Hawthorn Football Club Estimation of the economic contribution of Hawthorn Football Club 2017 www.pwc.com.au games in Launceston to the Tasmanian economy 01 Executive summary 02 Direct impacts Total impacts 03 (including indirect or flow on impacts) 04 Appendices Report Disclaimer This Report has been prepared by PricewaterhouseCoopers Consulting (Australia) Pty Ltd (PwC) at the request of the Hawthorn Football Club (HFC) in our capacity as advisors in accordance with the Terms of Reference and the Terms and Conditions contained in the Consultant Agreement between the HFC and PwC. This document is not intended to be utilised or relied upon by any persons other than the HFC, nor to be used for any purpose other than that articulated above. Accordingly, PwC accept no responsibility in any way whatsoever for the use of this report by any other persons or for any other purpose. The information, statements, statistics and commentary (together the “Information”) contained in this report have been prepared by PwC from publicly available material, from material provided by the HFC and from information provided by match day attendees through a survey. PwC has not sought any independent confirmation of the reliability, accuracy or completeness of this information. It should not be construed that PwC has carried out any form of audit of the information which has been relied upon. Accordingly, whilst the statements made in this report are given in good faith, PwC accept no responsibility for any errors in the information provided by the HFC or other parties nor the effect of PwC any such errors on our analysis, suggestions or report. 01 Executive summary Direct impacts Total impacts (including indirect or flow on impacts) Appendices PwC Executive summary The Hawthorn Football Club is currently contracted by the Tasmanian Government to play five games per season in Launceston, Tasmania. $20.4m $28.5m total direct expenditure direct and indirect PwC has been engaged to estimate the total dollar GSP ($2017) contribution of the four Hawthorn Football Club home and away games played at University of Tasmania Stadium, Launceston to the Tasmanian economy in 2017. These games were: 61,301 15,126 interstate and international local, interstate and visitors visiting Tasmania in JLT Community Series: Hawthorn v Geelong international game attendances 2017* (Friday, 17 February 2017) Round 6: Hawthorn v St Kilda (Saturday, 29 April 2017) $816 Round 8: Hawthorn v Brisbane Lions 137 average spend per direct and indirect (Saturday, 13 May 2017) interstate and additional jobs supported* international visitor Round 16: Hawthorn v Greater Western Sydney (Saturday, 8 July 2017) Round 21: Hawthorn v North Melbourne (Sunday, 13 August 2017). 25% 77% The evaluation quantifies both the direct impacts of percentage of attendees from proportion of interstate and expenditure by game attendees, as well as the indirect interstate or overseas international visitors spending flow on impacts of that expenditure to the Tasmanian more than 1 night in Tasmania economy. * Estimate based on extrapolated survey results. PwC 4 Executive summary (cont’d) 61.3k $323 19.8m International/ interstate 15k International/ International/ interstate $12.4m interstate $812 Tasmania 27k Tasmania $6.7m Launceston 19k Tasmania $244 Launceston $41 Launceston $0.8m Game attendances Spend per person Total direct attendee spend Spend per person depends on the Attendance can be analysed by residential The composition of direct spend is driven residential origin of the spectator, and is origin of the spectator (Launceston, Tasmania by a combination of game attendees by greatest for interstate/international (other) and interstate/international) residential origin and spend per person spectators PwC 5 Executive summary (cont’d) Expenditure and total impacts $20.4m $28.5m direct and flow-on m GSP ($2017) across Australia model inputs GSP $19.8m Match attendee spend $579k 137 Hawthorn Football Club direct and flow-on additional jobs spend Jobs CGE multipliers $74k Assumed opposition club spend $8.5 m household consumption ($2017) Consumption Total direct expenditure Source: PwC analysis based on HFC financial data, PwC survey and PwC modelling. PwC 6 Executive summary 02 Direct impacts Total impacts (including indirect or flow on impacts) Appendices PwC We estimated the economic impact of HFC’s Launceston matches by analysing survey results and using a CGE model Approach 1. Understanding of Hawthorn Football Club’s matches at University of In order to collect expenditure data, email Tasmania Stadium addresses were requested from a sample of match day attendees, who were Developed and launched an online survey to capture activities of attendees at each match. The purpose of the survey was to subsequently sent an electronic survey in determine the proportion of local, interstate and international visitors and their associated average spend profiles. the days following the match. The survey asked questions primarily related