Economic Impact Study Hurricanes v Sharks Super 12 Rugby Game - 19 March 2004 Yarrow Stadium, New Plymouth

 
Economic Impact Study

Hurricanes v Sharks Super 12 Rugby Game

                19 March 2004

         Yarrow Stadium, New Plymouth

                   May 2004
1. Executive Summary
  Venture Taranaki in partnership with the Taranaki Rugby Football Union (TRFU) have undertaken this
  research initiative to evaluate the impact the recent Hurricanes v Sharks Super 12 rugby game (the game)
  had on the Taranaki economy.

  The Hurricanes region encompasses the lower half of New Zealand's North Island from Hicks Bay in the
  north to Island Bay in the south. The opposing South African team (Sharks) do not have a large New
  Zealand based supportive following; it is assumed this was an influential factor that impacted the number of
  out-of-region spectators attending the game.

  The total expenditure (in dollars) by event organisers, teams and spectators (within-region and out-of-region)
  for the game came to an estimated $830,000. This comprises money that was spent by TRFU, event
  organisers, spectators etc. (known as direct expenditure) and flow-on (or subsequent expenditure)
  generated throughout the Taranaki economy before, during and after the game. The direct expenditure is
  estimated at $560,000, while the flow-on output is estimated at $270,000.

  Impact                    Expenditure          Net Household        FTE Employment*           Value Added
                                                     Income                                        (GRP)

  Direct                     $560,000               $120,000                  6.80               $240,000

  Flow-on                     $270,000               $40,000                  1.44               $110,000

  Total                      $830,000               $160,000                  8.23               $350,000

  NOTE: impact figures rounded to two significant figures. *Figures do not sum to totals due to rounding
  consistency.

  Value added, or GRP, measures the total value of output producted within the Taranaki economy as a result
  of the game. For example, consider a hotdog sold at the game for $1.60. Of this only $0.20 is added to the
  Taranaki economy by the transaction. The remaining $1.40 is attributed to the region where the hotdog was
  manufactured, freighted from etc.      In this case, the game generated $350,000.        The majority of this,
  $240,000 was resultant from direct expenditure while $110,000 was from flow-on expenditure.

  An equivalent of 8.23 full time jobs were created as a result of money spent by TRFU, event organisers and
  spectators etc. In addition an estimated $160,000 of disposable income (i.e. after tax and savings) was
  injected into local households in the form of wages/ salaries as a result of the game.

                                                                                                   Page 2 of 17
Over 300 spectators were surveyed to gain expenditure patterns and thoughts on the game. The greatest
benefit comes from out-of-region spectators as it can be assumed their expenditure may not have occurred
in the region if the game had not been on. A portion of Taranaki spectator expenditure was also included in
analysis as the event may have led them to spend more in the region that they otherwise would have. In
addition to economic information the survey identified a number of other key points, including:

•   Saturday at 7.35 pm is the most favored time for future games at Yarrow Stadium.

•   The majority of spectators attended the game with family.

•   Sponsorship recall for Genesis Energy was high (84.8%) among Taranaki respondents.

•   Newspapers and Magazine publications were the most effective form of advertising.

•   The majority of respondents reported current ticketing methods are meeting their needs.

•   The majority of out-of-region spectators originated from the Wellington and Manawatu-Wanganui
    regions.

•   Visitors stayed on average 1.74 nights when in Taranaki for the game. Almost half stayed in hotel/
    motel accommodation.

                                                                                                  Page 3 of 17
Contents
1.   Executive Summary ..................................................................................................................... 2

2.   Introduction .................................................................................................................................. 5

3.   Objectives .................................................................................................................................... 6

4.   Expenditure.................................................................................................................................. 6

5.   Economic Impact ......................................................................................................................... 7

6.   Analysis
                  6.1 Accommodation...................................................................................................... 8
                  6.2 Advertising Effectiveness ....................................................................................... 8
                  6.3 Spectator Group Type ............................................................................................ 9
                  6.4 Purchasing Tickets ................................................................................................. 9
                  6.5 Sponsorship ........................................................................................................... 10
                  6.6 Preferred Time and Day of Future Games ............................................................. 10
                  6.7 Out-of-Region General Comments on Taranaki ..................................................... 11

