The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union

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The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
The value of rugby to Taranaki

   Report to: Venture Taranaki in association with
        the Taranaki Rugby Football Union
The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
The value of rugby to Taranaki
                                                                                                                  Table of contents

                                                                                                                  1    Executive summary...................................................................................... 4

                                                                                                                  2    Introduction................................................................................................. 7

                                                                                                                  3    Taranaki rugby today................................................................................... 10
                                                                                                                       3.1 The region’s rugby heritage................................................................................ 10
                                                                                                                       3.2 Participation today................................................................................................ 10
                                                                                                                       3.3 Challenges faced.................................................................................................. 12

                                                                                                                  4    Quantifiable impacts of rugby...................................................................... 14
                                                                                                                       4.1 Ongoing quantitative economic impacts............................................................. 15
                                                                                                                       4.2 One-off quantitative economic impacts............................................................... 21

                                                                                                                  5    Qualitative impacts of rugby........................................................................ 28
                                                                                                                       5.1 Developing strong, sustainable and cohesive communities.............................. 28
                                                                                                                       5.2 Increasing skills, employment and economic prosperity.................................. 33
                                                                                                                       5.3 Improving health and reducing health inequalities............................................ 34
                                                                                                                       5.4 Reducing anti-social behaviour and the fear of crime....................................... 37
                                                                                                                       5.5 Improving life chances and focusing energies of young people....................... 38

                                                                                                                  6    Taranaki rugby scenarios............................................................................. 39
Acknowledgments:
                                                                                                                       6.1 Scenario 1: The Air New Zealand Cup (ANZC).................................................. 40
A special thank you to Ian Smith from Stratford Rugby and Sport Club and
                                                                                                                       6.2 Scenario 2: The Heartland Championship.......................................................... 40
Brian Campbell from Coastal Rugby Club for contributing to the case studies.
                                                                                                                       6.3 Scenario 3: Super Rugby...................................................................................... 41
Venture Taranaki and the Taranaki Rugby Football Union wish to
acknowledge the contribution of BERL who have undertaken much of the
                                                                                                                       6.4 Summary of scenarios.......................................................................................... 43
analysis required for this report.
                                                                                                                  7    Conclusions................................................................................................. 44
Photographs courtesy Rob Tucker, Taranaki Daily News
                                                                                                                  8    References................................................................................................... 46

                                                                                                                  9    Appendix: NZRU Criteria for Air New Zealand Cup....................................... 48

Business and Economic Research Limited, BERL House, 108 The Terrace, PO Box 10277, Wellington 6143, New Zealand
T: 04 931 9200 F: 04 932 9202 info@berl.co.nz www.berl.co.nz

                                                                                                                                                                                                            The value of rugby to Taranaki 2009     1
The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
Tables
                                          Table 3.1.    Taranaki Provincial Union key figures........................................................... 11
                                          Table 4.1.    Major ongoing and one-off economic impacts of rugby in Taranaki......... 14
                                          Table 4.2.    Current economic impact of rugby in Taranaki, 2008................................. 15
                                          Table 4.3.    TRFU profit and loss statements, 2003 to 2008............................................ 17
                                          Table 4.4.    Economic impact of TRFU, 2008.................................................................... 17
                                          Table 4.5.    Economic impact of club operations, 2008.................................................. 18
                                          Table 4.6.    Economic impact of school rugby, 2008...................................................... 18
                                          Table 4.7.    Spending by out-of-region visitors to ANZC games................................... 19
                                          Table 4.8.    Economic impact of Rugby World Cup, 2008.............................................. 22
                                          Table 4.9.    Economic impact of All Blacks – Manu Samoa Test, 2008........................... 24
                                          Table 4.10.   Economic impact of 2004 Super 12 game in Taranaki, 2008...................... 25
                                          Table 6.1.    Heartland scenario economic impact of rugby in the region..................... 41
                                          Table 6.2.    Super Rugby scenario economic impact of rugby in the region............... 42

                                          Figures
                                          Figure 2.1.   Quantitative economic impacts of rugby..................................................... 7
                                          Figure 2.2.   Qualitative economic impacts of rugby....................................................... 8
                                          Figure 4.1.   Ongoing contribution of rugby to Taranaki GDP......................................... 16
                                          Figure 4.2.   One-off contributions of rugby to Taranaki GDP......................................... 21
                                          Figure 5.1.   Rugby round the mountain............................................................................ 32
                                          Figure 5.2.   Obesity rates, Taranaki and New Zealand, 2007.......................................... 34
                                          Figure 5.3.   Active lifestyle rates, Taranaki and New Zealand, 2007............................... 35
                                          Figure 5.4.   Maori share of Taranaki population and registrations, 2008....................... 36
                                          Figure 5.5.   Offence rates, Taranaki and New Zealand, 2008.......................................... 37
                                          Figure 5.6.   Cost of crime by category, 2003/04............................................................. 38
                                          Figure 6.1.   Contribution of scenarios to Taranaki GDP.................................................. 49

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The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
1         Executive summary

