Motorsport worth $1.1b to New Zealand

An economic impact study has uncovered motorsport’s immense contribution to the New Zealand economy. A total contribution of $1.1b has been credited to the sport.

The study, which was prepared by Ernst and Young, was conducted globally with support from the FIA. Locally, the study focused on the motorsport activities of MotorSport New Zealand and KartSport New Zealand in 2019.

Prior to COVID-19 lockdowns and restrictions, motorsport’s gross output was $759m with a further $369m of value added to the economy by the sport, equating to a $1.128b contribution overall. Motorsport’s contribution is made all the more impressive when comparing it to the recently quoted figures from Sport NZ that sport and recreation as a whole had a gross output of $4.9b.

The sport also directly supported 2,400 jobs such as mechanics, engineers, event staff and world-renowned suppliers and exporters. It was also found that motorsport indirectly supported a further 2,700 such as accommodation and hospitality providers.

The true scale of motorsport’s volunteer network was revealed in the study, as the sport valued the support of 12,500 volunteers during 2019.

Those 12,500 volunteers account for over 50% of the 24,450 total motorsport participants, with the balance composed of licenced competitors and their crews.

Competitors’ behaviour was also studied and found that they each input, on average, $17,500 each year into the overall economy with expenses related to motorsport. The study also found that competitors spend nine nights away from home each year for motorsport.

New Zealand’s two largest centres, Auckland and Canterbury, are responsible for 41% of the sports economic value with 9,997 total participants based in those regions. Motorsport has strong economic value in provincial New Zealand too, with most other regions seeing over $10m+ coming into their local economies thanks to motorsport.

Motorsport will have an important part to play in New Zealand’s economic recovery as COVID-19 restrictions begin to ease following the latest Delta outbreak.