World Cup 'absolutely worth' price tag

The price tag is in the millions, but with the golden gleam still shining on the Webb Ellis Cup the Government says the Rugby World Cup was worth it.

Tournament organisers and Rugby World Cup Minister Murray McCully are hailing the tournament as a triumph that exceeded all expectations set in 2005, when New Zealand beat favourites Japan and South Africa to win the hosting rights.

The six-week, 48-game tournament cost taxpayers and the New Zealand Rugby Union $39 million, a loss that was anticipated and has not been downgraded despite organisers surpassing the ticket sales target.

However, this does not include a direct Government spend of an extra $26m to run the festival and business programmes, host high-level diplomatic guests and extend the Auckland fan facilities.

Including the $350m spent to upgrade stadiums and provide IRB-approved facilities around the country and millions more pumped into infrastructure and preparations, the bill for the tournament has easily surpassed the $400m mark.

Despite this blow to the coffers, Mr McCully said yesterday the tournament had been a success, meeting all promises made in the 2005 pitch."I think we actually over-achieved in that sense.

"We made a commitment to the IRB for a stadium of four million people but the Government actually asked for more than that. We asked for a nation of four million outstanding hosts and I believe the New Zealand public delivered that."

The tournament had been "absolutely" worth it financially, with a kickback for the economy that would be felt for years to come, Mr McCully said. "I'm very satisfied that we showed very good commercial judgment."

The most recent study into the long-term benefits, carried out by Coventry University's centre for the international business of sport and commissioned by MasterCard, puts the direct benefits at $780m in spending by overseas visitors, with a long-term impact of $1.44 billion. "The real value comes through building our brand as a trading nation, with a huge number of business organisations that are contributing to our future wealth. The benefit from this tournament is something that will reach over the next decade," Mr McCully said.

Tournament boss Martin Snedden was satisfied every element had been delivered as promised.

"It's been a fantastic success from just about every angle. The passion and the vibrancy in the stadia everywhere was just something magical."

The operating costs of the tournament were $300m, including about $150m in tournament fees paid to the IRB. This was mostly covered by ticket revenue of about $269m, leaving the expected deficit.

International visitor numbers looked on target to meet the expected 95,000. The final financial reports – along with a Government analysis into the success and legacy of the tournament – would be completed in the next few months, and Mr Snedden was not expecting any surprises.

"From a strategic point of view, we have absolutely nailed it."

Economists have generally played down the long-term impact of hosting the Rugby World Cup, although Cameron Bagrie, chief economist at ANZ, said New Zealand consumers had been distracted from a deteriorating world economy, with Europe on the brink of a new financial crisis.

"For the past month the global scene has been nothing short of awful. If we hadn't had the Rugby World Cup, I'm not sure New Zealand would have shown the same sort of resilience that it has. It's a one-off ... but it's helped deflect attention away from some pretty significant developments."

- © Fairfax NZ News