7.   Demographics
                  7.1 With-Region Respondents...................................................................................... 12
                  7.2 Out-of-Region Respondents................................................................................... 12

8.   Conclusions ................................................................................................................................. 13

APPENDIX
     A.    Glossary ............................................................................................................................... 14
     B.    Methodology ......................................................................................................................... 14
     C. Sources of Bias and Error..................................................................................................... 15
     D. Model Review and Sector Descriptions (Dr Warren Hughes, Waikato University)................ 15

                                                                                                                                              Page 4 of 17
2. Introduction
  As Taranaki seeks to attract and retain events to the region, it is becoming more and more desirable to
  evaluate the success of initiatives. It is increasingly common to measure the success of events by economic
  contribution to the local economy. Venture Taranaki in partnership with the TRFU have undertaken this
  research to determine the impact the Hurricanes v Sharks Super 12 game had on the Taranaki economy.

                                                                                                      th
  An estimated 12,500 people attended the Hurricanes v Sharks Super 12 game held on Friday 19 March at
  New Plymouth’s Yarrow Stadium.         Of these, 1,288 (10.3%) were estimated to be from outside of the
  Taranaki region.

  From a database of spectators, provided by TRFU, 572 surveys were distributed to Taranaki (468) and out-
  of-region (104) spectators to measure expenditure. Estimates of other expenditure groups (e.g. teams/
  management) were provided to Venture Taranaki by the TRFU. The total expenditure by spectators, game
  organisers and teams was collated and used as input data into a 114-sector economic impact model of the
  Taranaki Region. The information provided in this report summarises the economic impact of the event and
  also provides feedback, gained through the spectator survey, to the TRFU on various game/park/ticketing/
  demographic issues.

  The economic impact of the game on the Taranaki economy is measured across the following variables:

  1.   Total sales expenditure or output in dollars.
  2.   Net Household Income (after tax and savings) generated in dollars.
  3.   Full-time Equivalent Employment (FTE) generated in persons.
  4.   Value Added, also known as Gross Regional Product (GRP) (salaries, profits and taxes) generated in
       dollars.

  While Total Expenditure measures the gross dollar impact of the event, economically the best measure is
  Value Added (or GRP). Value Added measures the total value of goods and services created within the
  Taranaki economy as a result of the game.

  In addition to the economic benefits listed above, it is important to recognise the intangible benefits the game
  generated for Taranaki that can not economically be measured. Two of the more significant intangible
  benefits the Hurricanes v Sharks game generated included the international live broadcast via the Sky
  network and the general positive feeling reported by visitors to the region.

                                                                                                    Page 5 of 17
3. Objective
  The key objective was to measure the financial economic impact the annual Hurricanes Super 12 game had
  on the Taranaki economy.

  Sub-objectives include:
    •   To measure out-of-region spectator expenditure.
    •   To measure the extra expenditure within Taranaki the game creates (i.e. how much Taranaki
        residents spend as a result of the game).
    •   To identify where out-of-region spectators are coming from.
    •   To identify how spectators are finding out about the game.
    •   To measure how many spectators can identify the Taranaki Rugby primary sponsor (Genesis
        Energy).
    •   To find out how people would like to purchase tickets in the future.
    •   To find out the types of groups attending games.
    •   To identify the preferred time and day of future games.
    •   To gain general feedback from out-of-region visitors on their trip to Taranaki.

4. Expenditure
  Across the industries an estimated $562,922 was spent by TRFU, event organisers and spectators etc.
  Estimates were collected via spectator survey and TRFU. See appendix section B for further information on
  survey methodology and data collection methods. The table below details expenditure by industry.

                    Industry Sector                                            Expenditure
                    Printing and services to printing                          $1,850
                    Electricity transmission                                   $2,000
                    Non building construction                                  $1,100
                    Retail trade                                               $107,355
                    Accommodation                                              $101,042
                    Bars, clubs, cafes and restaurants                         $168,669
                    Road freight transport                                     $600
                    Road Pax (road passenger transport)                        $83,582
                    Communication services                                     $150
                    Vehicle and equipment hire                                 $560
                    Technical services                                         $2,275
                    Advertising and marketing services                         $3,600
                    Employment, security and investigative services            $10,000
                    Pest control and cleaning services                         $2,000
                    Medical, dental and other health services                  $350
                    Other sport and recreational services (tickets)            $76,310
                    Personal and other community services                      $1,500
                    Total                                                      $562,922

