Economic Impact of Bluesfest 2019€¦ · acclaimed and respected festivals and has been the...

Economic Impact of Bluesfest 2019

Prepared for Bluesfest Group August 2019


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EXECUTIVE SUMMARY Lawrence Consulting was commissioned by Bluesfest Group to undertake an assessment of the economic impact of Bluesfest operations – specifically, Bluesfest 2019 and Bluesfest Touring – together with the associated tourism impact, on the Byron Shire, Northern Rivers, New South Wales and Australia. Bluesfest is one of Australia's most acclaimed and respected festivals and has been the inspiration for dozens of blues world music and blues and roots festivals around Australia. The economic impact assessment has concentrated on the quantitative impact of Bluesfest 2019, specifically the impact of spending in Byron Shire, and the Northern Rivers region, New South Wales and Australia more generally, of spectators at the event together with the turnover of Bluesfest Services Pty Ltd and consequent local and regional purchases of goods and services. Also of major importance, but not included in the analysis due to the difficulty to enumerate, are the qualitative long-term effects on regional marketing and competitiveness of out-of-region visitors, cumulative television audiences and newspaper and online media coverage. The total annual expenditure for Bluesfest Services Pty Ltd on Bluesfest 2019 was approximately $18.4 million in 2018/19 – including approximately $1.6 million in wages and salaries to 15.0 fulltime staff and all purchases of goods and services – which represented a significant increase of 18.7% from the level of expenditure in 2017/18 ($15.5 million). Spending by Bluesfest Services on Bluesfest 2019 in Byron Shire was approximately $2.6 million (up 38.0%), whilst the amount of expenditure across the rest of the Northern Rivers was $1.9 million (up 24.2%). In addition to Bluesfest 2019, Bluesfest Touring Pty Ltd spent approximately $5.5 million on Bluesfest Touring in 2018/19, of which over $383,000 was spent in Byron Shire and a further $1.3 million in the rest of New South Wales. Total expenditure by Bluesfest Group in 2018/19 was approximately $23.9 million (up 22.1%), of which an estimated $15.5 million was spent within Australia and $3.0 million in Byron Shire. Bluesfest is also a significant cultural and tourism attraction for both local residents and visitors to the region. The total number of persons attending the event in 2019 was estimated at 37,191, as determined through individual ticket sales, which represented an annual increase of 9.2% from the level recorded for 2018 (34,063).

Source: Bluesfest Services

Taking into account regional length of stay, visitor origin and expenditure patterns from data obtained from festival patron surveys, which identified average daily expenditure of approximately $304 per person across a range of spending categories, the gross annual stimulus to the Byron Shire, Northern Rivers and New South Wales economies associated with the total attendance numbers at Bluesfest 2019 were estimated at $35.5 million, $59.1 million and $83.4 million, respectively.

12,023

13,564

13,298

12,311

12,224

10,494

11,716

6,170

6,302

7,746

7,172

9,326

5,731

8,396

22,414

17,800

15,814

21,014

16,190

17,838

17,079

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

2013

2014

2015

2016

2017

2018

2019

Bluesfest Attendance by Individual Ticket Type

5 day

3 day

1 day


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Table E1: Gross Indirect Tourism Expenditure by Type, Bluesfest 2019 ($ million) Expenditure type Byron Shire Northern Rivers New South Wales Accommodation 9.9 16.6 23.4 Food & beverage 7.2 11.9 16.8 Road transport 1.3 2.2 3.4 Retail shopping 10.5 17.4 24.4 Attractions 6.6 10.9 15.4 Total off-site expenditure 35.5 59.1 83.4 The total economic impacts associated with Bluesfest 2019 and Bluesfest Touring on the Byron Shire, the Northern Rivers and New South Wales in 2018/19 include (refer Table E2): • Total output of $98.9 million in Byron Shire, $163.2 million in the Northern Rivers and $276.9 million in New

South Wales; • Estimated total income (wages and salaries) of $21.2 million in Byron Shire, $43.4 million in the Northern Rivers

and $75.3 million in New South Wales; • Approximately 461.6 full-time equivalent (FTE) employment positions in Byron Shire, 926.9 FTEs in the Northern

Rivers and 1,454.6 FTEs in New South Wales; and • An estimated contribution to GRP of $49.8 million in Byron Shire, $95.7 million in the Northern Rivers and $159.1

million in New South Wales. Table E2: Summary of Economic Impacts of Bluesfest 2019 Byron Shire Northern Rivers New South Wales Australia Operation-based turnover Output ($ million) 23.6 27.7 38.3 55.7 Income ($ million) 2.8 4.3 7.0 11.3 Employment (fte persons) 35.7 63.2 102.9 170.8 Value added ($ million) 11.9 14.9 20.7 31.2 Indirect tourism spending Output ($ million) 74.5 134.6 234.4 250.2 Income ($ million) 18.1 38.7 67.0 70.6 Employment (fte persons) 421.9 858.0 1,333.2 1,386.0 Value added ($ million) 37.4 80.1 135.8 152.8 Total Bluesfest 2019 Output ($ million) 98.1 162.3 272.7 305.9 Income ($ million) 20.9 43.0 74.0 81.9 Employment (fte persons) 457.6 921.2 1,436.1 1,556.8 Value added ($ million) 49.3 95.0 156.5 184.0 Bluesfest Touring Output ($ million) 0.8 0.9 4.2 6.9 Income ($ million) 0.3 0.4 1.2 1.8 Employment (fte persons) 4.0 5.7 18.5 28.4 Value added ($ million) 0.5 0.7 2.6 4.2 Total Output ($ million) 98.9 163.2 276.9 312.8 Income ($ million) 21.2 43.4 75.3 83.7 Employment (fte persons) 461.6 926.9 1,454.6 1,585.2 Value added ($ million) 49.8 95.7 159.1 188.1


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When comparing the overall impact / contribution of Bluesfest 2019 to the economy of Byron Shire, care must be taken as the current analysis was based on data for the 2018/19 financial year, whereas the most recent GRP figures are for 2017/18. Notwithstanding, the total value added impact of Bluesfest 2019 ($49.8 million) represents approximately 2.3% of the total GRP for Byron Shire.

