Footy finals forecast to provide $2 billion boost to local industries

Sporting fervour associated with the AFL and NRL finals and the 2011 Rugby World Cup is likely to result in Australian fans spending over $2 billion on football celebrations through September and October - with hospitality, tourism and sports betting tipped to be the biggest winners. 

Despite consumer sentiment and discretionary spending remaining low, business information analysts at IBISWorld expect that many sports fans will throw frugality to the wind, as game tickets, big-screen TVs, alcohol and an obligatory bet or two take precedence over prudence.

IBISWorld General Manager (Australia) Karen Dobie explained that "the AFL and NRL finals are milestone events for millions of Australians - and for most supporters, not even tighter economic times will dampen the celebrations. Add the Rugby World Cup into the mix, and the coming eight weeks are certain to be exciting times for both fans and businesses.

"The AFL by far draws the biggest crowds - and earns the most revenue - having already attracted 6.5 million fans to matches during the 2011 season, and with more than 650,000 spectators expected to attend finals matches. By comparison, the 2011 NRL season has drawn just over 3 million spectators, with almost 350,000 expected to attend finals games, and about 30,000 Aussies are expected to attend one or more Rugby World Cup matches."

Pubs, bars and liquor sales
On average, 20% of revenue from pubs and bars and store-purchased liquor sales occurs during September and October. IBISWorld expects the next eight weeks will generate over $560 million for pubs and bars from sports fans and over $1 billion for liquor retailers (15% higher than the usual monthly takings).

Tourism
As the football season reaches the finals, more fans flock to the games to support their teams - providing an added boost to domestic tourism. This year, IBISWorld forecasts Australians will spend close to $150 million on domestic travel, with 57% being spent by NRL fans and 43% by AFL fans.

Dobie adds "the wide geographic spread of NRL finalists will see fans fly to attend games over the course of the next few weeks. For the AFL, however, all but two of the finalist teams are Victorian, so the tourism contribution from AFL supporters will be slightly lessened this year as Victoria-based fans enjoy home games."

With the Rugby World Cup, international tourism is also expected to receive a boost, with over 100,000 match tickets being sold in Australia alone and event organisers expecting all Wallabies games to sell out before the beginning of the tournament.

Here Dobie explains "the World Cup will provide a much needed boost to the New Zealand economy through tourism - with Australians expected to be significant contributors." 

Sports betting
Dobie says "over a third of the nation's total sports gambling is expected to take place in September and October, with $86.6 million - a staggering 285% increase on average monthly sports betting expenditure - expected to be wagered on the AFL, NRL and Rugby World Cup."

IBISWorld forecasts that during 2011/12, Australians will spend a total $254.6 million betting on sporting events.

Ticket sales
In 2011, IBISWorld expects over a million Australians to attend an AFL or NRL final, or a Rugby World Cup match, with fans forking out about $45 million on footy tickets during September and October. Dobie explains that "last year's drawn AFL final netted an extra $16 million in revenue. This year, ticket sales for the finals are expected to be close to the highest in history," noting that after the MCG redevelopment, overall attendance at the finals has grown year on year.

Appliances
Those Aussies who are unable to make it to a game will often host or attend a footy finals barbecue at home - with big-screen TVs and new BBQs being high on hosts' shopping lists.

Dobie concludes "during September and October, Australians are expected to spend about $8.9 million on new home appliances - with plasma TVs and grills being the most popular items."

For more information go to www.ibisworld.com.au

Image: Collingwood FC secure the 2010 AFL Grand Final. Courtesy of Collingwood FC.