roviding $15 million, and the Tasmanian government committing to $375 million in funding. The government is also proposing an urban renewal project, injecting funds into a new arts, entertainment, and sports precinct from Macquarie Point through to crown land at Regatta Point.  Through a private-public partnership, the precinct would deliver a mix of waterfront housing and focus on transport connections, with the stadium at the heart of the proposal.  However, plans to develop the stadium have been met with mass protests due to an alleged lack of transparency around the deal. Protestors also argued that the money would be better spent on health care, housing and other sectors of the economy, and would not necessarily reap significant benefits for the local population. Two members of the Tasmanian coalition party have quit over the proposal, which has launched the state government into minority status. But, what are the implications of the new AFL team, and the stadium proposal, for the local retail industry? Is the industry set to boom, or will the result be underwhelming?  Significant stimulus According to a government report, the new stadium is forecasted to deliver $2.2 billion in economic activity over a 25-year period. A PwC report estimated that the development of the precinct would inject $300 million into the local economy during its construction, and $85 million in economic activity each year, in the years following. Property council of Tasmania executive director, Rebecca Ellston said that the benefits of the investment in a new stadium would be “far reaching, driving more hotels, retail [activity], office and recreational spaces.” With Tasmania already hosting AFL games, Robert Mallett, CEO of the Tasmanian Small Business Council, explained that about 70 per cent of interstate and overseas visitors to AFL games in Tasmania currently spend two or more nights in the state as part of the trip. He added that extra AFL matches hosted in the new stadium would expand the tourism market – with forecasts of 120,000 interstate and overseas visitors, and up to 184,000 intrastate visitors annually – and attract “significant stimulus for retail and hospitality businesses large and small throughout the state.” “The Macquarie Point location on the edge of the CBD is ideal to spread the benefit of event attendees taking advantage of the restaurants, hotels and bars in the precinct and surrounds,” Mallett said. “A stadium like this with a pre-planned agenda of events will give small businesses the opportunity to know there’ll be thousands of people flocking into the city and the state.  “Some people will come for major footy matches, others will come for concerts and they will do their five or seven or 10 days here.” One less worker available According to the Berkeley Economic Review, public financing of new stadiums often stimulates jobs and spending in the short term. The economic philosophy behind new stadiums is linked to “the multiplier effect,” whereby local income generated through construction leads to further spending and investment. However, according to the journal, this theory often doesn’t materialise. Rather, newly constructed and government-subsidised stadiums can have a negative economic impact on the local community. This is because the opportunity cost of investing heavily in a stadium could otherwise be spent on other sectors of the economy. “Over the last thirty years, building sports stadiums has served as a profitable undertaking for large sports teams, at the expense of the general public,” it states. Economist and professor at the University of Queensland, Professor John Quiggin referenced this study in The Conversation, writing that the economic case for the Hobart Stadium is “startlingly thin.”   He added that the creation of new jobs related to the new stadium would potentially lure workers away from other industries in need of more workers.  “In such circumstances, creating a job means luring a worker away from another. If the new job is on a major construction project, that means one less worker available to build housing,” Quiggin wrote. “The project diverts the workers employed directly and takes all kinds of resources that could otherwise be used for socially useful purposes.” Adaptable and resilient According to Ben Morrow of Shop Tasmania – a website promoting local products and services – a Tasmanian AFL team and new stadium could significantly benefit retailers, and the local industry.  He told Inside Retail that there would be increased disposable income for those employed during the construction phase, and a lift in discretionary spending from people visiting the state to attend matches. Morrow said that many would extend their stay beyond the game, and travel to other parts of the state as part of a longer holiday.  For retailers, he suggested that they get behind the AFL team, remain active in the local community and ensure their marketing and messaging is up to date.    “The potential for new retailers with different offerings will certainly increase [with the new stadium] and the demand for sustainable and locally manufactured products will create more unique opportunities for innovative offerings.” Morrow said. “Retailers are very adaptable and resilient by nature and they have a strong ability to network. Leveraging the resources of their suppliers will also be a key component to sustainable growth.”