IC 1997 Business of Sports

The Business of Sport
An examination
of the dimensions of
the Sport and Recreation
Industry in Victoria
ISBN: 0731108213
The Business of Sport is published by Sport and Recreation Victoria, a portfolio of the
Department of State Development, PO Box 2392V, Melbourne, Victoria 3001,
Australia.
Telephone: (03) 9666 4200 Facsimile: (03) 9666 4266.
Contact: Alun Breward, Research Officer, Industry Development Group, Sport and
Recreation Victoria.
All enquiries may be forwarded to the above address.
The information contained in this report is supplied in good faith and derived from
sources believed to be reliable and accurate, but no responsibility is accepted by the
Department of State Development for the accuracy of any statement, opinion or advice
contained in the text.
Material from this report may be used for appropriate purposes. Acknowledgement
would be appreciated.
2
Contents
Executive summary 5
Introduction 7
1. The sport and recreation industry 10
2. The value of sport and recreation 18
3. Major events and elite sports 26
4. Participation in sport and recreation 36
Appendix 1. Australian and New Zealand Standard Industrial Classification 51
Appendix 2. Methods of calculating economic activity in specific industries 53
Appendix 3. Estimating the economic impact of major events: summary

of the method of the National Institute of Economic and Industry Research 54
Appendix 4. Participation according to gender, age and usual residence 56
4
Executive summary
The past twenty years have seen the emergence of Sport and
Recreation as a major service industry that shapes the investment
attractiveness of cities and regions and enhances their liveability.
As it is so young and dynamic, awareness of the potential of the

industry within business and government is still growing and industry
analysis has yet to develop fully. Nevertheless, while we are still
working towards a full picture of the industry and its impact, there is
much we already know.
The industry
Sport and Recreation is now one of the top ten industries (both in Victoria and nationally) for
job growth. In the ten years to 1996, employment in the Victorian sport and recreation industry
grew at an average 6 per cent per year. This growth exceeded that achieved in the
accommodation, cafés and restaurants industry and was five times faster than the rate of job
growth across the economy as a whole.
Current data indicates that:
over 1900 sport and recreation businesses operate in Victoria
the industry employs at least 26 000 people (some studies have indicated substantially
higher numbers are employed)
volunteers provide around 20 million hours of time to the industry
the industry has recorded a decade of pace-setting job growth.
Over the past 25 years, a number of Victorian sport and recreation companies have grown to
become leaders in their field. For example, Rip Curl has established one of Australia’s best
known brand-names, while Camatic Seating has fitted out stadiums from the MCG to the Main
Stadium at the Atlanta Olympics.
Economic value
It is estimated that the sport and recreation industry contributes $2.3 billion per year to the
Victorian economy. This does not include substantial side benefits such as reduced medical
costs that result from people keeping active, fit and healthy.
The most recent figures available, from the 1993–94 financial year, indicate that:
households spent $1.6 billion on the sport and recreation industry (more than they spent on
alcoholic beverages)
5
the private sector invested $305 million constructing sports facilities
State and Local Governments spent around $330 million
in total, the industry was worth more to our economy than the accommodation, cafés and
restaurants industry.
It is important to recognise that these impressive figures actually understate the economic
significance of the industry. They do not take into account tourism associated with sport and
recreation, the sporting media, sports marketing and promotions, or business spending on retail
and manufacturing infrastructure.
Major events and elite sports

Victoria’s ability to successfully host world-class events and cater for elite athletes is a major
contributor to the State’s international image, particularly through annual events such as the
Australian Open Tennis and Australian Formula One Grand Prix. Major events showcase the
State overseas and interstate, boosting interest in Victoria as a place to visit and do business.
As a result of Victoria’s expertise:
Victoria hosts three of the five sporting events that Australians rank as the nation’s most
important
at least one major event will be held in Victoria each month throughout 1997
an estimated $524 million will be added to our economy as a result of these events
the State’s elite sports training continues to deliver impressive results (individually or as
part of a team, Victorians were medal winners in 18 of the 40 events where Australia won
medals at the Atlanta Olympic Games).
Reinforcing the State’s image as a successful host of major events, Victorians have a well-
deserved reputation as sports fanatics, being more likely to attend a sporting event than other
Australians and holding many sporting attendance records.
Participation
Victorians are active people. The range of pursuits that they undertake is astounding, including
over 100 activities ranging from Australian Rules football to trugo. Their activities, likes and
dislikes shape the range of products and services that the industry provides and stimulate its
development and innovation.
An examination of Victorians’ sport and recreation activity shows that:
the percentage of Victorians taking part in sport and recreation, in terms of activities
organised by a club or association, is slightly above the national average
when participation in unstructured activity is added to organised activity, 77 per cent of
adult Victorians take part in sport and recreation
younger Victorians are more likely to participate than older Victorians
Victorians’ most popular team sports (which younger Victorians favour) are netball,
Australian Rules football, and basketball, while the most popular physical activities are
walking for exercise, swimming, and golf (which are most popular with older Victorians).
All the evidence suggests that as long as the industry continues to provide opportunities for
participation that are enjoyable and tailored to individual needs, its robust growth can be
6 expected to continue.
Introduction
The sport and recreation industry

Sport and recreation constitute an integral part of the lives of individual Victorians and our
overall community identity. Whether it is through our world-class sporting events, the
recreational opportunities available in Victoria’s great outdoors, or in local facilities such as
swimming pools and parks, sport and recreation enrich us all.
Over recent decades the tremendous appeal of sport and recreation has resulted in the
development of a significant, dynamic sport and recreation industry. Although the industry is
constantly developing and changing, a definition developed by the Commonwealth Government
gives the best indication of the industry’s breadth and complexity. It describes the industry as
encompassing five sectors.
Sport
the provision of facilities and services for people to engage in competitive activities within
institutional structures and requiring physical effort and skills
Outdoor Recreation
the provision of recreation opportunities involving interaction with the natural environment
Fitness
the provision of services which contribute to physical fitness
Community Recreation
the provision of recreation services in local settings, including community education,
recreation for people with special needs, unstructured sport, and festivals
Racing and Gambling
activity concerned with the racing industry and other gambling services (except casinos).
Definitional practicalities
Despite the widespread support for the above definition, the reality is that much of the existing
statistical data does not fit this particular framework. This is most apparent with estimates of
economic growth and employment. These are compiled on the basis of the Australia and New
Zealand Standard Industrial Classification (ANZSIC) ‘Industry 93’ which includes activity in
casinos, and excludes much sport-dependent activity (e.g. sports goods retailing). This puts the
ANZSIC definition at odds with the broad industry definition.
As a result, although the sport and recreation industry encompasses all those elements that are
depicted below, this report is often required to utilise the available data which covers just the
ANZSIC portion of the industry.
7
Note: Lines indicate links to other parts of the sport and recreation industry that are not recognised in the ANZSIC
definition
What drives the industry?

People’s participation in sport and recreation is the industry’s driving force, leading to the sales
of tracksuits, swimwear, footballs, sports shoes, golf clubs and hockey sticks (to name just a few
of the goods active Victorians need). Changing consumer needs and tastes have also played a
part, stimulating the expansion of the industry to meet emerging activities such as in-line skating
and beach volleyball.
Coupled with this has been an increase of Government and business involvement, aiming both
to emphasise the health benefits of an active lifestyle and to capitalise on the commercial
opportunities that sport and recreation provide. This has resulted in the development of state-of-
the-art facilities and has seen sport and recreation become factors in efforts to attract business
investment to Victoria.
Analysing the industry

Despite some limitations of the data, a considerable amount is available that is informative.
The sources from which data has been drawn include the 1997 State Supplementary Survey, the
Household Expenditure Survey, the National Public Accounts, the Engineering Construction
Survey, the Labour Force Survey, the Volunteers Australia Survey, the survey of Attendance at
Sporting Events, the Population Survey Monitor (all conducted by the Australian Bureau of
Statistics), and other sources such as the WorkCover business database, reports by the National
Institute of Economic and Industry Research and Sweeney Sports’ publication ‘Australians and
Sport’.
8
Structure of the report
The report consists of four sections and includes a number of business case studies which
highlight the dimensions and diversity of the industry.
1. Assesses employment generated by the industry, the profile and nature of businesses within
the industry, and trends shaping their growth.
2. Describes the scale of economic activity in the industry, including household expenditure,
business expenditure and government spending.
3. Examines the importance of major events and elite sport, including data on spectator
numbers and profiles of some world-class events held in Victoria.
4. Presents an analysis of participation patterns of Victorians.
Soccer, Australia vs New

Zealand, Melbourne 1997
Greg Ford/Sporting Pix Australia
9
1. The sport and recreation industry
Since the late 1970s, there has been an

increasing awareness that the area of sport and
recreation constitutes a distinct and significant
industry. In part this reflects business and
government recognition of this area’s potential,
both as a stand-alone industry and as a major
influence on business decisions relating to the
liveability and investment appeal of cities. It
also results from major changes in the
economy, where many service industries such
as sport and recreation have emerged, driving
economists to revise their thinking on the
economy.
Defining the industry – a statistical perspective