    The ‘amber and blacks’ provide a                                  The purpose of this report is to investigate the           Quantitative benefits                                        stage the games with their existing infrastructure and
                                                                      significance of rugby to the Taranaki region, as                                                                        facilities. The economic impact on the region with three
    point of focus for the Taranaki region.                                                                                      In 2008, total output (revenue) in the region due to the
                                                                      Venture Taranaki and the TRFU seek to encourage the                                                                     games and hosting a team could add $5.2 million to the
    Their performance often instils a sense                           community to consider the future of rugby in, and          Taranaki Rugby Football Union, schools, and club rugby,      region’s GDP. Participating will also result in improved
    of pride and community. Consistent                                the contribution of rugby to, the region. The report       was $11.9 million. This revenue generated $7.4 million       facilities that will be available to the region beyond
    performers, often pulling off major                               also helps to determine whether there is a case for the    in total GDP and 135 full-time equivalent jobs (FTEs).       Rugby World Cup. The benefits of marketing Taranaki
    upsets, they exemplify confidence in                              region to support Taranaki rugby to have a place in the
                                                                                                                                 A range of other quantifiable economic impacts, such
                                                                                                                                                                                              to the world through RWC 2011 are significant.
    the ability of Taranaki to punch above                            highest possible echelon of the sport available in
                                                                                                                                 as the value of volunteerism, the impacts of three           These additional impacts are important because of the
    its weight and to be a successful and                             New Zealand.
                                                                                                                                 Rugby World Cup 2011 matches at Yarrow Stadium,              dollars they generate, but even more so because they
    go-ahead community.                                               Change will ultimately have a significant impact on        the operations of Yarrow Stadium itself, and inter-          raise the profile of the Taranaki region, build a sense of
                                                                      provincial rugby in New Zealand. Throughout this           school rugby were not included in these figures,             pride and place, and contribute to making Taranaki a
    Rugby has helped shape the identity of the Taranaki                                                                          largely because the impact is indirect and cannot be
                                                                      change process there will be potential threats and                                                                      more attractive place to live.
    region since the Union’s inception over 120 years ago.                                                                       solely attributed to rugby in the region. However, it
                                                                      opportunities for Provincial Unions.
    It is a sport and activity ‘like no other’. It plays a critical                                                              could be very strongly argued that without a parochial
    part in communities throughout the region and is                                                                                                                                          Qualitative benefits
                                                                      Three potential scenarios of future rugby in Taranaki      supportive rugby community, these events would
    central to the fabric of society in Taranaki.                     have been considered in this report. These compare the     not occur.                                                   There are various other ways that rugby benefits the
                                                                      involvement of Taranaki in:                                                                                             Taranaki region that are not as easily quantified. These
    Registered participants in rugby account for more than                                                                       Rugby is the catalyst for investment in key infrastructure
    five per cent of the total Taranaki population. Rugby in                                                                                                                                  qualitative contributions to the community are in
                                                                      • amateur Heartland Rugby (a competition between           and community amenities in the region such as Yarrow
    Taranaki starts at the grass roots level. Taranaki has one                                                                                                                                many ways at least as important as the quantitative
                                                                        minor Provincial Unions);                                Stadium, and in smaller towns such as Inglewood
    of the highest proportions of involvement of anywhere                                                                                                                                     contribution to the regional economy.
                                                                                                                                 where the Taranaki Electricity Trust Stadium has been
    in New Zealand, especially in the younger age grades.             • a revamped, semi-professional national provincial
                                                                                                                                 developed. In addition, the facilities and fervent           Generally, studies show that participation in team sport
                                                                        competition, currently the Air New Zealand Cup
                                                                                                                                 support for rugby in the region have contributed to          has significant benefits for communities. Some of these
                                                                        (ANZC); and
    The changing face of rugby                                                                                                   the attraction of significant rugby sporting events such     benefits include:
                                                                      • full-time professional rugby in an international         as the All Blacks in 2008 and the recently announced
    This report was commissioned by Venture Taranaki in                                                                                                                                       • increased community visibility – contributes to
                                                                        competition such as the Super 14.                        Rugby World Cup 2011 matches and associated events.
    association with the Taranaki Rugby Football Union                                                                                                                                          Taranaki being ‘on the map’
    (TRFU).The timing of the report was based on the                  If Taranaki was to ‘drop the ball’ and end up out of the   If these events were accounted for in the report
    significant potential change for rugby globally and                                                                          then the quantitative impacts would be substantially         • regional pride, status and reputation
                                                                      top-flight national competition, rugby participation in
    nationally that is emerging due to several factors:               the region could drop significantly on current levels.     more impressive.
                                                                                                                                                                                              • collective morale and the ‘feel good’ factor
                                                                      The total impact on output (revenue) attributable to
    • the expiry of the South Africa New Zealand Australia                                                                       An earlier study found that a super 12 game in 2004
                                                                      rugby in the region could be a 62 percent fall. GDP                                                                     • enhanced community image and attractiveness for
       Rugby (SANZAR) broadcasting arrangement with                                                                              contributed close to $400,000 to regional GDP.
                                                                      contribution from rugby would subsequently fall by 65                                                                     people to visit or relocate to the region
       News Ltd                                                                                                                  The game between the All Blacks and Manu Samoa
                                                                      percent and employment by 57 percent.
                                                                                                                                 in 2008 attracted several thousand people from               • the stimulation of other development
    • the issue of endeavouring to create an international
                                                                      Conversely, albeit hypothetically, if Taranaki was         outside the region to the game and associated events,
       playing window to unify the game more between                                                                                                                                          • social cohesion, improved healthy lifestyles,
                                                                      positioned to take advantage of opportunities to secure    suggesting an impact of around $1.2 million on
       Northern and Southern Hemispheres                                                                                                                                                        less crime, improved discipline and appreciation
                                                                      a Super Rugby franchise at some point in the future,       regional GDP.
                                                                                                                                                                                                of team-work.
    • the issues of financial sustainability of rugby in              TRFU revenue could be boosted to between $10 million
                                                                                                                                 The successful Taranaki bid for Rugby World Cup 2011
       New Zealand and Australia                                      and $15 million a year. Total revenue could rise 157
                                                                                                                                 was based largely on the passion for the game in the
                                                                      percent from the current situation to $30.6 million a
    • the challenges around player work-load and the                                                                             region, combined with the ability of the region to
                                                                      year, resulting in an increase in regional GDP of 160
       high number of games currently played by
                                                                      percent, and an increase in employment of 72 percent.
       professional rugby players

    • the future opportunities associated with
       Rugby World Cup 2011.

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The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
2     Introduction
    Rugby’s point of difference in Taranaki is the central      The value of rugby is a summation of many factors -         This report was commissioned by Venture Taranaki in association with the
    part it plays in many of the communities around Mount       the team, facilities, location, institutional structure,
                                                                                                                            Taranaki Rugby Football Union (TRFU). The purpose of the report is to investigate
    Taranaki, combined with the great level of interest the     stakeholders, history, the experience, game atmosphere,
    representative team generates during the ANZC.              regional spirit, culture and local knowledge of the
                                                                                                                            the importance and impact of rugby in the Taranaki region in a changing and
                                                                game. It has a positive role in youth development,
                                                                                                                            uncertain environment.
    Rugby is the only major sport where the entire Taranaki
                                                                community development and in bringing together
    region is represented in a national, fully televised tier
                                                                people from all parts of society. The value which
    one competition in New Zealand. It embodies the
                                                                individual Taranaki residents place on rugby
                                                                                                                                                   Figure 2.1. Quantitative economic impacts of rugby
    spirit and nature of the Taranaki region where there
                                                                undoubtedly varies. Furthermore, value is also affected
    is a perception that it is the underdog, which often
                                                                by timing. Taranaki rugby has experienced good years
    performs beyond expectations. Taranaki rugby is grass
                                                                but also challenge and change. Overall, however, rugby
    roots. It generates a sense of community and pride in
                                                                forms an important part of Taranaki’s culture, history
    the region. In return, the community supports rugby -
                                                                and identity, and looking ahead, given RWC 2011, the
    whether it is financial, time, or participation.                                                                                                                     Economic impact
                                                                sport will continue to do so.                                                                             eg. visitors attending
                                                                                                                                                                        games, spending money
    The findings of this report clearly indicate that there
                                                                Significant levels of social and economic benefit will be
    is a strong case for significant regional investment in
                                                                lost if Taranaki cannot support its own team in the top
    rugby. Not only to protect the current value rugby
                                                                echelon of domestic rugby in New Zealand.
    offers Taranaki, but to also ensure that the sport is
    well positioned in the medium term to take advantage        We commend this report to anyone interested in the
    of possible opportunities that may arise due to the         future of this wonderful province, we call home.
    imminent and likely ongoing restructuring of the game.
                                                                                                                                 $ Value of the team
                                                                                                                                                                                                             Spin off developments
                                                                                                                                  and supply chain
                                                                                                                                                                                                                   and gains
                                                                                                                                                                        Taranaki Rugby
                                                                                                                                                                           Economic
    STUART TRUNDLE                                              MARK ROBINSON                                                                                             development
    CHIEF EXECUTIVE, VENTURE TARANAKI                           CHIEF EXECUTIVE, TARANAKI RUGBY FOOTBALL UNION                                                              benefits

                                                                                                                                            Community visibility
                                                                                                                                              and awareness                                           Enhanced
                                                                                                                                              eg. televised coverage,                              community image
                                                                                                                                             rugby putting “Taranaki”                               and reputation
                                                                                                                                                     on the map

                                                                                                                                          Figure 2.1, which summarises linkages between rugby and regional
                                                                                                                                          development, has traditionally predominantly focused on economic impacts
                                                                                                                                          e.g. the economic spin-offs from the presence of the premier team, rugby
                                                                                                                                          events, venue construction and so on.

