By Tom Degun

rugby_world_cup_14-09-11September 14 - A major new study has estimated that the 2011 Rugby World Cup currently taking place in New Zealand will generate £1.06 billion ($1.67 billion/€1.22 billion) for the global sports economy.


The report - conducted by the Centre for the International Business of Sport (CIBS) on behalf of MasterCard Worldwide - concludes that the economic impact of Rugby World Cup is profound and that it has huge potential to create a lasting legacy.

More than 95,000 overseas visitors are expected at the 2011 Rugby World Cup - 30,000 more than at the 2003 Rugby World Cup in Australia.

As a result, the report estimates that the total economic activity from overseas visitors may amount to £414 million ($653 million/€478 million).

This short-term commerce flow will come through international spending in bars, clubs, shops, hotels, city attractions, bookmakers and inside host stadia, along with sponsors and organisations spending on marketing in cities around matches.

In the long-term, the study suggests that the economic impact from increased tourism, civic sponsorship and business development as a result of the event is likely to be £68 million (£107 million/€79 million).

This reinforces findings following the FIFA World Cup 2010 when 92 per cent of visitors indicated that they would recommend South Africa to friends and relatives, and 90 per cent said they would visit again.

"Rugby World Cup is one of the world's top three major sports events and the largest in the world this year," said International Rugby Board (IRB) chief executive Mike Miller.

"As the report underlines, it will drive significant economic activity around the globe and, in particular, in New Zealand, both during the Tournament and in the longer term.

"We have no doubt the tournament will be both successful and memorable."

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In addition to the hosting and sporting benefits, Rugby World Cup plays a pivotal role in the growth and prosperity of rugby worldwide.

All commercial revenues generated by the tournament are reinvested in rugby around the world to increase competitiveness and ensure more men, women and children can access the sport.

This is done through the IRB's £45 million ($71 million/€52 million) Strategic Investment Programme for the period 2009-2012.

The total investment for the period is £150 million ($237 million/€173 million), which includes £17 million ($27 million/€20 million) in Oceania and £6 million ($9 million/€7 million) in New Zealand.

"Aside from seven weeks of spectacular rugby, New Zealand 2011 will benefit New Zealand and New Zealanders and it will benefit the global game," continued Miller.

"The commercial revenues generated from the Tournament drive the growth and development of rugby worldwide across our 117 Member Unions in order that more men, women and children can enjoy the sport and that more teams can compete to qualify for Rugby World Cup and ultimately challenge to lift the Webb Ellis Cup.

"Alongside the more established rugby nations, fans will be able to see emerging nations such as Russia, who will be playing in their first Rugby World Cup, and Romania where participation has risen 222 per cent since 2003, adding to the appeal of the Tournament and inspiring further growth."

According to the report, on a global level, economic activity is generated by fans travelling and people engaging with the Tournament from their home nation as part of the expected four billion television audience, for example by buying merchandise and consuming food and drink.

It also reflects commercial companies who engage with the Tournament including broadcasters, sponsors, suppliers, licensed merchandisers and commercial travel and hospitality.

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