Jackpot for World Cup

I remember one Citizen A where Selwyn Manning and Martyn Bradbury were almost wishing that the World Cup would be a failure so that it hurt john Key’s chances. They moaned about the stadium at Eden Park, which has been sold out most games and they moaned about the business opportunities and they moaned about how people were going to be injured in the crowds. Unfortunately that doesn’t look like any of that is going to happen:

Cup organisers yesterday said they had passed their $268.5 million target, set more than two years ago.

Rugby New Zealand 2011 chairman Brian Roche said 87 per cent of all tickets had sold, taking the total sales to $268.7 million.

“This is a tremendous achievement and one that all those who have contributed to the success of this tournament across New Zealand should be proud of,” Mr Roche said.

The revenue eclipses by more than 11 times the previous largest-grossing event in New Zealand history, the 2005 Lions rugby tour.

Sunday’s sold-out final alone has made more than $50 million, twice as much as the Lions tour.

Business is looking up too:

Central Auckland was bustling yesterday and hospitality and food businesses and other retailers reported a long-awaited boost.

Dine by Peter Gordon restaurant manager Jenny Kiihfuss said a lot of extra customers had eaten there this week.

“It just seems like there’s more of a vibe in town. Everyone is in good spirits.”

Grove Restaurant co-owner Annette Dearth said dinners were almost fully booked this week.

“It’s definitely improved. Last week was pretty good and this week is just flat out, not for lunch but for dinner. We have been full every night, and then some.

“I think the people who are here want to spend money now. You have more of the high-rollers.”

Michael Hill’s Queen St branch manager Carrie James said business was good and the store’s tax-free sales – especially of diamonds – were up.

Kiwi Town Souvenirs owner Benny Li said business at his Queen St store was up about 20 per cent.

  • http://keepingstock.blogspot.com/ Inventory2

    And the GST on ticket sales alone will more than cover the $39m loss, so everything is fiscally neutral just on ticket sales. Then there’s the GST on travel, accomodation, hospitality etc; a bonanza

    • Anonymous

      If there were 100,000 international visitors they would have to spend $390 of GSTeach in NZ to recoup that loss. However, the NZRU will cover a third of that cost.

      On the other hand there appears to be a budget blowout so the government and ratepayers will need to cough up a little more.

      • http://keepingstock.blogspot.com/ Inventory2

        Not so Grizz; the ticket sales themselves include a GST component, and that is not included in the forecast $39m deficit. 15% of almost $270m in ticket sales is around $40m

        • Anonymous

          I thought they were reporting Sales with GST excluded, do you have clarification of this? They have always reported a budgeted running cost of $307.5 million ($39 million deficit) which would seem consistent with a GST exclusive sales figure.

          Nevertheless I was referring to International visitors spending is addition to ticket sales. Most tickets were bought by NZers. What GST they spend on tickets, they do not spend on other things so it really does not change government revenue as far as I am concerned.

  • Anonymous

    Prior to the world cup there were a lot of wreckers and haters who stated that the tournament was bound to fail, both financially and on the rugby field. There were games in the provinces where you would have tought not even a goat and 2 sheep would be interested in going. However the People of NZ packed out grounds, turned matches into a party atmosphere and got in behind the most unfancied of teams. People putting buckets on their heads may have seemed weird but they added to the success of the tournament. Who would have thought more than 50,000 people would have gone to a bronze final, but based on ticket sales, we can expect more than that.

    The fact that they have met sales targets reflect both great organisation and attention to detail (barring opening night) and the attitude of the people of NZ who turned out in their droves.

    I would hate to turn this tournament into a political football, but it appears John Key has dodged a bullet here, much to the disgust of those nasty Left wing Haters.

  • Bodger

    The ABs need to win before we can categorically say that JK has dodged a bullet.  If the ABs lose, all bets are off.

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