6   The value of rugby to Taranaki 2009                                                                                                                                                                     The value of rugby to Taranaki 2009   7
The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
The report begins in chapter 3 by looking at the           Chapter 6 introduces three possible scenarios for
                                    Figure 2.2. Qualitative economic impacts of rugby                                   history and current state of rugby in the region, and      the future of rugby in Taranaki. Two of these differ
                                                                                                                        summarises the contribution of the sport to Taranaki.      from the present case scenario of Taranaki having a
                                                                                                                                                                                   professional team playing in New Zealand’s premier

                                                                                                                        Rugby impacts the region in two                            competition. In the first of these different scenarios,

                                                                                                                        major ways:                                                Taranaki loses its professional (ANZC) rugby team, and
                                                                                                                                                                                   competes instead in the Heartland Championship.
                                                                                                                        • economic activity generated through participation        In the second scenario, Taranaki participates in an
                                                     Community visibilty                                                  and administration, the maintenance of                   international competition such as Super Rugby. As in the
                                                     eg. contribution to image,                                           infrastructure to support the game, supporters who       examination of the current contribution of rugby in the
                                                       pride and reputation            Excitement quotient -
                                                                                                                          pay to attend the games and volunteers who give up       Taranaki Region, the scenarios consider quantitative and
                       Civic pride from                                               contributes to emotion,
                                                                                                                          valuable time to support the game. In most instances,    qualitative impacts.
                        being a ‘major                                                  vibrancy, and ‘feel
                                                                                                                          this activity can be quantified. This is discussed
                         league’ team                                                       good’ factor                                                                           Chapter 7 provides some concluding remarks on the
                                                                                                                          in chapter 4
                                                                                                                                                                                   importance of rugby in Taranaki, the role it plays in
                                                                                                                        • social benefits generated through participation and      making the Region a more attractive place to live, and
                                                                                                                          association with sport. This is the value of sport in    the need to be prepared to adapt to changes in the
                                                                                                                          changing attitudes and perceptions – improving skills,   rugby environment. It also raises issues around the
                                                                                                                          developing strong, cohesive communities, enhancing       relationship between rugby and regional development.
       Enhanced collective                                                                                                regional pride, vibrancy, image and reputation,
         self-esteem from                          Qualitative Civic                                   Emotional          improving health, reducing anti-social behaviour,
            a winning or                              Benefits                                     involvement, love      and focusing the energies of young people. These
       respected team. The                         from Taranaki Rugby                             affair with a team     benefits are discussed in chapter 5.
         ‘feel good’ factor.

                       Inspirational
                      and aspirational
                        connections                                                   Tangible focus for
                       eg. role-modelling,                                             social bonding
                   achievement, hardwork etc
                                                       Positive sense of
                                                      collective identity
                                                      eg. Taranaki’s ‘can do’
                                                     attitude, punching above
                                                             its weight

                      Figure 2.2 emphasises the qualitative contributions of rugby, such as social cohesion,
                      pride and visibility. These also form an important part of this equation.

                                                                                                                                                                                                     Photo courtesy of Taranaki Daily News

8   The value of rugby to Taranaki 2009                                                                                                                                                                   The value of rugby to Taranaki 2009   9
The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
3        Taranaki rugby today

     This chapter introduces the central role                   The Taranaki rugby team is a source of pride and                  Table 3.1 Taranaki Provincial Union Key Figures
                                                                association for Taranaki residents where rugby is an
     rugby has played, and continues to
                                                                essential component in the lives of many. A sport and                                                                            Players
     play, in the Taranaki region.                              recreation report in 20071 surveying Taranaki residents
                                                                                                                                                                            Under 13         Age 13-20      Age 21+        Total      Coaches        Referees
                                                                highlights the importance of rugby to Taranaki. The key
     3.1 The region’s rugby heritage                            points from this report are as follows:                            Total number 2005                            1,878          1,821           771        4,470           383            49
     Rugby has been a key part of the Taranaki landscape        • sixty-six percent of Taranaki residents watch rugby,             Total number 2008                            2,562          1,488           637        4,687           311            54
     since 1885, when the region’s first touring team –             either live or televised
     Egmont – was selected from senior clubs existing                                                                              Annual growth rate 2005-2008                 11%            -7%             -6%          2%           -7%            3%
     in Taranaki at the time - Waitara, Taranaki, Waimate,      • of all recreational activities undertaken by residents,
                                                                                                                                   Rank (out of 26 provincial unions)
     Hawera and Patea. Since then, rugby has played                 rugby was the third most common, at six percent of

     a major role in the lives of people born or raised             Taranaki respondents                                           Rank by total number 2008                     12             13              14          13            14             14
     in Taranaki.
                                                                • seven percent of Taranaki residents used the Yarrow              Rank by annual growth rate                    4              23              25          11            24             16
     Rugby has always been a major sport in the region,             Stadium facilities. As expected, a greater proportion

     with Taranaki able to compete with the best despite its        of New Plymouth residents (11 percent) used the                                                                                                                Source: New Zealand Rugby Union
     relatively small population. Taranaki has maintained           Stadium compared with the rest of Taranaki

     a representative team in the top tier of competition                                                                         In terms of absolute numbers of players, TRFU is the               Growth in the older age groups is less heartening,
                                                                • over 85 percent of Yarrow Stadium users viewed
     since the inception of professional rugby in 1996 and it                                                                     13th largest provincial union in the country, with 4,687           yet consistent with the general decline that is faced
                                                                    it as either very good or good value for money.
     consistently outperforms larger regions.                                                                                     players in 2008. Growth in the number of younger                   nationally. Age 13-20 year olds playing rugby in
                                                                                                                                  players, partly offset by falls in older player numbers,           Taranaki have fallen by seven percent per annum on
     Taranaki has held the challenge based Ranfurly Shield      3.2 Participation today                                           has led to an overall annual growth rate of 2 percent              average over the last three years, and over 21 year old
     four times, in 1913, 1957, 1963 and 1996. In 1913,                                                                           over the last three years – the 11th fastest growing               players have fallen six percent per annum. We would
                                                                Over 5,500 people, or more than five percent of the
     Taranaki won the shield off Auckland and defended                                                                            provincial rugby union in New Zealand.                             expect, however, that the growing number of under
                                                                Taranaki population, either play, coach or referee rugby
     it six further times. In 1957, Taranaki beat Otago and                                                                                                                                          13 players in the sport will lead to more positive growth
                                                                in the Taranaki region. There are over 90 organisations           The growth over the last three years in the under 13
     then defended it 13 times. In 1963 it beat Wellington                                                                                                                                           in the older groups as the players age.
                                                                – schools and clubs – that participate in rugby                   age bracket is encouraging. TRFU under 13 players grew
     and then successfully defended it 15 times. Out of all
                                                                competitions in Taranaki. Rugby activity, as shown in             by 11 percent per annum from 2005 to 2008, to reach                Also of concern is the fall in the number of coaches seen
     the unions, Taranaki has the sixth highest number of
                                                                Figure 5.1, is spread around the entire region.                   a total of 2,562. The majority of this growth occurred             in the region, from 383 in 2005 to 311 in 2008, down
     Ranfurly Shield game wins, with 36.
                                                                                                                                  from 2007 to 2008. The under 13 age group now makes                seven percent a year. In 2005, there were approximately
                                                                Table 3.1 summarises the 2008 number of Taranaki
     After lifting the shield against Otago in 1957, there                                                                        up over half of all rugby players in Taranaki. Compared            12 players per coach in Taranaki; this ratio has increased
                                                                players, coaches and referees and growth in numbers
     were around 20,000 people lining the route from the                                                                          with the other RFUs in New Zealand, Taranaki under 13              to 15 players per coach in 2008.
                                                                over the last three years, and then ranks the TRFU’s
     old airport to town to congratulate them.                                                                                    players rank as the fourth fastest growing.
                                                                performance against the other 25 provincial                                                                                          The number of referees has grown, however. Referee
                                                                rugby unions.                                                                                                                        numbers increased by on average two percent per year
                                                                                                                                                                                                     over the last three years.

                                                                1
                                                                 Key Research Ltd. (2007). Taranaki Sport and Recreation Needs
                                                                Assessment: A survey of Sport, Recreation and Physical Activity
                                                                in the Taranaki Region 2006/2007.

