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R9113 Sports and Recreation Facilities Operation in Australia Industry Report - at A Glance
R9113 Sports and Recreation Facilities Operation in Australia Industry Report - at A Glance
R9113 Sports and Recreation Facilities Operation in Australia Industry Report - at A Glance
INDUSTRY REPORT
Sports and
Recreation
Facilities
Operation in
Australia
Dec 2023
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
About
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
Table Of Contents
2. At a Glance...................................................................5 SWOT............................................................................. 9
Industry Structure......................................................8
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
At A Glance
Evaluate key industry data and trends
and get an overview of important
report sections to use in meetings
and presentations.
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
2. At a Glance
https://my.ibisworld.com//au/en/industry/R9113/at-a-glance
Key Takeaways
Performance
Crowds are flocking back to live sport in Australia, driving a sharp industrywide recovery. The pandemic
induced a sharp but temporary collapse in revenue from live sporting events. Australians have
demonstrated a deep and enduring passion for live sport.
Government investment in sporting infrastructure is central to the industry's growth prospects. Major
events, like the 2032 Brisbane Olympic Games, are set to drive a pipeline of investments in new and
upgraded sporting and entertainment facilities.
External Environment
The industry is highly reliant on government assistance, especially in the form of grants. This means that a
forecast increase in capital expenditure by state and local governments in 2023-24 will likely benefit the
industry.
Spectator sport participation is on track to surge in 2023-24. Higher crowds at live sport mean more
opportunities for operators of sporting venues to drive revenue and boost profitability.
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
Major Players
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
Industry Structure
Characteristic Level Trend
Concentration Moderate
Innovation Low
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
SWOT
Strengths Weaknesses
High & Steady Barriers to Entry High Volatility
Growth Life Cycle Stage Low Profit vs. Sector Average
Low Imports High Customer Class Concentration
Low Product/Service Concentration Low Revenue per Employee
High Capital Requirements
Opportunities Threats
High Revenue Growth (2019-2024) Low Performance Drivers
High Revenue Growth (2024-2029) Capital expenditure by state and local
Spectator sport participation government
Executive Summary
The Sports and Recreation Facilities Operation industry's revenue has risen over the past few years,
following several years of sharp declines following the COVID-19 outbreak. In recent years, government
grants and contributions have offset disruptions to demand during periods of extended citywide lockdowns
and border closures. These grants generally go towards constructing or redeveloping stadiums. For
example, the Victorian Government has helped fund the redevelopment of the Melbourne Park precinct,
and the NSW Government has undertaken a major redevelopment of the Sydney Football Stadium. Despite
high levels of government investment, revenue fell sharply in 2019-20 and 2020-21, especially in states
heavily affected by lockdowns like Victoria and New South Wales. These disruptions also led to a sharp
decline in industrywide profitability. Yet, as restrictions eased, crowds have rebounded strongly and
profitability has also recovered. Overall, industry revenue is expected to rise at an annualised 2.6% to an
estimated $1.8 billion over the past five years, including an anticipated jump of 3.4% in 2023-24.
Before the COVID-19 outbreak, major events were a key driver of industry revenue and profitability. Major
international sporting events like the Australian Open or the NRL State of Origin were either cancelled or
relocated due to large and prolonged COVID-19 outbreaks. Nonetheless, as restrictions have eased and
borders have reopened, the primacy of major events in the Australian sporting calendar has reestablished
itself, as marquee events have come to occupy a central place in many states' tourism strategies. These
trends have benefited the industry, as many governments have funnelled money into developing their
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
sporting infrastructure to furnish these strategies. Record crowds at the 2023 Australian Open
demonstrated the revenue raising possibilities of large-scale investments in sporting facilities.
Over the coming years, population growth, growth in spectator sport participation and grants for
constructing and redeveloping new and existing sporting facilities are projected to drive industry growth.
Revenue is forecast to rise at an annualised 2.9% over the five years through 2028-29, to $2.0 billion.
Marquee events will maintain a place at the centre of the industry, especially international showcases like
the 2032 Brisbane Olympic Games, which will develop a pipeline of investment into sporting facilities.
Ticketing companies often conduct additional advertising on events at specific venues to drive
larger crowds.
Partnering with ticketing companies helps ensure smooth consumer access to events.
How have consumer preferences changed over the past five years?
There has been rising attendance at major sporting events over the past five years.
Consumers are more willing to spend on activities due to rising real household discretionary income
over the past five years.
How can your venue sustain its revenue growth and streams moving forward?
Several venues hosted major international sporting events over the past five years.
Spectator sport participation has declined significantly following the COVID-19 outbreak.
Stadiums and sporting venues are seeking to expand their revenue streams by hosting more live
music concerts.
Music festivals and concerts can provide a lucrative revenue stream.
Technology
How has your venue adopted new technologies into its operations?
Several large-scale venues have free wi-fi and other features to increase fan interaction and
engagement.
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
Industry operators are working to integrate food ordering, highlights and in-game statistics to
smartphone applications.
What proportion of funds does your venue allocate to developing new facilities or upgrading
existing facilities?
Compliance
Federal and state governments often partly fund constructing large-scale entities across the country.
Queensland received significant funding for building several facilities before the Gold Coast 2018
Commonwealth Games.
Finance
State governments typically provide large capital and operating grants to facilities operators.
Constructing or redeveloping venues and operations can lead to fluctuations in capital grants for
industry operators.
How do your venue’s profit margins compare with those of its main competitors?
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
Sport participation
Which cultural and recreational services pose the biggest competition to your organisation?
Sport participants are the second-largest source of revenue for industry operators.
Increased popularity of other recreational activities can negatively affect the industry's ability to
generate revenue.
Industry operators, particularly smaller operators, heavily rely on volunteers to maintain slim profit
margins.
Industry operators, particularly larger players, will often have significant fixed costs. Maximising
capacity utilisation is essential to maintain profit margins.
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IBISWorld | Sports and Recreation Facilities Operation in Australia Dec 2023
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