Economic Impacts of Major Age Group Football Tournaments held in the Central North Island Region

Report prepared for Sport Hawkes Bay by Economic Solutions Ltd.

Sport Hawkes Bay

2010

Sport Hawke's Bay

active@sporthb.net.nz

This report provides an analysis of the potential economic benefits accruing to the ‘Central Region’ of the North Island, from the hosting of major national and international age-group football tournaments. The report has been requested by the ‘Central Football’ organisation based in Napier, to assist it in having a high-quality information base to use in both promoting the merits of staging the tournaments in the region and seeking active local resource and other support for the holding of the tournaments in the area.

As requested by Central Football, the economic benefit assessment provided in the detailed report covers five particular national and international tournaments, these being the New Zealand Under 19s Men’s event traditionally run over Labour Weekend in Napier, three secondary school/ age-group football competitions and an Oceania Under 17s or Under 19s tournament.  The sub-regional profile of these tournaments which provided the focus for the economic impact assessment was Hawke’s Bay (the Labour Weekend national U19s competition, one of the secondary school/ age-group competitions and the Oceania age-group competition); Taranaki (one of the secondary school/ age-group tournaments and the Oceania tournament) and Manawatu (also as per the Taranaki case).

Central Football requested that the analysis covers both visitor spending (the dominant spending category) generated by the tournaments and the costs of running the tournaments.  The organisation contributed to the base information required to enable the calculation of the total direct spending generated by the tournaments collectively. This spending was calculated at approximately $2.49 million. In addition, the total direct spending generated by the tournament profile for each of the three sub-regions was also calculated – Hawke’s Bay $1.24 million, Taranaki $0.91 million and Manawatu also $0.91 million.  All these values provided the base figures for the economic impact modelling process in relation to the total tournament programme itself and the specific programme for each of the three regional areas.

The economic impact modelling assessment was undertaken by Dr Warren Hughes, Honorary Fellow of Economics of the University of Waikato and now working as a private economic impact consultant based in Auckland. Dr Hughes applied the above expenditure figures to specially constructed and up-to-date input-output models of the Hawke’s Bay, Taranaki and Manawatu regions. These models enable the multiplied/flow-on impacts of the direct expenditure to also be determined for these areas, at the community-wide level.  Economic impacts are traditionally measured using four different variables, these being Gross Output or Total Revenue, Net Household Income, Employment or Jobs, and Regional GDP or Value Added. These measures are defined in the detailed report but essentially relate to the value of total economic activity.

Keywords:

Sport, Impact, North Island, New Zealand, Benefit, Economic

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