An Overview - Sport 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.