     Photo courtesy of Taranaki Daily News

10   The value of rugby to Taranaki 2009                                                                                                                                                                                   The value of rugby to Taranaki 2009       11
The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
School rugby                                                 3.3 Challenges faced                                       Coastal Rugby Football Club
     There are between 130 and 140 primary and secondary          Rugby is going through a number of changes and facing
     school teams in the region. Between them, these              an increasing number of pressures.                         The Coastal community is relatively     The club leases a dairy farm, and
     teams have at least 2,340 players and coaching staff.
                                                                                                                             small and very isolated, stretched      sponsors’ contributions purchase
     The figure is likely to be significantly higher than this,   • player numbers are, in general, declining due
                                                                    to increasing competition from other forms of
                                                                                                                             between the rural communities of        cows and equipment for it. The
     however, as many players who play for their school also
                                                                    entertainment, not only sporting activity, but           Opunake, Rahotu and Okato along the     proceeds of the farm support the
     play for a club, but are registered only once – usually
                                                                    leisure activity                                         coast of Taranaki. The one thing that   club, and include providing all players
     for the club.
                                                                                                                             brings them together each week is       with jerseys each season.
     There are numerous grades at the secondary and               • it is becoming harder to find volunteers to
                                                                                                                             Saturday morning rugby.
     primary levels. Secondary School rugby has five grades         support the game                                                                                 While there is never a shortage of
     from A grade to E grade. Junior rugby has eight grades                                                                  The Coastal community has a strong      volunteer coaches and referees,
                                                                  • at the grass roots, there are fewer male teachers,
     from under 13 to under 6.                                                                                               sense of pride in their teams, with     Coastal is finding it difficult to attract
                                                                    making it more difficult for schools to participate
                                                                                                                             rugby being a major obsession           management and administration
     Club Rugby                                                   • at the operational level, there is more competition      for the area. There are around 450      volunteers, up to the point where they
                                                                    for sponsorship funding and, in the current economic     players in 21 teams (4 club teams,      are considering paid positions.
     Taranaki Club rugby is the foundation for the game             climate, competition from other more pressing            14 primary school teams and 3 high      One reason for this may be Coastal’s
     in the province. In 2009, there were 17 active clubs.          business needs.                                          school teams). Up to 60 percent         obsession for rugby! Players are
     Around 3,200 players, coaching and administrative staff
                                                                  This report is timely because it provides an analysis of   of the community come to watch          playing rugby well into their forties,
     are registered at clubs.
                                                                  the value of rugby within a region, at a time when         the games during the season, with       and have no interest in hanging up
     There are two levels of participation in club rugby:         the regional game is facing both risk and opportunity.     crowds known to reach up to 400 for     their boots for a desk job.
                                                                  With several provinces currently finding it difficult      some games.
     • Senior (afternoon grade)
                                                                  to maintain financial viability, defining the value
                                                                                                                             The club enjoys strong financial
     • Junior (morning grade).                                    proposition to all those who benefit from the game
                                                                  is important. If that value is to be maintained and
                                                                                                                             support in the Coastal area also,
     In the Senior competition there are four grades: Senior
                                                                  enhanced it first has to be identified and recognised.     with 500 subscribed members, and
     A, Senior B, Senior 3rds and under 20. The Senior A and                                                                 around 70 local sponsors. Five large
     B competitions have 10 teams in each grade with the          And that is what rugby in the regions does – provides a    multinationals also support the club.
     Senior 3rds and under 20 grade numbers depending on          positive contribution to the community, the region, and
     entries from year to year.                                   enables the nation to celebrate the success of the All     When the three teams of Opunake,
                                                                  Blacks, our national team.                                 Rahotu and Okato were amalgamated
     The two top secondary school 1st XV teams (New
                                                                                                                             into one Coastal club, a question
     Plymouth Boys and Francis Douglas) also compete in the       Taranaki rugby thus plays a much wider role than
                                                                                                                             arose on how it would be financed.
     Club under 20 competition.                                   just providing an opportunity for sponsors wishing
                                                                  to advertise or associate products. It provides major
                                                                                                                             Initial thoughts about running a pub
     Each team is supported by a team manager, head coach,
                                                                  benefits to individuals, individual communities and        fell through, because as the club
     and assistant coach. Top-tier teams may also have a                                                                     management were farmers, they had
                                                                  the Taranaki region. These additional benefits are
     trainer, physiotherapist and another assistant coach.                                                                   no experience in that area. What
                                                                  largely correctly defined as public good and justify

     Many of the junior teams rely on the good will               consideration and support from public agencies in          they did know was how to run a farm,
     of parents to get players to and from training,              furthering their roles to promote community wellbeing.     however, so that is what they did.      COASTAL V NEW PLYMOUTH OLD BOYS
     twice a week.

12   The value of rugby to Taranaki 2009                                                                                                                                                The value of rugby to Taranaki 2009   13
The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
4         Quantifiable impacts of rugby

     This chapter deals with the quantifiable                               Ongoing impacts include the operation of the TRFU,                                                                              Rugby in the region generates:
                                                                            club and school rugby, and tourism expenditure
     economic impacts of rugby in the                                                                                                                                                                       • direct output (revenue) of around $7.60 million
                                                                            generated by ANZC spectators from outside the region.
     Taranaki region. Quantifiable impacts                                  Further, the economic impacts of Yarrow Stadium,                                                                                   a year, direct GDP of $4.41 million a year, and 93
     are those impacts that we can measure                                  which, it is argued, is only viable as a part of the local                                                                         direct FTEs

     with a degree of accuracy. They                                        infrastructure as a result of the importance of rugby to
                                                                                                                                                                                                            • total output of $11.9 million a year, total GDP of
     are important in that they provide a                                   the region, and the economic value of volunteerism,
                                                                                                                                                                                                               $7.43 million a year, and 136 total FTEs.
                                                                            are discussed.
     financial measure of the contribution
                                                                                                                                                                                                            These are conservative figures as they exclude:
     in terms of contribution to productive                                 One-off impacts include those of the Rugby World Cup

     activity (GDP) and employment. Within                                  games to be hosted by the Region in 2011, the All Blacks                                                                        • any form of volunteerism other than coaching of the
                                                                            test in 2008, and the impact of a Super Rugby game                                                                                 approximately 300 school and club rugby teams in
     this report two types of quantifiable
                                                                            such as that held in the Region in 2004.
     impact - ongoing (annual), and one-off                                                                                                   4.1 Ongoing quantitative                                         the region. In other words, it excludes the value of

     (events) - have been identified.                                       Table 4.1 summarises the main ongoing and one-off                 economic impacts                                                 time spent refereeing, transporting players to and
                                                                                                                                                                                                               from matches or practice, unpaid assistance at major
                                                                            quantifiable economic impacts of rugby in the Region.2
                                                                                                                                              This section presents the estimated ongoing                      games such as ANZC matches at Yarrow Stadium, and
                                                                                                                                              quantitative impacts of rugby in Taranaki on output              administrative support
                                                                                                                                              (revenue), GDP and employment. The figures in this
                                                                                                                                              section explicitly take into account only the impacts of      • employment, GDP and output created by the
                       Table 4.1. Major ongoing and one-off economic impacts of rugby in Taranaki
                                                                                                                                              operations of the TRFU, club and school rugby, as well           operation and maintenance of public sports grounds

                                                                                                                                              as the annual ANZC competition.                                  used for rugby, including the operation of Yarrow
                      Quantifiable impacts                             Total GDP ($m)               Total FTEs
                                                                                                                                                                                                               Stadium. For instance, it can easily be argued
                                                                                                                                              Various figures for volunteerism and Yarrow Stadium’s            that without a first division Taranaki rugby team,
                      Ongoing (annual) impacts
                                                                                                                                              contribution to the region are also estimated, but are           there would be significant impacts on the business
                      TRFU                                             $4.62                         66                                       not included in overall figures.                                 efficiency of Yarrow Stadium

                      Club rugby                                       $0.92                         37                                       Table 4.2 presents the effects on employment, GDP             • additional economic impacts of Yarrow Stadium
                                                                                                                                              and output of rugby in the region.                               when used for other events, noting that without
                      School rugby                                     $1.34                         21
                                                                                                                                                                                                               rugby, there would not have been as large a facility
                      NPC matches                                      $0.55                         11                                       Table 4.2. Current economic impact
                                                                                                                                                                                                            • employment, GDP and output created by any large-
                      One-off impacts                                                                                                         of rugby in Taranaki, 2008
                                                                                                                                                                                                               scale rugby-related capital expenditure in the region
                                                                                                                                                                                                               not paid for out of club or Rugby Union revenues
                      Rugby World Cup 2011                             $5.24                         97                                        Economic impact                   Direct     Total
                                                                                                                                                                                                               (e.g. grants from SPARC).
                      All Blacks Test 2008                             $1.19                         23                                        Output ($m)                       $7.60      $11.91
                                                                                                                                                                                                            TRFU activity accounts for around 60 percent of GDP
                      Super Rugby match                                $0.39                         8                                         GDP ($m)                          $4.41      $7.43           generated by rugby, with the remainder split between
                                                                                                                                                                                                            club rugby, school rugby and ANZC matches (visitor
                                                                                                                                               Employment (FTEs)                 93.0       135.5
                                                                                                               Source: BERL                                                                                 activity). Each of these is discussed individually.

