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 EXAMINER ... Cost-benefit analysis for proposed waterfront stadium in Hobart released

By Matt Maloney Updated January 18 2023 - 7:40pm, first published 3:30pm

A cost-benefit analysis on the proposed new stadium for Hobart has confirmed it will generate a net loss of $132.3 million to the state under a best-case scenario.

The detailed analysis, released by State Growth and produced by MI Global Partners, has also confirmed that under a worst-case scenario, $480.2 million will be lost.

The cost-benefit report noted that for social infrastructure like stadia, economic costs most likely always outweighed the economic benefits.

It said the stadium is estimated to have an overall economic cost $1 billion.

This includes $676.4 million in construction costs between 2023 and 2028.

This projected construction cost along with $49.5 million in ongoing lifecycle capital costs means the cost to develop and maintain the Hobart stadium from 2023 to 2048 will be $726 million.

Post-construction, the analysis predicts annual capital costs of $2.1 million, operational costs of $8.3 million and event acquisition costs of $16 million.

It has forecast an annual tourism benefit of $16.2 million, incremental revenues of $16.2 million and a consumer and community benefit of $4.7 million.

The revenues are to be sourced primarily through $10.6 million in food and beverage, $2.5 million in venue hire fees, $1.3 million in sponsorship, and $1.8 million in ticketing.

The overall annual economic benefit has worked out to be $21.2 million.

It is projected the new stadium would cost just under $5.8 million per year to operate an anticipated 44 events, with 28 of these to be new events.

The costs include turf maintenance and replacement ($1 million) and facilities maintenance ($2.3 million).

It is estimated that the total event day costs for events at the stadium will be $5.3 million, which is expected to increase $185,000 each year.

Labor's finance spokesman Shane Broad at the baseline, the stadium would generate a loss of more than $300 million.

"And that's in the unlikely case the Premier's assumptions about the stadium hosting a major event every eight days come true," he said.

"The true picture is even worse when you consider that the analysis also does not include the interest repayments on the debt, which we now know will be over $400 million."

Premier Jeremy Rockliff said the stadium's business case estimated it would bring $2.2 billion in additional economic activity to benefit the entire state and would secure the state an AFL and AFLW team.

"The cost benefit analysis for the stadium component shows it is line with similar stadia developments around Australia," he said.

"It notes the significant economic and social benefits the stadium component will bring, including improved financial outcomes for professional sport and encouraging greater participation in sport for this and future generations."

MI Global Partners has estimated the stadium could have 572,438 people in attendance each year, and 113,153 interstate and overseas visitors each year, for a projected 44 events.

A separate analysis by PricewaterhouseCoopers estimated an AFL game would fill out 70 per cent of crowd capacity at the 23,000-seat student, a Big Bash League game would fill out 65 per cent and an A-League game would fill out 50 per cent.

The analysis has predicted six concerts would be held at the venue a year and crowd capacity would reach 70 per cent.