Economic Framework
Intelligence & Methodology
Understanding South Africa's sport economy through the Vilnius 3.0 Framework. This page explains the methodology, multiplier effects, and analytical tools used to measure sport's economic contribution.
The Vilnius Definition is the European Union's international standard for measuring sport's economic contribution. Endorsed by Eurostat (the EU's statistical agency) and adopted by over 20 countries, it solves a fundamental problem: how do you count the sport economy when so much of it happens outside traditional 'sport' sectors?
A golfer flying into Johannesburg is not captured by sports statistics—but she is captured by tourism statistics, and by hotel and airline statistics. A broadcaster paying for sport rights isn't recorded as 'sport spending'—it's recorded under media and advertising. Vilnius 3.0 bridges these gaps.
Two-Tier Framework
Characteristic Products
Activities where sport is the primary purpose - the core of the sport economy
33.6% of sport GVA
Connected Products
Goods and services where sport is the primary customer - sport drives demand
66.4% of sport GVA
GVA Distribution
Sector Breakdown
GVA distribution across 7 measured sectors
Data Sources & Limitations
This framework is based on the Vilnius 3.0 methodology developed by the European Commission for sport satellite accounts. The 55% GVA ratio is standard per SA Treasury but is sector-averaged. In reality: accommodation has a 70% GVA ratio (mostly labour), retail has 60%, and broadcast has 40% (equipment-heavy).
Employment-to-output ratios are industry benchmarks. Event operations are labour-intensive (R40k per FTE), while professional services require R350k in output per job. These ratios allow conversion between economic value and job creation.
Reference year: 2022. This is an analytical framework for understanding sport's economic contribution.