When a new stadium and RWC 2011 at Dunedin were first floated as ideas we easily saw them as losers.
### ODT Online Tue, 30 Oct 2012
Big events don’t make host countries richer: NZIER
By Jamie Gray
Big events like the Rugby World Cup do not make the host countries richer, independent economic research group NZIER said. NZIER said major international events tended to “suck in” visitors from before and after the time they are held, creating a displacement effect. It said most event analysis doesn’t stack up because it missed the displacement effects. “It means the benefits are often far smaller than people think,” NZIER said in a report. The displacement effect meant the net number of visitors an event generates is much lower than the visitors to the event, and NZIER said the Rugby World Cup 2011 was a good example of this. “We estimate there was little overall boost to visitor arrivals because there were fewer visitors before and after the 133,000 international visitors that came to New Zealand for the tournament,” it said. “Crucially, domestic tourism is displaced expenditure that would occur elsewhere in the economy. This significantly reduces the overall benefit from the events. Simply put, major domestic events do not make New Zealanders any wealthier.”
NZIER – established in 1958 as the New Zealand Institute of Economic Research Inc – is a non-profit incorporated society based in Wellington. Its team of economists is one of the largest in New Zealand outside government.
Posted by Elizabeth Kerr