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Community and Environment Committee
11 July 2016
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2016 New Zealand Masters Games Final Report
Department: Community and Planning
EXECUTIVE SUMMARY
1 This
report provides an overview of the 2016 New Zealand Masters Games, specifically
discussing the economic impact and financial result.
2 The New
Zealand Masters Games are held in Dunedin every two years. In recognition
of the contribution the Games make to the Dunedin economy, the Dunedin City
Council financially supports the Games, and has an underwriting agreement
should the Games make a loss. The 2016 Games had a negative financial
result, but due to positive results from the 2014 Games there will be no need
to draw on this provision for underwriting.
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RECOMMENDATIONS
That the Committee:
a) Notes the
financial outcomes of the 2016 New Zealand Masters Games and
b) Notes the
positive economic impact of the Masters Games for the City.
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BACKGROUND
3 The New
Zealand Masters Games is a multi-sport event that offers participants an
opportunity to compete and socialise in a range of sporting and social
activities. The Masters Games philosophy is one of participation with
competition being important but not all-important. Entry is open to all,
irrespective of ability or skill and without requirement to be registered as a
member of a sporting organisation. The Masters Games joins athletes
together with the common purpose of enjoying their recreational pursuits in an
atmosphere of universal friendship and camaraderie.
4 The New
Zealand Masters Games Ltd owns the New Zealand Masters Games event, with
Whanganui and Dunedin being franchise holders. The Dunedin (New Zealand)
Masters Games Trust was established in 2008 to manage the Dunedin Games on
behalf of the Dunedin City Council which hold the franchise rights to the
biennial event in Dunedin.
5 Dunedin’s
first New Zealand Masters Games in 1992 attracted 3,742 participants in 36
sports. In February 2002 Dunedin experienced its largest Games to date
with 8,120 participants in 70 sporting disciplines.
DISCUSSION
6 The 2016
Dunedin Games saw 4,499 participants gathered in Dunedin, participating in 64
sports. An Economic Impact Report (attached) identifies that the Masters
Games remain of economic benefit to Dunedin City despite a small deficit of
$18,450 at the end of the 2016 Games.
7 A
detailed survey was distributed to all Masters Games’ participants after
the conclusion of the event, with 808 people (17.95%) replying. The
survey asked respondents to record their total expenditure during their entire
stay in Dunedin according to a number of pre-defined categories. The
information gathered was used to produce an Economic Impact Report. It
also sought additional information on how participants found out about the
event, their satisfaction with services and facilities available during the
Masters Games, and awareness of the event’s major sponsors.
Masters Games Participants:
8 Of the
4,499 participants who attended the 2016 Masters Games, 2,347 (52.2%) were
visitors to the city.
9 Fifty
four per cent of all Masters Games participants were male and 46% female.
In terms of age, the largest group of participants attending the Games were in
the 50 – 54 age group (17.11%).
10 Of the survey
respondents, 86.76% were either extremely satisfied (43.69%) or satisfied
(43.07%) with the event. Seventy five per cent of respondents stated they
would definitely participate in the next Games held in the city.
11 In planning for the
2016 Masters Games, participating sports were asked to target an increase in
entry numbers from the 2014 Master Games level. Of the 64 sports which
participated in 2016, 16 increased their competitor numbers. Fencing had
the highest percentage increase (78%), followed by Dancesport (57%).
Financial Result:
12 On
12 February 2008, the Dunedin (New Zealand) Masters Games Trust was
established. The 2016 Masters Games was the fourth Games operating fully
under the umbrella of the Trust. Under this structure the Council fully
funds the Games’ Manager salary and overheads at a cost of $176,000 (two
year period 2014 - 2016). All other monies required to run the event are
sourced by the Games Manager by way of sponsorship, grants, registration fees
and some trading avenues.
13 The
Dunedin City Council as Franchisee has secured the rights to host the biennial
Dunedin Masters Games until the end of 2036. To ensure success of the
Dunedin Masters Games the Dunedin City Council agreed in July 2013 to continue
to underwrite any financial loss.
14 Revenue
from the 2016 Master Games’ registration fees was $304,050 ($60,000 less
than the 2014 Games). Retaining the naming sponsor for the New Zealand
Masters Games, budgeting and good planning enabled the Games Manager and Trust
Board to reduce the impact of this reduced income on the total financial
outcome of the 2016 Games.
15 The
Games Office contracted local sporting groups to run their sport on behalf of
the Games and the Games office paid back fees to the local sporting bodies
totalling $143,702.
16 The
following table summarises the financial results for the 2016 Masters Games
(which includes the two year period July 2014 to June 2016):
17
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Revenue
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2014
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2016
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Registration Fees
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$ 368,200
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$ 304,050
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DCC Funding
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$ 176,000
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$ 176,000
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Corporate Sponsorship
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$ 130,000
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$ 125,000
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Gaming Trusts
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$ 67,000
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$ 37,650
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General sales, photograph sales, selling advertising, gate takings,
merchandise commission, shirt sales and sundry recoveries
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$ 18,800
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$ 26,250
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Total
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$ 760,000
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$ 668,950
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Expenditure
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Salaries and Wages
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$ 238,200
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$ 264,250
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Contracted Positions
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$ 22,500
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$ 23,500
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Other staff/Board costs
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$ 12,650
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$ 9,050
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Administration, Operating Costs, Volunteers, Information Services
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$ 200,805
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$ 201,550
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Marketing and Promotion
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$ 55,200
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$ 76,200
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Games Village
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$ 82,900
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$ 85,550
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Sundry Costs and Bank Fees
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$ 3,550
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$ 4,800
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Franchise Fees
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$ 23,750
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$ 22,500
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Sharehold Cost
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$ 12,500
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Total
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$ 652,050
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$ 687,400
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Surplus/Deficit
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$ 107,950
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$ 18,450
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18 Reduced
participant numbers and Gaming Trust funding were both contributors to the
deficit as well as increased staff and promotion costs.
