An Overview - Sport New Zealand

The Economic and Social
Value of Sport and Recreation
to New Zealand
An Overview
October 2011

Acknowledgements
This publication is based on a full report prepared for SPARC by the AERU at Lincoln
University titled The Economic and Social Value of Sport and Recreation to New Zealand.
We are pleased to acknowledge the AERU team: Professor Caroline Saunders and Dr Peter
Tait, led by the report’s author Professor Paul Dalziel. We also thank Chris Schilling, Peter
Clough and Dr Jagadish Guria (New Zealand Institute of Economic Research, NZIER) who
prepared for SPARC a preliminary analysis on the value of sport and recreation in New
Zealand. Agnes Guevara (ACC) provided data on sport injury claims and Andrew McLaren
(Statistics New Zealand) provided data from the 2006 Census on employment. Alistair
Gray (Statistics Research Associates Ltd) and the National Research Bureau Ltd assisted in
analysis of data produced in the 2007/08 Active New Zealand Survey. Within SPARC, the
project was led by Grant McLean and Dr Sue Walker, with data analysis assisted by Dr Maea
Hohepa. The project team is particularly grateful to Professor Chris Gratton (Sport Industry
Research Centre, Sheffield Hallam University) whose review of an early draft of the original
report was very important in shaping the report’s final structure and some of its content.
Author
This overview was written by Professor Paul Dalziel with editorial assistance by SPARC.
Copies of the full report can be downloaded from SPARC’s website: www.sparc.org.nz.
Citation:
SPARC, 2011. The Economic and Social Value of Sport and Recreation to New Zealand: An
Overview. Wellington: SPARC.
Cover Photo:
Credit: Auckland Sports Photography
ISBN: 1-877356-19-3
Published in 2011 by SPARC (Sport and Recreation New Zealand).

THE VALUE OF SPORT
1
Foreword
I am pleased to present this report on The Economic and Social Value of Sport to
New Zealand: An Overview by Professor Paul Dalziel, Professor of Economics at the
AERU Research Unit at Lincoln University.
The work delivers on a commitment in SPARC’s 2009-2015 Strategic Plan to
investigate and measure the value sport and recreation brings to the nation in terms
of economic benefits, health savings and social and cultural gains.
This new work has good foundations. It builds on and extends earlier work for
SPARC’s predecessor, the Hillary Commission, by BERL (Business and Economic
Research Ltd) and incorporates preliminary work for SPARC by NZIER. It also draws on
and extends international studies. I thank Professor Dalziel for the considerable time
and effort that has gone into this study.
Professor Dalziel’s work shows that the sector is much larger and its contribution
to GDP (Gross Domestic Product) substantially greater than previous studies have
shown. The market value of sport and recreation to the New Zealand economy in
2008/09 is estimated to be $5.2 billion, or 2.8 per cent of GDP. This puts the
sector on a par with the dairy industry’s contribution to the New Zealand economy. 1
The estimate of market value tells only part of the story. This new study shows that
sport and active recreation result in gains in productivity and health benefits valued
at $1.0 billion. Putting a dollar value on the personal benefits of participating in sport
and recreation adds a further $6 billion, bringing Professor Dalziel’s overall estimate
of the value of the sector to New Zealanders to $12.2 billion.
The study also estimates that the tax revenue from the sector is two and a half
times that of government expenditure. This represents an excellent return on the
Government’s investment.
These are impressive figures and will provide sport and recreation organisations, local
councils, commercial enterprises and government agencies with the hard facts they
need to make sound investment decisions and leverage more resources. The results
will also allow the sector to demonstrate how sport and recreation can help generate
jobs, income, exports and sustainable local economies, and contribute to New
Zealand‘s international profile.
SPARC knows that sport and recreation is not just about economic benefits and
a companion report – Value of Sport and Recreation: Case Study of Northern
United Rugby Football Club 2 – illustrates some of the personal and social values for
individuals, families and communities from taking part in sport.
Peter Miskimmin
Chief Executive, SPARC
1
A 2010 study by NZIER estimated that the dairy sector
accounts for 2.8% of GDP, or $5 billion.
2
This study was by Research New Zealand and the report
is on SPARC’s website.

2
Contents
Foreword..........................................................................................................1
List of Tables................................................................................................... 3
List of Figures ................................................................................................ 3
Summary......................................................................................................... 4
1. Introduction................................................................................................ 6
2. Valuing Sport and Recreation in New Zealand....................................... 9
How is economic activity valued?................................................................. 9
The market value of sport and recreation to the economy.......................... 10
The total value of sport and recreation to the economy.............................. 11
3. The Sport and Recreation Sector – Narrowly Defined.......................... 12
4. The Sport and Recreation Sector – Broadly Defined ............................14
The contribution of the wider employment sector ......................................14
The contribution of spending on sport and recreation education ................16
The contribution of local government..........................................................16
The contribution to GDP from the sport and recreation sector
– broadly defined ....................................................................................... 17
The contribution of volunteers.....................................................................18
5. Social Benefits of Sport and Recreation ................................................19
Calculating productivity and health benefits ...............................................19
Calculating personal benefits.......................................................................21
6. Conclusion ................................................................................................23
Tracking progress .......................................................................................24
Improving data sources and estimates ....................................................... 24
Appendix: Key Facts and Estimates............................................................ 25

THE VALUE OF SPORT
3
Tables
Table 1: Employment in sport and recreation industries, 2006................... 12
Table 2: Contribution to GDP of sport and recreation industries, 2006/07 .... 13
Table 3:
Contribution to GDP of the sport and recreation sector
– broadly defined, 2008/09 .......................................................... 17
Table 4: GDP including the value of volunteered services, 2008/09 ............ 18
Table 5: Direct benefits and costs from participation, 2009........................ 19
Table 6: Total time spent by all adults in sport and recreation, 2009 .......... 22
Figures
Figure 1: Calculating a sector’s value added................................................. 9
Figure 2:
Figure 3:
Estimated market value of sport and recreation in New Zealand,
2008/09 ..................................................................................... 10
Estimated total value of sport and recreation in New Zealand,
2008/09...................................................................................... 11
Figure 4: Employment in sport and recreation occupations, 2006 ............... 15
Figure 5: Total employment in the sport and recreation sector, 2006 .......... 15
Figure 6:
Local government net spending on sport and recreation
facilities, 2003-2009..................................................................... 16
Figure 7: Personal benefits and costs of participation ................................. 21

