Review of the Registered Clubs Industry in NSW - Clubs NSW

E IPART’s methodology for recording and valuing clubs’
social contribution
V SF is the annual market value per single facility.
Market values for the provision of gymnasiums were estimated by multiplying
the average gym membership (Australian figure available only) with the market
value for annual participation, where IPART’s estimated market value is
equivalent to the annual sum of revenue generated per gymnasium. This is
expressed through the equation:
(2) ( AM FA x MV AP ) = V G
where:
AM FA is the average gym membership size (as reported by Fitness Australia)
MV AP is the market value for annual participation (ie, annual gym membership)
V G is the annual market value per gymnasium.
Market values for the provision of billiard tables were estimated based on an
assumption of 20 hours of usage per table per week and an observed hourly
market rate for billiard table use. IPART estimated the annual market value for a
billiard table by multiplying the weekly usage for a table by the hourly market
rate, accounting for the 52-weeks in a year. The estimated market value is
equivalent to the annual sum of revenue generated. This is expressed through the
equation:
(3) WU PT x HR x 52 = V BT
where:
WU PT is the estimated usage per table per week
HR is the hourly market rate
V BT is the annual market value per billiard table.
Market values for the provision of meeting rooms/entertainment halls and
accommodation were estimated by multiplying the ABS room occupancy rate
with the market value for the meeting/motel room rate (based on three star
accommodation for motel rooms), accounting for the 365 days per year. The
estimated market value is equivalent to the annual sum of revenue generated per
meeting/motel room. This is expressed through the equation:
(4) OR ABS x MV RR x 365 = V PR
where:
OR ABS is the ABS room occupancy rate
MV RR is the market value room rate
244 IPART Review of the Registered Clubs Industry in NSW