Source: Lawrence Consulting

The flow-on impacts from Bluesfest 2019 to other industries across Byron Shire are substantial and have been disaggregated in order to measure the contribution in other areas of the economy. The Arts & Recreation Services industry benefits most in terms of total output ($25.7 million), followed by Accommodation & Food Services ($20.8 million) and Retail Trade ($14.3 million).

In summary, the economic activity generated from the annual operation of Bluesfest 2019 and associated visitor spending impacts are substantial and therefore, based on the conservative assumptions presented in this analysis, the net economic impact from the facility on the Byron Shire and Northern Rivers is highly positive.

239.6199.6

192.4138.8

130.6129.6

116.099.7

95.890.7

88.059.9

53.651.5

49.841.4

35.030.2

28.42.7

0 50 100 150 200 250

Rental, hiring & real estate servicesProfessional, scientific & technical services

Administrative & support servicesConstruction

ManufacturingWholesale trade

Accommodation & food servicesRetail trade

Health care & social assistanceAgriculture, forestry & fishing

Education & trainingFinancial & insurance services

Arts & recreation servicesPublic administration & safety

Bluesfest 2019Transport, postal & warehousing

Other servicesElectricity, gas, water & waste services

Information media & telecommunicationsMining

Contribution to Gross Regional Product Byron Shire, 2017/18 ($ million)

0 40 80 120 160

MiningElectricity, gas, water & waste services

Public administration & safetyConstruction

Financial & insurance servicesInformation media & telecommunications

Rental, hiring & real estate servicesAgriculture, forestry & fishing

Wholesale tradeHealth care & social assistance

Education & trainingTransport, postal & warehousing

Professional, scientific & technical servicesOther services

ManufacturingAdministrative & support services

Arts & recreation servicesRetail trade

Accommodation & food services

Estimated Local Employment Supported by Bluesfest 2019Byron LGA (FTEs)

Bluesfest 2019 operations

Visitor spending

Bluesfest touring


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CONTENTS INTRODUCTION ......................................................................................................................................................... 1PROJECT METHODOLOGY .......................................................................................................................................... 2

Approach .......................................................................................................................................................................................................................................... 2Output ................................................................................................................................................................................................................................................................... 2Income .................................................................................................................................................................................................................................................................. 2Employment ...................................................................................................................................................................................................................................................... 3Value Added ...................................................................................................................................................................................................................................................... 3

Limitations ....................................................................................................................................................................................................................................... 3Description of Stimulus ........................................................................................................................................................................................................... 4

Data Inputs ......................................................................................................................................................................................................................................................... 4Displacements & Leakages ....................................................................................................................................................................................................................... 7

ECONOMIC IMPACT ................................................................................................................................................... 8Direct Operating Expenditure ............................................................................................................................................................................................. 8Indirect Tourism Expenditure ........................................................................................................................................................................................... 10Summary of Impacts .............................................................................................................................................................................................................. 11Contribution to Gross Regional Product ................................................................................................................................................................... 12

APPENDIX A: DISAGGREGATED INDUSTRY OUTPUT .................................................................................................. 14

Prepared by:


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INTRODUCTION Lawrence Consulting was commissioned by Bluesfest Group – including Bluesfest Services Pty Ltd and Bluesfest Touring Pty Ltd – to undertake an assessment of the economic impact of Bluesfest 2019, together with the associated tourism impact, on the Byron Shire, Northern Rivers, New South Wales and Australia. Bluesfest is one of Australia's most acclaimed and respected Festivals and has been the inspiration for dozens of blues world music and blues and roots festivals around Australia. The analysis is an update of previous annual reports completed by Lawrence Consulting and has adopted a similar methodology, with the most significant change including specific information collected from festival patrons from 2017 onwards regarding their spending patterns when visiting the Byron Shire and Northern Rivers regions for the purpose of attending Bluesfest. Bluesfest began as The East Coast Blues Festival in 1990 at the Arts Factory in Byron Bay, New South Wales. It quickly became known as “Byron Bay Bluesfest” and “The Byron Bay Festival” and is now known as Bluesfest, with a permanent home at Tyagarah Tea Tree Farm, located 11 kilometres north of Byron Bay and 8 kilometres south of Brunswick Heads. The event includes such facilities as 7 performance stages, 5 licensed bars and 2 undercover food courts. In addition, there are dozens of food and market stalls as well as car parking for over 7,000 vehicles and camping for up to 6,500 persons. The economic impact assessment has concentrated on the quantitative impact of Bluesfest 2019, specifically the impact of spending in Byron Shire, and the Northern Rivers region, New South Wales and Australia more generally, of spectators at the event together with the turnover of Bluesfest Services Pty Ltd and consequent local and regional purchases of goods and services. Also of major importance, but not included in the analysis due to the difficulty to enumerate, are the qualitative long-term effects on regional marketing and competitiveness of out-of-region visitors, cumulative television audiences and newspaper and online media coverage. The following sections of this report present the results of the economic impact analysis. Disclaimer Lawrence Consulting does not warrant the accuracy of this information and accepts no liability for any loss or damage that you may suffer as a result of your reliance on this information, whether or not there has been any error, omission or negligence on the part of Lawrence Consulting or its employees.