4
Summary
Sport and recreation activities are highly valued by New Zealanders
• 9 out of 10 (92%) young people and 8 out of 10 (83%) adults take part
in one or more sport and recreation activities (see page 25 for more details).
• There are more than 15,000 sport and recreation clubs in New Zealand.
• These are supported by over three-quarters of a million (776,000) volunteers.
Sport and recreation industries are important generators of jobs
for New Zealanders
• Over 35,000 people (36,831) work in sport and recreation industries.
• This is larger than the house construction industry (36,093 people).
• Adding in the number of people working in sport and recreation occupations
(outside the sport and recreation industries) the total goes up to almost
50,000 (48,363).
Sport and recreation industries contribute to the New Zealand economy
• The sport and recreation sector (narrowly defined) contributed $3.8
billion to GDP in 2008/09, or 2.1 per cent.
• This is larger than the accommodation, restaurants and bars sector ($3.6 billion).
Sport and recreation occupations provide income to New Zealanders
• Over 25,000 (25,251) people work in sport and recreation occupations.
• The total annual personal income for people in sport and recreation
occupations is estimated to have been $875 million (measured in 2009 values).
Sport and recreation education is important in New Zealand schools
• Just over five per cent of The New Zealand Curriculum is related to sport and
recreation.
• This same share of teacher salaries in 2008/09 adds up to $172 million.

THE VALUE OF SPORT
5
Sport and recreation facilities are a large investment by New
Zealand local governments
• Councils spent $345 million on new sport and recreation facilities in 2008/09.
• This contributed $100 million to the value of the construction sector that year.
Sport and recreation volunteers contribute valuable services to
New Zealanders
• Volunteers contributed over 50 million (51.3 million) hours to sport and
recreation in 2007/08.
• The estimated market value of these volunteered services is over $700
million ($728 million at 2009 values).
Sport and recreation provide additional social benefits to New
Zealand
• Increased work productivity and better health outcomes, minus the costs
of serious sport and recreation accidents, produced social benefits of $1.0
billion in 2009.
• Direct benefits enjoyed by participants in sport and recreation are estimated
to be a further $5.9 billion.
Sport and recreation activities are an important part of New
Zealand’s tax base
• The sport and recreation sector (broadly defined) contributed $4.5 billion to
GDP in 2008/09, or 2.4 per cent.
• This is estimated to have generated tax revenue of $1.3 billion.
Sport and recreation are an important economic sector in New
Zealand
• The contribution of sport and recreation to GDP (including volunteered
services) in 2008/09 was more than $5.2 billion, or 2.8 per cent.
• This is as large as a recent estimate of the contribution made to GDP by the
dairy sector.
• Including the value of social and personal benefits, the total value of sport
and recreation to New Zealanders is around $12.2 billion.

6
1. Introduction
New Zealanders value sport and recreation
15,000+ sport and
recreation clubs
New Zealanders love
sport – 9 out of 10
young people and 8 out
of 10 adults take part in
sport and recreation
2 million tickets sold to
sports events
Sports events have
a significant impact.
Westpac stadium,
for example,
contributed $48
million to Wellington’s
economy in 2009/10
and supported over
600 jobs
500 elite athletes
1,000 professional
sports people
Consider a typical weekend in New Zealand. Before dawn, sleepers in
Department of Conservation huts wake up and prepare for a day of
tramping, climbing or hunting. In towns and cities, rowers begin arriving at
smooth stretches of water to prepare for training or racing, and swimmers
begin their early morning schedule of conditioning work. Throughout the
country, cyclists and runners eat a carefully considered breakfast before
setting out on their week’s long distance exercise.
As the morning progresses, playing fields, stadiums and gymnasiums up and
down the country are filled by tens of thousands of young people engaged
in sport competitions, spurred on by large numbers of parents and siblings
supporting them on the sidelines. At different times of the year, some of
these young people are picked for representative teams that travel to
participate in national tournaments.
As morning turns into afternoon, sport and recreation involving adult
participants become more common. The recreation includes a wide range of
water-based activity on rivers or lakes, in harbours or at the beach, or in
public or private swimming pools. It also includes families travelling to
regional parks for bike trails or walking tracks. The sport includes a wide
range of social competitions, but also top-grade contests for which the
participants (including the contest officials) have trained seriously during the
week. After these events, club rooms everywhere provide opportunities for
members to socialise and talk about what they have done or watched.
Sport and recreation activities continue into the evening. It is a rare Saturday,
for example, when there is no night-time horse racing. National competitions
involving team franchises or provincial representative teams often include
evening events to increase the size of the television audience. These national
competitions are typically organised by professional sports administrators
and many of the participants receive at least some financial reward. All day,
however, thousands of people are involved as volunteers, helping
participants of all ages get the most from their activities.
In some parts of the country, local professional or volunteer organisers may
have arranged a special event or tournament that attracts hundreds of
visitors as participants or spectators. This includes fun runs, marathons, road
cycle races, yachting or rowing regattas, masters sporting tournaments,
annual regional or national championships, and the like.
The weekend will typically include one or more sports events involving
individuals or teams selected to represent New Zealand. For some contests,
the media will have been in a frenzy for days, reporting on individual form
and making predictions about the outcome. The event may be watched by
an audience of hundreds of thousands of New Zealanders, and will be the
subject of much debate afterwards. Overnight and for the rest of the week,
broadcasters and journalists will prepare and publish commentary eagerly
consumed by supporters.

THE VALUE OF SPORT
7
The importance of valuing the benefits of
sport and recreation
Sport and recreation are highly valued in New Zealand. Individuals and
communities invest considerable amounts of time and money in sport and
recreation. There are more than 15,000 sport and recreation clubs at a local
level, supported by approximately 776,000 volunteers. Large areas of New
Zealand are managed by the Department of Conservation ‘for conservation,
scientific and recreational purposes’. Local councils invest billions of dollars
in indoor and outdoor sport and recreation facilities that cater for everyone,
from youngsters first learning to chase after a ball to professional athletes
competing in front of a television audience of millions. Community clubs and
private businesses complement these public facilities by providing their own
goods and services to New Zealanders engaged in sport and recreation.
Given this high level of public and private investment, it is important to have
some shared understanding of the benefits (minus any costs) produced by
participation in sport and recreation. This is recognised internationally, where
there is considerable interest in valuing the benefits of sport and recreation.
In Europe, for example, researchers and statisticians are working towards
creating Sport Satellite Accounts (which sit alongside the National Accounts)
for countries in the European Union. More generally, it is now commonplace
for provinces and regions around the world to commission studies on the
contribution of sport and recreation to their local economies.
Consequently, SPARC commissioned Professor Paul Dalziel to prepare a
comprehensive framework to value the benefits of sport and recreation in
New Zealand. The framework was designed to be consistent with similar
overseas research and it used the latest available data.
These new estimates update those from studies carried
out more than a decade ago for the Hillary
Commission. The work also drew on a more recent
preliminary analysis completed for SPARC by NZIER.
A full copy of the AERU report The Economic and Social
Value of Sport and Recreation to New Zealand (which
includes much more detail, including information
about data sources and reports referred to here)
can be downloaded from the SPARC website.
On an average day,
200,000 people watch
rugby, netball and
tennis matches on TV
One-third of New
Zealand’s total land
area is managed by
the Department of
Conservation
New Zealand
households spend
$1.3 billion on sports
goods and equipment
– as much as they spend
on dining out
Central government
spends $500 million on
sport and recreation