Despite the broad awareness of the industry’s importance and
growth, major economic classification systems, such as the
Australian Bureau of Statistics’ (ABS) Australian and New
Zealand Standard Industrial Classification (ANZSIC), have
only recently begun to reflect the industry’s complexity. This
classification underpins a significant portion of the information
presented in this report and its coverage is set out in detail in
Appendix 1.
However, this ANZSIC definition still meshes rather poorly
with that which has been developed by the Commonwealth
Government (as described earlier). It includes casinos, which
are not part of the preferred industry definition, and excludes
a large range of sport-dependent economic activity that falls
within the Commonwealth Government’s broad industry
framework. Efforts are still clearly required to bring the two
into closer alignment.
10
1997 Sussan Women’s Classic
Sporting Pix Australia
11
Business case study
Rip Curl – the Australian surfing company
The name Rip Curl conjures up images of rolling surf, the beach, hot summer days and even
hotter surfing products. In fact, in a nationwide hunt for Australia’s brand icons in 1993, Rip
Curl was recognised as one of the symbols most readily identified with Australian culture – right
up there with Vegemite, Aeroplane Jelly and Four’n’Twenty Pies.
Rip Curl started back in 1969 as a small coastal business making surfboards. Next came the
surfing wetsuits and, as the company grew, it expanded its range of products to include
accessories and clothing. The company is now one of the most successful Australian-based
multinational enterprises of the 1990s – a long way from a small back yard in the coastal town of
Torquay.
The company’s Victorian manufacturing bases employ in excess of 200 people, but it has also
established bases in Europe, North and South America, South Africa and New Zealand, which
employ more than 400 people. In addition, there are now 1000 distribution outlets throughout
Australia and New Zealand and 2000 outlets throughout the rest of the world.
While the majority of sales remain in Victoria (30 per cent) and the rest of Australia (68 per cent),
inroads are being made into the international market. Since 1991–92, this innovative company
has recorded sales growth of 150 per cent.
The remarkable success of this Victorian company has been recognised by a number of
prestigious honours, including the Victorian and Australian Government Export Awards and the
Advance Australia Award.
Pam Burridge
Courtesy of Tourism Victoria
12
The business of sport and recreation in Victoria
Although it is based on incomplete ABS industry definitions, a detailed and up-to-date picture
of the sport and recreation industry in Victoria can be compiled using data from the Victorian
WorkCover Authority payroll database. This shows that the Victorian sport and recreation
industry consists of over 1900 firms and that over 100 of these (or 5.7 per cent) have annual
payrolls of more than one million dollars. In terms of staff, one million dollars of payroll is
regarded as the equivalent of 40 employees. It is also regarded as being the dividing line
between small and medium-sized businesses.
While the percentage of medium and large businesses may appear low at 5.7 per cent, it is in
fact significantly higher than the all-industries average of 3.3 per cent. Consequently the sport
and recreation industry has a greater proportion of medium and large businesses than does
Victorian industry overall.
However, it is important to note that the profile of the industry varies between sub-sectors, and
horse racing, for example, actually features a greater proportion of small businesses (98.3 per
cent) than the Victorian average (96.7 per cent). This is probably a result of the fact that many
horse-racing businesses are run in tandem with other means of earning a living.
Business case study

Hamlyn Lodge – horses for courses
If you know your horse-racing well and have a good memory, you might be able to gauge how
long Hamlyn Lodge has been in business from the fact that Silver Knight won the Melbourne Cup
the year its doors opened.
Since then 25 Cup winners have saluted the judge on that first Tuesday in November – including
Hamlyn Lodge’s own ‘What a Nuisance’in 1985 – and Hamlyn Lodge owner John Meagher has
built an outstanding business training racehorses. In a field where the risks are high and the
obstacles to success many, Hamlyn Lodge has now grown to employ 48 people.
Although it is Melbourne-owned and based, Hamlyn Lodge has had considerable success
winning overseas racehorse owners as clients, especially in countries such as Malaysia,
Singapore and Hong Kong. Over the past five years, Hamlyn Lodge has notched up 33 per cent
growth in export sales, which now account for 30 per cent of all its sales and are its fastest-
growing market. Sales within Australia have grown a healthy 20 per cent over the same period.
With sales up in both volume and value, a growing number of horses in training and a string of
recent awards – such as Leading Trainer, VRC Spring Meetings (1994–95) – Hamlyn Lodge’s
prospects look very promising.
13
The sport and recreation industry workforce
The workforce of the sport and recreation industry (particularly the sport, outdoor recreation
and community recreation sub-sectors) consists of both paid and unpaid workers (volunteers).
Paid workers
Estimates of paid employment in the sport and recreation industry vary considerably.
The ABS Labour Force Survey data for 1996 shows that the Victorian sport and recreation
industry (as defined by the ANZSIC) employed 25 600 people, both full and part-time. This was
1.2 per cent of all Victorian employment and made it a larger employer than industries such as
wood and paper products manufacturing, or services to the property industry, but a slightly less
significant provider of jobs than the printing and publishing industry.
By contrast an independent study of the racing industry, which was commissioned by the
Australian Racing Ministers’ Council in 1992, calculated that the Victorian racing industry alone
employed 32 800 persons, both full and part-time. This study took a broad-based approach,
counting all people working in racing. The Labour Force Survey, however, uses a far narrower
definition, only counting a person as employed by an industry if the majority of their working
time is spent in that industry. The discrepancy in estimates of sport and recreation employment
suggests that the Labour Force Survey’s strict definition may tend to miss a substantial number
of those people employed in sport and recreation.
Great Victorian Bike Ride

Joe Armao/The Age
Reproduced with permission
14
Despite the narrow definition underlying the ABS Labour Force data
on industry employment, the length of time for which it provides
data and its ready comparability with data on other industries make
it the best available.
Analysis of this Labour Force data shows that the most notable
characteristic of employment in Victoria’s sport and recreation
industry is that it has recorded a decade of pace-setting growth,
surpassing even the accommodation, cafés and restaurants industry
in job growth (see Chart 1.1). Over the decade to 1996, sport and
recreation employment in Victoria grew at around five times the
growth rate averaged by all Victorian industries and double the
growth rate over the rest of the country (see Chart 1.2).
As noted previously, ANZSIC data covers electronic gaming and
casinos, and the introduction of these to Victoria in 1992 and 1994 Chart 1.1: Victorian employment
growth 1986 to 1996
respectively would have had some significant impact on recent
Source: ABS, Labour Force Survey
industry job growth. However, Labour Force Survey data that
specifically shows the extent of their impact is not available.
Nonetheless it is important to note that in the years between 1986
and 1992 (before any impact of gaming), sport and recreation
industry employment was also growing at an average of 6 per cent
annually. It is therefore clear that the non-gaming areas of the sport
and recreation industry have been a significant driver of employment
growth over the past decade.
Unpaid workers (volunteers)

The labour provided to sport and recreation by volunteers is a major
resource for the industry.
The data shows that, in 1995, 20.5 million hours of time was
provided to the Victorian sport industry, by 167 000 volunteers. This
translates to an average of 123 hours per year per volunteer, or over Chart 1.2: Sport and recreation
employment 1986 to 1996
three full-time working weeks of effort donated per person. Looked
Source: ABS, Labour Force Survey
at in another way, it is equal to the number of hours worked by
10 800 full-time workers over the course of a normal working year.
This is equivalent to one-third of the worldwide workforce of Qantas
Airways.
In general, the amount of time supplied by individual volunteers
increases with age. Each of the volunteers in the 15 to 24-year-old
age-group donated an average of 73 hours per year, those in the 25
to 45 age-group averaged 114 hours per year, and those over 45 gave
an average of 161 hours annually (Chart 1.3).
The proportion of total volunteer hours supplied in Victoria is
greater on average than that provided in the rest of Australia.
Victoria accounts for 25 per cent of the nation’s adult population, yet
26 per cent of all volunteer hours clocked up in the industry were
supplied in Victoria.
15
Interestingly, the data indicates that Australians nationwide are less
likely to donate their time for volunteer duties in the 1990s than they
were during the 1980s. This is not surprising given the rapid change and
increased complexity in people’s daily lives during this period.
As a result, although there has been growth in the adult population, total
hours of volunteer labour donated in Victoria during 1995 were down 7
million (or 25 per cent) from the level of 1982, and the fall of 44 million
hours (or 36 per cent) nationally from the level of 1986 was even more
profound.
However, this overall decline has been cushioned by the fact that the
hundreds of thousands of persons still volunteering are providing
Chart 1.3: Hours per volunteer additional time on an individual basis (see Chart 1.3). In 1982, the
compared by age, region and average Victorian volunteer gave 112 hours of their time to the sport
decade industry – by 1995 this had risen to 123 hours. The average Australian
Source: ABS, National Sport and volunteer increased his or her donation of time by nine hours. Clearly,
Recreation Industry Database and
the Australia-wide perception in the industry that fewer people are
Directory (data from ‘Voluntary Work,
1995’): Department of the Arts, Sport, the working harder to support grass-roots sport and recreation is confirmed
Environment and Tourism (Technical by this data.
Paper 3)
Industry trends
The trends that are apparent in the sport and recreation industry are being driven by several
wider trends in Australian society.
A gradual ageing of the population as life expectancy increases, birthrates stay low and the
babyboomers grow older.
De-synchronisation in the times when people take their leisure, as demands on people’s
time continue to increase and work practices change.
Increased variety of leisure options.
Constraints on government spending together with a new degree of entrepreneurism in the
Australian economy.
The effect of the first two factors outlined above is that many traditional sports are experiencing
declines in participation, as more people undertake their recreation in their own time and in new
ways (triathlons, for example, have grown greatly in the recent past). These changes have also
meant that people are seeking to take their recreation in more time-effective ways and are
demanding new services which take their needs into account. Entrepreneurial activity also is
setting new directions in the sport and recreation industry.
A major result of the interaction of these underlying trends is that there is a tremendous change
underway in the composition of the industry’s workforce, as more people make their living in
sport and recreation. Voluntary activity is in decline as a source of labour in the industry at the
same time as paid employment in the industry grows. This is likely to ensure that standards in
the industry rise as both business people and consumers seek to maximise their respective
investments. Increased devotion of time to volunteer work by individual volunteers is also likely
to be part of this trend.
16
Changes in recreation preferences towards newer, more varied activities over a greater range of
time-frames have in turn given rise to development of new facilities better attuned to people’s
needs. In particular, this decade has seen the construction of an increasing number of multi-
functional recreation complexes, combining in the one location facilities for indoor sports,
weight and machine-based fitness activities, swimming and other community recreations.
Although government is often involved in establishing such facilities, increasingly they are
being funded and/or operated with non-governmental resources.
Perhaps the clearest sign of increasing entrepreneurial activity in the industry is the quantity of
funds going into sports entertainment. Corporate sponsorship of sport and recreation, in
particular, has been growing at a phenomenal rate as business attempts to capitalise on the
profile that sport and recreation can establish for their company and their products. As Chart 1.4
illustrates, sponsorship money provides a major new source of funds for the sport and recreation
industry. However, this is potentially more to the advantage of high-profile activities than grass-
roots sport and recreation.
Chart 1.4: Corporate funding of

sport and recreation
Source: The Australia Council, Corporate
Support for the Arts, 1996
1992 Barcelona Paraolympics, Australia vs USA

