3 Jul 2015 | Cricket
The Cardiff Capital Region is set to benefit to the tune of £24million during the year in which The SSE SWALEC stages the first Investec Ashes Test next week.
Research by Cardiff Metropolitan University and the Mandix Consultancy has shown the significant contribution that international cricket and related events can make to the regional economy with a typical annual contribution of £19million. But the addition of the First Investec Ashes Test in 2015 is likely to boost the economic contribution of cricket to the Cardiff Capital Region by a further £5m.
Brian Morgan, Professor of Entrepreneurship at Cardiff Metropolitan University, led the project which examined attendances and expenditures at The SSE SWALEC over the 15 years from 2000 to 2014 and used them to estimate that the average annual impact of events at the stadium when direct, indirect and induced effects are taken into account.
International Cricket in Cardiff not only helps promote the city to a global television audience of millions it also has more immediate and direct effects on the economy of the Cardiff Capital Region, he said.
A contribution of £19m to the regional economy every year, sustaining 230 jobs, makes it a significant player but its importance in attracting large numbers of visitors from outside of Wales should not be under-estimated - especially when considered alongside the other major venues and events that Cardiff and Wales now have to offer.
Our research took into consideration the direct spending arising from matches, the indirect and induced expenditure along the supply chain to the Stadium; and finally, the offsite expenditure by visitors who have travelled to Cardiff to attend these events. The research suggests that The SSE SWALEC is now established as a major international venue and the events that it stages make a significant contribution to supporting employment and bringing millions of pounds into the Welsh economy.
The benefit of a major sporting event to a regional economy depends on the type of event being staged. The Olympics have most economic impact but one category of major spectator events highlighted by the Sports Council and others as generating significant economic impact as well as media interest is the Ashes Test Series in Cricket.
The SSE SWALEC provides Cardiff and Wales with the ability to host major international cricket matches that create economic spikes in the continuous revenue stream that the stadium generates by attracting major matches, staging domestic fixtures and accommodating conferences and major social occasions in first class facilities.
Since the gates re-opened in May 2008, following a £12m redevelopment, The SSE SWALEC has accommodated two Test matches, 8 One-Day-Internationals, five ICC Champions Trophy fixtures and T20 Finals as well as 281 days of domestic cricket.
The economic benefit to the Capital Region has increased substantially as a result of upgrades to the stadium that paved the way for the staging of international cricket. Prior to 2008 the average annual turnover generated by the old ground was less than £3million per annum which has since increased to an average turnover of £7.7million and a peak in excess of £11million.
Since 2008 the number of major matches has risen and they have often been sell-outs. On average the SSE SWALEC attracts over 200,000 cricket supporters each year compared with less than 100,000 prior to 2008. In the 7 years since opening, cricket supporters have spent nearly 1.5 million days attending matches. Over 250 000 people have attended non-match day events.
Whilst the direct economic value of the on-site activity of the SSE SWALEC to the Cardiff Capital Region is estimated to be significant at around £7.7m per year, the off-site activity also makes a significant contribution and makes it such a powerful economic force - especially when this is combined with the raised international profile of Cardiff and Wales that an Ashes Test can provide.
Approximately 50% of visitors to major international events come from outside the Cardiff Capital Region and as many as 35% make overnight stays. This means a further outlay of approximately £15m is likely from off-site activity, resulting in a contribution to Gross Value Added (GVA) of around £8m and employment effects of 120 jobs.
Hugh Morris, Chief Executive of Glamorgan County Cricket Club said: We are proud of being able to bring world class cricket events to the Welsh capital in recent years.
The First Investec Ashes Test of 2015 being played in Cardiff enables us to provide a truly global sporting occasion that can be enjoyed by fans not only in Wales but across the world.
The SSE SWALEC is attracting major events to the Cardiff Capital Region - events that can help sustain a significant number of jobs in the hospitality and tourism sector.
We have a confirmed package of major matches running to 2019 that includes the ICC Champions Trophy in 2017 and the ICC Cricket World Cup in 2019 and we remain wholly committed to increasing the economic impact of cricket whilst at the same time bringing the benefits of cricket to future generations in Wales.