8
Report content
Following this introduction, section 2 provides an overview of the main results.
Sections 3 to 5 then describe how the economic and social value of sport and
recreation in New Zealand has been estimated in three steps.
1. The first step focuses on industries producing goods and services directly
for participants in sport and recreation (this provides an estimate for a
narrow definition of the sector).
2. The second step broadens the definition of the sector to include four items:
a) .the contribution of people who are employed in sport and recreation
.occupations but outside the sport and recreation industries
considered in step one;
b) .central government investment associated with the delivery of the
.sport and recreation components of The New Zealand Curriculum in
schools;
c) .local council investment in new sport and recreation facilities; and
d) the contribution of sport and recreation volunteers.
3. The third step considers the increased productivity and health benefits
from taking part in sport and recreation, and other social and personal
benefits enjoyed by participants that justify the amount of time they
spend on sport and recreation.
The report finishes in section 6 with a proposed set of indicators that can be
used to track progress of the value of sport and recreation to New Zealand in
future.

THE VALUE OF SPORT
9
2. Valuing Sport and
Recreation in New Zealand
How is economic activity valued?
When national statisticians estimate the value of an economic activity, they
use a technique known as value added. Consider a single enterprise, such as
a farm. During a year, the farm might earn revenue from sales of livestock
of $1,000,000 but might make payments totalling $600,000 to suppliers of
goods and services used by the farm, such as feed, fencing posts, veterinary
services and financial advice. These ‘inputs’ are provided by other enterprises,
and so the farm’s ‘value added’ is $400,000. It is the difference between
total revenue and total payments, and is the source of the wages and salaries
paid to the farm’s employees, as well as the profits earned by the farm’s
owners.
Sales of $1,000,000
minus costs of $600,000
(for goods and services
used in production) =
value added of $400,000
This same approach can be applied to an industry or sector of the economy
(see Figure 1). The value added by the farming sector is calculated by adding
up the total revenues of all the farms in the country and then subtracting
all the total payments made by the farms. If we add up the value added in
all the economy’s sectors, this produces the statistic called gross domestic
product (better known as GDP). The most common measure of a sector’s
size is the amount of its value added expressed as a percentage of GDP, since
this is the sector’s share of the total value added in the national economy.
Figure 1
Calculating a sector’s value added
VALUE
ADDED
TOTAL
REVENUE
TOTAL
PAYMENTS
Using this approach, it is possible to estimate the size of the sport and
recreation sector’s contribution (or value added) to New Zealand’s GDP.
Following overseas studies, this estimate can be based on a narrow definition
of the sector or on a broader definition that is more encompassing.

10
The market value
of sport and
recreation to the New
Zealand economy is
$5.2 billion
or 2.8% of GDP
The market value of sport and recreation to
the economy
The sport and recreation sector accounts for $5.2 billion or 2.8 per cent of
GDP. This is the market value using a broad definition of the sector. How this
estimate is calculated is explained below and illustrated in Figure 2.
Figure 2
Estimated market value of sport and recreation in New Zealand, 2008/09
17 Sport and
Recreation Industries
$3,844 million
(2.1% of GDP)
Plus $672 million
Physical and Human
Infrastructure
= $4,516 million
(2.4% of GDP)
Plus $728 million
Market Value
of Volunteers
= $5,244 million
(2.8% of GDP)
Plus $ ???
Value of other
industries reliant
on Sport and
Recreation activities
(not measured)
Estimated market value is $5,244 million or 2.8% of GDP
The inner oval in Figure 2 shows the value added by 17 industries that
produce goods and services necessary for sport and recreation (see Table 1 in
Section 3). This is the narrowest definition of the sport and recreation sector.
In 2008/09, these industries contributed $3.8 billion or 2.1 per cent to New
Zealand’s GDP.
The second oval includes an additional $672 million from:
(i) incomes of people working in sport and recreation occupations outside
of the 17 industries – for example, a recreation guide employed by a hotel
(hospitality industry);
(ii) investment by central government in sport and recreation education in
schools; and
(iii) local councils’ expenditure on new sport and recreation facilities.
This begins to broaden the definition of the sector and takes the contribution to
$4.5 billion or 2.4 per cent of GDP.
The third oval takes into account volunteered services, which are particularly
important in the sport and recreation sector. The additional $728 million comes
from assigning a volunteer wage rate of $14.19 per hour to the 51.3 million
hours volunteers spend supporting sport and recreation over a year. This takes
the contribution of the sport and recreation sector to $5.2 billion or 2.8 per
cent of GDP (including volunteered services).
These are conservative estimates because the study was not able to find data
to measure everything that the sport and recreation sector contributes to the
economy (for example, from sports broadcasting). This feature of the study is
reflected in the figure’s final oval, for which there is no value at present.

THE VALUE OF SPORT
11
The total value of sport and recreation to
the economy
The study was able to extend the economic measure in Figure 2 with
estimates of the social and personal benefits from participation in sport and
recreation, the non-market value. This takes the estimate of the total value
of sport and recreation to New Zealand to over $12 billion ($12,192 million).
How this estimate is calculated is explained below and illustrated in Figure 3.
Figure 3
Estimated total value of sport and recreation in New Zealand, 2008/09
The total benefits from
sport and recreation
are valued at over
$12 billion
Measured Market
Value of Sport
and Recreation
$5,244 million
Plus $1,038 million
Productivity and
Health Benefits
= $6,282 million
Plus a further
$5,910 million
Opportunity Cost
of Time in Sport
and Recreation
= $12,192 million
Plus $ ???
Unmeasured Market
Values and non-
Market (Social and
Personal) Benefits
from Sport and
Recreation
Estimated total value (market and non-market) is $12,192 million
In Figure 3 the first oval shows the market value of sport and recreation in
2008/09. This figure is the same as that shown in the third oval in Figure 2.
The market value is only part of the picture. Physically active people have
higher work productivity and better health outcomes than people who
are not active. The 2007/08 Active New Zealand Survey found that 20 per
cent of adults are physically active because of participation in sport and
recreation. Estimating a dollar value of this group’s increased productivity
and improved health, minus the costs from accidental deaths and serious
sport and recreation injuries, produces an estimate of additional benefits of
$1.0 billion, shown in the second oval of Figure 3.
People spend a large amount of time participating in sport and recreation
(including acting as volunteers or watching young people play organised
sport). This participation must produce personal benefits to justify this time,
which could be spent in other beneficial activities. The study uses New
Zealand’s statutory minimum wage to value this time, which produces a
further $5.9 billion of net personal benefits, as shown in the third oval.
20% of adults get
the benefits of being
active by taking part
in sport and recreation
Adults spend 400
million hours a year
taking part in sport
and recreation
Family time – adults
spend 75 million hours
watching children play
sport
As in the previous diagram, these first three ovals do not include everything
that the sport and recreation sector contributes to the national economy,
leaving a fourth oval with no estimate of the value at present.
Sections 3 to 5 explain in more detail how the estimates in Figures 2 and 3
have been calculated.