17
2. The value of sport and recreation
As a result of long-established conventions, the major data sources

developed to provide accurate information on the size and value of
the economy do not fully recognise the scope of the sport and
recreation industry. The Australian Bureau of Statistics (ABS) does
not recognise as belonging to this industry many firms that would be
out of business if there were no sport and recreation. The same
applies to sections of the workforce. This is principally due to the
dramatic growth and constantly changing nature of the sport and
recreation industry.
18
Under the current ANZSIC definition, the sport and recreation industry includes activity in:
horse and dog racing
the operation of sports facilities, stadia, lotteries, and gambling
the operation of sporting clubs and sports coaching
amusement parks.
However, this definition omits a great many areas of economic activity that depend on sport and
recreation, but which overlap with other industries where they are judged to belong. Some
notable examples of this are:
adventure and sports tourism
sport and recreation retailing
sport and recreation manufacturing.
Overall it is clear that the official data underestimates the importance of the sport and recreation
industry. Nevertheless, the existing data does provide information which indicates that the sport
and recreation industry is a substantial contributor to the overall economy.
1996 Ford Australian Open

Sport The Library
19
Growth of the industry
To date, the ABS has not generated sufficient data, over an
extended number of years, to enable the direct measurement
of the economic growth rate of the sport and recreation
industry.
However, by using data on employment in the industry,
which stretches back to 1985, it is possible to indirectly gain
some important insights into the rate of growth in the sport
and recreation industry.
Since 1986 (see Chart 2.1), employment in Victoria’s sport
Chart 2.1: Employment growth in and recreation industry as defined by the ABS ANZSIC
the sport and recreation industry classification has grown at an average rate of nearly 6 per
Source: ABS, Labour Force Survey cent per year, making it the sixth fastest in job growth out of
53 industries and massively outstripping the average job
growth rate for the economy (1 per cent per year).
Economic growth (except in unusual cases where output per
person is decreasing over time) is always more than the rate
of employment growth, the difference being the increase in
the amount an individual worker produces. This rate of
increase in what an individual worker produces is on average
around 1 per cent per annum, and in poorly performing
industries may sometimes go as low as minus 1 per cent per
annum. However, even accepting this extremely negative
scenario, the evidence shows that Victoria’s sport and
recreation industry has completed 10 years of 5 per cent
growth per annum, a rate that is double the growth in the
Victorian economy. In the process its share of the economy
would have grown by 25 per cent (see Chart 2.2). If, on the
other hand, sport and recreation output per worker has
increased by 3 per cent per annum, making the rate of
Chart 2.2: Victorian sport and recreation economic growth in the sector 9 per cent per annum, the
economic growth: scenarios industry in terms of economic importance will now be 80
Source: ABS, Labour Force Survey, National per cent larger than it was in 1986 (see Chart 2.2).
Accounts (State Accounts)
Another window on the economic performance of the
Victorian sport and recreation industry is available in the
ABS National Accounts series on industry output. This
series shows the performance of the Victorian cultural and
recreational services industry – an industry that incorporates
sport and recreation and two arts and culture industries
(specifically Motion picture, radio and television services
and Libraries, Museums and the arts). The data shows that
20
cultural and recreational services increased its output
between 1984 and 1995 at a rate well above the all-industry
average.
Referring back to the more detailed employment data for
guidance as to the relative growth rates of the three
industries that make up cultural and recreational services, it
is clear that sport and recreation compares favourably to the
others. The industry output growth of cultural and
recreational services can therefore be assumed to be a good
indicator of the growth of the sport and recreation industry.
Chart 2.3 graphs the output growth of the cultural and
recreational services industry.
Chart 2.3: Gross product (output)

growth in the Victorian cultural and
recreational services industry
Source: ABS, National Accounts (State
Household spending Accounts)
The most recent available data shows that in the financial

year 1993–94 (see Chart 2.4), Victorian households spent
$1.6 billion on their sport and recreation, a sum exceeding
the $1.4 billion that they spent on alcoholic beverages or the
$1.5 billion they spent on meat and seafood.
Contributing to this sizeable sum was $175 million spent on
sporting club subscriptions, $130 million spent on sports
equipment and $120 million spent on recreation equipment.
It is important to note that this $1.6 billion of spending could
not include any sums spent at Crown Casino as it did not
open until 1994–95, and at most includes $170 million spent
on Electronic Gaming Machines (EGMs).
After adjusting for inflation, this $1.6 billion was a little
lower than the sum that Victorian households spent on their
sport and recreation in the financial year 1988–89, and
around 20 per cent higher than the $1.35 billion that they
spent in 1984.
Chart 2.4: Expenditure by

Victorian households on sport
and recreation
Source: ABS, National Sport and
Directory (data from Household
Expenditure Survey, various years)
21
Model of Melbourne Sport and Aquatic Centre
Peddle Thorp Architects.
Business case study

Kea Sportswear
Kea Sportswear has achieved a great deal since it was established in 1988. Despite operating in
the sports clothing market dominated by well established and high-profile international brand
names, Kea Managing Director Mick Erwin has succeeded in building up a multi-million-dollar
international business in less than a decade.
Designing and producing tracksuits, jackets, netball clothing, tennis and golf wear, this
remarkable company clocked up nearly $5 million in sales in 1995–96, an increase of seven per
cent on 1994–95.
With its head office located in Hallam, on Melbourne’s outskirts, and employing 30 people, Kea
has expanded its operations into every State of Australia and that most complex of markets,
Japan. The company has not looked back, with Australia-wide sales having increased over 30
per cent and exports having doubled since 1991–92.
Such export success has not gone unnoticed with Kea winning the Victorian Government’s
Export Achiever Award in 1996.
22
Business expenditure
Business spending in the sport and recreation industry is difficult to measure from
ABS data. While data is available on the amount being spent on construction of
facilities in the sport and recreation industry, it is harder to specify other spending by
businesses in the industry. The spending of non-profit sport and recreation
organisations is also indeterminate.
Regardless of these gaps, facilities construction in the Victorian sport and recreation
industry during 1993–94 absorbed $305 million of private sector spending. This is
broadly equivalent to the cost of a landmark city office block such as 101 or 333
Collins Street (see Chart 2.5), and is a much larger contribution to the economy than
the private sector made to sports facility construction in New South Wales,
Queensland or South Australia.
Government consumption spending

ABS data on government spending is more complete, but is handicapped by the fact
Chart 2.5: Building costs
that some of the Commonwealth Government’s spending is provided directly to State – Victorian sport and
and Local Government, while some State Government spending goes directly to recreation spending
Local Government. Consequently it is difficult to calculate accurately the sums that compared 1993–94
are spent by government on sport and recreation, particularly in individual States. Source: ABS, National Sport and
However, conservatively estimated, ABS data shows that the combined consumption
Directory (data from ‘Building
spending of Victoria’s State and Local Governments amounted to $330 million in Activity, 1994’); Industry sources
1993–94. At the Local Government level this was spent on the operating costs of
facilities such as swimming pools, outdoor sporting amenities, and indoor sporting
complexes.
This amount ($330 million) is a little greater (see Chart 2.6) than the sum that the
State and Local Governments of Victoria spent on housing and about 70 per cent
higher than the sum they spent on agriculture, fishing and forestry .
Government investment spending

The same difficulties in calculating total government spending apply when it comes to
gauging the scale of government investment expenditure in sport and recreation.
However in 1993–94, local governments (which undertake a great deal of facilities
development) spent $129 million in the sport and recreation sector.
The Melbourne Sports and Aquatic Centre, which the Victorian Government has
constructed at a cost of $65 million over the last few years, provides a good example
of recent government investment in sports infrastructure.
Chart 2.6: Combined

Victorian State and Local
Government spending
Source: ABS, National Sport and
Directory (data from ‘Public
Finance Statistics 1993–94’):
Public Finance Statistics
23
Missing data on spending
The accuracy of the picture of the sport and recreation industry would be enhanced if quality
information was available on the spending of non-profit sport and recreation clubs, on corporate
spending in the sport and recreation industry and on consolidated government spending.
For example, where corporate spending is concerned, data on sums spent on admission to and
hospitality at major sport and recreation events (excluding sponsorship-based deals) would be
useful, as this effectively substitutes for spending that persons might otherwise have made in
their own right.
Overall economic contribution of the sport and recreation industry

Even with the partial information that is available from the ABS, it is clear that in 1993–94
the sport and recreation industry accounted for around $2.3 billion of the Victorian economy’s
$112 billion (see Table 2.1).
Table 2.1: Composition of Victorian Spending on Sport and Recreation 1993–94

