Review of the Registered Clubs Industry in NSW - Clubs NSW
Review of the Registered Clubs Industry in NSW - Clubs NSW
Review of the Registered Clubs Industry in NSW - Clubs NSW
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E IPART’s methodology for record<strong>in</strong>g and valu<strong>in</strong>g clubs’<br />
social contribution<br />
The rationale for only calculat<strong>in</strong>g an aggregate market value for<br />
bars/bistro/restaurants (ra<strong>the</strong>r than market values on a per facility basis) is that, as<br />
outl<strong>in</strong>ed below, <strong>in</strong> <strong>the</strong> absence <strong>of</strong> a detailed club survey, observ<strong>in</strong>g market prices and<br />
quantities for <strong>the</strong> meals and beverages provided by clubs is problematic. However,<br />
<strong>the</strong> provision <strong>of</strong> low-cost meals and beverages has been one <strong>of</strong> <strong>the</strong> contributions most<br />
widely acknowledged by stakeholders. IPART <strong>the</strong>refore accounted for this<br />
contribution at an aggregate <strong>in</strong>dustry level, ra<strong>the</strong>r than on a per RCT basis. ACG has<br />
estimated that, on average, <strong>the</strong>se products are provided at a 20 per cent discount to<br />
<strong>the</strong> market price (reflect<strong>in</strong>g a range <strong>of</strong> 15-25 per cent). Us<strong>in</strong>g <strong>the</strong> total <strong>in</strong>dustry<br />
revenue for bars, bistros and restaurants and assum<strong>in</strong>g an average level <strong>of</strong> discount<br />
<strong>of</strong> 20 per cent, IPART estimated <strong>the</strong> <strong>in</strong>dustry’s total contribution <strong>in</strong> provid<strong>in</strong>g <strong>the</strong>se<br />
facilities.<br />
Club sale prices and annual sale quantities have not been collected by ACG as part <strong>of</strong> its<br />
survey<br />
ACG collects data on <strong>the</strong> number <strong>of</strong> facilities provided by each <strong>of</strong> <strong>the</strong> clubs that it<br />
surveys. It does not collect club sale prices and annual sales quantities. In addition,<br />
ACG does not collect <strong>in</strong>formation on sources <strong>of</strong> revenue by <strong>the</strong> facility types<br />
identified <strong>in</strong> Table E.1. This means it is not possible to calculate <strong>the</strong> social<br />
contribution value for each type <strong>of</strong> facility for each RCT as <strong>in</strong> equation 1.<br />
To deal with this, IPART calculated <strong>the</strong> market values (and not <strong>the</strong> social<br />
contribution) <strong>of</strong> facilities for each RCT. The value <strong>of</strong> direct <strong>in</strong>-k<strong>in</strong>d contributions can<br />
<strong>the</strong>n only be calculated on an <strong>in</strong>dustry-wide level by subtract<strong>in</strong>g <strong>the</strong> revenue<br />
received by clubs for <strong>the</strong> provision <strong>of</strong> <strong>the</strong>ir facilities.<br />
IPART used <strong>the</strong> follow<strong>in</strong>g approach to assign market values to <strong>the</strong> community<br />
facilities identified by <strong>the</strong> ACG survey:<br />
<br />
Market values for services provided by bowl<strong>in</strong>g greens, golf courses, tennis<br />
courts, squash courts and swimm<strong>in</strong>g pools were estimated by us<strong>in</strong>g <strong>the</strong> ABS <strong>NSW</strong><br />
sport participation and frequency rate, <strong>the</strong> market value (ie, typical price) for<br />
annual participation and <strong>the</strong> number <strong>of</strong> facilities <strong>in</strong> <strong>NSW</strong>. IPART estimated <strong>the</strong><br />
market value <strong>of</strong> services provided by <strong>the</strong> sports facility, such as a golf course or<br />
tennis court (<strong>the</strong> market value be<strong>in</strong>g equivalent to <strong>the</strong> annual sum <strong>of</strong> revenue<br />
generated us<strong>in</strong>g market values for participation). This is expressed through <strong>the</strong><br />
equation:<br />
(1) ( PF ABS x MV AP ) / N SF = V SF<br />
where:<br />
PF ABS is <strong>the</strong> ABS participation and frequency rate<br />
MV AP is <strong>the</strong> market value for annual participation<br />
N SF is <strong>the</strong> number <strong>of</strong> <strong>the</strong> sports facilities <strong>in</strong> <strong>NSW</strong><br />
<strong>Review</strong> <strong>of</strong> <strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> <strong>Industry</strong> <strong>in</strong> <strong>NSW</strong> IPART 243