Joseph Parker worth $3,550 per second to the Invercargill City economy
Joseph Parker’s 63 second demolition of Australian Bowie Topou a couple of weeks ago provided a significant boost to the Invercargill City economy according to estimates generated using Infometrics event impact calculator. The heavyweight boxing bout, hosted at Stadium Southland, attracted 1,447 out-of-town visitors to Invercargill, who collectively added $223,636 to the city’s GDP.
Infometrics Senior Economist, Benje Patterson says “this GDP boost amounts to $3,550 of value added to Invercargill’s economy for every second Joseph Parker was in the ring.
“At face value the bout had already appeared to be a resounding success, with the stadium packed out and those in the hospitality sector reporting strong patronage, but it is always important to scratch beneath the surface and think about the broader transmission of this activity throughout the local economy,” he says.
Estimates of out-of-town visitor numbers and their spending patterns were supplied to Infometrics by Venture Southland, after consultation with the venue and key stakeholders in the city’s service and hospitality sector, such as the Invercargill Licensing Trust.
These estimates showed that, of the 3,264 people attending the event, there were 1,447 attendees from outside of Invercargill. Of these out-of-town attendees, 387 people were from other parts of Southland region, while 1,060 people were from farther afield. On average, visitors from outside of the region were estimated to have spent around $260 on things such as accommodation, food, and fuel, with visitors from other parts of Southland spending a more modest $50.
Patterson says “this data from Venture Southland was then run through Infometrics web-based event impact calculator to assess the boost which this spending had on economic activity and employment in Invercargill.
“Infometrics’ tool has revolutionised the process of creating economic impact studies by standardising the framework used by economists into a user-friendly step-by-step interface that culminates in a comprehensive PDF report of the event in question.”
The economic impact report shows that the event directly boosted turnover in Invercargill by $294,945.
“But of course though, direct turnover is not the end of the story as some of this money is used to pay local suppliers and employees, who in turn spend some of their windfall, while a portion of the revenue also leaves the area again to pay for goods and services not produced in Invercargill.
“After taking into consideration so-called multiplier effects, as well as the cost of paying for any imported resources, Infometrics event impact calculator shows that the total value added (GDP) to Invercargill’s economy by the Joseph Parker bout was $223,636,” says Patterson.
“When one compares this $223,636 increase in Invercargill’s GDP against the $150,000 initial investment by the Invercargill City Council, Venture Southland, Invercargill Licensing Trust, and Community Trust of Southland, the return on investment looks very healthy indeed,” concludes Patterson.
The full PDF report generated by the Infometrics event impact tool can be found here.