Type of spending Value ($m)
Household 1 577
Government consumption 330
Government investment 129
Business investment 305
Total 2 341
This represents just over 2 per cent of the Victorian economy. The National Institute of
Economic and Industry Research, in 1995, calculated a similar figure (1.9 per cent of the
economy) for the economic impact of Victoria’s sport and recreation industry. The minor
difference stems from the use of slightly different methods of calculation. Details of these
methods are provided in Appendix 2.
This level of economic contribution makes sport and recreation of comparable significance to
the accommodation, cafés and restaurants industry, or the communication services industry.
In fact, the industry’s contribution is likely to be over $3 billion, when allowance is made for the
businesses and workers excluded from the ABS definition of the industry, gaps in spending data,
and the industry’s growth since 1993–94.
24
Health savings from sport and recreation
Besides the sums that flow through the economy from the sport and recreation industry, physical
activity generates substantial economic benefits for the community by improving participants’
health.
Moderate levels of regular activity have been found to lower the risk of cardiovascular disease
and to help prevent and remedy lower back pain. These two medical problems are very costly to
the Australian community. Cardiovascular disease is the most expensive disease category to treat
in terms of hospital, ambulance, pharmaceutical and professional resources. Lower back pain is
a significant factor in low worker productivity and workplace absenteeism.
An analysis of the relationship between moderate physical activity and costs to the community in
terms of health expenditure and reduced production was performed for the Commonwealth
Government Department of Arts, Sport, Environment and Territories in 1988. It estimated that for
every 10 per cent of the population exercising regularly and moderately:
$104 million is saved annually from national expenditure on cardiovascular problems
$1.5 million per day is saved by reducing spinal problems
allowing for the annual costs of injury resulting from physical activity (estimated at
$28 million) a net benefit to the economy of $590 million results per year (equivalent to
around $800 million in today’s terms).
This means that the 30 per cent of the population who are exercising to a medium or high level
are saving themselves and the Australian community around $2.4 billion per year.
Going for the green

25
3. Major events and elite sports
A notable strength of the

Victorian sport and recreation
industry is its capacity to
attract and conduct world-
class events, to cater to elite
athletes and their needs and,
above all, to attract
spectators.
The Victorian Government

has recognised the importance
of attracting hallmark events
and outstanding sports people
to Victoria. This provides a
direct benefit to the Victorian
economy as well as offering a
tremendous opportunity to
boost Victoria’s profile and
attract business to our State.
Major events
Major events contribute to international
investor confidence in Victoria by
positioning Melbourne internationally as
a place to visit and do business. They
demonstrate the resources and expertise
of our business community and
workforce, as well as the passion of
Victorians for sport and an active
lifestyle.
26
Saintly wins the Melbourne Cup
Ray Kennedy/The Age
Reproduced with permission
Major Event Profile
Spring Racing Carnival 1996
Victoria’s Spring Racing Carnival is recognised as a premier horse racing event that includes
some of the most important races on the international calendar. The Carnival combines hundreds
of separate events covering sports, arts, culture and entertainment, and attracts visitors to
Victoria from overseas and from around Australia. The main event of the Carnival is the running
of the Melbourne Cup on the first Tuesday in November.
Event details
Date of event 16 October–16 November 1996
Race meeting attendance
(major metropolitan race
days and country races) 472 000
Attendance at Melbourne Cup 90 149
Economic impact
Estimated economic impact $174 million
Event exposure
Media coverage The Melbourne Cup is televised nationally and to over 200
international television stations.
The Carnival is featured in the print media across Australia
and in at least eight other countries.
Source: Estimated Economic Impacts of the 1996 Spring Racing Carnival (IER Pty Ltd: Strategic Consultants);
Tourism Victoria
In the 1996 Government report Victoria – The Story So Far, 4th Annual Report, the role of major
sporting events in promoting Victoria is highlighted.
… Victoria is renowned worldwide for its major events. Nowhere else comes under such focussed
international attention, nor do they achieve this status so often each year.
This is no idle boast. A recent nationwide survey, by Sweeney Sports, found that three of the top
four annual sporting events are held in Victoria – the AFL Grand Final, the Melbourne Cup and
the Australian Open Tennis. As the following calendar shows, in 1997 scarcely a month will
pass when Victoria does not play host to a major sporting event which people across the country
and the world will be watching.
28
January Ford Australian Tennis Open
Sail Melbourne
February Australian Masters Golf Championship
March Qantas Australian Formula One Grand Prix
Bells Beach Surf Classic
National Athletics Championships
World Beach Volleyball Classic
April Autumn Racing Carnival
May National Soccer League Final Series
June Grand Sumo Wrestling Tournament
July Bledisloe Cup Rugby Union International
August World Youth Basketball Championships
September AFL Grand Final
Australian University Games
October Australian 500cc Motorcycle Grand Prix
Spring Racing Carnival
November Melbourne Cup
December Boxing Day Cricket Test.
The popularity of Victoria’s sporting events

When attendance at arts festivals and sporting events is compared it is interesting to note that
more people attended sporting events such as the Spring Racing Carnival and the Australian
Open Tennis than festivals such as the Melbourne International Festival of the Arts and the
Melbourne Comedy Festival (see Chart 3.1).
Chart 3.1: Attendance at one or more annual

events
Source: ABS, Leisure Participation Victoria (1996 State
Supplementary Survey)
29
The economic impact of major events
While economic impact assessments are not available for every event on Victoria’s sport and
recreation calendar, and methods of assessing economic impact vary, an overall assessment
indicates there is substantial economic value and potential in this area of activity within the
industry. The following table details the significant economic benefit which the 1997 calendar of
major sporting events can be expected to generate for Victoria (Table 3.1).
Table 3.1: Estimated economic impact of major Victorian sporting events

Estimated value
Event ($million)*
Annual
Australian Formula One Grand Prix1 96
Australian Masters Golf3 4
500 CC Motorcycle Grand Prix1 63
Ford Australian Open Tennis1 70
AFL Grand Final5 40
Spring Racing Carnival2 174
Total 407
Other
Australian Universities Games6 7
Asian Veterans’ Table Tennis Championships3 1
Bledisloe Cup4 61
Grand Sumo Wrestling Tournament3 1
National Athletics Championship3 1
National Schools Volleyball Cup3 2
UCI-BMX World Championship3 2
World Youth Basketball Championship3 2
Total 77
Grand total 1997 524
Source: 1 – National Institute of Economic and Industry Research (for a summary of their method see Appendix 3);
2 – IER Pty Ltd; 3 – Organiser, travel industry and other sources; 4 – Melbourne Major Events Company; 5 – Victorian
Employers’ Chamber of Commerce and Industry (for 1997 Final); 6 – Haines, Muir, Hill (figure excludes local attendees)
*Estimates are the latest recorded or projected
The number of overseas tourists attending these events is substantial. For example at just six of
these events for which data is available, estimates put the number of overseas tourists attending
at over 48 000 (see Table 3.2). This is estimated to be over 10 per cent of all overseas holiday
makers coming to Victoria.
30
Table 3.2: Estimation of overseas tourist numbers at major sporting events (summary)
Overseas
persons
Event Source attending
Transurban Australian Grand Prix (1996) Economic Impact Study
(Final), p.(ii), (NIEIR) 11 045
Ford Australian Open (1997) Economic Impact Study
(Prelim), pp.(i) & (ii), (NIEIR) 13 788
Spring Racing Carnival (1996) Estimated Economic Impact of
1996 SRC, p2, (IER) – percentage
of overseas visits to all events x
attendance at Melbourne Cup 6 311
Bledisloe Cup 1997 Tourism Victoria, travel industry 15 000
Under 23 World Basketball Championship Event organisers 1 000
Sumo Championship Exhibition Event organisers, travel industry 1 000
Total attending events 48 144
World-class sports people

In addition to its ability to host and attract major sporting events, Victoria is notable for its elite
sports people both in competition and in training.
Victorians made up 31 per cent of Australia’s 1996 Olympic Team.
Individually or as part of a team, Victorians were medal winners in 18 of the 40 events
where Australia won medals at the Atlanta Olympic Games.
At the Atlanta Para-Olympics Victorians won five gold, six silver and one bronze medals.
Victorians won over 40 gold medals at the 1994 Commonwealth Games, representing 48
per cent of all medals won by the Australian team.
Victorian coaches and academics in sports education, sports medicine and sports science are
highly regarded internationally, especially in Asia.
This in turn creates considerable opportunity for business, and the Government has moved to
capitalise on this by establishing the Melbourne Sports Training Coordination Centre to attract
foreign teams wishing to train in Australia in the lead-up to the Sydney Olympics and beyond.
Ongoing relationships have already been cemented with a range of teams from many countries.
These include hockey teams from Japan and Korea, weightlifters from Malaysia and swimmers
from Sri Lanka and Singapore.
Phillip Island 500cc

Grand Prix
Courtesy of Tourism
Victoria
31
Major Event Profile
Transurban Australian Grand Prix 1996
The Formula One Grand Prix is one of Australia’s premier sports events and has been hosted by
Melbourne at Albert Park since 1996. The international profile of the event provides a boost to
business confidence, improves export opportunities for Victoria and assists in the promotion and
generation of tourism to Victoria.
Event details
Date of Event 7–10 March 1996
Estimated total attendance 400 000 over four days
Estimated visitor numbers
(international and interstate) 31 000
Economic impact
Estimated visitor expenditure
(by interstate and
international visitors) $24 million
Estimated economic benefit $96 million
Estimated employment 2 270 positions (annual equivalent)
Event exposure
Media coverage Extensive worldwide coverage to over 120 countries
reaching up to 440 million viewers
Source: National Institute of Economics and Industry Research (NIEIR) 1996
Australian Grand Prix

