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8686.0 - Sports and Physical Recreation Services, Australia, 2004-05  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 29/08/2006   
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Reissue Note:

8686.0 (2004-05) Sports and Physical Recreation Services, Australia
(PDF only) has been reissued to correct the total of the Industry Value Added figure in Table 2.3.


NOTES


INTRODUCTION

This publication presents results from an Australian Bureau of Statistics (ABS) survey of businesses/organisations engaged in sports and physical recreation services. The survey was conducted in respect of the 2004-05 financial year. This is the third ABS survey of sports and physical recreation services. Previous collections were conducted in respect of the 1994-95 and 2000-01 financial years.



COMPARISON WITH PREVIOUS SURVEY RESULTS

While comparisons are made between the 2004-05 and 2000-01 survey results, it should be noted that the 2004-05 survey was not designed to provide highly accurate estimates of change, so any comparison made to the previous survey should be used with caution. For further information, see paragraphs 22-23 of the Explanatory Notes.



MORE INFORMATION ON ABS SERVICE INDUSTRIES STATISTICS

Information about ABS activities in the field of service industries is available from the Service Industries Statistics theme page on the ABS web site <www.abs.gov.au>. To access the theme page, select 'Themes' from the menu on the home page.



COMMENTS

The ABS welcomes comments and suggestions from users regarding future surveys of Service Industries. These comments should be addressed to the Director, Service Industries National Statistics Centre, Australian Bureau of Statistics, Locked Bag 10, Belconnen, ACT 2616.



ROUNDING

Where figures have been rounded, discrepancies may occur between the sum of the component items and the total.



INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Sophie Vassiliou on Melbourne (03) 9615 7442.



SUMMARY COMMENTARY


OVERVIEW

This publication presents results from an Australian Bureau of Statistics (ABS) survey of businesses/organisations engaged in sports and physical recreation services. The survey was conducted in respect of the 2004-05 financial year. This survey is conducted periodically by the ABS to provide detailed measures of the performance, structure and activity of sports and physical recreation businesses/organisations operating in Australia. It includes aspects such as: the composition of income earned, details of expenses incurred and the structure of the workforce. A state/territory dimension is also presented.


The survey scope included all employing and significant non-employing businesses/organisations that generated income predominantly from the provision of sports and physical recreation services. These businesses/organisations are classified according to Group 931 (Sport) of the 1993 edition of the Australian and New Zealand Standard Industrial Classification (ANZSIC). Group 931 covers activities in the following three classes:

  • 9311 - Horse and Dog Racing
  • 9312 - Sports Grounds and Facilities n.e.c.
  • 9319 - Sports and Services to Sport n.e.c.

In addition, the survey included government organisations (ANZSIC Group 811) involved in the provision of sports and physical recreation services.


This publication also presents statistics based on the Australian Culture and Leisure Classifications (ACLC). These classifications were released in 2001 and details are available in Australian Culture and Leisure Classifications (cat. no. 4902.0). For the purposes of this publication, statistics are presented for the following ACLC classes:

  • 311 - Horse and Dog Racing
  • 321 - Health and Fitness Centres and Gymnasia
  • 322 - Other Sports and Physical Recreation Venues, Grounds and Facilities
  • 331 - Sports and Physical Recreation Administrative Organisations
  • 332 - Sports and Physical Recreation Clubs, Teams and Sports Professionals
  • 334 - Sports and Physical Recreation Support Services (part).

Definitions of these ACLC classes are shown in paragraph 6 of the Explanatory Notes. Users should note that organisations mainly engaged in operating licensed hospitality clubs are not included within the scope of this survey. These organisations were also surveyed in respect of the 2004-05 reference year and estimates are presented in Clubs, Pubs, Taverns and Bars, Australia, 2004-05 (cat. no. 8687.0).


This publication has six chapters. Chapter 2 provides a summary of operations of sports and physical recreation activities by reference period, sector and service. The remaining chapters contain detailed statistics for: Horse and Dog Racing (ACLC Class 311) in Chapter 3; Sports and Physical Recreation Venues (ACLC Classes 321 and 322) in Chapter 4; Sports and Services to Sport (ACLC Classes 331, 332 and 334) in Chapter 5; and Government Organisations in Chapter 6.



SUMMARY OF FINDINGS

At the end of June 2005, there were 9,256 businesses/organisations operating in Australia whose main activity was the provision of sports and physical recreation services. This included 600 government organisations. 'For profit' businesses accounted for 54.1% of the total businesses/organisations, while 'not for profit' and government organisations accounted for 39.4% and 6.5% respectively. Non-employing businesses/organisations comprised 11.5% of the total.


During 2004-05, income generated by businesses/organisations engaged in sports and physical recreation services was $8,820.5m. The highest income was recorded by sports and physical recreation clubs, teams and sports professionals ($1,884.1m or 21.4% of total income), horse and dog racing businesses/organisations ($1,556.3m or 17.6% of total income) and sports and physical recreation administrative organisations ($1,531m or 17.4% of total income).


Total expenses incurred for the same period were $8,416.5m. The total industry value added by sports and physical recreation services was $2,349.6m, which is the equivalent of 0.3% of Australia's gross domestic product for 2004-05.


In 2004-05, sports and physical recreation services recorded an operating profit/surplus before tax of $388.8m and an operating profit margin of 6.9%.



