A newly released cost-benefit analysis of Hobart’s new AFL stadium has found it could add $2.26 billion to Tasmania’s economy in its first 10 years operation.
The report, Economic Benefits to Tasmania from the Introduction of a Tasmanian AFL Team and a New Stadium in Hobart at Macquarie Point, authored by Tasmanian Russell Hanson, former Finance Director of FitzGerald’s department stores and Chief Executive of The Wilderness Society, has assessed the new stadium project following criticism that the venue would be a financial burden on the state.
Commenting on the study, using methodology from consultants PwC, which previously examined economic benefits of having AFL teams Hawthorn play games in Launceston, Hanson advised in a statement “these benefits make it quite clear that the new stadium is no ‘dud deal’ as has been claimed. It is not a 20-year loss of $306.2 million as has been claimed; it will generate additional spend by visitors to Tasmania across the whole state in excess of $2 billion over the 20 years.
“This huge economic benefit is further demonstrated on examination of the PwC analysis of the Hawthorn games in Launceston and applying the same methodology to the new stadium, the economic returns are substantially positive, ongoing and an opportunity this State can’t afford to lose.”
The report also showed a "worst-case" scenario, by calculating all of the “common negative claims by the naysayers”, which revealed the new stadium would still generate a total of $169.96 million per year.
Saul Eslake, Australian economist and Vice-Chancellor's Fellow at the University of Tasmania, backed the Hanson report, saying he hoped those against the stadium could now see what the 23,000-seat roofed venue could achieve.
Eslake noted “even in the event of these presumed 'worse case' outcomes, the 'deal' with the AFL produces net economic benefits for Tasmania.
"I think you (Hanson) have constructed a powerful case, and I hope that other readers to whom it may be directed, who have had understandable concerns about the 'business case', find it similarly persuasive.”
The Tasmanian Liberal Government has driven the construction of 23,000-seat roofed waterfront stadium in Hobart that will be the home of an new AFL team that will enter the competition in 2028.
While securing $240 million from the Federal Government and with the new venue being a condition of the AFL granting a licence to Tasmania, the project has generated significant opposition.
However, it has been delivered on the same day as a joint Parliamentary Committee tasked with scrutinising the proposed new venue found there has been no evidence to back the key assumptions underpinning the business case for the stadium so far, including the number of expected events.
In its interim report on Wednesday, the Parliamentary Committee found the Tasmanian Government did not consult with RSL Tasmania, the Vietnam Veterans Association, Hobart City Council or TasWater until after cabinet made a decision to lock in the site.
The RSL has raised concerns about the stadium potentially overshadowing the nearby cenotaph, while TasWater runs a sewage treatment plant on the site.
The committee said many assumptions in previous reports, including by consultants PwC (in its 2022 report into the economic impact) and MI Global, were not comprehensive or detailed enough to enable a meaningful cost-benefit analysis.
It advised “many of the assumptions contained in the various reports provided to government, including the PwC and MI Global Partners reports, are not comprehensive or detailed to enable a meaningful cost-benefit analysis to be determined.
“These reports have significant gaps - for example, the absence of assumptions related to opportunity costs and implausible event attraction details.”
A PwC report claimed the stadium would attract 28 new events annually - seven of which would be NRL matches, which have not been played in Tasmania since 2014.
Images: Artist’s impressions of the stadium planned to host Tasmania’s promised AFL team in Hobart.
Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.
With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.
Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.
In addition to publishing, Nigel speaks on marketing communications at a range of industry events.
He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).
As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.
Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.
His philosophy on life is to be kind to all and to indulge those that you love.
His passions include family, Newcastle United and motorcycles (especially British ones) as well as caring for Stella the pug.
Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?
As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.
About: Momentus Technologies is a global provider of industry-leading venue and event management solutions that empower organizations to create extraordinary moments.
With over 50,000 users in more…
Track. Engage. Retain
GreeneDesk is a suite of cloud based software solutions helping health clubs, leisure centres and swim schools to effectively track progression, improve customer engagement and…
Tim Batt Water Solutions are at the very forefront of the commercial aquatic business in Australia, with over 30 years specific experience supplying and installing chemical control and dosing…
BODY BIKE® International is a leading manufacturer of indoor bikes with a 20-year track record of creating the best indoor bikes.
Stay connected with Body Bike Australia…
DAE Global is one of the world’s leading international creative and production practitioners, creating award-winning sport, culture and entertainment experiences for over 30 years.
It was…
Fun Wheels Pty Ltd are the premium dealer in Australasia for the Dutch company BERG’s commercial and domestic products. Our flagship product is their revolutionary pedal go-kart – the…
We are the leading providers of kids fun multi-sports programs for Sport and Recreation Centres. Programs cover twelve common sports as well as Gross Motor Skill Development and suit children from as…
Links Modular Solutions was a leading provider of high-quality, innovative software solutions for aquatic and recreation facilities.
Links Modular Solutions is now part of Xplor Technologies.