Courtesy of DSD Marketing
32
World-class sports infrastructure
Melbourne has won the right to be the Australian city bidding for the 2006 Commonwealth
Games. This major international sporting event involves approximately 6000 competitors from
78 countries and should provide an economic benefit for Victoria of over $210 million.
As part of the bid the Government of Victoria has committed itself to the construction of a
number of new facilities including:
an international standard velodrome
redevelopment of Royal Park hockey and netball facilities
an upgrade of shooting facilities.
These will complement a range of world-class facilities including the Melbourne Cricket
Ground, Melbourne Park, the recently upgraded athletics track at Olympic Park, the new
Melbourne Sports and Aquatic Centre at Albert Park, and a proposed new 50 000-seat
football/soccer stadium with retractable roof at the Docklands.
Business case study

Camatic Seating – the best seat in the house
If you’ve been to a major sporting event recently, Camatic probably made your day more
comfortable and enjoyable. Camatic has been in the business of commercial seat manufacturing
for stadiums and theatres for over 40 years and is a major player in this industry, having fitted
out the Southern Stand of the MCG with 41 000 seats in 1992.
In 1995–96, Camatic recorded $25 million in sales – 50 per cent in Victoria, 30 per cent in the
rest of Australia and an impressive 20 per cent overseas. The company has been particularly
successful in entering the Asia-Pacific market, but probably its greatest triumph was winning the
contract to provide 87 000 seats for the main stadium at the Atlanta Olympics.
This Victorian-based company, which has recorded a staggering sales growth of 250 per cent
since 1991–92, employs 140 people. In recognition of its success, Camatic received the Victorian
Premier’s Export Award in 1994.
Spectators
Underpinning all of this is of course the huge number of Victorians who turn out as spectators at
sporting events, giving Victoria a reputation across Australia for being ‘sports mad’. Sweeney
Sports’ 1996/97 survey results indicate that the percentage of Melburnians attending horse-
racing, tennis and triathlon events is greater than for any other capital city of a mainland State.
For basketball, Australian Rules football and netball, Melburnians come a close second to
residents of Adelaide. Further evidence of Victorians’ love of the big occasion can be seen in the
fact that the MCG holds the Australian attendance records for:
Australian Rules (121 696 at the 1970 Grand Final)
Cricket (Test Match: 90 800 at Australia vs. West Indies 1961; One Day International: 87
172 at Pakistan vs England 1992)
Rugby Union (90 119 at the second Australia vs. New Zealand 1997 Bledisloe Cup Test
Match)
Rugby League (87 161 at New South Wales vs. Queensland State-of-Origin 1994).
33
Business case study
The Australian Football League – above the pack
In the increasingly competitive arena of professional sport, the Australian Football League is
developing its sport well for the challenges of the twenty-first century.
In recent years it has expanded strongly around the country so that AFL teams are based in every
mainland State, and interest in interstate markets such as Brisbane and Sydney is greater than
ever before.
In 1996 total AFL competition revenue was $200 million (four times what it was in 1986) and
revenues from licensing of the AFL brand were over $75 million – a 25 per cent increase on 1995.
Total player payments were $48 million (an average $78 000 per player), which was also up
strongly from $27 million in 1992 (an average $48 000 per player).
Television and radio ratings continued at robust levels with three to four million viewers around
the country watching televised games during the season and a further million listening on the
radio. Over six million people watched the Grand Final. At the turnstiles, attendances were also
up, with 300 000 people attending games in a single round twice during the year. This was a
record.
After concluding its first hundred years so successfully, the AFL is looking to the future with
confidence.
However, Victorians’ love of spectator sport goes

far deeper than Grand Finals and Test Matches.
On the everyday level, ABS figures from a 1995
survey of sports attendance show Victorians are
Australia’s most avid sports fans (see Charts 3.2
and 3.3). During 1995, 56 per cent of Victorian
men attended a sporting event, compared to 50 per
cent of men in the rest of Australia. Victorian
women also led the rest of the nation in their
support for sport, with 42 per cent attending a
fixture in 1995 compared to 36 per cent over the
remainder of the country.
It is interesting to note from the preceding charts
that Victorians outside Melbourne stand out as
extremely keen followers of sport. Just over 58
per cent of men from outside Melbourne attended
a sporting event during 1995 (compared to 50 per
cent from outside capital cities elsewhere in the
country) and 46 per cent of women from regional
Victoria attended an event (a full 9 percentage
points higher than for the rest of Australia).
1996 AFL Grand Final, North

Melbourne vs Sydney Swans
34
Chart 3.2: Males attending sporting events according Chart 3.3: Females attending sporting events
to residence 1995 according to residence 1995
Source: ABS, National Sport and Recreation Industry Source: ABS, National Sport and Recreation Industry
Database and Directory (data from ‘Sports Attendance, 1995’) Database and Directory (data from ‘Sports Attendance, 1995’)
Major Event Profile

Ford Australian Open 1997
The Ford Australian Open is a key tourism event for Melbourne and Victoria. The event
generates substantial economic benefits for the State and enhances the awareness of
Victoria as a highly attractive tourist destination.
Event details
Date of event 13–26 January 1997
Total attendance at sessions 391 500
Economic impacts – 1997

Employment 1 910 positions (annual equivalent)
Visitor expenditure $13 million (Interstate)
$12 million (International)
Contribution to the Victorian
economy $70 million increase in Gross State Product
Event exposure
Media coverage Over 1 400 accredited media personnel present at the
event, with exposure to 160 countries around the
world
Source: An economic impact study, survey and analysis of the 1997 Ford Australian Open (preliminary),
(NIEIR) 1997
35
4. Participation in sport and recreation
Arguably the most important facet of the sport and recreation industry
is participation. The industry offers an enormous range of
opportunities for people to be physically active, whether on their own
or in group settings. As detailed in section 2, it is increasingly being
recognised that the benefits to individuals and the community from
physical activity are substantial, and consequently that promoting
sport and recreation is likely to have many positive spin-offs such as
employment growth and a healthier population. It is therefore of great
importance to industry stakeholders to understand trends in
participation, together with its nature and extent.
St Kilda Beach
36
The primary source of information for this section is the 1997 State Supplementary Survey
(SSS) undertaken by the ABS. The Survey covers the 12-month period to October 1996. The
respondents in the SSS were asked to indicate which three main sports or physical recreation
activities they had participated in during the preceding 12 months. Where other sources are used
this is indicated in the text.
This section provides the reader with information on:
the most popular sport and physical activities in the year to October 1996
changes in participation levels in a select number of sports between 1989 and 1996
the type of environment in which people undertake their sport and recreation activities
(organised by club or association or in some other manner)
participation levels in organised sport for each State
participation levels within the sport and recreation industry in comparison to other leisure
industries
participation and age
participation, gender and frequency
participation and region of residence
reasons for non-participation.
Sport and recreation activities
The latest data on participation in sport and recreation in Victoria shows that in the year to
October 1996, 77 per cent of Victorians aged fifteen years or more took part in sport and
recreation of some form.
Out of more than 65 activities that survey respondents nominated as their main activities,
walking for exercise was by far the most popular activity (see Table 4.1). The ABS estimates
that 1 509 000 Victorians took part in this recreation during the year to October 1996. Walking
was followed in popularity by swimming (487 000), golf (322 000) and fishing (313 000).
Table 4.1: Most popular sport and recreation activities – Victoria 1996
Main sport and physical Persons Persons
recreation activity 000s % of population
1 Walking for exercise 1 508.6 43.0
2 Swimming 487.2 13.9
3 Golf 321.9 9.2
4 Fishing 312.8 8.9
5 Cycling/Mountain biking 299.2 8.5
6 Aerobics or aquaerobics 274.2 7.8
7 Tennis 245.7 7.0
8 Jogging/power walking 235.4 6.7
9 Bushwalking/hiking 206.1 5.9
10 Weightlifting/bodybuilding 188.4 5.4
11 Billiards, snooker, pool 165.0 4.7
12 Basketball 144.9 4.1
13 Australian Rules Football 137.0 3.9
14 Netball 128.0 3.7
15 Cricket (outdoor) 101.7 2.9
16 Lawn Bowls 71.8 2.0
17 Soccer 64.5 1.8
18 Squash 39.1 1.1
19 Ice-sports/Ice-hockey 34.4 1.0
20 Volleyball 30.4 0.9
Source: ABS Leisure Participation Victoria (1996 State Supplementary Survey)
When the results of this recent survey are compared with a similar survey conducted in 1989,
some interesting insights can be gained into changes in Victorians’ sporting habits (see Table
4.2). Over this period basketball, Australian Rules football, billiards and soccer have seen
increased numbers of participants (the latter two at a rate faster than growth in the adult
population). Other sports have experienced some declines in the number of people participating,
as indicated below.
38
Table 4.2: Numbers of Victorian adults playing specific sports (1989 and 1996 compared)
Top sports 1989 000s % Top sports 1996 000s %
Golf 364 11.0 Golf 322 9.2
Tennis 338 10.2 Tennis 246 7.0
Netball 159 4.8 Billiards/snooker 165 4.7
Basketball 140 4.2 Basketball 145 4.1
Aussie Rules 131 4.0 Aussie Rules 137 3.9
Billiards/snooker 125 3.8 Netball 128 3.7
Cricket (outdoor) 108 3.3 Cricket (outdoor) 102 2.9
Lawn Bowls 83 2.5 Lawn Bowls 72 2.0
Soccer 57 1.7 Soccer 65 1.9
Source: ABS, Sports Participation Victoria, 1989 and Leisure Participation Victoria (1996 State Supplementary
Survey)
Note: Percentage figures represent the percentage of the adult population, defined as 15 years and over
To supplement this broad popularity information, it is possible to develop a considerably more

detailed picture of Victorians’ physical activity by examining the relationship between
participation and environment, gender, age, and region of residence.
Business case study