                                                                                               Page 6 of 17
5. Economic Impact
  The expenditure by organisers, teams and spectators (within-region and out-of-region) for the Hurricanes v
  Sharks Super 12 game totaled an estimated $830,000. This is money that was spent both at the game and
  in preparation for the game.     The direct impact is estimated at $560,000, while the flow-on impact is
  estimated at $270,000. One example of the difference between direct and flow-on impacts is renting a hotel
  room; the direct impact would result from the client hiring the room, while the flow-on impact results from the
  hotel purchasing electricity, gas, food and other commodities to supply the client.

  Four key economic measures help asses the impact of an event on the region. These include total direct
  expenditure (as above), net household income, full time equivalent (FTE) employment and value added
  (also known as Gross Regional Product, GRP).

  Impact                     Expenditure          Net Household        FTE Employment*           Value Added
                                                      Income                                         (GRP)

  Direct                      $560,000               $120,000                  6.80                $240,000

  Flow-on                     $270,000                $40,000                  1.44                $110,000

  Total                       $830,000               $160,000                  8.23                $350,000

  NOTE: impact figures rounded to two significant figures. *Figures do not sum to total due to rounding
  consistency.

  All together an estimated $830,000 changed hands in Taranaki as a result of the Hurricanes v Sharks Super
  12 Game.       This expenditure was allocated across the relevant industry sectors and entered into the
  economic impact model (see appendix section D for detailed description of the model) to determine
  alternative impact measures.

  Approximately 8.23 FTE jobs were created as a result of money spent by TRFU, event organisers and
  spectators etc. for the Hurricanes v Sharks game in Taranaki. An estimated $160,000 of disposable income
  (i.e. after tax and savings) was injected into local households in the form of wages/ salaries as a result of the
  game.

  Value added, or GRP, measures the value of output producted by the Taranaki economy as a result of the
  game. For example, consider a hotdog sold at the game for $1.60. Of this only $0.20 is added to the
  Taranaki economy by the transaction. The remaining $1.40 is attributed to the region where the hotdog was
  manufactured, freighted from etc.      It is estimated that $350,000 in regional output was created in the
  Taranaki economy as a result of the game.          The majority of this, $240,000 was resultant from direct
  expenditure while $110,000 was resultant from flow-on expenditure.

                                                                                                     Page 7 of 17
6. Analysis
6.1 Accommodation
    Almost half (46.8%) of out-of-region spectators stayed in hotel/ motel accommodation while visiting Taranaki
    for the game. Conversely, 31.9% stayed privately with friends/ family. On average, out-of-region spectators
    spent 1.74 nights and $66.70 (per person) on accommodation while visiting the region.

                                                               Accommodation Form

                                       25

                                       20
                           Frequency

                                       15

                                       10

                                        5

                                        0
                                               Hotel/ Motel           Privately       Hostel              Holiday Park

6.2 Advertising Effectiveness
    58.9% of Taranaki respondents reported they found out about the game via newspaper/ magazine
    publications. Following this, radio and work of mouth mediums were most effective. The ‘other’ mediums
    commonly included banners/ billboards around New Plymouth/ Taranaki and Super 12 information (e.g.
    calendars).

                                                              Advertising Effectiveness

                                       150

                                       100
                           Frequency

                                       50

                                        0
                                             Newspaper/       Radio       Word of   Other      Internet         Flyer
                                              Magizine                     Mouth

                                                                                                                         Page 8 of 17
The majority (27.7%) of out-of-region respondents also reported they found out about the game through
                  newspaper/ magazine advertising.             Collectively 44.7% found out through word-of-mouth or the internet.
                  19.1% found game information through other means (generally ‘other’ included super 12 information).

               6.3 Spectator Group Types
                  The majority of Taranaki spectators were family groups. Just less than one quarter of respondents went with
                  friends while 4.8% went to the game with work colleagues. Comparatively, 57.4% of out-of-region attendees
                  accompanied family to the game while 36.2% went with friends.

                                                          Taranaki Spectator Group Type

                                                    200

                                                    150
                                        Frequency

                                                    100

                                                     50

                                                      0
                                                          Family         Friends     Work colleagues

                  NOTE: Respondents that reporting attending the game with friends and family were classified as family
                  groups. It is assumed that groups of this nature would be representative of family behavior.