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PROJECT METHODOLOGY Approach Cultural activities such as Bluesfest 2019 generate economic benefits for the regional economy through operational expenditure associated with the organisation / event as well as benefits associated with tourism expenditure / turnover within the region. As a part of ongoing operations, economic impacts from Bluesfest are generated by organisational and facility operations, visiting performers and spectator spending. The most visible direct impacts are spectator spending on tickets, food and beverages, parking, merchandise and camping at the venue, whilst subsequent rounds of spending include indirect or off-site tourism expenditure and business supply chain purchases. The contribution made by Bluesfest 2019 to the economies of the Byron Shire, Northern Rivers, New South Wales and Australia has been assessed using the LocalImpact economic model, based on input-output tables developed specifically for each region. All input data, except where referenced in the report, has been supplied by the proponent, Bluesfest Services Pty Ltd. The stimulus from economic activity can be traced through the economy in several different ways: • The first round effect, or direct effect, are those from the activities expenditure in purchasing goods from other

industries; • The second round effects are those from the supplying industries increasing their purchases to meet the

additional demand. The second and subsequent rounds of purchasing are termed the indirect effects; and • The consumption-induced effects, which recognise that the level of local production is important in

determining regional levels of household consumption, that this in turn will be spent locally to a large extent and therefore influence the level of regional consumption and the level of output of each sector.

(Note: Caution should be exercised when interpreting the consumption impacts as they are generally expected to overestimate the actual impact.) These effects can be represented by multipliers. There are commonly four different types of multipliers: • Output; • Income; • Employment; and • Value added. Output The output impact measures the increase in gross sales throughout the whole economy by summing all the individual transactions resulting, directly and indirectly, from the economic stimulus. The output impacts, are however, regarded as overstating the impact on the economy as they count all goods and services used in one stage of production as an input to later stages of production, hence counting their contribution more than once. Income The income impact measures the additional amount of wages and salaries paid to employees of the industry under consideration and to other industries benefiting from the stimulus to the economy.


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Employment The employment impact measures the number of jobs created by the stimulus, both directly and indirectly. It should be noted that the short-term response to increased demand might be for employers to ask existing staff to work overtime. As a consequence, lower employment than the level indicated by the economic impact of the stimulus will result. This short-term scenario is particularly true where the demand stimulus is seen as temporary or where there is spare capacity in the economy (i.e. unemployment). Value Added The value added or Gross Regional Product1 (GRP) impact measures only the net activity at each stage of production. GRP is defined as the addition of consumption, investment and government expenditure, plus exports of goods and services, minus imports of goods and services for a region. The GRP impacts are the preferred measure for the assessment and contribution of a stimulus to the economy.

Limitations Limitations or qualifiers that should be raised when using input-output analysis include: • The inputs purchased by each industry are a function of the level of output of that industry. The input function is

generally assumed linear and homogenous of degree one (which implies constant returns to scale and no substitution between inputs);

• Each commodity (or group of commodities) is supplied by a single industry or sector of production. This implies

that there is only one method used to produce each commodity and that each sector has only a single primary output;

• The total effect of carrying on several types of production is the sum of the separate effects. This rules out

external economies and diseconomies and is known simply as the additivity assumption. This generally does not reflect real world operations;

• The system is in equilibrium at given prices. This is obviously not the case in an economic system subject to

external influences; • In the static input-output model, there are no capacity constraints so that the supply of each good is perfectly

elastic. Each industry can supply whatever quantity is demanded of it and there are no capital restrictions. This assumption would come into play depending upon the magnitude of the changes in quantities demanded, brought about through changes in taxation levels; and

• The input-output model is an optimisation model that allocates resources between sectors to their most

efficient use. This is not expected to happen all of the time in the “real world” and as such results from the input output analysis may overestimate the actual impact delivered on ground.

Input-output techniques provide a solid approach for taking account of the inter-relationships between the various sectors of the economy in the short-term and hence are an appropriate tool for determining the direct and indirect economic impact of Bluesfest 2019.

1 This is also known as Gross State Product (GSP) or Gross National Product (GNP) depending on the level of the analysis.


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Description of Stimulus Data Inputs The assessment is to estimate the economic impact to the Byron Shire and Northern Rivers region of the operation of Bluesfest 2019 and the indirect tourism benefits generated by increased visitor levels. The sectors of the economy that will be impacted through the analysis include: Table 1: Bluesfest 2019 Economic Impact Assessment, Industry Sectors Affected • Printing (including the reproduction of recorded media) • Telecommunication Services • Electricity Transmission, Distribution, On Selling and

Electricity Market Operation • Finance

• Waste Collection, Treatment and Disposal Services • Insurance and Superannuation Funds • Construction Services • Rental and Hiring Services (except Real Estate) • Wholesale Trade • Non-Residential Property Operators and Real Estate

Services • Retail Trade • Professional, Scientific and Technical Services • Accommodation • Employment, Travel Agency and Other Administrative

Services • Food and Beverage Services • Building Cleaning, Pest Control and Other Support

Services • Road Transport • Public Administration and Regulatory Services • Air and Space Transport • Public Order and Safety • Postal and Courier Pick-up and Delivery Service • Heritage, Creative and Performing Arts • Publishing (except Internet and Music Publishing) • Automotive Repair and Maintenance • Motion Picture and Sound Recording • Personal Services • Broadcasting (except Internet) • Other Services • Internet Service Providers, Internet Publishing and