Victorian Council of YMCAs – a proven performer
Victoria was founded in 1851 and the Victorian Council of YMCAs was established three years
later. Aiming to provide facilities that promote the development of healthy bodies and minds, the
Victorian Council’s service to the community has been very much ahead of its time.
Nowadays, as community recognition of the benefits of physical activity has fallen into step with
that of the YMCA, the Victorian Council is a major, multi-faceted, Statewide enterprise.
Employing nearly 2800 people, it operates 44 Recreation Centres (many in conjunction with
Local Government) in locations as far-flung as Portland and Bairnsdale. It also manages four
camps and a community centre that serves as part of the juvenile justice system. These facilities
provide services in aquatic sports, health and fitness, stadium management and services to
schools and pre-schools. There are few sections of the Victorian population for which the YMCA
does not cater.
With this broad-based approach to their objective of getting people out and active, it is probably
not surprising that the Victorian Council of YMCAs is recording substantial growth, with sales in
1995–96 up 20 per cent on the previous year.
39
The participation environment
In aggregate terms, people relying on clubs, schools or associations to organise their sport and
recreation are a minority of those who are physically active. The majority arrange their activity
independently of these organisations (see Table 4.3).
Table 4.3: Participation in sport and recreation by age-group (% of total population)

All through Some through None through
Age-group clubs etc. clubs etc. clubs etc.
15 to 24 years 9% 34% 43%
25 to 34 years 4% 23% 55%
35 to 44 years 5% 21% 52%
45 to 54 years 4% 17% 54%
55 to 64 years 6% 13% 51%
65 and over 5% 12% 45%
All ages 6% 21% 50%
Source: ABS, Leisure Participation Victoria (1996 State Supplementary Survey)
However, in the youngest age-group (those aged 15 to 24) around half of the participants have at
least some of their sport and recreation run by organisations. This ratio quickly falls as age
increases, so that only around one third of those active between 25 and 44 are participating in
club-or-association-based activity. In age-groups above 45 the likelihood of a person being
active through a club or association falls towards one in four (see Chart 4.1).
This result reflects the overall leisure patterns across age-groups. Young people are the main
participants in activities that generally require organised teams to operate successfully, such as
Australian Rules Football, netball and basketball. In comparison, the most popular activities for
older people, such as swimming and golf, can be undertaken without formal involvement in an
organisation.
Chart 4.1: Participation not involving clubs or

associations (% of all participants)
Source: ABS, Leisure Participation Victoria (1996 State
Supplementary Survey)
40
Participation in Victoria and other States
Although data is not available nationally that can be compared to the Victorian data
around which most of this section is based, data from a different survey (the
Population Survey Monitor) enables a qualified comparison of participation in
different States. As Chart 4.2 shows, around 30 per cent of the nation’s adult
population took part in sport and recreation (organised by club, association or
school) during 1995–96, although the rate varied from State to State. Victoria’s rate
of participation was slightly above the national average.
This and data from 1993 (from the ABS’s Monthly Population Survey) indicates
that participation in organised activities tends to be higher in the smaller States.
However, it is important to note that although this is the best nationwide data
available, it does not cover participation occurring outside clubs and schools. As has
been noted previously, this unstructured participation represents the major portion of
those participating.
Chart 4.2: Participation in

organised sport and recreation
1995–96
Source: ABS, Participation in Sport
and Physical Activities Australia
Leisure seniors
Sport The Library
41
The latest on organised sport and recreation
Participation in Sport and Physical Activities: 1995–96
Expanding upon data released from the survey cited in Chart 4.2, the Australian Bureau of
Statistics recently released a publication entitled Participation in Sport and Physical Activities.
The report provides data on participation levels and expenditure on selected sports and physical
activities organised by clubs, schools or associations. It also contains data on participation by
under-15-year-olds (where this occurs outside school hours). This focus on organised sport and
the under-fifteens means that its data is not directly comparable to that generated on all adult
participation by the 1996 State Supplementary Survey.
Aerobics emerged in this publication as Victoria’s most popular organised sport, with 156 000
participants (4.5 per cent of the population). Tennis followed in second place with 114 000
persons taking part, which was 3.3 per cent of the population. Just over 98 000 people were
involved in organised golf (a participation rate of 2.8 per cent). In fourth spot (and top spot for
team sports) came netball with 87 000 participants.
Although at first glance these results may appear to present a different picture to that elsewhere
in The Business of Sport, the contrast is not as great as it might seem. Broadly speaking the top
activities reported in Leisure Participation Victoria (our main source for participation data) –
walking, swimming, golf, fishing and cycling – are activities where a large proportion of
participation occurs outsides clubs and associations. Consequently these activities do not have a
high profile in Participation in Sport and Physical Activities, with its focus on club-based
participation.
Excluding these less structured activities from the comparison, similarities in the surveys’ results
become apparent. Both surveys show that aerobics is extraordinarily popular, followed closely by
tennis and golf. Allowing for the fact that clubs and associations are more important in some
activities than in others, netball, Australian Rules football and basketball also emerge in both
surveys as high profile sports.
In terms of absolute sums spent, Participation in Sport and Physical Activities reveals that the $88
million spent by Victoria’s organised golfers made their sport the number one money-spinner of
organised sports. Aerobics was next in significance, with $60 million spent.
However, when examined on a per-participant basis,those taking part in motor sports prove to be
the biggest spenders, outlaying on average $2176 per year on their activity. Horse-riders come
next, expending an average of $1224 per year. Anglers are in third spot, with average outgoings
of $944. At $896 per participant per year, golfers rated next highest, while the sheer number of
people undertaking aerobics means that its participants’ average annual spending is $383.
Water polo
Sport and Recreation Victoria
42
Comparisons in leisure industry participation
Participation in the sport and recreation industry at 77 per cent was higher than any other
leisure industry including cultural activity (58 per cent), gambling activity (73 per cent)
and visiting an outdoor recreation area (66 per cent). Chart 4.3 illustrates this. It should
be noted that attendance/participation levels within each of these areas includes those
people who attended or participated in one or more events in the previous 12 months.
Participation and age

The percentage of Victorians participating in sport and recreation tends to fall with
increasing age (see Table A in the appendices), with 87 per cent of those in the age-group
between 15 and 24 participating at least once in the year to October 1996, compared to
62 per cent of those over 65 years of age. However it should be noted that 62 per cent is
still a creditable participation rate.
Chart 4.3: Persons
Frequency and age participating in
selected leisure
Of course, a person who takes part in sport and recreation only a few times per year activities 1996
derives little benefit from this activity compared to a person who does so a few times per Source: ABS, Leisure
Participation Victoria
week. Consequently it is interesting to note that 67 per cent of those aged between 15
(1996 State
and 34 participated more than once a week, as did 56 per cent of those over 35 (see Table Supplementary Survey)
4.4).
Table 4. 4: Frequency of participation according to age

>Once weekly Weekly Fortnightly Other Total
Under 35s
Male 66% 8% 5% 9% 88%
Female 68% 7% 3% 4% 82%
All 67% 8% 4% 6% 85%
Over 35s
Male 56% 7% 4% 8% 75%
Female 57% 6% 2% 4% 70%
All 56% 7% 3% 6% 72%
All ages
Chart 4.4: All
Male 60% 8% 4% 9% 80% participation by age
Female 61% 6% 2% 4% 74% 1996
Source: ABS, Leisure
All 60% 7% 3% 6% 77% Participation Victoria
Source: ABS, Leisure Participation Victoria (1996 State Supplementary Survey) (1996 State
Note: Rows may not equal totals due to rounding Supplementary Survey)
43
Activities and age
The popularity of walking for exercise is so great that it is the most popular form of exercise
across all age-groups. However, its popularity rises through each successive age-group and
peaks in the over-fifty-five-year-old age-group where half the population exercise in this way
(see Table 4.5 and Chart 4.5). Golf and lawn bowls are also activities in which the participation
rate rises with the seniority of the age-group.
Table 4.5: Percentage of age-groups undertaking specific sports and recreations (1996)
65 or All
Activity 15-24 25-34 35-44 45-54 55-64 over people
Walking for Exercise 27% 40% 46% 51% 50% 50% 43%
Swimming 17% 19% 18% 11% 9% 5% 14%
Golf 6% 10% 9% 13% 10% 7% 9%
Fishing 7% 11% 10% 12% 9% 5% 9%
Cycling/mountain biking 12% 12% 12% 6% 3% 2% 9%
Aerobics 14% 12% 7% 5% 4% 2% 8%
Tennis 9% 6% 8% 9% 5% 2% 7%
Jogging/power walking 9% 12% 6% 6% 3% na. 7%
Bushwalking 5% 6% 7% 8% 4% 4% 6%
Weight-training 12% 10% 3% 2% 1% na. 5%
Billiards/ pool 10% 6% 4% 3% 3% 1% 5%
Basketball 12% 5% 4% 2% na. na. 4%
Aussie Rules Football 10% 4% 3% 3% na. na. 4%
Netball 10% 5% 2% 1% na. na. 4%
Cricket (outdoor) 7% 4% 3% 1% na. na. 3%
Lawn Bowls na. na. 1% 1% 5% 8% 2%
Soccer 6% 2% 2% na. na. na. 2%
Note: na denotes numbers that cannot be reliably estimated from survey responses
Analysed by age-group, team sports and vigorous physical recreation activities such as aerobics,
cycling, jogging, power-walking, weightlifting and powerlifting peaked in popularity among
people aged between 15 and 34.
The 35 to 44 year-old age-group, as a reflection of the greater tendency for people in this age-
group to have young families, participate to a greater degree in non-organised activities such as
walking for exercise, golf, swimming and fishing. Participation in these activities is also high in
later age groupings possibly due to their less strenuous nature.
Walking for exercise, swimming, fishing and golf showed great popularity in the 65-and-over
age-group, with lawn bowls peaking in popularity.
However there are some activities that maintain a broad appeal across the age-groups. Among
the age-groups below 64 years of age swimming, golf, tennis, fishing, and walking for exercise
never fall below a 5 per cent participation rate.
44
Chart 4.5: Participation in selected physical activities according to age 1996
Business case study