12
3. The Sport and Recreation
Sector - Narrowly Defined
New Zealanders value sport and recreation
Over 36,000 people
work in sport and
recreation industries
– more than work in
construction and on
dairy farms
Note: The list in Table 1 is
conservative. Although some
industries include activities that are
not within the scope of this study
(for example, some people employed
in some amusement parks), this is
balanced by the exclusion of other
industries that have a large sport
and recreation component (such as
sports journalists or people employed
in the broadcasting industry who
broadcast and present sport events
and commentary on free-to-air
or subscription television).
Viewed in economic terms, businesses producing goods and services directly
for sport and recreation are at the heart of the sector. These businesses include
manufacturers and retailers of sports and recreation equipment, as well as
individuals involved in sports coaching, recreation guiding and related activities.
Taking this economic view of the sector, we have identified 17 industries that cater
in some way for sport and recreation. This is a narrow definition of the sector.
Table 1 shows how many people are employed in each of these 17 industries (using
data from the 2006 Census). The total of 36,831 represents 2.0 per cent of all
people employed. This is more employees than were recorded in the Census for the
house construction sector (36,093) and for the dairy cattle farming sector (33,510).
Table 1
Employment in sport and recreation industries, 2006
Industry
Number
Amusement and Other Recreation Activities (not elsewhere classified) 1,959
Amusement Parks and Centres Operation 936
Boatbuilding and Repair Services 3,963
Health and Fitness Centres and Gymnasia Operation 3,054
Horse and Dog Racing Administration and Track Operation 702
Horse Farming 1,404
Nature Reserves and Conservation Parks Operation 2,853
Other Horse and Dog Racing Activities 1,392
Physiotherapy Services 2,175
Sport and Camping Equipment Retailing 3,777
Sport and Physical Recreation Administrative Service 1,698
Sport and Physical Recreation Clubs and Sports Professionals 4,320
Sports and Physical Recreation Instruction 2,136
Sports and Physical Recreation Venues, Grounds & Facilities Operation 4,377
Toy and Sporting Goods Wholesaling 1,299
Toy, Sporting and Recreational Product Manufacturing 738
Source: Statistics New Zealand,
Census 2006 data,
ANZSIC06 V1.0.
Turf Growing 48
TOTAL 36,831

THE VALUE OF SPORT
13
Using the data in Table 1 and official estimates by Statistics New Zealand of
contributions to GDP, it is possible to estimate the value added by these 17
industries. This estimate is shown in Table 2. The Statistics New Zealand data
are for the financial year 2006/07 (the most recent data available), and so
the last two rows of the table convert the estimate into 2008/09 values. This
produces an estimate of $3.8 billion, which was 2.1 per cent of GDP in
2008/09.
This contribution of the sport and recreation sector (narrowly defined) was
very close to that of the machinery and equipment manufacturing sector
($3.9 billion in 2006/07 values) and larger than that of the accommodation,
restaurants and bars sector ($3.6 billion).
Table 2
Contribution to GDP of sport and recreation industries, 2006/07
The most conservative
estimate puts sport
and recreation’s
contribution to the New
Zealand economy at
$3.8 billion or
2.1% of GDP
This is almost on a par
with the machinery
and equipment
manufacturing
sector
Industry
Contribution
to GDP
($ millions)
Amusement and Other Recreation Activities (not elsewhere classified) 220.0
Amusement Parks and Centres Operation 105.0
Boatbuilding and Repair Services 297.8
Health and Fitness Centres and Gymnasia Operation 343.1
Horse and Dog Racing Administration and Track Operation 79.0
Horse Farming 35.6
Nature Reserves and Conservation Parks Operation 320.7
Other Horse and Dog Racing Activities 156.5
Physiotherapy Services 129.9
Sport and Camping Equipment Retailing 185.0
Sport and Physical Recreation Administrative Service 190.6
Sport and Physical Recreation Clubs and Sports Professionals 485.2
Sports and Physical Recreation Instruction 103.3
Sports and Physical Recreation Venues, Grounds & Facilities Operation 491.8
Toy and Sporting Goods Wholesaling 144.8
Toy, Sporting and Recreational Product Manufacturing 46.6
Turf Growing 2.2
TOTAL (measured in 2006/07 values) 3,337.0
TOTAL (measured in 2008/09 values) 3,844.4
Contribution to GDP (per cent) 2.1%
Source: Statistics New Zealand, National Accounts data and Census 2006 data.

14
4 . The Sport and
Recreation Sector
- Broadly Defined
Over 8 out of 10
overseas visitors
walked or trekked
during their stay in
New Zealand
Companies benefit
from New Zealand’s
strong sporting profile
– clothing exporters,
for example, capitalise
on this to sell their
products worldwide
The sport and recreation sector can be defined more broadly than the 17
industries considered in the previous section. First, the study found that in
the 2006 Census 45.7 per cent of people employed in sport and recreation
occupations were employed outside the 17 sport and recreation industries.
Second, previous studies had emphasised the importance of central
government spending on sport and recreation education in schools. Third,
local councils spend millions of dollars constructing new sport and recreation
facilities. Fourth, consideration must also be given to the market value of
the substantial contributions made by volunteers in the sport and recreation
sector. This section explains how these four contributions were valued.
Even including these four components doesn’t tell the whole story. As
the full report explains, other economic activities could be included if the
relevant data were available. To give some important examples, sports
broadcasting, merchandising to spectators and supporters, international
tourism involving sport and recreation activities, and the associated money
spent on accommodation and hospitality all contribute to the economy.
The contribution of the wider
employment sector
The study identified 42 occupations in the 2006 Census that could be
classified as sport and recreation employment, grouped into five headings
as shown in Figure 4. There were 25,251 people employed in these
occupations. Nearly 11,000 people were coaches, instructors, guides or
teachers, either in sports (7,170 people) or recreation activities (3,738
people). Another 4,872 people were involved in sport and recreation
administration and care of facilities. There were just over 1,000 professional
sportspersons and officials.

