RWC 2011 gives Auckland $512 million boost

Media release
25 May 2012

RWC 2011 gives Auckland $512 million boost

Rugby World Cup 2011 (RWC 2011) resulted in more than half a billion dollars in net additional expenditure in Auckland.

The economic impacts of the Tournament are outlined in a report which goes to Auckland Council’s Governing Body on May 31.

Analysis completed for Auckland Tourism, Events and Economic Development (ATEED) by Market Economics reveals that RWC 2011 resulted in an estimated $512 million net additional expenditure for Auckland between 2006 and 2012. When flow on expenditure is added, Auckland’s economy grew by $728 million over that period.

Auckland Mayor Len Brown says this is an outstanding result for the city.

“Major events should be key drivers of economic growth and RWC 2011 certainly delivered for Auckland,” Len Brown says.

“This is a tremendous return on the city’s investment and completes the picture of what RWC 2011 means for Auckland. The benefits are there for all to see, from these economic impacts to the renewed sense of pride in the city worldwide broadcast exposure, improved transport infrastructure, upgraded sporting facilities and new developments on the waterfront.”

“These are results we should all be proud of.”

ATEED Destination General Manager Rachael Dacy says in employment terms RWC 2011 generated the equivalent of almost 14,000 year long jobs in Auckland.

“This is a hugely significant outcome in a difficult economic climate. It further underlines the potential contribution of major events to host cities,” Ms Dacy says.

Ms Dacy says a common perception around major events is that the economic impacts mostly accrue to the accommodation and hospitality industry but RWC 2011 post event analysis reveals that they can be much more widespread.

The Top 10 Sectors that experienced the greatest shares of economic growth over the period 2006 to 2012 due to RWC 2011 were:

1. Property and business services $202 million
2. Construction $109 million
3. Manufacturing $87 million
4. Accommodation, Cafés, Restaurants $71 million
5. Transport and storage $69 million
6. Retail trade $69 million
7. Wholesale trade $66 million
8. Finance and insurance $57 million
9. Cultural and recreational services $53 million
10. Communications services $28 million

“These results should dispel the myth that only businesses that benefited from RWC 2011 were bars, restaurants and hotels in the CBD,” Ms Dacy says.

The report to Auckland Council’s Governing Body meeting also reveals that the Council’s RWC 2011 programme was delivered under budget.

Following revisions to the original $97 million budget, the total budget envelope across the Auckland Council group was $89.69 million over three years from 2009 to 2011. The actual expenditure for the same period was $88.49 million.

Ends

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