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.