                                                                                                                                                                                             Source: BERL

     2
       Volunteerism is not included in this table because the work is not actually paid (and therefore does not generate GDP). However,
     in the section on volunteerism, we estimate the value of such activity if it were paid. Yarrow Stadium is also not included because an
     accurate portion of total revenues generated by events at the Stadium cannot be apportioned to rugby. Nevertheless, the ongoing role
     of the Stadium is discussed in this report.

14   The value of rugby to Taranaki 2009                                                                                                                                                                                           The value of rugby to Taranaki 2009   15
The value of rugby to Taranaki - Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
Figure 4.1 Ongoing contribution to Taranaki ($7.43m annually)                       Taranaki Rugby Football Union                                     Table 4.4 Economic impact of TRFU, 2008

                                                                                        Source: BERL            The TRFU employs around 15 full-time staff, with a
                                                                                                                                                                                   TRFU                          Direct         Total
                                                                                                                further 28 contracted players. The TRFU is one union
                                                                                                                that has been able to remain financially viable over the           Output ($m)                   $4.22          $6.71
                                                                                                                years, as shown in Table 4.3.
                                                                                                                                                                                   GDP ($m)                      $2.55          $4.62

                                      Club rugby, $0.92m                                                        Income has exceeded expenditure in five of the
                                                                                                                                                                                   Employment (FTEs)             43.0           66.2
                                                                                                                last six years.
                                             12%
                                                                                                                                                                                                                                 Source: BERL
                                                                                   School rugby, $1.34m,        Income from sponsorship has remained the largest
                                                                                           18%                  component of revenue over the six years. Its share of             Revenues generated by the TRFU in 2008 accounted
                   NPC, $0.55m                                                                                  total revenue has risen from a little over one third in           for around two-thirds of the total ongoing output
                                                                                                                2003, to nearly half in 2008. Income from other sources
                       8%                                                                                                                                                         generated by rugby in the region in this analysis, at
                                                                                                                (most notably the Hurricanes) has fallen significantly,           $4.22 million. This resulted in GDP of around $2.55
                                                                                                                from $1.29 million in 2003 to $760,000 in 2008.                   million, and 43 direct FTEs (staff and contracted players).

                                                                                                                Expenditure through the TRFU has ongoing impacts                  Taking into account indirect and induced impacts, the
                                                                                                                and contributes to GDP and employment in the                      TRFU produced $6.71 million in output, $4.62 million in
                                                                                                                Taranaki region. Table 4.4 presents the economic                  GDP, and 66 FTEs.
                                                                                                                impact of the TRFU.

                                                                                                                Table 4.3 TRFU profit and loss statements, 2003 to 2008

                                                                                                                 TRFU profit and loss statement                2003        2004           2005         2006         2007         2008

                                                                                                                  Income ($000)                                $2,932      $2,620         $2,942       $3,541       $4,152        $4,222

                                                                                                                  Sponsorships                                 $898        $930           $1,072       $1,329       $1,610        $1,954
                                                     TRFU, $4.62m
                                                         62%                                                      NZRU Grants                                  $626        $670           $820         $949         $1,075        $943

                                                                                                                  Team Taranaki                                $122        $173           $202         $508         $944          $565

                     Figure 4.1 breaks down the ongoing contributions to Taranaki GDP by the different groups     Other                                        $1,285      $847           $849         $756         $524         $760
                     of activity: Taranaki Rugby Football Union; club rugby; school rugby; ANZC matches.
                                                                                                                  Expenses ($000)                              $2,712      $2,551         $2,907       $3,654       $4,033       $4,205

                                                                                                                  Players and player development               $968        $1,069         $1,288       $1,661       $1,874       $1,780

                                                                                                                  Staff                                        $735        $748           $837         $937         $1,063       $1,207

                                                                                                                  Commercial expenses                          $610        $313           $293         $509         $505         $603

                                                                                                                  Other                                        $399        $421           $488         $547         $592         $616

                                                                                                                 Net profit/loss ($000)                        $220        $70            $35          $-112        $119         $17

