Potential Economic Impact of the Rugby World Cup on a Host Nation

As the world’s third largest major sporting event, the Rugby World Cup offers the possibility of major economic benefit for the host nation. However, is there always a positive impact? As we have recently seen with the 2014 FIFA World Cup in Brazil, and numerous other major sporting events, hosting an event of this caliber can do more economic damage than improvement. Is this the case for the Rugby World Cup as well? According to The Sports Business Group at Deloitte, the Rugby World Cup may offer a better chance for economic benefits. In their analysis, the Sports Business Group concluded that the Rugby World Cup only requires limited stadium development, a major factor in maintaing low costs, and reducing financial risk. The RWC's unique advantage in limited investment in infrastructure, is the main reason the event is expected to provide a positive economic impact. 

Besides the events cost advantage, other reasons for a

positive economic impact include;

• The RWC tends to attract more supporters in the higher socio-economic groupings, who have a greater propensity to spend
• The event is held over a 44 day period, making it one of the longest durations for a major sporting event 
• The RWC has one of the largest paying attendance's of any sporting event
• The RWC offers the largest number of international visitors, other than the FIFA World Cup and Olympics 

While it remains to be seen if the 2015 Rugby World Cup will provide a positive economic impact, based off this information the UK should have high expectations. 

Do you agree with the Sports Business Groups findings? Is there sufficient information to make this assumption? What are other possible factors to be considered in determining the economic impact on a host nation?

Sources

https://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/UK_SBG_IRB2008.pdf