The Economic Benefits of the Rugby World Cup
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The Rugby World Cup kicked off this morning with an impressive victory for the hosts but what are the economic benefits of hosting such an event?
An article on the BBC website highlights the following positive spin off’s New Zealand:
100,000 overseas fans expected- significant consumption injection into circular flow.
Show case for NZ tourism industry
Aviation cluster (example of external economies of scale) in Hamilton planning a three day event to sell NZ’s capability in aviation design, manufacturing and pilot training.
The construction in Auckland of The Cloud (NZ$9m- multiplier effect) will showcase business innovation and creativity.
NZ Reserve Bank estimates total visitor spending will surpass NZ$700m
Accelerated upgrade of infrastructure
But…
There remains a risk that any potential losses will have to be picked up by the NZ government who is already managing a fragile economy.
This is a really good topical article to recap macroeconomics with your groups at the start of the year.
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