Bill English predicts financial loss for New Zealand – Rugby World Cup update
A huge loss of financial investment is expected at this year’s Rugby World Cup and the victim would be New Zealand itself. The hosts are estimating the return of input to barely break even for them. These speculations were made public by Bill English, the
deputy Prime Minister of New Zealand. He gave the statements on his recent visit to Hong Kong.
Bill English is also the minister for Finance and is the one coordinating with all the money channels. During his meeting with a financial committee in Hong Kong he said, “We will lose money on the Rugby World Cup. These events... in my view their direct
economic impact is overestimated. You can always find a consultant who will tell you that an international event or a new stadium will make you much richer, that is not true.”
This statement came in a situation where everyone was expecting this World Cup to be the best ever so far. There might be a huge downfall in anticipation after this sudden revelation of financial loss. The arrangements and comfort of guests is the highest
priority, but that is also compromised in cases when breaking even is not possible.
Bill English has not given any estimate to what is the magnitude of loss that is expected but there were some reports earlier this month regarding the costs of hosting. According to that figure New Zealand government would be investing a total of 500 million
NZ$, which makes around 400 million US$. This was revealed this month, but was eventually denied by Martin Snedden, the Chief Executive for Rugby World Cup 2011.
According to a New Zealand Herald’s report these facts were pretty much true, but Snedden referred to them as "misleading and disingenuous". The facts also included that the total cost would be 1.2 billion NZ$, but the revenue generated would be around only
700 million NZ$.
It was earlier predicted by the governor of the Reserve Bank of New Zealand that the country’s economy will be boosted and 0.33% of growth would be experienced through this 700 million NZ$. All this would have happened in between 9th September
to 23rd October.
English had a different point of view and in his recent press conference said that all the misconceptions regarding New Zealand not being able to host a World Cup after the Christchurch earthquake will be negated. He termed the situation as a big boost for
the nation and an opportunity to be on the world stage.
English said, “The biggest economic impact will be the fact that major international sponsors are bringing so many of their clients to New Zealand who would otherwise never come.” He concluded, “That gives us an excellent opportunity to showcase New Zealand.”
The Kiwi money counters will have to wait to see what type of windfall the event brings to the Rugby crazy nation.
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