                                                                                                                                                                                                                                 Source: TRFU

16   The value of rugby to Taranaki 2009                                                                                                                                                                The value of rugby to Taranaki 2009     17
Club operations                                               The figure of 24 direct FTEs was estimated on the             A similar methodology was used to estimate the direct        Table 4.7 Spending by out-of-region visitors to
                                                                   assumption that the average coach spends six hours            employment due to school rugby as was used for clubs.        ANZC games
     Based on TRFU records, more than 3,200 players,               of a 40-hour work-week at training sessions or at             Each coach was estimated to spend around six hours a
     administrators and coaches are registered at rugby            matches. This is a conservative estimate. It also does not    week on activities related to their coaching.                 NPC visitor spending            Direct          Total
     clubs across Taranaki. There are up to 160 club teams         take into account administrative, volunteer,
     in the region.                                                                                                              As with club rugby, the estimate does not take into           Output ($m)                     $0.74           $1.10
                                                                   or refereeing staff.
                                                                                                                                 account the contribution of referees, administrative and
     Table 4.5 presents the estimated economic impact                                                                                                                                          GDP ($m)                        $0.37           $0.55
                                                                   Including upstream and downstream impacts, club               support volunteers. It also does not take into account
     of club operations in the region in 2008.                     operations in Taranaki create $2.19 million in revenue        the possible tourism impact of inter-school competitions      Employment (FTEs)               8.5             10.9
                                                                   (output), $920,000 in GDP, and around 37 FTEs.                which bring school teams from across the country into
     Table 4.5 Economic impact of club 			                                                                                       Taranaki for tournaments.                                                                                      Source: BERL
     operations, 2008                                              School rugby
                                                                                                                                 Each year, the region’s two most well-known rugby-           Direct spending by out-of-region spectators is around
                                                                                                                                 playing schools, Francis Douglas and New Plymouth Boys       $740,000, resulting in $370,000 in GDP and 8.5 FTEs. The
      Club operations               Direct         Total           More than 2,300 players, administrators and coaches are
                                                                   registered through schools across Taranaki. There are         High School, host inter-school rugby tournaments.            total impact includes $1.10 million in output, $550,000
      Output ($m)                   $1.37          $2.19                                                                                                                                      in GDP, and 11 FTEs.
                                                                   around 130 to 140 school teams in the region.
                                                                                                                                 These games bring considerable numbers of out-of-
      GDP ($m)                      $0.51          $0.92                                                                         region visitors to Taranaki – players, coaches, parents
                                                                   Table 4.6 presents the quantitative economic impact of
                                                                                                                                                                                              Yarrow Stadium
                                                                   school rugby in the region.                                   and additional teaching staff. While many of the
      Employment (FTEs)             24.1           37.1
                                                                                                                                 touring team members will stay at the homes of players       Yarrow Stadium, like Taranaki rugby, is a focus and
                                                    Source: BERL                                                                 from the two Taranaki schools, it does increase regional     object of pride for the region’s people. Yarrow Stadium
                                                                   Table 4.6 Economic impact of school
                                                                                                                                 spending on retail, food and transport.                      was recently rated in the top three rugby venues in
     The TRFU was able to provide operating expenditure
                                                                   rugby, 2008
                                                                                                                                                                                              the world, behind only Millennium Stadium, in Cardiff,
     data for seven of the region’s 17 clubs. Bulking                                                                            In addition, the inter-school tournaments raise the
                                                                    Schools rugby                 Direct          Total                                                                       Wales, and Suncorp Stadium, in Brisbane.³
     this figure up to cover the 17 clubs gave a direct                                                                          profile of the game in Taranaki and elsewhere, and
     output figure of around $1.37 million, resulting in                                                                         build community spirit as residents rally behind the local   The present capacity of the stadium, at 20,685, is
                                                                    Output ($m)                   $1.26           $1.92
     GDP of $510,000.                                                                                                            teams. They also bring prestige to the region’s schools,     larger than that of McLean Park in Napier, or Arena
                                                                    GDP ($m)                      $0.98           $1.34          which are able to compete at a national level.               Manawatu in Palmerston North, for instance, despite
                                                                                                                                                                                              a smaller regional population in Taranaki. By Rugby
                                                                    Employment (FTEs)             17.5            21.4
                                                                                                                                 ANZC matches                                                 World Cup 2011, Yarrow Stadium will be able to hold
                                                                                                                  Source: BERL                                                                25,000 spectators.
                                                                                                                                 Yarrow Stadium plays host to five to six ANZC matches
                                                                   School rugby is estimated to generate $1.26 million in        in an average year. In 2008, a total of 28,000 spectators    Yarrow Stadium was the fifth most popular regional
                                                                   direct output, resulting in $980,000 in GDP, and around       attended these games. Assuming that 10 percent               facility in the Taranaki region.4
                                                                   18 FTEs. Taking into account indirect and induced             of these spectators were from outside the region,
                                                                                                                                                                                              A strong case can be made that without strong support
                                                                   impacts suggests total output due to school rugby is          spending on average $266 a day, the results in Table 4.7
                                                                                                                                                                                              for rugby in the Taranaki region, there would be no
                                                                   $1.92 million. This output is from 21 FTEs, producing         are obtained.
                                                                                                                                                                                              justification for Yarrow Stadium and its current size
                                                                   $1.34 million in GDP.
                                                                                                                                                                                              and level of amenity. Nevertheless, the fact that the
                                                                                                                                                                                              Stadium is used for purposes other than rugby makes
                                                                                                                                                                                              it unrealistic to include it as a direct ongoing economic
                                                                                                                                                                                              impact of rugby.

                                                                                                                                                                                              ³ New Zealand Rugby World, May 2009 Issue.
                                                                                                                                                                                              4
                                                                                                                                                                                                Sport Taranaki (2007). Taranaki Sport and Recreation Needs
                                                                                                                                                                                              Assessment – 2007.

18   The value of rugby to Taranaki 2009                                                                                                                                                                             The value of rugby to Taranaki 2009       19
Historically, the Stadium has played host to a number          Furthermore, in the case of sports teams, players and           Assuming an average hourly rate of $24.70, and four                       4.2 One-off quantitative
     of matches across various sporting codes, including            support staff are likely to arrive in the region several        hours a week (0.1 FTE each) of volunteer time, the
                                                                                                                                                                                                              economic impacts
     Hurricanes rugby games; Genesis Taranaki versus British        days before the game, and possibly stay a day after. This       economic impact of these 195 volunteers is significant.7
     and Irish Lions (rugby); Taranaki ANZC rugby games;            results in considerable spending on accommodation,              If these volunteers were paid, the impact would equate                    This section looks at three one-off quantifiable impacts
     New Zealand Maori versus England (rugby);                      food and other tourism-related expenses.                        to 19.5 direct FTEs, and almost $1 million in direct                      of rugby in Taranaki: the hosting of three matches,
     New Zealand Maori versus Scotland (rugby); Central                                                                             GDP a year.                                                               upgrades and a team based in Taranaki for the Rugby
                                                                    Current financing models for sports stadiums suggest
     Districts versus Sri Lanka (cricket); and New Zealand                                                                                                                                                    World Cup 2011, the 2008 All Blacks – Manu Samoa test
                                                                    that their construction should be a private-public              However, the role of volunteerism is about far more
     Warriors versus Parramatta Eels (rugby league). In 2008,                                                                                                                                                 match, and a Super Rugby game.
                                                                    investment due to the spill-over benefits or public             than the monetary impact on the economy. The need
     it was the first stadium outside the main centres to host
                                                                    good they accrue. A study by Crompton (2004)                    for volunteerism in a sport like rugby, which plays such                  Figure 4.2 shows the one-off contributions to GDP
     the All Blacks since 1996. The quality of the stadium,
                                                                    identified five categories of benefits: direct economic         a major role in Taranaki, spills over into other aspects of               of rugby events in the region.
     combined with the region’s enthusiasm for rugby,
                                                                    impact; increased community visibility; enhanced                life as well. It promotes a culture of volunteerism, which
     helped secure three Rugby World Cup 2011 games.                                                                                                                                                          Each of these is discussed further in this section. Note
                                                                    community image; stimulation of other development;              benefits many more sectors of the community, such as
                                                                                                                                                                                                              that these three events are not exactly comparable. The
     In 2008 alone, the Stadium hosted 35 national and              and psychic income.                                             charities, community centres, and visitor centres.
                                                                                                                                                                                                              Rugby World Cup contribution includes the three pool
     three international events. These included:
                                                                    While some of these benefits are tenuous, Crompton                                                                                        games, the upgrade to Yarrow Stadium, and a team
     • Rugby union: one rugby union international, five             suggested that “all types of spill-overs may generate                                                                                     based in Taranaki; whereas the All Blacks Test and the
         ANZC matches, seven 2nd XV national rugby matches,         some benefits in some contexts, for example, if a                                                                                         super rugby match are for a single match only.8
         four regional grade rugby matches, and the                 facility is well integrated into a strategic economic
         New Zealand deaf rugby tournament                          development, it may facilitate economic benefits”.
                                                                                                                                                                   Figure 4.2. One-off contributions of rugby to Taranaki GDP
     • Rugby league: two rugby league internationals, three         The Stadium had revenue of $170,000 in 2008. Taking
         national provincial rugby league matches, one              into account indirect and induced effects, this is around                           6
         New Zealand Warriors U20s match, and one 100th             $270,000 in total revenue for Taranaki.
         rugby league anniversary celebration match

