A study of costs for the tournament by the New Zealand Herald suggested that the expense of staging the event would outweigh the financial benefits. Another recent study suggested that the country’s GDP would be boosted by US$545 million (0.33%) by staging the Rugby World Cup, which will run from September 9 to October 23.
According to the New Zealand Herald, the country will spend more than NZ$1.2 billion on hosting the rugby union showpiece, with the competition only expected to generate a direct economic return of around NZ$700 million.
One academic, University of Auckland economics professor Tim Hazledine, said the financial benefits could be considerably lower than anticipated if normal tourism spending for that period was deducted. “In total, you can find about NZ$150 million actual money-in-the-pocket benefits to New Zealand,” he said.
However, New Zealand’s Rugby World Cup Minister, Murray McCully, pointed out that the event was “way bigger than anything we've ever done before” and would have long-term economic benefits.
“We convince more tourists to come here, we convince more businesses to do business here with New Zealand companies and enter partnerships with them,” McCully said. “So those legacy values are arguably the greatest, and that's why we're determined to do it properly.”