THE VALUE OF SPORT
15
Figure 4
Employment in sport and recreation occupations, 2006
Sportspersons & Officials
1,077
Sports Coaches & Instructors
7,170
Recreation Guides & Teachers
3,738
Administration & Facilities
Sport & Recreation Support
4,872
8,394
Almost 50,000 people
work in the sport and
recreation sector
0 2,500 5,000 7,500 10,000
11,000 people are
coaches or instructors
Source: Statistics New Zealand, Census 2006 data.
The study found that, in total, almost 50,000 people were employed in sport
and recreation industries and occupations. Figure 5 shows how this number
is derived.
Nearly 5,000
people are sports
administrators
Figure 5
Total employment in the sport and recreation sector, 2006
36,831 total
25,251 total
Sport and
Recreation
Industries
23,112 13,719 11,532
Sport and
Recreation
Occupations
Total employment in the sector = 48,363
Source: Statistics New Zealand, Census 2006 data.
The diagram shows the overlap between the categories, with 13,719
people employed in sport and recreation occupations that are in sport and
recreation industries. Another 23,112 people were employed in sport and
recreation industries in more general occupations (e.g. accountants and
receptionists) and 11,532 people outside these industries were employed in
sport and recreation occupations.

16
The money earned by
people employed in
sport and recreation
occupations adds
$400 million
to the economy
Five per cent of the
National Curriculum is
devoted to sport and
recreation
A five per cent
share of teachers’
salaries – to deliver
this sport and
recreation education
– adds $172 million
to the economy
In 2008/09, council
spending on sport and
recreation facilities
added $100 million
to the value of the
construction sector
Census data record the personal income earned by people employed in
sport and recreation occupations. Using these data, the study estimated
that the total annual personal income for people in the sport and recreation
occupations was $875 million (2006 data adjusted to 2009 values). For
those employed in sport and recreation industries, these incomes are
already counted in section 3. However, 45.7 per cent of people (11,532)
were employed outside the 17 industries, and so their income share, $400
million, must be added in a broader definition of the sector.
The contribution of spending on sport and
recreation education
The New Zealand Government makes a substantial investment in sport
and recreation education in schools. The New Zealand Curriculum specifies
eight learning areas: English, the arts, health and physical education,
learning languages, mathematics and statistics, science, social sciences, and
technology. The third of these areas, ‘health and physical education’, includes
seven items of which the last three are physical activity, sport studies and
outdoor education. Hence, based on a count of these items, just over five
per cent (i.e. three-sevenths of one-eighth) of The New Zealand Curriculum is
related to sport and recreation.
The study uses this figure to estimate the share of salaries in primary and
secondary schools used to cover the sport and recreation items of the
national curriculum. This produces an estimate of $172 million in the
Government’s 2008/09 fiscal year.
The contribution of local government
Statistics New Zealand undertakes a Local Authority Census to collect financial
information on the activities of all New Zealand’s councils (regional councils
and territorial authorities). This includes spending on new sport and recreation
facilities, as shown in Figure 6. There was a sharp increase in 2008/09 to $345
million, as some regions upgraded or developed a range of sport and recreation
facilities, from pools to multipurpose centres. The study estimates the value
added by this spending in the construction sector would have been $100 million.
Figure 6
Local government net spending on sport and recreation facilities, 2003-2009
400
345.4
300
$ millions
200
222.4
147.7
172.8
100
106.9
74.0
91.6
0
2003 2004 2005 2006 2007 2008 2009
Financial Years
Source: Statistics New Zealand Local Authority Census.

THE VALUE OF SPORT
17
The contribution to GDP from the sport and
recreation sector - broadly defined
Table 3 shows that including these three additional amounts increases the
contribution to GDP in 2008/09 of the sport and recreation sector to $4.5
billion. Thus, the share of the sector broadly defined is 2.4 per cent of GDP.
Table 3
Contribution to GDP of the sport and recreation sector - broadly defined,
2008/09
Industry
Contribution of the sport and recreation sector
– narrowly defined (see section 3)
Contribution to
GDP ($ millions)
3,844
Broadening the
definition of the
sector increases
sport and recreation’s
contribution to
the New Zealand
economy to
$4.5 billion or
2.4% of GDP
Sport and recreation incomes outside the sport
and recreation industries
Central government investment in sport and
recreation education
Local government value added to the construction
sector from spending on new sport and recreation
facilities
400
172
100
TOTAL ($ millions) 4,516
Gross Domestic Product (2008/09) 184,987
TOTAL (percentage of GDP) 2.4%
Source: Statistics New Zealand and New Zealand Treasury data.

18
The contribution of volunteers
Three-quarters of a
million volunteers
contribute 50 million
hours of their time to
sport and recreation
This time is valued at
$728 million
Adding in the value
of volunteer services
increases the total
market value of sport
and recreation to
$5.2 billion
or 2.8% of GDP
Analysis of SPARC’s 2007/08 Active New Zealand Survey estimates that
volunteers contributed over 50 million (51.3 million) hours to sport and
recreation in 2007/08. The services produced by these volunteers are
valuable to participants in sport and recreation and so it is possible to
estimate the market cost if these services had been provided by employees
instead of volunteers.
Statistics New Zealand has shown how this can be done in New Zealand
through its Non-profit Institutions Satellite Account for 2004 (published
in 2007). Updating to 2009 values, that study estimates the total value of
volunteered services in New Zealand to be $3,867 million. Applying the same
method to volunteers in the sport and recreation sector, this study estimates
that the market value of these services in 2009 was $728 million.
Table 4 shows the result of including this analysis. Including the market value
of volunteer services in the calculations increases sport and recreation’s
contribution to GDP to $5.2 billion. To estimate what percentage of GDP
this is, we need to extend the definition of GDP to include volunteered
services. As Table 4 shows, this was $188.9 billion in 2008/09 and the sport
and recreation sector’s share of GDP (including volunteered services) was
2.8 per cent.
Table 4
GDP including the value of volunteered services, 2008/09
Gross Domestic
Product
Volunteered
Services
Extended
GDP
Sport and recreation
($ millions)
4,516 728 5,244
Totals ($ millions) 184,987 3,867 188,854
Per cent 2.4% 18.8% 2.8%
Source: Statistics New Zealand and SPARC data.

