Rugby World Cup provides $573M fillip to NZ economy, report shows

Sports Minister Murray McCully has labelled last year's Rugby World Cup a success after independent research found it added $573 million to an otherwise tepid economy.

The sporting event added 0.34% to New Zealand's gross domestic product over the medium-term, or $573 million in 2007 dollar terms, and added some 7,840 part and full-time jobs, based on Market Economics modelling that considered the impact of spending leading up to the event.

The medium term impacts are "reasonably significant" and alongside less rigorous short-term modelling, show the tournament "provided an economic stimulus to the New Zealand economy in generally difficult economic times," the report said.

"Economically and socially, RWC 2011 has been great for New Zealand, with a marked boost in economic activity," McCully said in a statement. "However it is the intangible elements - the way the nation came together, and the pride we felt as hosts - that will define RWC 2011 for most New Zealanders in the future."

The tournament attracted some 133,000 visitors, who purchased 331,801 of the 1.48 million tickets sold. That was more than the 85,000 tourists expected by the Reserve Bank, which was picking a direct injection of $700 million into the economy before accounting for mitigating factors.

(BusinessDesk)

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Given the investment by NZTE and others in trying to get business deals to happen what have the results been? the report talks about a database and also connections, but what deals were signed.

NZTE diverted resources into the World cup at the expense of other activities - I suspect only so they could enjoy the rugby.

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Could McCully also tell us the respective contributions taxpayers and ratepayers made - and are still making - to the RWC? Perhaps, without the RWC, there would be no need to screw us with additional petrol taxes for roading?

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Market Economics should be renamed Shonky Economics - "you tell us the conclusion and we'll find the way to justify it".

An impact analysis says nothing about whether the investment in the RWC earned a reasonable return - a question avoided by NZ politicians. A boost in economic activity does not necessarily mean a good investment was made to generate that economic activity. A benefit-cost or investment analysis even on the back of the envelope, shows the RWC was a terrible investment - NZ lost a lot of money on this.

Never trust a politician to invest your money - you won't get anything like a return on your investment. But the politicians will feed you all kinds of stupid horseshit about how your investments "boosted economic activity and created jobs"

And snake oil peddlers like Shonky Economics are best avoided - reading their version of impact analysis is like watching a low-budget reality TV show.

But I dwell too much on money. NZ loses money every month - and most of those losses do not have fun attached. But I had fun at the RWC. What do I care that the public debt ran up a little higher - the party was a blast.

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