The Value of Sport & Physical Recreation to Tasmania

Abstract

This report introduces a model of ‘Sport and Physical Recreation Value’ that locates the discrete values of Sport and Physical Recreation (SPR) and, for the first time, illustrates the dynamic way they interact. The model used in this report estimates the costs and benefits of SPR in a single region, Tasmania. The key findings of the report are that in the financial year 2008-2009: The sum of benefits enjoyed by Tasmania as a result of SPR is conservatively estimated to be $5.6 billion, delivering over $4 value for every $1 invested by the whole community — that is a 400 per cent return. The estimated contribution by all tiers of government to SPR of $100 million is repaid 50 times over in returns to the community. Our health system saved $60.2 million as a direct result of SPR-enabled physical activity. The financial cost of SPR injury was $3.1 million. Tasmanian households, businesses and government collectively spent $613.1 million on SPR, and invested a further $677.2 million in labour and assets. 36 500 Tasmanians aged 15 years and over volunteered for SPR for over three million hours — the equivalent of nearly 1 800 full-time jobs in the community. Nearly one in three tourists to Tasmania participated in SPR. After paying $188.4 million in related taxes (nearly double the all-of-government investment in SPR) and employing over 13 000 people, Tasmanian firms enjoyed $184.4 million in profits that can be directly attributed to SPR. There are even greater economic benefits to be had by investing in ways to encourage increased community participation in regular SPR. Our principal finding is that although the current levels of investment in SPR yield a strong return, a more economically efficient outcome can be achieved by increasing the regular rate of participation. For example, a 10 per cent increase in SPR participation would generate an additional $905.3 million in annual benefits. The model proposed by this report is therefore a useful tool for enabling and explaining cost benefit analysis, and for evaluating SPR policy alternatives in support of this aim.