While it is clear sport is important to the Australian economy, there is only limited information available on the sector's economic contribution.  A recent report, initiated by the Confederation of Australian Sport and supported by the National Australia Bank and the Australian Sports Commission, sheds new light on the Sport sector's impact on the economy.

Here's some of the Report's major findings*:

• The Sport sector output in 1995/96 was over $7,900M.
• In 1994/95 the sport sector employed 95,000 people, nearly half in a full-time capacity.  This compares favourably with employment levels in many industries including the grains industry, electricity supply industry and the clothing industry.
• The sport sector, including the imputed value of volunteers, contributes significantly to GDP (1.0%) and is ranked 25 out of 113 non-sport sector industries being higher than industries including: defence; rail; motor vehicles and parts; iron and steel; services to finance and investment and insurance.
• An increase in sport participation of 5% will provide (as a result of increased productivity) an net economic benefit of $881M, a doubling of participation would produce a benefit of 17,500M.
• The sport sector, directly or indirectly generated over $988M in taxation revenue.
• The sport sector net direct contribution in relation to tax revenue was $115M in 1995/96 dollars.
• The sport sector volunteer labour is conservatively valued at $1,565M.
• Sport-related exports are valued at around $430M in 1995-96.
• During the 12 month period ended July 1997, 3,988,300 people aged 15 years and over participated in organised sport.
• In the same period 61.1% of children aged 5-14 participated in at least one organised sport or physical activity.

*Source Tasmanian Asia Pacific; Australian Bureau of Statistics.

SPORT - A CATALYST FOR GROWTH

The economic impact of sport study conducted by Ernst & Young and Tasman Asia Pacific clearly demonstrates if Australia achieves an increase in the sport and physical recreation participation rate, benefits flow through to industry as higher productivity.  For example, industry, through its healthier and less stressed workforce, has  a greater potential to achieve productivity improvements within existing technology boundaries.  This high level of productivity would have important implications to the economy as a whole.

Currently, around 70 per cent of the Australian workforce is not physically active, or is close to being inactive.  Thus their productivity levels are lower than their active counterparts.  If these people actively participated in sport and physical recreation their productivity would increase.

The productivity spin-off associated with achieving a 100 percent workforce sport participation rate translates into a 3.3percent increase in Australia's GDP.  This sport induced GDP growth is substantially higher than Australia's overall GDP growth for the 1996-97 financial year.  The productivity flowing from increased sports participation also translates into increases in consumption, investment and exports.

SPORT - A SMART INVESTMENT FOR GOVERNMENT

The confederation of Australian Sport's policy document, "A whole new ball game" calls on the Australian government to provide additional funding to achieve higher levels of participation

Given the level of GDP growth that can be achieved from increasing sports participation, there are substantial benefits to be gained from directing additional funds to encourage increased participation in sport.  For example, if government outlaid an additional $14.8M per year for ten years to encourage sport participation and achieved a doubling of the participation rate, the net benefit to the nation would be more than a hundred times higher than this additional government expenditure.,

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