               6.4 Purchasing Tickets
                  Overall the response to current ticketing options was positive, with 78.5% of respondents either making no
                  comment or confirming the options available were satisfactory.

“I made a         A number of respondents commented that they did not like the additional booking fee charged for

special trip      purchasing tickets through New Zealand Post, as one respondent wrote “New Zealand Post is okay [for

to New            purchasing tickets], but no booking fee”. Another issue raised was the inability for individuals to select seats,

Plymouth          “I would like to be able to pick my seats from the Post Office”. A number of respondents also requested the

to pick up        option of being able to purchase tickets directly from the TRFU with no booking fee.

my tickets”
                  Of the comments made by respondents, over one-third was with reference to tickets being available through
                  Service Stations. Some coastal respondents recommended rural business outlets sell tickets (e.g. Taranaki
                  Farmers) in order to save a trip to town.

                  Of the out-of-region respondents, over eighty percent either made no comment on how they would like to
                  purchase tickets in the future, or commented that the current methods were meeting their needs. A number

                                                                                                                     Page 9 of 17
of individuals commented that they preferred the internet option available through Red Tickets. The issues
   around the booking fee and seat selection were also raised.

6.5 Sponsorship
   The significant majority of Taranaki respondents (84.8%) were able to identify Genesis Energy as the
   primary sponsor of Taranaki Rugby. This is a strong response and indicates the effectiveness of marketing
   initiatives to date.

   Yarrows and TSB Bank were alternative sponsors mentioned by the remainder of Taranaki respondents.
   4.8% of respondents were not able to answer the question.

6.6 Preferred Time and Day of Future Games
   40.3% of Taranaki respondents indicated Saturday at 7.35 pm was the preferred time of future games.
   Saturday at 2.35 pm (25.2%) and Friday at 7.35 pm (23.6%) was also favored by respondents.

                                  Preferred Day and Time of Future Games

                                                                 Day
                                               Friday       Saturday        Sunday       Total
                   Time       2.35 pm                   0              65            9           74
                              5.35 pm                   3              15            1           19
                              7.35 pm                61            104               0       165
                   Total                             64            184           10          258

                                                                                                  Page 10 of 17
6.7 Out-of-Region General Comments on Taranaki
                                                                                                              “Excellent stadium,
                                                                                                              friendly people,
“The stadium                                                                                                  GREAT place”
is fantastic,
and with the                Overall comments from visitors to the region were very positive. Issues commonly raised were
mountain in                 the new stadium renovations and the friendliness of the Taranaki people.
the
background
it is                       A number of respondents commented that additional signs would be beneficial. In particular,
awesome”                    roading signs indicating state highway three /state highway one and a sign to the CBD area in
                            New Plymouth. It was also suggested that out-of-town spectators (who pre-purchase tickets)
                            receive a map of New Plymouth and the stadium facility with their tickets.

                Comments in relation to the game were also frequently made by respondents. One international visitor had
                this to say “Hosting matches in the provinces is something that NZ does well and something Europe does
                badly. I can not recommend enough the importance of the ‘peoples game’ being offered to the people,
                including smaller provinces. I extended my stay in Taranaki for almost a week to see the game”.

                A number of out-of-region spectators commented that Friday night games made it difficult to attend “Have it
                on Saturday night, less time off work and school”.

                Ticket prices were also commented on by both national and regional spectators. A
                                                                                                                “Tickets
                number of respondents suggested offering package deals, “ticket package deal to
                                                                                                                were at a
                include ticket, accommodation and a meal” and “Make it more family friendly – each
                                                                                                                higher cost
                child with an adult to receive a game pack (e.g. poster, flag, chips, small drink for
                                                                                                                than other
                $5.00 on terraces)”.
                                                                                                                grounds”

                One respondent expressed concern regarding ticket prices and food restrictions in the park “I was told on
                arrival I could not take my own food in. I don’t think you can have such high admission costs and not allow
                families to take food in. Either lower the price of admission and not food allowed in or vice versa. I think
                currently the price is out of a lot of peoples range. It can cost over $100 for a family to watch our Super 12
                team – this is why people are watching on TV”.