to the amount spent by each 2. Attendance spending participant, who they attended the game with, and what else they did in relation to The sample of match attendee information from the online survey was then extrapolated to the total number of match their trip to the football game. attendees. This provided us with an estimate of the total amount of local, interstate and international attendees and the total Expenditure data was collected in relation to spending for each group (including associated tourism-related activities). This formed the basis for the total direct transport, accommodation, food and drinks, expenditures. entertainment and activities, Where the HFC games were indicated ‘part’ of the reason for their travel to Launceston, we only attributed 50 per cent of their and other. expenditure to the HFC game, and where it was a ‘non-primary’ reason for their travel, then only 20 per cent was attributed. In addition to the survey data, information was also sought from the Hawthorn Football 3. Club expenditure Club on their own expenditure that is likely to flow to Tasmania, including the cost of Match attendee expenditure was then combined with spend data from the Hawthorn Football Club and opposition sides. This accommodation, and food and drinks included items such as advertising spend and security and also included travelling team spend (including support staff, during games, as well as for other club trips accommodation and travel allowance). during the year. Along with step 2, this provided total direct impact of HFC’s matches in Launceston. 4. Total economic impacts (direct and flow-on) Flow-on effects The total direct expenditures were then modelled using multipliers developed from a globally accepted robust computable general equilibrium (CGE) model. This model assesses the flow-on and total economic impacts from Hawthorn Football Club’s matches in Launceston. Using multipliers developed through CGE analysis is superior to simply using input-output analysis and is the preferred approach of many Governments and Treasury Departments in Australia.1 Further detail related to our methodology and approach can be found in Appendix A – Economic modelling approach and Appendix CGE methodology. The key results of the economic impacts are presented in the following pages. PwC 8 Around of quarter of the 61,000 attendees in 2017 travelled to Tasmania from interstate or overseas Match attendance Residences of attendees The four 2017 home and away season games held by HFC in Launceston While data is publically available on the total attendance of each game, there attracted 52,789 people, plus an additional 8,512 at the pre-season match, is no complete dataset available on the exact place of residence of each of the making total attendance 61,301 at an average of 12,260 people per game attendees. However, we can extrapolate the survey results to estimate match. the proportion (and therefore the number) of people that attended the games from: The number of attendances varied by game, with the highest crowd attending the St Kilda game (15,571), and the lowest crowd attending the pre-season • Launceston or nearby suburbs game against Geelong (8,512). Attendances are shown in the figure below. • in Tasmania, but not in Launceston or nearby suburbs • interstate or overseas. Figure 1: Attendance numbers This results in the following estimates shown in the table below. 18,000 In Tasmania, but 13,500 Launceston not in Interstate or nearby Launceston or or 9,000 suburbs nearby suburbs overseas Total Count of 4,500 survey 333 479 266 1,078 responses 0 Geelong (JLT) St. Kilda Brisbane GWS North Percentage Melbourne (from survey 31% 44% 25% results) Assumed total 18,936 27,239 15,126* 61,301 Survey responses attendances A total of 1,078 correctly completed responses to the online survey were *According to the ABS (2015) there is a total of 5,104 guest nights available in Northern Tasmanian received and used to estimate the average spend by game attendees. This hotels, motels and serviced apartments each night, meaning there is sufficient accommodation for the represented 1.8 per cent of game attendees. estimated number of interstate and international visitors for any one game. Note totals in the table may not appear to add correctly due to rounding in the presentation of the figures shown. Source: PwC survey of game attendees. PwC 9 Interstate attendees spend much more than attendees from Tasmania Based on the survey results, the average Launceston In Tasmania, but Average Interstate or amount spent in Tasmania by survey or nearby not in Launceston Total expenditure overseas participants as a consequence of attending suburbs or nearby suburbs one of the five matches in Launceston is estimated to be $323, up from $316 in 2014. Transport (for example: taxis, public $14 $29 $83 $38 This amount includes the spending of people transport, car hire) from Launceston, as well as people from elsewhere in Tasmania and interstate or Accommodation n/a $47 $250 $83 overseas.