Broadcasting, Websearch Portals and Data Processing

The total annual expenditure for Bluesfest Services Pty Ltd on Bluesfest 2019 was approximately $18.4 million in 2018/19 – including approximately $1.6 million in wages and salaries to 15.0 fulltime staff and all purchases of goods and services – which represented a significant increase of 18.7% from the level of expenditure in 2017/18 ($15.5 million). Spending by Bluesfest Services on Bluesfest 2019 in Byron Shire was approximately $2.6 million (up 38.0%), whilst the amount of expenditure across the rest of the Northern Rivers was $1.9 million (up 24.2%). Separate to Bluesfest 2019, Bluesfest Touring Pty Ltd spent approximately $5.5 million on Bluesfest Touring in 2018/19, of which over $383,000 was spent in Byron Shire and a further $1.3 million in the rest of New South Wales. Total expenditure by Bluesfest Group in 2018/19 was approximately $23.9 million (up 22.1%), of which an estimated $15.5 million was spent within Australia and $3.0 million in Byron Shire. Table 2: Bluesfest Annual Operating Expenditure by Event and Region of Purchase, 2018/19 Region Bluesfest 2019 Bluesfest Touring Total Level ($) % of

total Ann % chg

Level ($) % of total

Ann % chg

Level ($) % of total

Ann % chg

Byron Shire 2,598,806 14.1% 38.0% 383,072 7.0% 98.3% 2,981,878 12.5% 43.6% Northern Rivers 1,927,002 10.5% 24.2% 16,696 0.3% -75.7% 1,943,699 8.1% 20.0% Rest of New South Wales

3,154,835 17.1% -2.1% 1,236,531 22.6% 20.6% 4,391,366 18.4% 3.3%

Interstate 5,450,815 29.6% 15.2% 760,471 13.9% -4.7% 6,211,286 26.0% 12.3% International 5,268,831 28.6% 29.0% 3,070,209 56.2% 59.6% 8,339,040 34.9% 38.8% Total 18,400,289 100.0% 18.7% 5,466,978 100.0% 35.2% 23,867,268 100.0% 22.1%


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Bluesfest is also a significant cultural and tourism attraction for both local residents and visitors to the region. The total number of persons attending the event in 2019 was estimated at 37,191, as determined through individual ticket sales, which represented an annual increase of 9.2% from the level recorded for 2018 (34,063). Table 3: Bluesfest Attendance 2019 Ticket type Level

2019 Annual % change

Level 2018

Level 2017

Level 2016

Level 2015

Level 2014

Level 2013

% change 2013-19

5 day 11,716 11.6% 10,494 12,224 12,311 13,298 13,564 12,023 -2.6% 3 day 8,396 46.5% 5,731 9,326 7,172 7,746 6,302 6,170 36.1% 1 day 17,079 -4.3% 17,838 16,190 21,014 15,814 17,800 22,414 -23.8% Total attendance

37,191 9.2% 34,063 37,740 40,497 36,858 37,666 40,607 -8.4%

Source: Bluesfest Services In terms of ticket type, the number of 5-day (11,716) and 3-day (8,396) tickets increased annually in 2019 by 11.6% and 46.5%, respectively, although in contrast single-day tickets fell by 4.3% to 17,079.


Based on a participant survey undertaken by Bluesfest Services Pty Ltd during the 2019 event, the origin of attendees was determined, including the following patterns:


12,023

13,564

13,298

12,311

12,224

10,494

11,716

6,170

6,302

7,746

7,172

9,326

5,731

8,396

22,414

17,800

15,814

21,014

16,190

17,838

17,079

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

2013

2014

2015

2016

2017

2018

2019

Bluesfest Attendance by Individual Ticket Type

5 day

3 day

1 day

Byron Bay/Northern Rivers13%

Rest of New South Wales28%

Gold Coast6%

Rest of Queensland23%

Other states24%

Overseas; 5%

Bluesfest Attendance by Origin, 2019


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• 13% of respondents were from Byron Bay or the Northern Rivers region (down from 15% in 2018); • 28% of respondents were from the remainder of New South Wales (down from 33%); • 23% were from Queensland (up from 22% in 2018), including 6% from the Gold Coast; • A further 24% were from other States (up from 20% in 2018); and • 5% of respondents were from overseas (up from 4%). The age distribution of people attending Bluesfest 2019 was evenly spread, with the largest share occurring in the 55-64 years age bracket (24%), followed by the 45-54 years (23%), 25-34 years (20%) and 35-44 years (16%) age brackets. The average age of people attending Bluesfest 2019 was 44.1 years, which was younger than the average age in 2018 (45.5 years).


Also described in the survey was the age and gender profile of those attending the festival, of which approximately 54% of attendees were female and 46% were male, which represented a marginal change from 58% female and 42% male in 2018.