                                                                                                               Page 11 of 17
7. Demographics
7.1 Within-Region Respondents
   40.0% of respondents were male between the age of 40 and 65 years. This is likely to be due to the fact
   that respondents were selected from the database based on the order of purchasing tickets, rather than
   quota sampling based on demographics. It is also likely to be influenced by the nature of the event, and the
   older population base in Taranaki.

   ‘Professional’ was the most frequent respondent occupation (36.4%), followed by ‘Labourers’ (19.4%) and
   ‘Farmers’(19.0%).

   55.2% of within-region respondents were located in the New Plymouth Urban Area. Stratford and South
   Taranaki Districts reported greater rural than urban spectators.

                                                          Location of Respondents

                                                                                       Urban or Rural                                    Total
                                                                                    Urban                        Rural
                           New Plymouth District                                            149                                49            198
                           Stratford District                                                   6                              12                18
                           South Taranaki District                                              17                             37                54
                       Total                                                                172                                98            270

7.2 Out-of-Region Respondents
   Again, the majority of respondents (34.0%) were males between the age of 40 and 65 years. ‘Professional’
   was the most commonly identified occupation type (57.4%) followed by Labour related occupations (19.1%).

   Most respondents originated from the Wellington and Manawatu-Wanganui Regions.                                                                     Combined these
   regions account for 85.1% of out-of-region respondents.

                                                             Origin of Spectators

                                           25

                                           20
                               Frequency

                                           15

                                           10

                                            5

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                                                                                                                                                        Page 12 of 17
8. Conclusions
  •   The Hurricanes v Sharks Super 12 game held in Taranaki generated an estimated $830,000 of
      expenditure. Of this, $560,000 was direct expenditure and $270,000 resulted from flow-on expenditure.

  •   An estimated $350,000 was generated in additional output as a result of the game.

  •   An equivalent of 8.23 full time equivalent jobs were created as a result of money spent by event
      organisers and spectators.

  •   Around $160,000 (after tax and savings) was injected into local households in the form of wages/
      salaries as a result of the game.

  •   Advertising in Newspapers and Magazine publications was the most effective form of advertising the
      New Plymouth Hurricanes Super 12 game.

  •   Most spectators attend the game with family members as opposed to friends or work colleagues.

  •   Current ticketing methods are meeting the needs of spectators. However, due to the displacement of
      the Taranaki population, there may be value in making tickets available through service stations.

  •   The Taranaki Rugby sponsor (Genesis Energy) was well recognised by over eighty percent of Taranaki
      spectators.

  •   Saturday at 7.35 pm was the most favored time for future games.

  •   The majority of out-of-region spectators originated from the Wellington and Manawatu-Wanganui
      regions.

  •   Visitors stayed on average 1.74 nights when in Taranaki for the game. Almost half stayed in hotel/
      motel accommodation.

  •   Overall New Plymouth was received very well by out-of-region spectators visiting the region.           In
      particular, they were impressed with the improved stadium facilities and the friendliness of the Taranaki
      people.

                                                                                                Page 13 of 17
APPENDIX
A.   Glossary
     FTE Employment                   Full-time equivalent employment. A person working 30 or more hours per
                                      week is regarded as a full-time employee by Statistics NZ (1 FTE). Two part-
                                      time workers working up to 30 hours per week equate to one FTE. About 24%
                                      of the NZ workforce works part-time.

     Net Household Income             Household income from wages and salaries after income tax (PAYE),
                                      superannuation and other saving. This measures the amount of purchasing
                                      power available to Taranaki residents as a result of the game.

     Value Added, GDP or GRP GDP or gross domestic product also known as Value Added, is the value of
                                      output produced within NZ by domestic and foreign Business Units. GRP or
                                      gross regional product is the value of output produced regionally, e.g. in the
                                      Taranaki economy. For example, consider a $40,000 utility vehicle to be sold
                                      from a Taranaki dealership of which $10,000 is the dealer’s gross profit margin.
                                      Only $10,000 is added to the Taranaki GRP by this transaction. The other
                                      $30,000 accrues to the region where the utility was made and the freight etc.
                                      cost to out-of-region firms transporting the vehicle to Taranaki.