                                                                    Volunteerism
     • Other: nine association football provincial                                                                                                      4
         championships matches, and two non-sporting                Rugby plays a major role in volunteerism in Taranaki.
         conferences.                                               Some of this volunteerism has already been covered
                                                                                                                                             $m
                                                                    in our discussion of the quantitative impact of schools
     The impact of these events is far larger than the                                                                                                  2
                                                                    and club rugby, where volunteer coaches are included
     revenue accruing to the Stadium. They bring in tourism
                                                                    in the estimates.
     revenue from those visiting from outside the region.
     For instance, the ongoing economic impacts of tourists         The case study in the accompanying box gives a clearer
     visiting for ANZC games held at Yarrow Stadium are                                                                                                 0
                                                                    picture of the extent of volunteering at a club level and
                                                                                                                                                                   Rugby World Cup 2011           All Blacks Test 2008       Super Rugby Match
     dealt with in section 4.1 of this report. A further            the role that rugby plays in communities in the region.
     example is a report in 2004 which identified the                                                                                                                                                    Event                               Source: BERL

     economic benefits to the Taranaki region of a                  There were 195 registered administrators / volunteers
     Super 12 game to be around $400,000 in GDP from                and referees in Taranaki in 2008. This is likely to be an
     tourism spending.5                                             underestimate, as information on volunteers is far less
                                                                                                                                    7
                                                                    complete than that on players, coaches and referees.6             The figure of $24.70 an hour is the average pay rate in the
                                                                                                                                    cultural and recreational services industry according to the
                                                                    In addition, large events like the Rugby World Cup or
                                                                                                                                    Quarterly Employment Survey: June 2008 quarter, published
                                                                    ANZC games require far more volunteers.                         by Statistics New Zealand. Some studies assume a far lower
                                                                                                                                    dollar value for time volunteered. Those studies take
                                                                                                                                    into account only the value to the volunteer of the time
                                                                                                                                    volunteered. However, the value of the time spent volunteering
                                                                                                                                    is in fact the “productivity” of that time. In the case of
                                                                    6
                                                                     In the Taranaki Sport and Recreation Needs Assessment – 2007   refereeing a rugby game, for instance, the time should be
                                                                    report, 14 percent of respondents who were administrators or    valued as what it generates for the 30 players on the field, their        8
                                                                                                                                                                                                               To put it into context, our estimates suggest that the
     5
      Venture Taranaki. (2004). Economic Impact Study: Hurricanes   coaches identified themselves as being rugby administrators     coaches, and supporters. In these terms, a figure of $24.70 is            expenditure generated from a World Cup game is similar
     vs Sharks Super 12 Rugby Game.                                 and coaches.                                                    particularly conservative.                                                to the expenditure generated from the All Blacks test.

20   The value of rugby to Taranaki 2009                                                                                                                                                                                             The value of rugby to Taranaki 2009   21
Rugby World Cup 2011
    Yarrow Stadium played a significant role in securing three         Taranaki could also be the home venue for one of the teams
    World Cup 2011 matches for the region. One match will              participating in the tournament. . Depending on the team
    include Ireland (currently the fourth-ranked team in the           this could generate additional expenditure of between
    world). Wales (seventh) will contest another.                      $1 million and $2 million. A conservative estimate is a figure
                                                                       of around $1.2 million based on a six-week period, a squad
    There will be several components to the one-off economic
                                                                       and support team of 40, and an average daily spend per team
    impact of Rugby World Cup in 2011. These include:
                                                                       member of $700 (double the average international overnight

    • tourism revenue generated by visitors from overseas and          visitor spend).

         other parts of New Zealand coming to the three matches
                                                                       Summing the expenditure generated by the three

    • additional expenditure of around $2 million on the               components – tourist spending, Stadium spending, and

         Stadium in preparation for the tournament                     the Taranaki-based team spending – we have direct output
                                                                       of around $7.6 million.
    • additional expenditure by the team that may be based in
         Taranaki. This would involve the host team and supporters     This expenditure produces the one-off economic impacts

         being in the region for up to six weeks.                      summarised in Table 4.8.11

    Rugby World Cup 2011 is expected to attract 71,000 overseas        Table 4.8 Economic impact of Rugby World Cup $2008
             9
    visitors. The largest numbers of these visitors are likely to be
    from Australia, the United Kingdom, and Ireland.                        Rugby World Cup             Direct          Total

    The Wales and Ireland games in particular are likely to                 Output ($m)                 $7.59           $12
    bring large numbers of overseas and out-of-region visitors
                                                                            GDP ($m)                    $3.09           $5.24
    to Taranaki. Overseas visitors spend on average $361 per
    overnight visit; domestic visitors spend $266.10 If even                Employment (FTEs)           69.3            97.4
    a small number of out-of-region visitors attend matches at
    Yarrow Stadium, this will result in a significant one-off impact                                                          Source: BERL
    on Taranaki.
                                                                       Around $7.59 million in direct spending will result in an
    A conservative estimate is that 10 percent of overseas visitors    additional $3.09 million in direct GDP and the equivalent
    to Rugby World Cup 2011 will attend games in Taranaki. The         of 69 one-year FTEs.
    vast majority of these will be from Wales and Ireland although
                                                                       Adding indirect and induced impacts raises these figures
    there will be some supporters from other overseas countries
                                                                       to $12.0 million in output, $5.24 million in GDP, and the
    such as the Americas 2 qualifier, Europe 2 qualifier, and
                                                                       equivalent of 97 one-year FTEs.
    Africa 1 qualifier, all of which will play in Taranaki.
    Approximately 7,000 overseas visitors would be likely              These figures are conservative, as they include low estimates
    to attend matches in Taranaki.                                     of overseas visitors from Wales and Ireland.

    A further 7,000 visitors from other parts of New Zealand,          When you consider the further investment by the region
    mostly Wellington, Manawatu-Wanganui, and Waikato, are             into facilities and associated events, marketing and exposure
    also likely to attend. Together, these overseas and domestic       around RWC 2011, the impact grows even further. More
    visitors are likely to generate around $4.39 million in tourism    in-depth analysis of the economic impacts of RWC 2011
    revenue for the region.                                            would probably show significantly higher contributions. The
                                                                       numbers could also be higher or lower depending upon how
    9
     Estimated Economic Impact of the 2011 Rugby World Cup,            Taranaki leverages off its participation in the main event.
    Howarth Asia Pacific Limited in conjunction with Market
    Economics, 2006.

    10                                                                 11
      Forecasts of Regional Tourism Activity in New Zealand by Year      A recent report by BERL and John Cook & Associates identified
    2007-2013, Tourism Research Council, 2007.                         a revenue stream of $3.12 million for a single game.

22
Photo courtesy of Rob
        The value      Tucker
                   of rugby to Taranaki 2009                                                                                                 The value of rugby to Taranaki 2009   23
All Blacks Test 2008                                         Table 4.9 Economic impact of All Blacks - Manu                 Super Rugby                                                      An estimated additional $930,000 was spent in Taranaki
                                                                  Samoa Test, 2008                                                                                                                because of the game, including direct expenditure of
     Getting an All Blacks test was a major achievement for                                                                      Taranaki, as part of the Hurricanes franchise, has hosted        $630,000 and indirect and induced effects of $300,000.
     Taranaki in 2008. An All Blacks test in a provincial union                                                                  a number of Super 12 and Super 14 games over the
                                                                   All Blacks Test 2008          Direct          Total                                                                            As the result of the additional expenditure, 8.2 one-year
     is very rare and is a testament to Taranaki’s standing                                                                      years, with the latest game being in 2009.                       equivalent FTEs were created. Additional value added
     in the rugby community. With over 70 Taranaki players         Output ($m)                   $1.60           $2.35
                                                                                                                                                                                                  (GDP) was estimated at $390,000, including $270,000
                                                                                                                                 A report in 2004 identified the economic benefits
     having represented the All Blacks, it was fitting that
                                                                   GDP ($m)                      $0.79           $1.19                                                                            direct GDP, and indirect and induced effects
                                                                                                                                 to the Taranaki region of a Super 12 game. Of the
                                                                                                                                                                                13
     Taranaki finally got to host a test match for the first
                                                                                                                                                                                                  of $120,000.
                                                                                                                                 12,500 spectators, an estimated 1,288, or 10.3 percent,
     time in the Union’s 120 years.                                Employment (FTEs)             18.1            23.3
                                                                                                                                 were from outside of Taranaki, with the majority                 The report concluded that the Super 12 game held in
     The event was a celebration of rugby in the region,                                                   Source: BERL / TRFU   coming from Wellington and Manawatu-Wanganui.                    New Plymouth had a positive economic benefit to
     with the All Blacks arriving days earlier and a number                                                                      On average, visitors stayed 1.74 nights in Taranaki.             New Plymouth and Taranaki in general, and that Yarrow
     of events organised to enable interaction with the           This game generated around $0.79 million in direct GDP,        Over half of guest nights were in hotels. Out-of-region          Stadium had adequate infrastructure to host
     community leading up to the game.                            and the equivalent of 18 direct one-year FTEs. The total       spectators surveyed gave positive feedback on the                Super 12 games.
                                                                  impacts on the region included $2.35 million in output,        quality of Yarrow’s facilities, as well as the friendliness
     TRFU have estimated, based on ticket sales (including
                                                                  $1.19 million in GDP, and 23 one-year FTEs.                    of the Taranaki people.                                          The event also had the positive effect of being televised
     tickets bought in the region for visiting friends and
                                                                                                                                                                                                  nationally and internationally, exposing Taranaki to the
     family) corporate hosting, external sponsor presence,        There were also a number of events that were run               Table 4.10 shows the one-off output and GDP values               rest of the country as well as viewers in South Africa
     event and team support, that up to 6,000 visitors for the    concurrently with the Test match, which attracted              from the 2004 study, adjusted to 2008 figures for                and Australia. Spectators and players visiting Taranaki
     game were from outside Taranaki. Assuming an average         additional expenditure and exposure for the region,            comparison purposes.                                             for the game gave a tourism boost to the region,
     spend per visit of $266 per domestic visitor12, we have      that are not captured in these figures. The game was                                                                            with the potential for future return visits given their
     direct expenditure (output) of $1.60 million generated       televised internationally, and the fact that it was in         Table 4.10 Economic impact of 2004 Super 12                      experience there.
     for the region, as shown in Table 4.9.                       Taranaki was not lost in the commentary.                       game in Taranaki, 2008