SOURCES OF INCOME

During 2004-05, the total income generated by businesses/organisations engaged in sports and physical recreation services was $8,820.5m. The highest single income items were government funding ($1,563.6m or 17.7% of total income), sports membership and competition fees ($1,305.7m or 14.8% of total income) and sponsorship and fundraising ($806m or 9.1% of total income).



EXPENDITURE

Businesses/organisations engaged in sports and physical recreation services incurred $8,416.5m in expenses during 2004-05. Overall, labour costs were the highest single item contributing to total expenses, accounting for 29.3% ($2,464.5m) of total expenses, followed by grants, distributions and affiliation fees (10.4% or $872.7m) and prizemoney and trophies (6.9% or $581.8m).



EMPLOYMENT AND VOLUNTEERS

At the end of June 2005, total employment in sports and physical recreation services was 111,519 persons. In addition, there were 181,832 volunteers during the month of June 2005.



GOVERNMENT ORGANISATIONS

During 2004-05, $1,477.9m in income was received by government organisations for the provision of sports and physical recreation services. The majority of this income ($1,175.9m or 80%) was received as operational and capital funding from government or as council reimbursements. The 600 government organisations employed 11,051 persons.



HISTORICAL COMPARISONS

Comparisons with results from earlier surveys are useful as an indication of the extent of change over time. However, the survey was not designed to provide highly accurate estimates of change, so any comparisons with results from previous surveys should be made with caution. Estimates of change can be subject to changes to scope and coverage or question wording, or high levels of sampling error. Further information can be found in paragraphs 22-23 of the Explanatory Notes.


Taking into consideration these limitations, the 2004-05 survey results indicate that sports and physical recreation services provided by employing businesses/organisations experienced growth between 2000-01 and 2004-05. Income grew by 11.7% per annum since 2000-01 (from $5,490.9m to $8,552.3m), while expenditure grew at the slightly lower rate of 9.9% per annum (from $5,632.8m to $8,206.6m) for this same period. Expenses related to the rent, leasing and hiring of sports venues, facilities and equipment recorded the highest growth rate of all selected expenses, rising by 16.2% per annum (from $159.6m to $290.9m).


Employment increased by 3.1% per annum, from 98,267 persons at the end of June 2001 to 111,201 persons at the end of June 2005.


The inclusion of significant non-employing businesses/organisations in the 2004-05 Sports and Physical Recreation Services Survey is estimated to have contributed an additional 13% to business/organisation counts and 3.1% to financial estimates.


It should be noted that the sports and physical recreation services estimates presented in the 2000-01 issue of this publication were heavily impacted by the conduct of the Sydney Olympic Games and Paralympic Games. The main data contributed by the Sydney Organising Committee for the Olympic Games and the Sydney Paralympic Organising Committee Limited for 2000-01 were:

  • $1,137m of income from television and other broadcasting rights
  • $737m of income from sponsorship and fundraising
  • $642m of admission income
  • $110m of government grants
  • $7m of income from players/participants playing fees
  • $422m for labour costs.

To enable more meaningful comparisons to 2004-05 data, the 2000-01 estimates presented in this publication do not include the contribution of the Sydney Organising Committee for the Olympic Games and Sydney Paralympic Organising Committee Limited.

Sports and Physical Recreation Services, Summary of operations by reference period

2000-01(a)
2004-05
Employing
Employing
Non-employing
Total
Average annual percentage change 2000-01 to 2004-05(b)

Businesses/organisations at end June no.
7 147
8 191
1 064
9 256
3.5
Employment at end June no.
98 267
111 201
^319
111 519
3.1
Volunteers during the month of June no.
178 837
163 706
^18 126
181 832
-2.2
Income
Government funding $m
622.2
1 555.6
*7.9
1 563.6
25.8
Other grants, distributions and affiliation fees $m
255.5
385.1
^10.2
395.3
10.8
Sponsorship and fundraising $m
483.8
753.8
52.2
806.0
11.7
Casual playing fees $m
526.1
437.7
*7.8
445.5
-4.5
Sports membership and competition fees $m
553.7
1 251.6
54.2
1 305.7
22.6
Admissions to sporting events $m
497.6
586.2
16.0
602.2
4.2
Rent, leasing and hiring of sports grounds and facilities $m
186.4
205.1
^9.3
214.5
2.4
Television and other broadcasting rights $m
^212.6
292.6
. .
292.6
8.3
Other $m
2 153.0
3 084.5
110.5
3 195.0
9.4
Total(c) $m
5 490.9
8 552.3
268.2
8 820.5
11.7
Expenses
Labour costs(d) $m
1 725.5
2 459.2
5.3
2 464.5
9.3
Grants, distributions and affiliation fees $m
^495.2
854.5
^18.1
872.7
14.6
Repair and maintenance $m
346.5
401.6
8.7
410.3
3.8
Rent, leasing and hiring of sports venues, facilities and equipment $m
159.6
290.9
^11.5
302.4
16.2
Gambling taxes and levies(e) $m
^8.6
10.8
**0.1
10.9
5.9
Other $m
2 897.4
4 193.8
166.3
4 360.1
9.7
Total(f) $m
5 632.8
8 206.6
210.0
8 416.5
9.9

^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
. . not applicable
(a) Estimates for 2000-01 do not include data for the Sydney Organising Committee for the Olympic Games and the Sydney Paralympic Organising Committee Limited.
(b) For employing businesses/organisations.
(c) Includes capital funding.
(d) For government organisations, labour costs include wages and salaries only.
(e) Includes GST paid on gambling products.
(f) As total expenses do not include the GST paid on gambling products, total expenses will not be equal to the sum of the components.


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