     Input/Output Model               A model showing all economic inputs required to produce a given output level
                                      of a good or service.       For example, all labour, electricity and other inputs
                                      required to process one tonne of milk solids into dairy products. Some inputs
                                      (e.g. turbine generators) may need to be imported from outside the region or
                                      from overseas. A 114-sector Input/Output Model for the 2003 year was the
                                      basis for estimating the economic impacts reported for the Taranaki economy.

B.   Methodology
     Data Collection
     The contact details (name and postal address) of spectators were provided to Venture Taranaki by TRFU.
     The list comprised 5,710 ticket sales1 through Red Tickets either via phone, internet, by visiting a NZ Post
     Shop, or a Books & More Store. Of these, 5,154 were from the Taranaki region and 586 (or 10.3%) were
     from other areas in New Zealand.

                                                                            2
     572 economic surveys were distributed to spectators (104 to out-of-region and 468 to within-region
     spectators). Out-of-region and with-region populations received different survey forms, this is to take into
     account the fact that Taranaki based expenditure is different to that of out-of-region spectator expenditure
     (i.e. accommodation).

     1
       Individuals on the list purchased more than one ticket. Only individuals that detailed their name and address were
     included on the final selection list.
     2
       104 individuals purchased the 586 known out-of-region tickets. As this falls below the desired sample size, all
     individuals were surveyed.

                                                                                                                Page 14 of 17
A response rate of 45.2% for out-of-region surveys and 57.7% for within-region surveys was achieved.
     Based on a combined spectator population of 12,500, we can be 95% confident to +/- 5.9% that within-
                                                                                                3
     region results are representative of the entire population and 95% to +/- 14.0% that out-of-region results are
     representative of the entire population.

     Data Analysis
     Total out of town attendee expenditure was included in analysis while portion of within region expenditure
     was included. The proportion included was based on the percentage chance that attendees would have
     gone out of the region had the game not been on (i.e. if a respondent reports a 30% change they would
     have gone out of the region if the game had not been on, then 30% of that respondents expenditure went
     forward to be included in analysis).

C. Sources of Bias and Error
     It is virtually impossible to conduct any research without a bias influence of some form. In this case, there
     are a number of sources of bias and potential error that interpreters of the report should be aware of.

          •    Only a sample of those individuals that pre-purchased tickets was surveyed. Spectators that did not
               purchase tickets to the game in advance, or did not disclose their contact details when pre-
               purchasing tickets were not included on the database selection list. It is assumed that individuals on
               the selection list are representative of the entire population.

          •    Due to the limited number of out-of-region attendees available to be surveyed, we can be confident
               results are representative of the entire population to between 81 and 100%.

          •    Due to the detailed nature of questions asked, estimates and averages reported by respondents may
               not be precisely reflective of true expenditure.

          •    Some attendees will not be willing to participate in the survey.

          •    It is likely that attendees that had a more significant financial relationship (i.e. stayed a number of
               nights in the region) to report are more likely to complete the survey than those with a less significant
               relationship to report.

          •    Although the best strategies were implemented to construct the survey form, the questions asked or
               not asked can influence whether a respondent will complete the survey form.

D.   Model Review (Dr Warren Hughes, Waikato University Department of Economics)
     The model used in this report was constructed from data originating with Statistics NZ over the 1995/96
     year. This data was then updated to 2003 productivity levels and prices and calibrated with NZ’s GDP. The
     NZ and regional economies were categorised into 114 sectors.

     3
         This confidence interval is above the desired 10.0%; however is unavoidable due to the limited national level database.

                                                                                                                  Page 15 of 17
The model for the Taranaki Region was used to document four economic impacts:

         •   Total sales, expenditure or output in dollars.
         •   Net household income after tax, superannuation and other saving in dollars.
         •   Value Added for the region in dollars.
         •   Employment in full-time equivalent persons (FTEs).

Although total sales, expenditure or output best measures the dollar value of total economic activity in a
region, it can be inflated by the value of large imports of products or services (e.g. a turbine for a co-
generation plant) into a region like Taranaki from say Australia or the UK. While such sales figures measure
total transaction value, the Value Added measure quantifies the economic value in dollars created within a
region (or NZ) by the local workforce after allowing for any necessary imports of raw materials and other
goods and services from outside that region (or NZ). This is the measure of the addition to gross regional
product (GRP) and ultimately to NZ’s GDP, and best reflects the true gain to the economy of interest.

