Irish Sports Council Publishes New Research into Economic Impact of Sport

A new Irish Sports Council report highlights how sport contributes significantly to the economy.

• Irish households spend a total of €1,885.6 million on sport and sport-related goods and services, equivalent to 2% of the overall value of consumer spending in the economy;
• Sport-related spending contributes €1,830.3 million to Irish economy value-added, equivalent to 1.4% of economy-wide value-added or GDP;
• Sport and sport-related activities support over 38,000 full-time equivalent jobs, or over 2% of the overall level of employment in Ireland.

Volunteering plays a key role in Irish sport with an economic value equivalent to between €322 million and €582 million annually. 270,000 people participate in some form of sport-related voluntary activity. The vast majority of the 12,000 sports clubs, across 64 sports and with 1.7 million members, operate on a voluntary basis.

Kieran Mulvey; Chairman of the Irish Sports Council, commenting at the launch of the report stated: "It is the Council's view that the contribution of sport to the Irish economy is not fully appreciated. Government investment plays an important role in supporting and driving the sports sector. This effort, our report demonstrates, brings a very significant financial return to the Exchequer as well as a variety of important economic and social benefits".

The new report, prepared by Indecon International economic Consultants, highlights the return to the Exchequer for the State's investment in sport. For every €100 of government expenditure, the government receives approximately €149 back in the form of taxes and other income arising from sport-related economic activity. Based on figures for 2008, it is estimated that overall (central plus local) government expenditure amounted to €618.3 million. However the government received a total of €922.4 million in revenues from taxes on sport, implying a net income from the sport economy of €304.1 million.

John Treacy, Chief Executive of the Irish Sports Council said "Participation in sport brings many benefits in terms of health and wellbeing which in turn produces an economic dividend through reducing costs to the health service. Further, the immense contribution of sport in generating social capital, particularly through voluntarism, is a vital national resource which must be protected".

The economic assessment includes the significant contribution of sport-related tourism in which inflows to Ireland amount to €200.8 million in gross terms, giving rise to €188.6 million in Gross Value Added and supporting almost 3,000 jobs in the domestic economy.

The Indecon report sets out the main direct and indirect economic impacts of sport. It also points to a number of important wider socio-economic benefits which arise from participation in sport and sport-related volunteering.

• Through sustaining a healthier population, sport reduces the costs of health service provision;
• Delivers increased productivity with associated economic benefits;
• Contributes to social capital and social cohesion arising from participation and volunteering more generally;
• Community benefits through investment in elite sport and incentivising further participation;
• Generates financial benefits for the Exchequer through increased economic activity and reduced health service costs.

William Batt from Indecon, the lead author of the report stated: "Indecon believes it is important to acknowledge the significant contribution of the sports sector to overall economic activity. Further, it is important for policy to take into account the strong positive return for the Exchequer from sport",

The "Assessment of Economic Impact of Sport in Ireland" was prepared for the Irish Sports Council by Indecon International Economic Consultants in association with Sheffield-Hallam University.

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Economic Impact of Sport in Ireland

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