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Sport and recreation contributed an estimated $245.2 million to the economy of the Australian Capital Territory in 2008/09, according to a newly released report that details the valuable contribution that sport and recreation makes to the ACT economy and community.

The report, ‘Building an Active Community: Economic Contribution of Sport and Recreation in the Act’, undertaken by Access Economics for ACT Sport and Recreation, highlights the broad social footprint of sport and recreation (along with fitness) and its contribution to community wellbeing. As the report states “importantly, the sector’s reach extends beyond the direct economic activity generated and it also plays an important role in the broader preventive health agenda.”

Key messages from the report include:

• The sport and recreation sector’s economic contribution to the ACT is estimated to be $245.2 million in 2008-09. This contribution comprises four key elements: the direct contribution of sport and recreation organisations; the contribution from retail spending on sporting equipment; the preventive health benefits provided by physical activity; and the benefits of sports related tourism.

• In direct economic terms, the sport and recreation sector contributes about $159 million to the ACT economy, representing about 0.6% of Gross Territory Product.

• The sport and recreation sector is highly labour intensive. It contributes just over 2,860 full-time equivalent (FTE) workers to the economy, with about 75% of value added generated by the sector going to wages. There are also high levels of volunteerism in the sector.

• The net contribution of sport and recreation tourism remains difficult to measure. However, based on four major community-based events, including the Kanga Cup Football, the sector appears to generate a meaningful tourism contribution to the ACT economy. The four events examined are estimated to generate about 38,000 visitor nights, produce about $4.7 million in additional expenditures and about $2 million in value added, and support 39 full time equivalent workers.

• Physical inactivity is one of the greatest risk factors to the health of Australians. By facilitating and promoting greater levels of exercise, the sport and recreation sector plays a vital role in improving community health.

• The financial health benefits generated through the sector by preventing the incidence of key chronic diseases associated with physical inactivity are estimated to be $84.5 million in 2009. 

• While the ACT has the highest levels of exercise particpation in Australia, a significant portion of the community is still inactive. Accordingly, there is considerable scope to improve overall participation levels. This would increase the financial payoff from better health - should inactivity in the ACT be halved, the potential additional health-related benefits could be around $47.2 million.

• The ACT Government plays an integral role in directly providing sport and recreational facilities. There is also a broader role for government in encouraging greater participation and increasing community awareness of the benefits of greater physical activity.

• Looking forward, the sector faces a range of challenges. In large part, these relate to changing consumer preferences and ensuring infrastructure and facilities are responsive to community needs.

• Balancing the many and varied interests of the sector will also be critical to developing a cohesive policy approach; one that can contribute to the broader productivity and preventive health agendas.

The report’s Executive Summary also highlights the importance of fitness as a major employer in the sport and recreation sector, stating “many people are attracted to the industry because of its flexible employment arrangements.

“Peak demand for many employees in the industry is early in the morning and late in the afternoon, this results in a large proportion of employees engaged on a casual basis - with many using the industry as a secondary source of income.”

The report then gives the example of Alive Health Fitness stating that the club “has been in business since 2004 and currently own and operate two gyms in the ACT and surrounding region. In total, the company employs 59 people with 11 full-time staff, five part-time and 46 casual staff members. Through its flexible employment options, particularly casual employment, the company employs mothers returning to the workforce, people with full-time jobs for a secondary income and students.”

Introducing the report, ACT Minister for Tourism, Sport and Recreation; Andrew Barr wrote that the report “provides an insight into just how valuable the industry is.”

Read the full report at www.tams.act.gov.au/__data/assets/pdf_file/0005/199931/ACT_Sport_-_Final_report_-_August_2010.pdf

Image: The Kanga Cup.

21st July 2010 - CONSULTANCY TO ‘REVIVE THE SOUL’ OF SPORT AND RECREATION

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