Net Household Income is the best measure of available household purchasing power. Strong growth or
impact for this measure signals improved prospects for the Wholesale and Retail Trade sectors, Ancillary
Construction (e.g. house additions or renovations) and similar sectors. In percentage terms, this impact
shows almost the same value as FTE employment. Hence, growth or level of FTE approximates growth or
level of Net Household Income.

A wealthy region or country may show acceptable outcomes for the three dollar measures above but may
lack the industrial capacity to support good job growth in the region. Employment is therefore an important
attribute of regional prosperity and this means economic development within the region is required to expand
opportunities for a regional workforce. Such employment is measured in full-time equivalents (FTEs) since
about 24% of regional workforces are currently part-time employees.

Activities in the 114 Sectors of the Taranaki Economy

1     Other Horticulture                           58         Furniture
2     Apple & Pears                                59         Other Manufacturing
3     Kiwifruit                                    60         Electricity Generation
4     Other Fruit                                  61         Electricity Transmission
5     Mixed Cropping                               62         Electricity Supply
6     Sheep & Beef Farming                         63         Gas Supply
7     Dairy Farming                                64         Water Supply
8     Other Farming                                65         Residential Building
9     Services to Agriculture                      66         Non-Residential Building
10    Forestry                                     67         Non-Building Construction
11    Services to Forestry                         68         Ancillary Construction Services
12    Logging                                      69         Wholesale Trade
13    Fishing                                      70         Retail Trade
14    Coal Mining                                  71         Accommodation
15    Services to Mining                           72         Restaurants, Cafes, Bars & Clubs
16    Other Mining & Quarrying                     73         Road Freight

                                                                                                 Page 16 of 17
17   Oil & Gas Extraction                   74    Road Passenger
18   Oil & Gas Exploration                  75    Water & Rail Services
19   Meat Processing                        76    Air Services, Transport & Storage
20   Poultry Processing                     77    Communication Services
21   Bacon Ham & Smallgoods                 78    Finance & Superannuation
22   Dairy Manufacturing                    79    Insurance
23   Fruit & Veg, Oil & Cereal Processing   80    Services to Finance & Insurance
24   Bakery & Confectionary                 81    Property Services
25   Seafood Processing                     82    Owner Occupied Housing
26   Other Food Manufacturing               83    Vehicle & Equipment Hiring
27   Soft Drink, Cordial, Water             84    Scientific Research
28   Beer, Wine & Tobacco                   85    Technical Services
29   Textile Manufacturing                  86    Computer Services
30   Clothing Manufacturing                 87    Legal Services
31   Footwear                               88    Accounting Services
32   Other Leather Products                 89    Advertising & Marketing Services
33   Sawmilling & Timber Dressing           90    Business, Admin. & Mngt. Services
34   Other Wood Products                    91    Employment & Security Services
35   Paper & Paper Products                 92    Pest & Cleaning Services
36   Printing & Services                    93    Other Business Services
37   Publishing & Recorded Media            94    Central Government
38   Petroleum Refining                     95    Defence
39   Petroleum & Coal Products              96    Fire & Police
40   Fertilisers                            97    Local Government
41   Other Industrial Chemicals             98    Pre-School Education
42   Medicinal, Detergents & Cosmetics      99    Primary & Secondary Education
43   Other Chemical Products                100   Post School Education
44   Rubber Manufacturing                   101   Other Education
45   Plastic Products                       102   Hospitals
46   Glass & Ceramics                       103   Medical & Dental
47   Other Non-metallic, Mineral Products   104   Veterinary Services
48   Basic Metal Manufacturing              105   Child Care
49   Structural, Sheet & Fab Metal Prod     106   Aged Accommodation
50   Motor Vehicles                         107   Other Community Services
51   Ship Building                          108   Movies, Radio & TV
52   Other Transport Equipment              109   Libraries, Museums & Arts
53   Photographic & Scientific Equipment    110   Horse & Dog Racing
54   Electrical & Appliance Manufacturing   111   Gaming
55   Agricultural Equipment                 112   Other Sport & Recreation
56   Other Industrial Machinery             113   Personal & Community Services
57   Prefabricated Buildings                114   Waste, Sewer & Drainage

                                                                                      Page 17 of 17
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