Economic Impact:
19 At the conclusion of
the 2016 Dunedin Games an economic impact study was undertaken in order to
identify and measure the benefits of hosting the event. This was
undertaken by Butcher Partners Limited and incorporated information obtained
from a survey by the Dunedin City Council of Masters Games participants.
The two main objectives of the study were to identify the economic benefits of
hosting the Masters Games and to collect demographic information from
participants.
20 Just over half the
2016 Masters Games participants (2,347; 52.2%) came from outside Dunedin; with
2,152 Dunedin residents competing.
21 Survey respondents
spent an average of $802 per person (in 2014 the average was $716). The
majority of spending was on accommodation, food and beverage.
Collectively, the total direct expenditure from all visitors to the city is
estimated at $1.55 million, while the direct value added is estimated at $0.9
million. The total economic impact of hosting the event, comprising the
direct, indirect and induced effects, is estimated at $3.2 million, with the
total value added to the city estimated at $1.6 million.
22 The economic impact
of the 2016 Masters Games is 11% lower than that of the 2014 event.
23 Total bed nights for
the nine day 2016 Masters Games were 7,980. The average stay was 3.4
nights.
Social/Community Impacts:
24 The 2016 Masters
Games provided opportunities for Dunedin
citizens to participate in the sport or recreation of their choice in each
other’s company or visitors from within New Zealand and overseas.
This promotes friendship, understanding and mutual respect among sportspeople
regardless of age, gender, race, religion or occupation.
25 The promotion of
continued participation in sport and a healthier lifestyle is a key philosophy
of the 2016 Masters Games.
Media:
26 The 2016 Masters
Games was widely covered by local and national media, including significant
print and broadcast exposure. The Games has met Events’ Strategy
criteria of increased exposure of the City and participation in activities by
residents and ratepayers. Participant satisfaction with the event is also
high.
NEXT STEPS
27 Long term planning
will need to occur to ensure we grow future competitor numbers. Participants of
the 2014 Dunedin Masters Games that did not return for the 2016 Dunedin Masters
Games are being surveyed to better understand their reasons, and what could be
improved to draw them back. Results of this survey will be collated and a plan
developed and reported to Community and Environment Committee, for the growth
and a successful delivery of the next Games in 2018.
Signatories
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Author:
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Vicki Kestila - Master Games Manager
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Authoriser:
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Joy Gunn - Manager Events and Community Development
Nicola Pinfold - Group Manager Community and Planning
Simon Pickford - General Manager Services and
Development
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Attachments
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Title
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Page
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a
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2016 Masters Games
Economic Impact Study
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34
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SUMMARY OF CONSIDERATIONS
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Fit with purpose of Local Government
This decision/report/proposal relates to providing a
public service and it is considered good-quality and cost-effective.
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Fit with strategic framework
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Contributes
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Detracts
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Not applicable
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Social Wellbeing Strategy
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☒
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☐
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☐
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Economic Development Strategy
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☒
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☐
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☐
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Environment Strategy
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☐
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☐
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☒
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Arts and Culture Strategy
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☐
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☐
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☒
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3 Waters Strategy
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☐
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☐
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☒
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Spatial Plan
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☐
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☐
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☒
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Integrated Transport Strategy
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☐
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☐
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☒
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Parks and Recreation Strategy
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☒
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☐
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☐
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Other strategic projects/policies/plans
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☐
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☐
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☒
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The New Zealand Masters Games contributes to three of the
Council's defined strategies to achieve the vision Dunedin is one of the
world’s great small cities.
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Māori Impact Statement
Māori participate in the New Zealand Masters Games,
but to no more or lesser than any other cultural group. However no specific
data is collected on ethnicity of participants. No impact identified
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Sustainability
The Dunedin (New Zealand) Masters Games Trust has the
franchise rights to host the biennial New Zealand Masters Game until the end
of 2036.
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LTP/Annual Plan / Financial Strategy /Infrastructure
Strategy
There are no implications.
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Financial considerations
The Dunedin City Council
guarantees an under write of the Dunedin (New Zealand) Masters Games, it is
not required in this case.
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Significance
The significance of the matters discussed in this report
is low.
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Engagement – external
In the on-going planning of the New Zealand Masters Games
the Games Manager regularly engages with: suppliers, funders, sporting
organisations, sporting associations, service providers, volunteers,
participants and other Masters Games’ organisers.
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Engagement – internal
There has been no internal engagement.
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Risks: Legal / Health and Safety etc.
The New Zealand Masters Games implement its Health and
Safety policy and process in line with current legislation.
In respect of this report there are no other legal risks
or conflict of interest.
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Conflict of Interest
There are no conflicts of interest.
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Community Boards
There are no implications for Community Boards.
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