Latest News

Back to Latest News back

 

Controversial Hobart AFL stadium could generate $226 million a year for Tasmanian economy

Controversial Hobart AFL stadium could generate $226 million a year for Tasmanian economy
September 6, 2023

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.

About the author

Nigel Benton

Co-founder/Publisher, Australasian Leisure Management

Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia and New Zealand’s only magazine for professionals in all areas of the leisure industry. Having established the magazine in 1997, shortly after his relocation to Australia, he has managed its readership rising to over 11,500 and its acceptance as the industry journal for professionals in aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues.

In 2020, he launched the new Asian Leisure Business website.

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.

Click here to connect with him via LinkedIn.

Read more from this author

Related Articles

25th August 2023 - Inaugural Northern Tasmania Sports Facility Plan identifies shortage of netball and basketball courts

18th August 2023 - GWS GIANTS Chief Operating Officer to head Stadiums Tasmania

11th August 2023 - Tasmanian Government commences consultation on site selection for AFL team centre

8th July 2023 - Inaugural Chair announced for Tasmania’s AFL Club

22nd May 2023 - Tasmanian Government releases detail of deal with AFL for Hobart Stadium

20th May 2023 - AFL Chief Executive warns Tasmanian objectors ‘no expansion team without new Hobart Stadium’

3rd May 2023 - Gillon McLachlan confirms entry of Tasmanian teams into AFL and AFLW competitions

2nd May 2023 - AFL Club Presidents unanimously approve 19th team licence for Tasmania

29th April 2023 - Australian Prime Minister Anthony Albanese announces $300 million funding for new Tasmanian stadia

22nd April 2023 - NBL exploring sale of Tasmania JackJumpers

1st March 2023 - Tasmanian Government delivers package of community sport and recreation initiatives

13th May 2023 - Thousands rally in Hobart in ‘Stop the Stadium’ protest

27th April 2023 - Federal Government set to contribute $240 million for AFL stadium in Hobart

23rd February 2023 - AFL makes $360 million commitment for Tasmanian team funding contingent on new Hobart stadium

20th January 2023 - Cost-benefit analysis says proposed Hobart Stadium would deliver $306 million deficit over 20 years

6th January 2023 - Prime Minister Anthony Albanese sceptical about Federal Government backing for proposed Hobart Stadium

23rd December 2022 - Tasmania Government presents business case for new Hobart stadium


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.

Click here to view our subscription options.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Jonas Leisure

Jonas Software operates over 110 independently managed software brands around the world, providing them with the strategic guidance and financial security required to be leaders in their respective…

read more

Aquatics / Billing / Fitness / Recreation / Sport

 
 

Hydrocare Pool Services

Hydrocare Pool Services Pty Ltd offer 30 years of experience in aquatic industry features, products and water treatment. Hydrocare Pools has undertaken water treatment for aquatic centres and…

read more

Aquatics / Attractions / Play / Recreation / Technology

 
 

TICKETSERV

As of 2018, TicketServ operates as SeatGeek Asia Pacific Pty Limited, part of international ticketing platform SeatGeek. Click here to contact SeatGeek Asia Pacific via their entry in…

read more

Attractions / Entertainment / Events / Sport / Ticketing

 
 

GEOFF NINNES FONG AND PARTNERS

Geoff Ninnes Fong & Partners (GNFP) is a structural, aquatic and civil engineering consultancy with broad experience in the design of new municipal and institutional swimming pools, hydrotherapy…

read more

Aquatics / Consultants / Design / Venues

 
 

Aflex Inflatables

Aflex Inflatables are the leaders for obstacle courses, pool toys, waterparks and land-based watersides and fitness runs. They are industry leaders offering the widest range of pool, lake and beach…

read more

Aquatics / Play / Waterparks

 
 

Again Faster

ABOUT Again Faster is a Brisbane based, Australian owned supplier of strength and conditioning and functional fitness equipment. With nearly 10 years experience in the Australian market, we are…

read more

Fitness / Recreation

 
 

GREENEDESK

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…

read more

Aquatics / Billing / Education / Fitness / Technology

 
 

VITEC

Stadiums and venues around the world recognise that success hinges on more than just what happens on the pitch. More than ever, fan engagement within each facility is a critical part of the overall…

read more

Entertainment / Sport / Technology / Venues

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business