An Overview - Sport New Zealand

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