The Fitness Generation – in touch with the times
As more and more Australians become aware of the benefits of regular exercise, going to the gym
or working out at home is becoming increasingly popular. The range of exercise equipment is
becoming increasingly diverse and sophisticated. On the cutting edge of this is the Fitness
Generation, one of Australia’s largest importers,distributors and manufacturers of quality fitness
equipment for both the commercial and domestic market.
The Fitness Generation’s product range includes cardiovascular electronic equipment (i.e.
treadmills and steppers) as well as strength training lines.
Established 15 years ago, The Fitness Generation recorded sales in excess of 10 million dollars
in 1995/96. While the Head Office is in Victoria, the company markets its fitness products
throughout Australia and New Zealand. Since 1991–92 sales have increased by 12 per cent in
Victoria and 46 per cent throughout the rest of Australia. The company currently employs 35
people.
Participation and gender

There is a major difference in terms of sport and recreation participation between the genders.
Males are more likely than females to be involved in sport and recreation, with nearly 80 per
cent of males participating in the year to October 1996 compared to 74 per cent of females (see
Appendix 4).
However, females tend to participate more frequently than males. Table 4.6 shows that 61 per
cent of women participate more than once weekly compared to 60 per cent of men, and that
9 per cent of men take part less than fortnightly, compared to 4 per cent of women.
This gender difference is most noticeable in the population between the ages of 15 and 34.
45
Activities favoured by men and women
As could probably be expected, there are considerable differences in the sport and recreation
activities of men and women (see Table 4.6).
In the case of sports such as outdoor cricket, soccer and Australian Rules football, the number of
women participating is so small as to be insignificant. Women favour walking, aerobics, netball
and to a lesser extent bushwalking. Likewise men show some strong preferences with little
interest in netball, but favouring golf, fishing, weightlifting and cycling.
Nevertheless there are a number of popular sports where male and female participation have
some similarities. Frequency of participation is very similar between the genders for activities
such as walking, weight-training, jogging, aerobics and lawn bowls (see Table 4.6).
Table 4.6: Male and female participation in specific sport and recreation activities (1996)
Males Active more than Females Active more than
(000s) once weekly (%) (000s) once weekly (%)
Tennis 126 18% 119 34%
Golf 261 14% 61 24%
Netball 13 na. 115 38%
Lawn bowls 44 66% 28 67%
Basketball 92 34% 53 33%
Billiards/pool 120 28% 46 na.
Cricket (outdoor) 94 44% na. na.
Soccer 59 33% na. na.
Aussie Rules 126 50% na. na.
Aerobics/aquaerobics 33 70% 241 57%
Walking 558 77% 950 78%
Bushwalking 94 8% 112 na.
Jogging/power walking 134 72% 101 70%
Cycling 191 50% 108 39%
Fishing 257 na. 56 na.
Swimming 210 31% 278 26%
Weight-training 143 85% 46 86%
Note: na denotes numbers that cannot be reliably estimated from survey responses
46
Activity occurring through clubs or associations by gender
There are strong gender differences in the choices that people make as to who organises their
sport and recreation.
Men, who have higher participation levels than women, are also more likely to rely on clubs and
associations to organise their sport and recreation activity. Thirty-one per cent of the adult male
population chooses this mode of participation compared to 23 per cent of the female population
(see Table 4.7).
Table 4.7 Choice of organised sport and recreation by gender (% of the population)
All through Some through None through Not
Gender clubs etc. clubs etc. clubs etc. participating
Male 7% 24% 49% 20%
Female 5% 18% 52% 26%
All 6% 21% 50% 23%
However, the male preference for club-based recreation is strongly affected by the fact that half
of all men in the 15-to-24-year-old age-group rely to some extent on clubs or associations to
organise their physical activity. If this age-group is excluded from calculations, the gap between
genders narrows a little, with 27 per cent of males getting their recreation at least partially
through clubs and associations compared to 20 per cent of females. This gap between genders
may be a result of women’s preference for activities such as aerobics, that take place outside
clubs or associations, or activities that are frequently undertaken in a casual or unstructured
manner, such as swimming.
Skiing in the Victorian high

country
47
Participation and region of residence
The data on participation patterns in metropolitan Melbourne compared with the rest of Victoria
is unfortunately not as comprehensive as it is for participation patterns according to gender and
age. However, some important insights can be gained through looking at data on the activities
Melburnians and other Victorians undertake (see Table 4.8).
Table 4.8: Activities undertaken by gender and region (% of population)

Males Females
Rest of Rest of
Melbourne Victoria Melbourne Victoria
Tennis 8 6 6 7
Golf 15 15 3 5
Netball na. na. 5 9
Lawn bowls 2 5 1 3
Basketball 5 6 3 3
Billiards/pool 7 6 3 na.
Cricket (outdoor) 5 6 na. na.
Soccer 4 na. na. na.
Aussie Rules 7 9 na. na.
Aerobics/aquaerobics 2 na. 15 9
Walking 33 31 55 49
Bushwalking 5 7 6 8
Jogging/power walk 9 5 6 4
Cycling 12 9 6 6
Fishing 12 22 3 4
Swimming 14 8 16 13
Weight-training 9 7 3 na.
Total 80 79 75 72
Note: Participation rates in individual sports do not equal the total due to individuals participating in more than one
sport; na denotes numbers that cannot be reliably estimated from survey responses
Residents of Melbourne undertake a wider range of activities than people from elsewhere in the
State, with soccer and aerobics attracting negligible participation in regional Victoria compared
to Melbourne. Appendix 4 shows that participation rates in regional Victoria also appear to be
lower than in Melbourne, particularly for women.
Participation by men in walking for exercise was comparable across the State at around the 30
per cent mark, as was male participation in golf (approximately 15 per cent). However, while 14
per cent of metropolitan men are estimated to have swum in the year to October 1996, only 8
per cent of regional men did so. Conversely, while 12 per cent of metropolitan men take part in
fishing, the figure is significantly higher at 22 per cent for rural men.
48
The most favoured sport and recreation activities for metropolitan women – walking,
swimming, and aerobics – are also the three most favoured recreations for women from the
remainder of Victoria, although rural women undertake these activities to a lesser degree. This
may be explained by the more limited access women in regional Victoria have to facilities
capable of supporting their preferred activities, either due to the time involved in reaching them
or their unavailability.
Reasons for non-participation

The data also provides insight into the characteristics of those people (more than 20 per cent of
the population) who take no part in sport or recreation. Both the 1996 and 1989 State
Supplementary Surveys shed some light on the factors that influence the behaviour of this
group, and these are detailed in Table 4.9. Non-participants in the year to October 1996 reported
that insufficient time and disinterest were the main reasons for not participating in sport or
physical recreation activities. Illness and injury were also a frequent response. These reasons
applied for both males and females.
As the table shows, these reasons were broadly the same as those given in 1989. However, being
too old had diminished in importance as a reason between 1989 and 1996, while injury or illness
nearly doubled in importance. The trend away from citing age as a reason for non-participation
may be due to the influence of greater participation in Masters sport, and public education
campaigns such as Active for Life.
Table 4.9: Reasons given for non-participation in sport and recreation (%)
Reasons for non-participation 1989 1996
Not interested 34.5 29.8
No time/too busy 37.2 32.2
Expense/cost 1.6 1.4
Too old 16.1 10.3
No childcare 0.9 1.0
Injury/illness 11.8 22.3
Market research during 1996 on barriers to participation in physical activity (undertaken by the
Australian Sport Commission in association with Svardis) tends to provide a similar picture.
This market research found that although people have a sound awareness of the benefits of
frequent involvement in physical activity, ‘health and fitness’ benefits often took second place to
factors such as work, study, family and social life. It suggests that undertaking physical activity
is seen as another ‘chore’ in an already busy life. These findings clearly indicate that physical
activity opportunities need to be convenient, easy to access, and accompanied by social
interaction to make them sustainable.
Additional factors discouraging participation revealed by this research were a lack of a partner
or buddy and the association of physical activity with activities such as jogging and running,
which were perceived as boring.
49
Conclusion
Overall it is clear that millions of Victorians take part in regular physical activity, and that the
sport and recreation industry caters well to their needs. However, it is also the case that a
significant proportion of the population is inactive or active infrequently.
Given the demonstrable health and social benefits that have been highlighted elsewhere in The
Business of Sport, and the dynamism of the Victorian industry, the potential for expansion is
tremendous.
The opportunities for the sport and recreation industry to focus on in order to achieve further
success include:
continuing to develop new facilities which meet the ever-changing demands of the
community both in Melbourne and rural Victoria
targeting well designed services at particular groups with lower participation levels such as
older women
promoting existing activities which have a high interest for particular groups such as golf
and lawn bowls for the over-55s
ensuring activities are easy to access and enjoyable.
As the industry moves to realise its potential, the Victorian Government believes sport and
recreation will play a vital role in enhancing economic opportunity in this State and improving
the lifestyle of all Victorians.
Rock climbing
50
Appendix 1. Australian and New Zealand
Standard Industrial Classification
Division P Cultural and Recreational Services

Subdivision 93 Sport and Recreation
Group Class Description
931 Sport
9311 Horse and Dog Racing

This class consists of units mainly engaged in operating facilities specially
used and designed for horse or dog racing. It also includes the operation of
racing stables and kennels. Horse racing includes the racing horses which
are ridden or which are pulling a vehicle.
Primary Activities
Dog training (for racing) Race horse training
Greyhound training Racing stables operation
Race course or track operation n.e.c.* Racing kennels operation
9312 Sports Grounds and Facilities n.e.c.

