ASIA-PACIFIC – SINGAPORE, SINGAPORE 14, 2011: Rugby World Cup 2011 could generate US$1.67 billion for the global sports economy with overseas visitors to New Zealand generating US$654 million, according to new research commissioned by MasterCard Worldwide.
MasterCard’s research—the Economic Impact on Global Rugby Part IV: Rugby World Cup 2011—finds that sport associated economic activity may be worth up to US$11.7 billion to the New Zealand economy by the end of the decade.
The research is the fourth installment in a series commissioned by MasterCard Worldwide and undertaken by the Centre for the International Business of Sport (CIBS) at Coventry University.
The latest installment examines the value of RWC 2011 by looking at the short-term commerce flow through international fans spending in bars, clubs, shops, hotels, bookmakers and inside host stadia, along with spending by sponsors and organisations on marketing in the cities around matches. It also examines the longer-term economic impacts on New Zealand’s economy and the legacy of the Tournament as a whole.
Delivering the report to media and guests at a briefing in Auckland, CIBS Researcher Dave Arthur said the Tournament would stand out from its predecessors. “This Tournament will be like no other: it will attract stronger than ever interest across the world, which will in turn boost commercial interest in and activity around the event,” he said.
The report finds that by the end of the decade, consumer expenditure in the New Zealand sports economy may be worth up to US$1 billion. Increased tourism, civic sponsorship and business development resulting from the Tournament is estimated to be US$1.21 billion, while the number of people working in sport-related occupations could rise to between 52,000 and 58,000 by the end of the decade, according to the report.
Other factors likely to enhance short-term and long-term economic activity include the later time scheduling for RWC 2011 matches and the ongoing development of Rugby in emerging market countries such as Romania, which has seen a 222% increase of Rugby participation since Rugby World Cup 2003, and Russia, who will be competing in their first Rugby World Cup.
Based on advanced ticket sales more than 95,000 international fans will be visiting New Zealand for RWC 2011, which kicked off on September 9. Total ticket sales, which (including domestic sales) are expected to reach 1.35 million, will generate revenue of US$224.5million for Tournament organizers.
The late scheduling of matches—many Pool games kick off at 8.30pm, while the semi-finals and Final kick off at 9pm—are likely to encourage more spending in and around the cities hosting matches as fans enjoy the local hospitality before games, the report says. The late scheduling will also offer a boost to broadcasters with a global audience of around 4 billion people expected to tune in to watch the Tournament.
Stuart Cameron, vice president, Regional Marketing, Asia/Pacific, Middle East and Africa, MasterCard Worldwide, said: “Rugby fans from across the globe are descending on New Zealand for six weeks, and as well as engrossing themselves in the best the sport has to offer, they will be immersed in one of the most spectacular destinations on Earth. It has been 24 years since the inaugural Rugby World Cup took place in New Zealand, and as this research
shows the competition and its economic value has come a long way since then.”
