Rugby World Cup not an economic bonanza for all, says MANZ

10 October 2011

Rugby World Cup not an economic bonanza for all, says MANZ

The Rugby World Cup is proving to be an economic cost rather than a benefit for some New Zealand businesses, the Motel Association of New Zealand (MANZ) says.

While the event is proving a great success in drawing overseas visitors to New Zealand it has stifled domestic tourism, the lifeblood of the motel sector, says MANZ Chief Executive Michael Baines.

A survey of MANZ members showed 48 per cent were experiencing lower bookings than usual during the World Cup period, with only 28 per cent reporting an increase in business. Almost 60 per cent of motels reported a lower number of domestic visitors during the World Cup, compared with 14 per cent who said domestic visitor numbers had risen.

“The survey shows many Kiwis are choosing to stay at home during the World Cup, with reports of floods of overseas tourists and overpriced accommodation proving a deterrent to domestic travel,” Mr Baines says. Domestic visitors account for about 70 percent of total guest nights in New Zealand motels.

The exceptions are motels in Auckland and Wellington, which have the majority of the pool matches, including all the knockout games.

The World Cup itself has been stunning success so far, and as a showcase for New Zealand should be used to spur Kiwis to take their holidays locally, Mr Baines says.

“The World Cup has shown just what New Zealand has to offer, and we would like to see Kiwis get out and enjoy their own country more,” Mr Baines says.

ENDS

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