The 2011 Rugby World Cup Economic Benefit to NZ

This event is going to be huge. The 2011 Rugby World Cup will be a highlight for New Zealand and it going to come at the right time.
The spot light is on New Zealand here. We are a Tourist Nation so lets shine. But before we go to that look at the estimated economic spin off we could be having here. Put aside the huge cost of developing, that is asset growth.
It estimated that the Rugby World Cup 2011 will result in total economic activity amounting to approximately $1.15 billion. This Total Gross Output1 figure represents the broadest measure of economic activity and captures the full value of goods transacted regardless of where they are produced.
The 2011 Rugby World Cup has the potential to have a significant economic impact on the New Zealand economy. The key estimates from our analysis are that RWC 2011 will:

i) result in $476 million of total direct additional expenditure within New Zealand
ii) result in $262 million of total direct additional expenditure within Auckland
iii) contribute $507 million in additional Gross Domestic Product in the New Zealand economy
iv) contribute $240 million in additional Gross Domestic Product in the Auckland economy
v) provide the New Zealand Government an additional $112 million in tax revenue.
The International Rugby Board (“IRB”) promotes the Rugby World Cup as the third largest global sporting event behind the Olympics and the FIFA World Cup, based on the global television audience.
The 2011 tournament is proposed to follow the same structure as the 2003 and 2007 tournaments with 20 teams participating. The tournament will involve 48 matches over a six week period. Matches will be held at eleven venues in 10 regions around New Zealand.
Based on precedents set at the 2003 Rugby World Cup in Australia and allowing for growth over time, we have assumed that the 2011 event could attract approximately 66,000 international supporters, 2,500 international media, and 2,500 corporate / VIP guests.
It is estimated that the RWC 2011 will result in $476 million of total direct expenditure within NZ, which will generate:
• $204 million in direct value added or direct contribution to GDP. Thus, some 42.9% of direct expenditure represents value added;
• $180 million in indirect value added, from the flow-on increase in business activity;
• $122 million in induced value added, from the spending of the extra household income generated by the additional business activity.
The economic impact will be primarily generated through the general expenditure of international visitors during their stay in New Zealand. The balance of the impact will be derived through the net reduction in overseas spending by New Zealanders due to the hosting of the Rugby World Cup in New Zealand rather than overseas.
The revenues and expenses associated with the organisation of the tournament itself are projected to have no material net impact on the New Zealand economy. In essence, the event acts as a catalyst for significant tourist activity, which drives economic impact.
Its up to us in NZ to make this event happen. There will be hundreds of opportunities for us to positively spin this event. I for sure have plenty of ideas.
New Zealand our time in the spot light is here. Its about time we proved ourselves to the world we are one of the best destinations in the world to visit. We have bugger all else that we could potentially make such an impression about.
DESTINATION NEW ZEALAND!

Related Blogs

• The Value Added by LA Teachers « The Quick and the Ed
• Search Engine Internet Marketing Strategy – The Value of Search …