This class consists of units mainly engaged in operating any kind of indoor
or outdoor sports facility other than those for horse or dog racing. It also
includes separately located grounds of sporting clubs which are treated as
separate units.
Primary Activities
Athletic field operation Netball court/facility operation
Basketball stadium operation Skating rink operation
Billiard saloon operation Speedway operation (motor racing)
Bowling alley, tenpin,operation n.e.c. Sports ground operation n.e.c.
Boxing stadium operation Squash court operation
Golf course or practice range Swimming pool operation
operation n.e.c. Tennis court operation
Gymnasium operation
9319 Sports and Services to Sports n.e.c.

This class consists of units mainly engaged in providing sporting services
n.e.c. It also includes units of sporting clubs predominantly engaged in
sporting activities or in providing services to sporting activities.
Primary Activities
Riding school operation Sports administration service
Ski-tow operation Sports coaching service
Sporting club or association
*n.e.c. – not elsewhere classified
51
932 Gambling Services
9321 Lotteries
This class consists of units mainly engaged in operating lotteries or in selling
lottery tickets.
Primary Activities
Art union operation Lottery operation
Lottery agency operation
9322 Casinos
This class consists of units mainly engaged in providing a range of gambling
services in addition to totalisator or gaming machine services, and other
amusements, in a building to which the general public have access. Included
are units providing food, liquor and accommodation services in addition to a
full range of gambling services.
Exclusions/References
Unit mainly engaged in:
(a) providing food or liquor and gaming machine services only are included in
one of Groups 572 Pubs, Taverns and Bars, 573 Cafés and Restaurants or
574 Clubs (Hospitality)
(b) operating lotteries and selling lottery tickets are included in Class 9321
Lotteries
(c) providing betting on sporting events and totalisator services only are
included in Class 9329 Gambling Services n.e.c.
Primary Activities
Casino operation
9329 Gambling Services n.e.c.

This class consists of units mainly engaged in providing totalisator, betting
or other gambling services (except casinos or lotteries).
Primary Activities
Betting shop operation Gambling unit operation n.e.c.
Bookmaker operation (own account) Totalisator agency operation
Football pools operation

933 Other Recreation Services
9330 Other Recreation Services
This class consists of units mainly engaged in providing recreation and
entertainment services (including the operation of amusement parks or arcades,
side shows, circuses, agricultural shows or shooting galleries) n.e.c.
Primary Activities
Amusement park or arcade operation Merry-go-round operation
Circus operation Railway operation (by historical
Dance hall or studio railway societies or as a tourist
Entertainment n.e.c. attraction, except amusement park
railways)
52
Appendix 2. Methods of calculating
economic activity in specific industries
Although the techniques for estimating the quantity of economic activity are primarily designed
for measuring the size of the national economy, their use in studying particular industries is
quite common.
Generally economic activity in a particular industry is calculated by the value added or
production approach. Essentially this method begins with the value of all goods and services
produced by the industry and deducts all purchases of goods and services (excluding employee
earnings) used up in its production. This was the method the National Institute of Economic and
Industry Research used to make its estimate.
However, it is also possible to estimate economic activity in an industry through the expenditure
approach, which has been used in The Business of Sport. This means totalling expenditures
made in that sector which themselves are not expenses of other production: household
expenditure on the output of the industry, government expenditure on services in the sector and
government and private sector investment in infrastructure. Ordinarily the value of exports
would also be added and the value of imports subtracted. However, where an estimate of the
industry’s value in one State is concerned, this adjustment must be made for both interstate and
international trade, and the necessary data are not available.
53
Appendix 3. Estimating the economic
impact of major events: summary of the
method of the National Institute of
Economic and Industry Research
The National Institute of Economic and Industry Research estimates the economic impact of
events by identifying the sums that are spent in Victoria as a result of our hosting the event.
This spending has two main facets: day-to-day spending by those at the event (whether
spectators, officials, contestants’ support staff or media) and investment in infrastructure
occasioned by the event.
Information on day-to-day spending is gathered through surveys. For some of those at the event
(such as spectators) a random sample is appropriate, but for groups that are smaller and more
easily targeted (eg. officials) most of those involved can be contacted. Whatever their
involvement, these surveys seek to identify the following people and their spending profiles:
those who came from outside Victoria primarily to attend the event or extended their stay to
attend the event
Victorians who would have travelled interstate if the event were held there
Victorians who would not travel to the event interstate, but dipped into their savings because
of the event.
Where most members of a category (e.g. officials) have responded, calculating the additional
spending they have brought to Victoria simply entails aggregating their answers. However, for
spectators, NIEIR estimates spending impact by assuming (for example) that the proportion of
all spectators drawn to Victoria by the event, and their spending profile, matches that found in
the sample. Their total spending impact is then calculated as being the average expenditure of
such spectators multiplied by the estimated number of all such spectators.
Information on the infrastructure investment occasioned by the event is collected from the
organisers and companies servicing the event. Where their role has required them to spend on
capital equipment, NIEIR includes this expenditure (to the extent it is specifically for the event)
in its estimate of spending driven by the event.
54
The estimated day-to-day spending that would not have occurred in Victoria if not for the event
and this infrastructure spending are added to give the total ‘direct’ impact of the event.
However, the value of the event does not end there, as economics tells us that when spending
occurs it generates economic activity of greater value than the sum spent. This is because it
provides income and employment to people who would otherwise have less of one or both. The
extra purchasing power results in a ripple effect of spending. This is known as the multiplier
effect.
NIEIR calculates this flow-on, or indirect impact of the additional spending in the economy by
running its computer models of the Victorian and Australian economies under the stimulus of
the direct impact of the event. The model calculates the effect on aggregate demand in the
economy by simulating the flow of event-based demand through the sectors of the economy, and
comparing the outcome with the NIEIR baseline forecast. The addition to economy-wide
demand is constrained by the capacity of the national economy, as set by such factors as the
capital stock and balance of payments position.
The difference between the baseline (no-stimulus) outcome and the outcome with direct impact
from the major event forms NIEIR’s estimate of the total economic impact of the event.
55
Appendix 4. Participation according to
gender, age and usual residence
Melbourne % of Rest of Vic % of Victoria % of

Males (000s) population (000s) population (000s) population
15-24 years 219 90% 80 89% 299 90%
25-34 226 85% 72 85% 298 85%
35-44 194 81% 73 76% 267 79%
45-54 152 74% 64 79% 216 76%
55-64 98 73% 40 69% 138 72%
65 years and over 104 69% 52 73% 157 70%
Total 993 80% 381 79% 1374 80%

Females (000s) population (000s) population (000s) population
15-24 years 201 86% 69 81% 270 84%
25-34 213 79% 70 81% 283 79%
35-44 193 78% 73 76% 266 77%
45-54 156 76% 58 75% 215 76%
55-64 93 70% 36 63% 130 68%
65 years and over 116 57% 49 55% 165 56%
Total 972 75% 355 72% 1327 74%

Persons (000s) population (000s) population (000s) population
15-24 years 420 88% 149 85% 568 87%
25-34 439 82% 142 83% 581 82%
35-44 387 79% 146 76% 533 78%
45-54 308 75% 122 77% 430 76%
55-64 191 71% 77 66% 268 70%
65 years and over 220 62% 101 63% 321 62%
Total 1964 78% 737 76% 2701 77%
56

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The Business of Sport

the Sport and Recreation

1. The sport and recreation industry 10

2. The value of sport and recreation 18

3. Major events and elite sports 26

4. Participation in sport and recreation 36

Appendix 1. Australian and New Zealand Standard Industrial Classification 51

Appendix 2. Methods of calculating economic activity in specific industries 53

Appendix 3. Estimating the economic impact of major events: summary

Appendix 4. Participation according to gender, age and usual residence 56

As it is so young and dynamic, awareness of the potential of the

Major events and elite sports

The sport and recreation industry

What drives the industry?

Analysing the industry

Soccer, Australia vs New

Since the late 1970s, there has been an

Defining the industry – a statistical perspective

Business case study

Great Victorian Bike Ride

Unpaid workers (volunteers)

Chart 1.4: Corporate funding of

1992 Barcelona Paraolympics, Australia vs USA

As a result of long-established conventions, the major data sources

1996 Ford Australian Open

Chart 2.3: Gross product (output)

The most recent available data shows that in the financial

Chart 2.4: Expenditure by

Business case study

Government consumption spending

Government investment spending

Chart 2.6: Combined

Overall economic contribution of the sport and recreation industry

Table 2.1: Composition of Victorian Spending on Sport and Recreation 1993–94

Going for the green

A notable strength of the

The Victorian Government

The popularity of Victoria’s sporting events

Chart 3.1: Attendance at one or more annual

Table 3.1: Estimated economic impact of major Victorian sporting events

World-class sports people

Phillip Island 500cc

Australian Grand Prix

Business case study

However, Victorians’ love of spectator sport goes

1996 AFL Grand Final, North

Major Event Profile

Economic impacts – 1997

To supplement this broad popularity information, it is possible to develop a considerably more

Business case study

Table 4.3: Participation in sport and recreation by age-group (% of total population)

Chart 4.1: Participation not involving clubs or

Chart 4.2: Participation in

Participation and age

Table 4. 4: Frequency of participation according to age

Business case study

Participation and gender

Skiing in the Victorian high

Table 4.8: Activities undertaken by gender and region (% of population)

Reasons for non-participation