THE VALUE OF SPORT
19
5. Social Benefits of
Sport and Recreation
Participation in sport and recreation activities produces a wider range of
personal and social benefits (non-market) than simply providing economic
opportunities for businesses producing sport and recreation goods and
services. There is international evidence, for example, that participants in
sport and recreation are on average more productive in employment and
enjoy better health outcomes. There are also costs from participation,
particularly accidental deaths and serious injuries. Table 5 summarises the
benefits and costs included in this study and the remainder of this section
explains how these figures have been calculated.
The economy benefits
from people who live
active lives as they are
more productive and
healthier
Table 5
Direct benefits and costs from participation, 2009
Benefits and Costs
Estimated Value ($ millions)
Increased work productivity $281
Improved health outcomes $3,947
Total Personal Benefits $4,228
Accidental premature deaths – $336
Suffering from injuries – $1,887
Other costs of injuries – $967
Total Personal Costs – $3,190
Total Net Benefits $1,038
Source: Various sources as explained in the text.
Calculating productivity and health benefits
A recent Australian study estimates that the overall average labour
productivity loss caused by physical inactivity corresponds to a direct loss
of 1.8 working days per worker per year. Assuming 240 working days per
annum, this implies that the work productivity of a physically inactive person
is 0.75 per cent lower than that of a physically active person. The 2007/08
Active New Zealand Survey reports that 20 per cent of the adult population
are counted as physically active because of their participation in sport and
recreation.
Inactive people are
less productive.
Based on an Australian
study, an average
worker loses 1.8
working days per year
if they are inactive

20
People who are
active are more
productive. Based
on the Australian
study, this is valued at
$281 million
People who are
active are healthier
and less likely to
die prematurely. In
New Zealand current
activity levels mean
over 1,000 early
deaths are avoided,
bringing benefits of
$3,947 million
Serious sport and
recreation injuries
and accidental deaths
cost New Zealand
$3.2 billion
Weighing up the
benefits and costs,
shows a benefit of just
over $1.0 billion
Based on these figures, if 20 per cent of the New Zealand labour force had
been less productive by 0.75 per cent because they were inactive rather
than actively engaged in sport and recreation, then the overall loss to GDP
in 2008/09 would have been $281 million. The fact that 20 per cent were
actively engaged means this loss was not incurred and so the $281 million is
counted as a positive in the calculation of benefits.
Again using Australian data, the estimated premature death rate of the
inactive adult population is 1,725 deaths per million, or 0.1725 per cent. From
the 2007/08 Active New Zealand Survey we can estimate that 652,880 New
Zealanders are physically active due to sport and recreation. If these people had
not been physically active, there would have been an extra 1,126 premature
deaths in New Zealand that year. The Ministry of Transport currently estimates
that the value of avoiding a premature death caused by a road accident is
$3,504,900 (called the Value of Statistical Life). Adopting this figure, avoiding
an extra 1,126 premature deaths provides a social benefit of $3,947 million.
The Accident Compensation Corporation publishes data on accepted injury
claims, including claims for death benefits. In recent years, the number of
accepted claims for death benefits from a sporting or recreation accident has
varied between 90 and 120 per annum. In the year ending June 2009, the
number was 96. Using the Ministry of Transport’s Value of Statistical Life,
these 96 fatal accidents imply a negative contribution of $336 million.
Participating in sport and recreation risks injury. Most injuries are minor
and the main impact is that the person cannot continue in their sport or
recreation activity until the injury heals. But other injuries have a potentially
large impact on the person’s quality of life. To estimate the impact on life
quality and other costs of sport and recreation injuries, this study used
a method from a 2010 study, which was part of the New Zealand Injury
Prevention Strategy (NZIPS). That study estimates the burden of injuries in
New Zealand under seven headings: assaults; falls; drownings; motor vehicle
injuries; suicide/self-harm; workplace injuries; and non-priority injuries.
Almost all drownings and a significant number of falls are likely to be sport
and recreation accidents. So this study counts three items from the NZIPS
study: 50 per cent of the contribution of falls; the total contribution of
drownings; and the total contribution of non-priority injuries. This leads to
estimates that sport and recreation injuries in 2009 reduced quality of life by
$1,887 million and involved other costs equal to $967 million.
Adding up the benefits and costs in Table 5, shows a total net benefit of just
over $1.0 billion for 2009.

THE VALUE OF SPORT
21
Calculating personal benefits
Another way to estimate benefits enjoyed by sport and recreation
participants is to consider the value that must be added to a person’s quality
of life from participating in their chosen activities. People must ‘value’ sport
and recreation sufficiently to justify the time they spend taking part in these
activities, rather than other activities. This is illustrated in Figure 7 (which
can be compared with Figure 1 earlier in the report). To justify participation,
personal benefits (column 1) must be greater than total costs (column 2).
The costs include actual payments for equipment, clothing, club fees, and
so on, plus the value of the person’s time spent participating (time costs).
The actual payments are revenue to industries in the economy, so that the
‘value added’ in this context can be defined as personal benefits minus
these payments (column 3). As the diagram shows, the value added must be
greater than the time costs, otherwise people would not take part in sport
and recreation.
The time people spend
taking part in sport
and recreation can be
valued in dollar terms
– these are the nonmarket
benefits
The next step is to value the time spent in sport and recreation. This study
has included the hours spent as an active participant, as a volunteer and as
an adult watching young people play organised sport. Time spent in these
activities could have been used to earn income. The fact that the person
did not make that choice, but chose instead to participate in sport and
recreation, indicates that the person obtains more value from the sport
and recreation than would have been obtained from further employment.
In order to adopt a conservative approach, the statutory minimum wage
($12.75 per hour) is used to value this time, even though most people are
able to earn a higher hourly rate than this figure. 1
Figure 7
Personal benefits and costs of participation
TIME
COSTS
VALUE
ADDED
PERSONAL
BENEFITS
ACTUAL
PAYMENTS
ACTUAL
PAYMENTS
1
This approach is known as revealed preference and is used by economists to value what
is referred to as the opportunity cost of time spent taking part in activities that do not
have a direct market value like paid employment.