                                                                                                                                      Hurricanes vs Sharks       Direct              Total
                                                                                                                                      Super 12 2004

                                                                                                                                      Output ($m)                $0.63               $0.93

                                                                                                                                      GDP ($m)                   $0.27               $0.39

                                                                                                                                      Employment (FTEs)          6.8                 8.2

                                                                                                                                                                       Source: Venture Taranaki

                                                                                                                                                                                                  Photo courtesy of Taranaki Daily News

                                                                                                                                 13
                                                                                                                                   Economic impact study: Hurricanes vs. Sharks Super 12 Rugby
     12                                                                                                                          Game. Venture Taranaki, 2004.
       Forecasts of Regional Tourism Activity in New Zealand by
     Year 2007-2013, Tourism Research Council, 2007.

24   The value of rugby to Taranaki 2009                                                                                                                                                                                The value of rugby to Taranaki 2009   25
... Identity - pride in where
                                                          we live and who we are
Taranaki rugby,
it’s about...

... Our youth, healthy activity,
life skills, teamwork, values

                                                                           ... Our future, our place
                                                                           in New Zealand and the
                                                                           national game

... Our communities,
bringing people
together for a common
purpose, sharing                      ... Our economy,
                                           employment,
                                   visitors, big events

                                                          ... It’s about Taranaki and it’s about us

                                                            A GAME LIKE NO OTHER
... Lifestyle, recreation,
fun and friendship
5        Qualitative impacts of rugby

     The qualitative impacts of rugby on                      • Creating safer communities: reducing anti-social
                                                                   behaviour and the fear of crime
                                                                                                                                                                 Stratford Rugby and
     the Taranaki region are probably the                                                                                                                        Sports Club
     more important component of this                         • Transforming lives: improving the life chances and
                                                                                                                                                                 The Stratford Rugby and Sports Club is a key
     benefits analysis. Unfortunately the                          focusing the energies of children and young people.
                                                                                                                                                                 organisation in Stratford, which is a rural district
     numbers behind this impact cannot be                     It is important to look at how rugby in Taranaki                                                   with around 9,000 people. It would be difficult to find
     determined with any accuracy. If they                    contributes across each of these five areas.                                                       a family in Stratford that is interested in rugby that
     could, it may well be that these figures                                                                                                                    doesn’t have at least one person who plays or has
     would far surpass those identified in                    5.1 Developing strong, sustainable                                                                 played for one of the Stratford teams.
     the quantitative analysis in chapter 4.                  and cohesive communities                                                                           There are four afternoon grade teams and
     The benefits of sport in general are well documented.    At a very core level, it can be argued that, as the only                                           approximately 180 Saturday morning grade primary
     These accrue at an individual, community and national    major14 professional sports team representing the                                                  school players. The Stratford Rugby and Sports Club
     level. Indeed, around the world governments spend a      entire Taranaki region, the Taranaki ANZC rugby team                                               also have ten netball teams.
     significant amount on encouraging participation and      encourages cohesiveness within and a sense of pride
                                                                                                                                                                 The Club is well supported within its community. The
     excellence across all sports.                            in Taranaki. Further, the fact that the domestic rugby
                                                                                                                                                                 Club receives numerous sponsorships from within the
                                                              competition has participation from communities around
     The vision for Sport Taranaki according to the 2007-                                                                                                        community. The stands are full for every home game.
                                                              the mountain also encourages cohesiveness.
     2010 strategic plan is to “Inspire a healthy active                                                                                                         After match ceremonies are well attended by the
     community”. Their strategic objectives over the          Having a professional sports team able to play at the                                              supporters and the community at large. After a home
     three years include:                                     highest level of competition in New Zealand provides                                               game, the rugby club is the place to be on a Saturday
                                                              a point of focus for communities in Taranaki. It                                                   to enjoy the company of neighbours. People frequent
     • high quality and successful sport development
                                                              engenders a sense of pride and togetherness, which                                                 the club to enjoy the community spirit and those that

     • active communities across Taranaki region              is a major factor in developing the culture and                                                    aren’t necessarily rugby fans will still attend to discuss
                                                              perspective in a region.                                                                           gardening, farming or their other interests.
     • increase in participation levels of youth
                                                              These outcomes contribute to important pillars                                                     The Club is the predominant way many Stratford
     • reduction of inequalities in all areas.                                                                                                                   community members identify themselves within the
                                                              advocated by Taranaki Councils and key stakeholders
                                                              as documented in their Long Term Community Plans.             15                                   larger region. The Club facilitates a positive family
     Rugby can and already is playing a leading role in
                                                              The provincial rugby team is a highly visible symbol and                                           environment that urges the community to be a part
     achieving these objectives. Rugby’s role in successful
                                                              within kiwi culture it is often inextricably aligned to                                            of something that represents, and engenders pride in,
     sport development has been largely discussed already.
                                                              the reputation and identity of a region. Rugby is the                                              Stratford. The Club proudly displays its place within
     This section focuses on the other three objectives.
                                                              ‘national game’, thus the standing of a province’s rugby                                           Taranaki and New Zealand rugby as a whole.
     Sport England has five papers that advocate the value    team serves as an important medium through which
                                                                                                                                                                 The Club also works within the community. In the
     of sport in shaping places. These papers are:            perceptions and judgements about a location
                                                                                                                                                                 current environment, they have offered labour (from
                                                              are sometimes made.
     • Building communities: developing strong, sustainable                                                                                                      their players) in exchange for sponsorship providing
        and cohesive communities                                                                                                                                 an immediate return to sponsors and giving the
                                                                                                                                                                 players a chance to demonstrate their gratitude to the
     • Increased prosperity: increasing skills; employment
                                                                                                                                                                 community that supports them.
        and economic prosperity

     • Healthier communities: improving health and
        reducing health inequalities

                                                              14
                                                                 You could argue that Basketball is also represented here
                                                              through the Taranaki Devon Dynamos.

                                                              15
                                                                Taranaki Council Long term Plans (2009/2019) advocate
                                                              a region which is vibrant, connected, together, secure and
                                                              healthy, prosperous, skilled and sustainable.

28   The value of rugby to Taranaki 2009                                                                                         Photos courtesy of Rob Tucker             The value of rugby to Taranaki 2009            29
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