<152%

15-249%

25-3420%

35-4416%

45-5423%

55-6424%

65+6%

Bluesfest Attendance by Age, 2019

47%43%

41%

46% 45%42%

46%

53%57%

59%

54% 55%58%

54%

0%

10%

20%

30%

40%

50%

60%

70%

2013 2014 2015 2016 2017 2018 2019

Bluesfest Attendance by Gender

Male Female


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Taking into account regional length of stay, visitor origin and expenditure patterns from data obtained from festival patron surveys, which identified average daily expenditure of approximately $304 per person across a range of spending categories – which represented a decrease of 5.1% from the average daily patron spend during the 2018 festival ($320) – the gross annual stimulus to the Byron Shire, Northern Rivers and New South Wales economies associated with the total attendance numbers at Bluesfest 2019 were estimated at $35.5 million, $59.1 million and $83.4 million, respectively. A summary of the indirect tourism expenditure is provided in the following table. Table 4: Gross Indirect Tourism Expenditure by Type, Bluesfest 2019 ($ million) Expenditure type Byron Shire Northern Rivers New South Wales Accommodation 9.9 16.6 23.4 Food & beverage 7.2 11.9 16.8 Road transport 1.3 2.2 3.4 Retail shopping 10.5 17.4 24.4 Attractions 6.6 10.9 15.4 Total off-site expenditure 35.5 59.1 83.4 Disaggregated industry outputs were provided as part of the analysis to demonstrate the impacts of Bluesfest 2019 on all 114 sectors included in the input-output model; these are provided in Appendix A. Displacements & Leakages Displacement arises when an economic stimulus such as Bluesfest 2019 takes market share from other existing local firms or organisations, or ‘displaces’ alternative uses of project funds that might otherwise have occurred. Leakages are defined as the proportion of project outputs that flow out of the catchment area, i.e. purchases from outside the region. In relation to the operation of Bluesfest 2019 and the indirect tourism benefits created by the facility, for the purpose of this analysis it has been assumed that both the Byron Shire and Northern Rivers region are closed economies, i.e. any displacement and leakages are considered marginal. All expenditure related to the stimulus has been assumed to be made within each region – where not otherwise identified – in order to represent the additional economic activity generated by Bluesfest 2019.


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ECONOMIC IMPACT Direct Operating Expenditure The net annual regional economic impact – i.e. direct, indirect and consumption-induced – associated with the operation of Bluesfest 2019 on the Byron Shire include (refer table below): • An estimated direct output of $18.4 million and additional flow on increases in output of $3.9 million through

other industries, for a total industry impact of $22.3 million. A further $1.3 million in output in the region can be associated with consumption-induced effects;

• Estimated direct income (wages and salaries) of $1.6 million, with $0.9 million in additional income generated

through flow on effects in other industries and a further $0.3 million from household spending; • Approximately 15.0 direct full-time equivalent (FTE) employment positions, with an estimated additional 20.7

employment positions supported indirectly through other industries and household consumption for a total employment impact of 35.7 FTEs; and

• An estimated contribution to GRP of $9.4 million from direct effects, with a further flow on impact of $1.8 million

through other industries for a total industry value added of $11.2 million. An additional $0.7 million in gross regional product can be attributed to consumption-induced effects.

Table 5: Economic Impact of Bluesfest 2019, Direct Operating Expenditure Byron Shire Northern Rivers New South Wales Australia Output ($ million) Direct 18.4 18.4 18.4 18.4 Indirect 3.9 6.5 12.1 23.7 Consumption 1.3 2.8 7.8 13.6 Total 23.6 27.7 38.3 55.7 Income ($ million) Direct 1.6 1.6 1.6 1.6 Indirect 0.9 1.6 2.7 5.2 Consumption 0.3 1.1 2.7 4.5 Total 2.8 4.3 7.0 11.3 Employment (fte persons) Direct 15.0 15.0 15.0 15.0 Indirect 13.9 26.3 43.9 82.2 Consumption 6.8 21.9 44.0 73.6 Total 35.7 63.2 102.9 170.8 Value added ($ million) Direct 9.4 9.4 9.4 9.4 Indirect 1.8 3.2 6.0 11.5 Consumption 0.7 2.3 5.3 10.4 Total 11.9 14.9 20.7 31.2 The total economic impacts associated with Bluesfest 2019 on the Northern Rivers, New South Wales and Australia include: • Total output of $27.7 million in the Northern Rivers, $38.3 million in New South Wales and $55.7 million in

Australia in 2018/19;


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• Estimated total income (wages and salaries) of $4.3 million in the Northern Rivers, $7.0 million in New South Wales and $11.3 million in Australia in 2018/19;

• Approximately 63.2 full-time equivalent (FTE) employment positions in the Northern Rivers, 102.9 FTEs in New

South Wales and 170.8 FTEs in Australia; and • An estimated contribution to GRP of $14.9 million in the Northern Rivers, $20.7 million in New South Wales and

$31.2 million in Australia in 2018/19. The net annual economic impact in 2018/19 associated with Bluesfest Touring operations include (refer table below): • Total output of $0.8 million in Byron Shire, $4.2 million in New South Wales and $6.9 million in Australia in

2018/19; • Estimated total income (wages and salaries) of $0.3 million in Byron Shire, $1.2 million in New South Wales and

$1.8 million in Australia in 2018/19; • Approximately 4.0 full-time equivalent (FTE) employment positions in Byron Shire, 18.5 FTEs in New South Wales

and 28.4 FTEs in Australia; and • An estimated contribution to GRP of $0.5 million in Byron Shire, $2.6 million in New South Wales and $4.2 million

in Australia in 2018/19. Table 6: Economic Impact of Bluesfest Touring 2018/19, Direct Operating Expenditure Byron Shire Northern Rivers New South Wales Australia Output ($ million) Direct 0.4 0.4 1.6 2.4 Indirect 0.1 0.1 0.9 1.9 Consumption 0.3 0.4 1.7 2.6 Total 0.8 0.9 4.2 6.9 Income ($ million) Direct 0.2 0.2 0.4 0.5 Indirect 0.0 0.0 0.2 0.5 Consumption 0.1 0.2 0.6 0.8 Total 0.3 0.4 1.2 1.8 Employment (fte persons) Direct 2.0 2.1 5.9 8.7 Indirect 0.3 0.3 2.8 6.0 Consumption 1.7 3.3 9.8 13.7 Total 4.0 5.7 18.5 28.4 Value added ($ million) Direct 0.3 0.3 0.9 1.3 Indirect 0.0 0.0 0.5 1.0 Consumption 0.2 0.3 1.2 1.9 Total 0.5 0.7 2.6 4.2