22
Data from two surveys allows estimates to be made of the time adults spend
taking part in sport and recreation, acting as volunteers and watching young
people play organised sport. Table 6 shows these estimates.
Time spent
participating and
volunteering in sport
and recreation, and
supporting young
people’s sport is
valued at $6.9 billion
– this is the total value
of personal benefits
The total value
includes productivity
and health benefits of
$1.0 billion
The result, therefore,
is an extra $5.9 billion
worth of personal
benefits
Adding up all the
benefits – market and
non-market – gives
an overall total of
$12.2 billion
Table 6
Total time spent by all adults in sport and recreation, 2009
Hours Total Value
Activity (millions) ($ millions)
Participation in sport and recreation activities 418.7 5,338
Providing volunteered sport and recreation services 51.3 654
Watching young people play organised sport 75.0 956
TOTAL $6,948
Source: Data drawn from the 2007/08 Active NZ Survey and data drawn from the National Survey
of Children and Young People’s Physical Activity and Dietary Behaviours in New Zealand: 2008/09.
Note: The third estimate is based on an assumption that for every two children taking part in
organised sport, there is on average at least one adult watching the children play.
Using the statutory minimum wage ($12.75 per hour) to calculate the value
of the time associated with these activities, the largest value is for the active
participation of adults, calculated at $5.3 billion, followed by the value of
the time adults spend watching young people’s active participation, valued
at $1.0 billion. The total value of these benefits is $6.9 billion. These benefits
include the productivity and health benefits of $1.0 billion described above,
and so this analysis has revealed an extra $5.9 billion worth of personal
benefits beyond those calculations.
The total value for personal and social benefits estimated in this study
is a substantial figure. It more than doubles the market value of sport
and recreation estimated in previous sections to give an overall figure
of the value of sport and recreation to New Zealanders of $12.2 billion
($12,192 million – see Figure 3). (Note: this figure cannot be expressed as a
percentage of GDP as it is not possible to extend the total value of GDP to
include these and other non-market benefits.)

THE VALUE OF SPORT
23
6. Conclusion
This study has built on international and previous New Zealand studies to
present a comprehensive framework for measuring the benefits from sport
and recreation in New Zealand, and to provide estimates of the value of
these benefits, where relevant data have been available. The research has
produced four major results, all of which have been conservatively estimated:
• The contribution of the sport and recreation sector (narrowly defined) to
GDP in 2008/09 is estimated to have been $3.8 billion, or 2.1 per cent.
• The contribution of the sport and recreation sector (broadly defined) to
GDP in 2008/09 is estimated to have been $4.5 billion, or 2.4 per cent.
• The contribution of sport and recreation to GDP including volunteered
services in 2008/09 is estimated to have been $5.2 billion, or 2.8 per
cent.
• The total value of sport and recreation to New Zealanders in 2008/09 is
estimated to have been at least $12.2 billion when the opportunity cost
of time is included.
A recent study by NZIER found that the dairy sector directly accounts for 2.8
per cent of GDP, or $5 billion. New Zealand’s sport and recreation sector,
broadly defined and including the market value of volunteered services, is
comparable in size to this mainstay of the national economy.
Consequently, the sector makes a significant contribution to New Zealand’s tax
base. For the year ending June 2009, the Government’s taxation revenue was
$54,145 million and GDP was $185,349 million, implying a tax-to-GDP ratio
of 29.2 per cent. The contribution of the sport and recreation sector (broadly
defined) to GDP in 2008/09 was $4.5 billion. Assuming that the sector
generates the same average tax rate as other sectors, this implies tax revenue
of $1.3 billion. Central government spending on sport and recreation in
2009/10 was estimated to be $483.1 million (see the full report for details) and
so the tax revenue is more than two and a half times the level of expenditure,
representing an excellent return on the Government’s investment.
The sport and
recreation sector
contributes the same
amount to the New
Zealand economy
as the dairy sector.
Each sector
contributes around
$5 billion or 2.8%
of GDP
The sport and
recreation sector
generates tax revenue
of $1.3 billion
For central
government,
spending on sport
and recreation is an
excellent return on its
investment

24
Tracking progress
This observation emphasises the importance of maintaining a healthy sport and
recreation sector that continues to grow, and the need to track this growth.
This report, therefore, proposes an ‘indicator dashboard’ to monitor a number
of statistical indicators that will enable the sector’s progress to be tracked.
A comprehensive
indicator dashboard
to track growth in the
sector’s contribution
to the economy is
proposed
More and better
data and improving
the measurement of
non-market benefits
will give an even
better picture of
sport and recreation’s
contribution to the
economy
A Sports
Satellite Account
is an extension of a
country’s National
Accounts and is
recommended to
measure the full
economic value of the
sport and recreation
sector in New Zealand
The dashboard would be based on the framework developed for this study,
which suggests five principles for public policy.
Principle 1: Participation – Ensuring New Zealanders of all ages are
able to enjoy participation in sport and recreation activities.
Principle 2: Professions – Ensuring the sport and recreation sector can
create employment opportunities for New Zealanders
(including elite athletes) to earn a living.
Principle 3: Production of Goods and Services – Ensuring the New Zealand
sport and recreation production industries thrive and grow.
Principle 4: Provision of Infrastructure – Ensuring New Zealanders can access
high quality sport and recreation facilities, and core services.
Principle 5: Promotion and Profile – Ensuring that opportunities created
by New Zealand’s sport and recreation profile are used to
promote other industries.
The full report describes the indicators that can be used for each of these
principles.
Improving data sources and estimates
Although this study has gone much further than previous New Zealand
studies of the benefits of sport and recreation, it also uncovered areas where
further research would be valuable. This includes more work on identifying
and measuring the non-market benefits of sport and recreation, further
research on sport and recreation in schools and ongoing development of
data sources in New Zealand.
This study shows that sport and recreation involve a significant share of
New Zealand’s economic resources. Robust information is required to
aid the efficient use of these resources. Studies in Europe also show the
economic value of the sport and recreation sector, and the European Union
is working towards creating satellite accounts (attached to their official
national accounts) to provide a comprehensive and robust measure of the
contribution of the sport and recreation sector. Professor Chris Gratton (from
the Sport Industry Research Centre at Sheffield Hallam University in the UK)
has recently recommended that Australia and New Zealand should also work
towards this goal.
This study has estimated that the sport and recreation sector is 2.4 per
cent of GDP (excluding the contribution of volunteers, which is part of the
non-profit sector). This is comparable to the size of the country’s non-profit
sector (2.6 per cent of GDP in 2003/04) for which Statistics New Zealand
has already produced a satellite account. This comparison adds weight to
Professor Gratton’s recommendation.

