How much is the Rugby World Cup worth to NZ?

Thanks to Andrew Larkey for alerting me to this article from the BBC website. A report from Mastercard has come up with some interesting stats regarding the impact of the Rugby World Cup on the New Zealand economy. The overall value to the economy could be as much as NZ$1.45bn

Rugby World Cup 2011
– NZ$272.5m in ticket revenues
– NZ$$247.8m to be spent on accommodation
– NZ$$227.8m to be spent on food and drink
– 7.5 million litres of beer to be poured
– 7.35 million pies and sausages to be eaten
-150,000 litres of sports drinks to be consumed

About 95,000 international fans are expected during the course of the tournament.

“In terms of economic impact, the most important component is international visitors as they contribute money to the economy that would not have otherwise been spent in New Zealand. Such activity could increase to NZ$14.2bn by the end of the decade.” the report said.

Along with its direct economic benefits, the Rugby World Cup is also likely to boost the value of New Zealand as a brand. The America’s Cup sailing in 2000 generated almost NZ$$91.4m in brand value for the country. Lets wait and see – maybe if New Zealand wins there will be even a greater impact on the economy. In all this it would be interesting to try and work out the value of the multiplier. Any ideas? Go Ireland!

1 thought on “How much is the Rugby World Cup worth to NZ?

  1. sixth former

    $1.45bn would be nice, but don’t you have to deduct some numbers as well?

    Every pie and sausage that is bought at the rugby by a New Zealanders is paid for with dollar and cents that are not being spent on sausages and pies at, say, Mitre 10 Saturday morning sausage sizzles. Every dollar spent on tickets is not spent on hammers and lettuces at Mitre 10.

    And it’s true that international visitors contribute money that would not otherwise have been spent, but of the 95,000 fans here, how many woud have come anyway, but have adjusted their travel date to coincide with the rugby world cup? And how many people have stayed away to avoid the crush and overpriced accommodation?

    The economic question is the change in economic output compared to the counterfactual, not merely the direct expenditure on the event, even assuming the Mastercard totals are plausible.


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