Monday, 12 March 2012

Nelson's RWC boost

This, today, from the Nelson Mail:

A final report on Nelson's hosting of the Rugby World Cup scores it a success, with an economic benefit of $9.2 million in new spending.
The Nelson City Council also released this press release, labelling the RWC as an investment that has "paid off big".

I've requested a copy of the report from the Nelson City Council (NCC), but let's take a look at the article for any interesting facts. The NCC contributed $1.76m towards the event, which resulted in "an economic benefit of $9.2m in new spending". Hang on. Any economist worth their salt will know that new spending doesn't equate to economic benefit. The increase in GDP is $7m, which is the figure worth reporting. In any case, it is not clear from the article whether the council's contribution is included in the benefit estimate - I have my fingers crossed that it isn't. It shouldn't be, as it is money that would already have been spent in the Nelson economy in the absence of the RWC.

Further, from the Mail:

The Economic Impact Assessment included in the final report says that total match attendance for the three matches combined was nearly 45,000, with 16 per cent of those spectators coming from overseas. Visitors spent $5.1m in the region, mostly on accommodation and food and beverage.
Taken on the surface, the $7m increase in GDP is similar to what the Taranaki region received from the tournament ($6.74m).

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