World Cup GDP boost put at risk

Published Apr 30, 2016

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Cape Town - If the numbers are anything to go by - and the Rugby World Cup last year added a whopping £982 million to England’s GDP and created more than 41 000 jobs - South Africa may be missing out, big time.

South Africa could lose out on R31billion if the bid by the South African Rugby Union (Saru) for the 2023 Rugby World Cup is halted.

A study undertaken by Ernst & Young on behalf of the organising committee for last year’s World Cup, looked at the ways this tournament could benefit the host nation.

It estimated the tournament would generate a total output of around £2.2bn, which is in line with a previous economic study undertaken by Deloitte in 2008.

The Ernst & Young report predicted this would translate into a contribution of £982m to national GDP.

The report said last year’s tournament was expected to attract more international visitors than any previous rugby World Cup, with an estimate of up to 466 000. Through spending on items including travel and accommodation, visitors were expected to contribute up to £869m in direct expenditure.

In 2011, when New Zealand hosted the Rugby World Cup, 133 000 visitors stayed an average of 23 nights during the 44-day event, with an overall economic impact of NZ$1.73bn for that country.

Last year Saru announced its intention to bid for the 2023 tournament, and the deadline for confirmation from interested countries is in a month.

At the time, the 1995 Springbok Rugby World Cup squad gathered to celebrate their momentous victory 20 years previously and “it reminded us what a profound effect the tournament had on this country and the enthusiasm with which this country opened its arms to rugby”, Saru’s Jurie Roux said at the time.

“That hunger has been sharpened over the years with a whole generation having grown up envying the experience of their parents. The South African Rugby Union would very much like to give them the opportunity to share our passion for rugby with the rest of the world, 28 years on from that famous day.”

Last year World Rugby predicted the 2023 tournament would boost the hosting nation’s economy by as much as $2.6bn, while the tournament costs were modest.

From 2003 to last year the tournament had cost the host nation between $45m and $155m, compared to the expense of hosting which, in 2014, stood at $3.1bn.

World Rugby chairman Bernard Lapasset said: “We are delighted with the strong level of Rugby World Cup 2023 hosting interest from unions and governments, which highlights the enormous appeal of Rugby World Cup as a low-risk, high-return economic, social and sporting driver.”

Weekend Argus

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