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Indirect Tourism Expenditure The economic impacts of the indirect tourism expenditure associated with Bluesfest 2019 for the Byron Shire include (refer Table 7 below): • An estimated direct output of $35.5 million and additional flow on increases in output of $19.8 million through

other industries, for a total industry impact of $55.2 million. A further $19.3 million in output in the region can be associated with consumption-induced effects;

• Estimated direct income (wages and salaries) of $9.5 million, with $3.7 million in additional income generated

through flow on effects in other industries and a further $4.8 million from household spending; • Approximately 263.3 direct full-time equivalent (FTE) employment positions, with an estimated additional 158.7

employment positions supported indirectly through other industries and household consumption for a total employment impact of 421.9 FTEs; and

• An estimated contribution to GRP of $18.2 million from direct effects, with a further flow on impact of $9.3

million through other industries for a total industry value added of $27.5 million. An additional $9.9 million in gross regional product can be attributed to consumption-induced effects.

Table 7: Economic Impact of Bluesfest 2019, Indirect Tourism Expenditure Byron Shire Northern Rivers New South Wales Australia Output ($ million) Direct 35.5 59.1 83.4 83.4 Indirect 19.8 35.0 54.2 67.6 Consumption 19.3 40.5 96.8 99.1 Total 74.5 134.6 234.4 250.2 Income ($ million) Direct 9.5 15.9 22.4 22.4 Indirect 3.7 6.5 10.9 14.0 Consumption 4.8 16.3 33.8 34.3 Total 18.1 38.7 67.0 70.6 Employment (fte persons) Direct 263.3 438.8 618.2 618.2 Indirect 58.7 103.2 160.6 205.9 Consumption 100.0 316.0 554.4 561.9 Total 421.9 858.0 1,333.2 1,386.0 Value added ($ million) Direct 18.2 30.3 42.7 42.7 Indirect 9.3 16.6 26.3 32.3 Consumption 9.9 33.1 66.9 77.7 Total 37.4 80.1 135.8 152.8


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Summary of Impacts The economic impact of the operations of Bluesfest 2019 and those of indirect regional spectator spending can be aggregated to achieve an overall annualised estimate of the impact on the economies of the Byron Shire, the Northern Rivers and Australia. It is difficult to be definitive regarding how much of the regional off-site spectator spending impact will accrue within the Byron Shire, as opposed to elsewhere in the Northern Rivers, given Byron Shire faces capacity constraints in key sectors at key times (e.g. accommodation stock). The input data has, however, allowed for differentiation of Byron Shire and rest of the Northern Rivers spending for both operational-based and indirect tourism expenditure. Following this estimation, the direct and total economic impacts associated with Bluesfest Services (i.e. Bluesfest 2019 and Bluesfest Touring) on the Byron Shire, the Northern Rivers and New South Wales in 2018/19 are provided in the following table and include: • Total output of $98.9 million in Byron Shire, $163.2 million in the Northern Rivers and $276.9 million in New

South Wales; • Estimated total income (wages and salaries) of $21.2 million in Byron Shire, $43.4 million in the Northern Rivers

and $75.3 million in New South Wales; • Approximately 461.6 full-time equivalent (FTE) employment positions in Byron Shire, 926.9 FTEs in the Northern

Rivers and 1,454.6 FTEs in New South Wales; and • An estimated contribution to GRP of $49.8 million in Byron Shire, $95.7 million in the Northern Rivers and $159.1

million in New South Wales. Table 8: Summary of Economic Impacts of Bluesfest 2019 Byron Shire Northern Rivers New South Wales Australia Operation-based turnover Output ($ million) 23.6 27.7 38.3 55.7 Income ($ million) 2.8 4.3 7.0 11.3 Employment (fte persons) 35.7 63.2 102.9 170.8 Value added ($ million) 11.9 14.9 20.7 31.2 Indirect tourism spending Output ($ million) 74.5 134.6 234.4 250.2 Income ($ million) 18.1 38.7 67.0 70.6 Employment (fte persons) 421.9 858.0 1,333.2 1,386.0 Value added ($ million) 37.4 80.1 135.8 152.8 Total Bluesfest 2019 Output ($ million) 98.1 162.3 272.7 305.9 Income ($ million) 20.9 43.0 74.0 81.9 Employment (fte persons) 457.6 921.2 1,436.1 1,556.8 Value added ($ million) 49.3 95.0 156.5 184.0 Bluesfest Touring Output ($ million) 0.8 0.9 4.2 6.9 Income ($ million) 0.3 0.4 1.2 1.8 Employment (fte persons) 4.0 5.7 18.5 28.4 Value added ($ million) 0.5 0.7 2.6 4.2 Total Output ($ million) 98.9 163.2 276.9 312.8 Income ($ million) 21.2 43.4 75.3 83.7 Employment (fte persons) 461.6 926.9 1,454.6 1,585.2 Value added ($ million) 49.8 95.7 159.1 188.1


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Contribution to Gross Regional Product The Gross Regional Product (GRP) of Byron Shire was estimated at $2.2 billion in 2017/18, contributing 14.8% and 0.4%, respectively, to the gross regional / state products of the Northern Rivers ($14.9 billion) and New South Wales ($604.4 billion). With regard to industry, the largest contribution was made by the Rental, Hiring & Real Estate Services sector, with approximately 10.9% of the total GRP for Byron Shire, followed by Professional, Scientific & Technical Services (9.1%), Administrative & Support Services (8.8%) and Construction (6.3%). When comparing the overall impact / contribution of Bluesfest 2019 to the economy of Byron Shire, care must be taken as the current analysis was based on data for the 2018/19 financial year, whereas the most recent GRP figures are for 2017/18. Notwithstanding, the total value added impact of Bluesfest 2019 ($49.8 million) represents approximately 2.3% of the total GRP for Byron Shire.

