Mixed results for tourism from RWC 2011

Media Release

5 January 2012

Mixed results for tourism from RWC 2011

Tourism operators are reporting mixed feelings about the impact of Rugby World Cup 2011 on their businesses.

For some tourism businesses, the tournament “turned what was looking like a flat year into a growth year”. But for others, “the people who would usually come and stay during this period stayed away”.

A survey* carried out by the Tourism Industry Association New Zealand (TIA) among its members shows that almost half (46.3%) the respondents felt the RWC 2011 period was better or much better than the same period in 2010.

Almost one-fifth (18.2%) saw no change while around one-third (33.9%) considered the tournament period to be either worse or much worse.

“This reflects earlier anecdotal feedback from TIA members. They told us that while operators in the main game centres did well, other regions did not reap as many benefits as they may have expected from fans travelling around the country between games,” TIA Policy & Research Manager Simon Wallace says. “There was also a definite shift with the business end of the tournament moving to the North Island in early October.”

The survey also found that business related to RWC 2011 was not spread evenly among sectors. The motel sector generally had a rough ride during the tournament as normal domestic and corporate travel patterns were disrupted. One business noted “we got a few more camper vans for this time of year but our motel and backpacker trade dropped considerably.”

Parts of the activities and attractions sector also reported a tough period due mainly to displacement of their usual visitor markets. A ski operator noted “the change of school holidays totally ruined our normal ski season with overall total revenue down about 50%.”

Mr Wallace says the survey results will contribute to efforts to build on returns to the tourism industry of future major events.

“The 2015 FIFA U-20 World Cup will provide a major opportunity to showcase New Zealand to a wide range of visitor markets. We also have the 2015 ICC Cricket World Cup being jointly hosted by New Zealand and Australia.”

TIA continues to be confident that hosting RWC 2011 will provide long-term benefits for the tourism industry in excess of the immediate returns during the tournament.

“The tournament itself was a fantastic success and we have numerous reports of visitors going home to rave about the great experiences they had in New Zealand. Word-of-mouth recommendations are the best marketing tool we can ask for, so we are looking forward to hosting many family and friends of RWC 2011 fans for years to come,” Mr Wallace says.

*The survey was conducted with TIA members in November 2011. About 121 members responded to the survey.

Key Facts

• Tourism is one of New Zealand’s biggest export industries, earning $9.7 billion or 16.8% of New Zealand’s foreign exchange earnings (year ended March 2011)
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• Tourism contributes almost 9% of gross domestic product (GDP) for New Zealand

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• Tourism directly and indirectly employs nearly one in ten New Zealanders (179,800 total) full-time equivalent jobs

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• Tourism in New Zealand is a $63 million per day industry. Tourism delivers $27 million in foreign exchange to the New Zealand economy each day of the year. Domestic tourism contributes another $36 million in economic activity every day.

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• Total tourism expenditure reached $23 billion for the year ended March 2011.

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Visit www.tianz.org.nz for more information.

What TIA members said

(Verbatim responses to the TIA survey)

“Our turnover for the month of September was 260% on the same month in 2010.”

“Turned what was looking like a flat year into a growth year and we will have an increase for the year of 2011 on 2010.”

“We got a few more campervans for this time of year but our motel and backpacker trade dropped considerably. Allowing freedom camping by our local district council did not help.”

“We either had a feast or a famine with visitors. Busy around the games and nothing in between.”

“Isolated spikes of high turnover.”

“Positive in Auckland and the North Island – not so in the South Island which was flat.”

“Domestic customers stayed away.”

“Located too far away from games venues for significant extra business.”

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