THE VALUE OF SPORT
25
Appendix:
Key Facts and Estimates
The study has produced four major headline results, all of which have been
conservatively estimated:
• The contribution of the sport and recreation sector (narrowly defined) to
GDP in 2008/09 is estimated to have been $3.8 billion, or 2.1 per cent.
• The contribution of the sport and recreation sector (broadly defined) to
GDP in 2008/09 is estimated to have been $4.5 billion, or 2.4 per cent.
• The contribution of sport and recreation to GDP including volunteered
services in 2008/09 is estimated to have been $5.2 billion, or 2.8 per cent.
• The total value of sport and recreation to New Zealanders in 2008/09 is
estimated to have been at least $12.2 billion when the opportunity cost
of time is included.
Each chapter in the full report produced its own set of key facts and
estimates. These are reproduced here under their chapter headings that
make up ‘the six Ps of valuing sport and recreation’. The full report can be
downloaded from SPARC’s website.
Chapter 2: Participation in Sport and
Recreation in New Zealand
• 92 per cent of young people surveyed by the Sport and Physical Activity
Surveys in 1997, 1998 and 2000 had taken part in one or more sports or
physical activities during the previous two weeks.
• 51 per cent of secondary school students were recorded in the NZSSSC
census as having a meaningful involvement with a school sports
programme in 2010.
• Young people reported in the 2008/09 National Survey of Children and
Young People’s Physical Activity and Dietary Behaviours that they spent on
average 29 minutes per day (203 minutes per week) in organised sport.
• 96 per cent of adults reported in the 2007/08 Active New Zealand
Survey that they had taken part in one or more sport and recreation
activities over the previous 12 months. If walking and gardening are
excluded, the percentage is still at 83 per cent.
• Adults reported in the 2007/08 Active New Zealand Survey that they
spent on average 149 minutes per week on sport and recreation activities.
• 25 per cent of adults reported in the 2007/08 Active New Zealand
Survey that they had volunteered their time for one or more sport and
recreation activities.
• Analysis for SPARC estimates that over the course of a full year,
volunteers contribute 51.3 million hours to sport and recreation.

26
Chapter 3: Professionals and Volunteers in
the Sport and Recreation Sector
• As at 11 February 2011, 522 individuals from 16 sports were ‘carded’
by the New Zealand Academy of Sport in recognition of their ability/
potential to deliver against the SPARC High Performance mission.
• The 2006 Census recorded 48,363 people (2.6 per cent of those in
employment) reporting that they worked in a sport and recreation
occupation or in a sport and recreation industry (or both).
• The total income earned in 2005/06 by people in sport and recreation
occupations is estimated to have been $792.6 million (equivalent to $875
million in 2008/09 values), which implies an average annual income in
those occupations that year of $31,391.
• The market value of volunteered services to the New Zealand sport
and recreation sector in 2007/08 was $704 million, or $728 million in
2008/09 values.
Chapter 4: Producers of Sport and
Recreation Goods and Services
• The value-added contribution of the sport and recreation sector
(narrowly defined) to GDP in 2008/09 is estimated to have been
$3.8 billion, or 2.1 per cent.
• Total revenue generated by enterprises in selected sports and recreation
categories in 2008 is estimated to have been $4.7 billion, 22.3 per cent
of which came from sports and physical recreation venues, grounds and
facilities operation.
• Total spending by households on selected sports and recreation
categories in 2006/07 is estimated to have been $1.3 billion, or 1.6 per
cent of total expenditure.
• Based on six categories of commodity exports and imports clearly
related to sport and recreation, in 2010 the sector’s exports are
estimated to have been $451.4 million and its imports are estimated to
have been $446.6 million.

THE VALUE OF SPORT
27
Chapter 5: Providers of Sport and
Recreation Infrastructure
• The contribution of the sport and recreation sector (broadly
defined) to GDP in 2008/09 is estimated to have been $4.5 billion, or
2.4 per cent.
• The contribution of sport and recreation to GDP including
volunteered services in 2008/09 is estimated to have been $5.2
billion, or 2.8 per cent.
• Just over five per cent of the topics in The New Zealand Curriculum for
schools clearly involve sport and recreation education.
• 35 per cent of secondary school teachers were recorded as being
involved with school sport in 2010.
• Central government’s spending on sport and recreation in the 2009/10
fiscal year was budgeted to be $483.1 million.
• Local government fixed assets for sport and recreation in the 2008/09
financial year are estimated to have been valued at $7.0 billion.
• Statistics New Zealand recorded 14,910 sports non-profit institutions as
at October 2005, only 9.3 per cent of which employed any paid staff.
Chapter 6: Promotion of Sport and
Recreation to Spectators and Supporters
• Rugby, netball and tennis television broadcast programmes all had an
average daily reach of around 200,000 people in 2009/10.
• A recent survey suggests that one in 10 New Zealanders attend a
sporting event in a week, with rugby union being the most popular
spectator sport.
• Another survey estimated that New Zealanders buy almost 2 million
tickets for sports events at an average price of $31 per ticket.
• As one example, Westpac Stadium in Wellington hosted 32 sports
events involving a total of 482,901 spectators in the 2009/10 financial
year; independent analysis estimates that it has provided on average an
economic benefit of $48.4 million and 673 full-time equivalent jobs to
the Wellington region.
• 85 per cent of international visitors whose main purpose was holiday/
vacation in 2009 said they had gone walking and trekking during their
visit; 47 per cent said their visit had included boating.
• A Covec study by Vuletich and Trent (2009) identified 664 sports and
recreation events in Auckland in 2008, involving an estimated 1,492,000
people.
• New Zealand’s international profile as a great place for sport and
recreation is explicitly used by fashion clothing export enterprises to
market their products.

28
Chapter 7: Personal Net Benefits from
Participation in Sport and Recreation
• Taking into account the number of New Zealand adults who meet physical
activity guidelines through participation in sport and recreation, the gross
personal benefits as a result of increased work productivity and improved
health outcomes are estimated to have been $4.2 billion in 2009.
• Taking into account the economic costs from premature deaths and
serious injuries incurred while involved in sport and recreation activities
(estimated to have been $3.2 billion), the net personal benefits are
estimated to have been $1.0 billion in 2009.
• The total number of hours New Zealand adults spent participating in
sport and recreation in 2008/09, including watching young people in
organised sport and acting as volunteers, is estimated to have been
544.9 million hours.
• Using the statutory minimum wage to value conservatively the
opportunity cost of time spent in sport and recreation activities, a
broader estimate of the net personal benefits to New Zealanders
from sport and recreation in 2008/09 is $6.9 billion.

Ground Floor, 86 Customhouse Quay, Wellington 6011
PO Box 2251, Wellington 6140, New Zealand
Phone: +64 4 472 8058 Fax: +64 4 471 0813
www.sparc.org.nz 129118