Source: Lawrence Consulting

The flow-on impacts from Bluesfest 2019 to other industries across Byron Shire as derived from the LocalImpact model are substantial and have been disaggregated in order to measure the contribution in other areas of the economy (note, full impacts for all 114 industry classes are included in Appendix A). The following table (Table 9) demonstrates that the Arts & Recreation Services industry benefits most in terms of total output ($25.7 million), followed by Accommodation & Food Services ($20.8 million) and Retail Trade ($14.3 million).

239.6199.6

192.4138.8

130.6129.6

116.099.7

95.890.7

88.059.9

53.651.5

49.841.4

35.030.2

28.42.7

0 50 100 150 200 250

Rental, hiring & real estate servicesProfessional, scientific & technical services

Administrative & support servicesConstruction

ManufacturingWholesale trade

Accommodation & food servicesRetail trade

Health care & social assistanceAgriculture, forestry & fishing

Education & trainingFinancial & insurance services

Arts & recreation servicesPublic administration & safety

Bluesfest 2019Transport, postal & warehousing

Other servicesElectricity, gas, water & waste services

Information media & telecommunicationsMining

Contribution to Gross Regional Product Byron Shire, 2017/18 ($ million)

0 40 80 120 160

MiningElectricity, gas, water & waste services

Public administration & safetyConstruction

Financial & insurance servicesInformation media & telecommunications

Rental, hiring & real estate servicesAgriculture, forestry & fishing

Wholesale tradeHealth care & social assistance

Education & trainingTransport, postal & warehousing

Professional, scientific & technical servicesOther services

ManufacturingAdministrative & support services

Arts & recreation servicesRetail trade

Accommodation & food services

Estimated Local Employment Supported by Bluesfest 2019Byron LGA (FTEs)

Bluesfest 2019 operations

Visitor spending

Bluesfest touring


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Table 9: Estimated Disaggregated Industry Impacts of Bluesfest 2019, Byron Shire Industry division Bluesfest 2019

operations Indirect visitor expenditure

Bluesfest Touring operations

Industry output ($ million)

Direct employment (FTEs)





Agriculture, Forestry and Fishing 0.2 0.5 2.5 7.0 0.0 0.1 Mining 0.0 0.0 0.1 0.1 0.0 0.0 Manufacturing 0.3 1.0 4.9 12.5 0.0 0.1 Electricity, Gas, Water and Waste Services

0.1 0.1 1.1 1.5 0.0 0.0

Construction 0.1 0.2 1.4 2.9 0.0 0.0 Wholesale Trade 0.3 0.7 2.7 7.6 0.0 0.1 Retail Trade 0.4 3.4 13.8 118.5 0.1 0.4 Accommodation and Food Services

0.4 3.4 20.3 151.4 0.1 0.6

Transport, Postal and Warehousing 0.2 0.4 3.3 10.8 0.0 0.1 Information Media and Telecommunications

0.2 0.5 2.1 4.3 0.1 0.1

Financial and Insurance Services 0.2 0.4 2.5 4.4 0.0 0.0 Rental, Hiring and Real Estate Services

1.2 2.1 3.1 4.7 0.0 0.0

Professional, Scientific and Technical Services

0.4 1.5 3.1 10.6 0.0 0.1

Administrative and Support Services

0.5 1.5 2.9 12.7 0.1 0.2

Public Administration and Safety 0.0 0.2 0.3 1.7 0.0 0.0 Education and Training 0.1 1.1 1.0 9.7 0.0 0.2 Health Care and Social Assistance 0.1 0.9 1.0 7.6 0.0 0.1 Arts and Recreation Services 18.6 16.0 7.1 44.4 0.0 0.1 Other Services 0.3 1.7 1.4 9.3 0.3 1.8 Total 23.6 35.7 74.5 421.9 0.8 4.0 In summary, the economic activity generated from the annual operation of Bluesfest 2019 and associated visitor spending impacts are substantial and therefore, based on the conservative assumptions presented in this analysis, the net economic impact from the facility on the Byron Shire and Northern Rivers is highly positive.


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APPENDIX A: DISAGGREGATED INDUSTRY OUTPUT Table A1: Estimated Disaggregated Industry Impacts of Bluesfest 2019 – Byron Shire Industry sector Industry output

($ million) Direct employment (FTEs)

