An Overview - Sport New Zealand

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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.
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 and 12: THE VALUE OF SPORT 9 2. Valuing Spo
Page 13 and 14: THE VALUE OF SPORT 11 The total val
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: THE VALUE OF SPORT 19 5. Social Ben
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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