures the economic contribution three key steps: based on the 2010/11 racing harness and greyhound racing in Victoria is defined made by the three codes of racing in Victoria. The season thus providing as covering the full spectrum of activities associated expenditure profile of the racing industry is based on 1 Gathering Industry Expenditure - This has been the best opportunity with the conduct of the racing industry within these the following segments: explained in more detail previously; however this is to gather consolidated codes. This study does not include other ‘horse/ the most important step as a failure to accurately financial information from greyhound related industries’ outside of the racing + Production (breeding related activities) of racehorses generate the expenditure profile of the industry only the industry, racing clubs industry such as equestrian horses and hobby horses. and greyhounds – the expenditure generated by the leads to a multiplication of this error throughout the and participants. In some breeding sector in maintaining breeding animals and latter parts of the economic methodology. instances, it was more The data that underpins this study has been gathered producing foals and pups appropriate to show data from a number of sources. Peak racing bodies provided + Preparation of racehorses and greyhounds for racing 2 Categorisation of industry expenditure into relating to the 2012/13 data related to registered participants and wagering. (training related activities) – the expenditure by ANZSIC classifications - The ‘racing industry’ does racing season. However Racing clubs provided a considerable amount of data owners on training services as well as other non- not exist within the Australian and New Zealand all data relating to the relating to their club and raceday operations. Existing training related expenses such as major veterinary, Standard Industry Classification (ANZSIC) structure. economic impact calculations customer research was synthesised with club financial transport etc. For modelling purposes, it is necessary to allocate is sourced from the 2010/11 data in order to estimate racing customer expenditure + Net revenues generated by wagering related direct expenditures to the appropriate industry racing season. We do not impacts whilst a sample of breeders, trainers and activities – this includes net wagering revenues groups. The majority of expenditures are classified assume or accept or owe owners were interviewed in order to build a profile generated from TAB wagering as well as product within their relevant ANZSIC codes. A number of any responsibility or duty of the cost of production and preparation of fees from interstate totalisators, corporate horse and greyhound racing activities are contained of care to any person other racehorses and greyhounds. bookmakers and betting exchanges within ANZSIC classification segment 91 - Sports and than these three peak racing + On-course non-raceday customer expenditure – the Recreation Services. bodies. We did not, and do Throughout the report, data has been presented at the expenditure generated on-course by attendees at not by consenting to State and regional level. The regional level analysis is race meetings 3 Economic modelling - IER has utilised an input/ publication of this report, based on twelve key areas taken from the statistical + Off-course raceday customer expenditure – the output methodology for the calculation of economic assume or accept or owe division framework within the Australian Bureau of expenditure generated in the community by racing impacts associated with the racing industry in Victoria. any responsibility or duty of Statistics geographical classification structure. customers as part of their raceday attendance The input-output provides direct and indirect impacts care to any other person. + On-course raceday customer expenditure – the in relation to value-added, income and employment. ECONOMIC METHODOLOGY expenditure generated at non raceday facilities and The development of an economic model of the venues owned by racing clubs in Victoria PERIOD OF REPORTING racing industry requires a strong understanding This report is based on the 2010/11 racing season. More of the internal and external flows of money. In The study also excludes major capital expenditure recent code specific information is available at: developing the model, duplicate expenditures have items that have been incurred during the assessment + www.racingvictoria.net.au been identified within the monetary framework and period. It is assumed that the majority of capital + www.hrv.org.au excluded from the total expenditure
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