Sheep, Grains, Beef and Dairy Cattle 1.0 3.4 Poultry and Other Livestock 0.3 0.8 Other Agriculture 1.1 2.9 Aquaculture 0.0 0.0 Forestry and Logging 0.0 0.0 Fishing, hunting and trapping 0.1 0.2 Agriculture, Forestry and Fishing Support Services 0.2 0.3 Coal mining 0.0 0.0 Oil and gas extraction 0.0 0.0 Iron Ore Mining 0.0 0.0 Non Ferrous Metal Ore Mining 0.0 0.0 Non Metallic Mineral Mining 0.0 0.1 Exploration and Mining Support Services 0.0 0.0 Meat and Meat Product Manufacturing 1.8 3.3 Processed Seafood Manufacturing 0.0 0.1 Dairy Product Manufacturing 0.0 0.0 Fruit and Vegetable Product Manufacturing 0.1 0.1 Oils and Fats Manufacturing 0.0 0.0 Grain Mill and Cereal Product Manufacturing 0.3 0.5 Bakery Product Manufacturing 0.5 3.4 Sugar and Confectionery Manufacturing 0.3 0.4 Other Food Product Manufacturing 0.3 0.7 Soft Drinks, Cordials and Syrup Manufacturing 0.1 0.2 Beer Manufacturing 0.5 0.6 Wine, Spirits and Tobacco 0.2 0.4 Textile Manufacturing 0.0 0.0 Tanned Leather, Dressed Fur and Leather Product Manufacturing 0.0 0.0 Textile Product Manufacturing 0.0 0.2 Knitted Product Manufacturing 0.0 0.0 Clothing Manufacturing 0.0 0.4 Footwear Manufacturing 0.0 0.0 Sawmill Product Manufacturing 0.0 0.0 Other Wood Product Manufacturing 0.0 0.2 Pulp, Paper and Paperboard Manufacturing 0.1 0.1 Paper Stationery and Other Converted Paper Product Manufacturing 0.1 0.3 Printing (including the reproduction of recorded media) 0.0 0.0 Petroleum and Coal Product Manufacturing 0.0 0.0 Human Pharmaceutical and Medicinal Product Manufacturing 0.0 0.1 Veterinary Pharmaceutical and Medicinal Product Manufacturing 0.0 0.0 Basic Chemical Manufacturing 0.0 0.0 Cleaning Compounds and Toiletry Preparation Manufacturing 0.1 0.4 Polymer Product Manufacturing 0.1 0.4 Natural Rubber Product Manufacturing 0.0 0.0 Glass and Glass Product Manufacturing 0.0 0.1 Ceramic Product Manufacturing 0.0 0.0 Cement, Lime and Ready-Mixed Concrete Manufacturing 0.0 0.0 Plaster and Concrete Product Manufacturing 0.0 0.0 Other Non-Metallic Mineral Product Manufacturing 0.0 0.0 Iron and Steel Manufacturing 0.0 0.1 Basic Non-Ferrous Metal Manufacturing 0.0 0.0


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Table A1: Estimated Disaggregated Industry Impacts of Bluesfest 2019 – Byron Shire Industry sector Industry output


Forged Iron and Steel Product Manufacturing 0.0 0.0 Structural Metal Product Manufacturing 0.1 0.2 Metal Containers and Other Sheet Metal Product manufacturing 0.0 0.0 Other Fabricated Metal Product manufacturing 0.1 0.2 Motor Vehicles and Parts; Other Transport Equipment manufacturing 0.0 0.0 Ships and Boat Manufacturing 0.0 0.0 Railway Rolling Stock Manufacturing 0.0 0.0 Aircraft Manufacturing 0.0 0.0 Professional, Scientific, Computer and Electronic Equipment Manufacturing 0.0 0.2 Electrical Equipment Manufacturing 0.0 0.0 Domestic Appliance Manufacturing 0.0 0.0 Specialised and other Machinery and Equipment Manufacturing 0.0 0.0 Furniture Manufacturing 0.0 0.3 Other Manufactured Products 0.1 0.5 Electricity Generation 0.0 0.0 Electricity Transmission, Distribution, On Selling and Electricity Market Operation

0.7 0.7

Gas Supply 0.0 0.0 Water Supply, Sewerage and Drainage Services 0.3 0.4 Waste Collection, Treatment and Disposal Services 0.1 0.5 Residential Building Construction 0.2 0.5 Non-Residential Building Construction 0.1 0.1 Heavy and Civil Engineering Construction 0.2 0.1 Construction Services 1.0 2.3 Wholesale Trade 3.0 8.4 Retail Trade 14.3 122.4 Accommodation 11.0 76.6 Food and Beverage Services 9.8 78.8 Road Transport 2.1 8.5 Rail Transport 0.0 0.0 Water, Pipeline and Other Transport 0.1 0.2 Air and Space Transport 0.3 0.4 Postal and Courier Pick-up and Delivery Service 0.2 1.2 Transport Support services and storage 0.7 0.9 Publishing (except Internet and Music Publishing) 0.5 1.7 Motion Picture and Sound Recording 0.2 0.6 Broadcasting (except Internet) 0.6 1.1 Internet Service Providers, Internet Publishing and Broadcasting, Websearch Portals and Data Processing

0.3 0.5

Telecommunication Services 0.7 0.8 Library and Other Information Services 0.0 0.1 Finance 1.4 2.0 Insurance and Superannuation Funds 0.2 0.4 Auxiliary Finance and Insurance Services 1.1 2.4 Rental and Hiring Services (except Real Estate) 1.4 2.6 Ownership of Dwellings 0.0 0.0 Non-Residential Property Operators and Real Estate Services 2.9 4.3 Professional, Scientific and Technical Services 3.1 10.8 Computer Systems Design and Related Services 0.5 1.5 Employment, Travel Agency and Other Administrative Services 2.4 6.1 Building Cleaning, Pest Control and Other Support Services 1.0 8.3 Public Administration and Regulatory Services 0.2 0.8 Defence 0.0 0.0


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Table A1: Estimated Disaggregated Industry Impacts of Bluesfest 2019 – Byron Shire Industry sector Industry output


Public Order and Safety 0.2 1.2 Primary and Secondary Education Services (incl Pre-Schools and Special Schools)

0.7 6.1

Technical, Vocational and Tertiary Education Services (incl undergraduate and postgraduate)

0.1 0.5

Arts, Sports, Adult and Other Education Services (incl community education) 0.4 4.4 Health Care Services 0.6 4.8 Residential Care and Social Assistance Services 0.5 3.9 Heritage, Creative and Performing Arts 25.3 58.5 Sports and Recreation 0.4 1.9 Gambling 0.0 0.0 Automotive Repair and Maintenance 0.5 2.9 Other Repair and Maintenance 0.3 1.3 Personal Services 0.5 4.2 Other Services 0.7 4.3 Total 98.9 461.6

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