An Overview - Sport New Zealand

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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.
Page 1 and 2: The Economic and Social Value of Sp
Page 3 and 4: THE VALUE OF SPORT 1 Foreword I am
Page 5 and 6: THE VALUE OF SPORT 3 Tables Table 1
Page 7 and 8: THE VALUE OF SPORT 5 Sport and recr
Page 9 and 10: THE VALUE OF SPORT 7 The importance
Page 11: THE VALUE OF SPORT 9 2. Valuing Spo
Page 15 and 16: THE VALUE OF SPORT 13 Using the dat
Page 17 and 18: THE VALUE OF SPORT 15 Figure 4 Empl
Page 19 and 20: THE VALUE OF SPORT 17 The contribut
Page 21 and 22: THE VALUE OF SPORT 19 5. Social Ben
Page 23 and 24: THE VALUE OF SPORT 21 Calculating p
Page 25 and 26: THE VALUE OF SPORT 23 6. Conclusion
Page 27 and 28: THE VALUE OF SPORT 25 Appendix: Key
Page 29 and 30: THE VALUE OF SPORT 27 Chapter 5: Pr
Page 31: Ground Floor, 86 Customhouse Quay,

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