Businesses line up for RWC windfall

Tourism New Zealand's Giant Rugby Ball in Sydney promoting the Rugby World Cup and New Zealand. Photo / Getty Images.

Some things might fall by the wayside in the reshaping of Auckland governance but the grand plan to build business on the back of next year's Rugby World Cup (RWC) is not one of them.

Economic development promoters are united in their belief that the estimated $267 million the six-week tournament is likely to earn the Super City is "defendable and robust".

Leon Grice, director of state agency NZ 2011 charged with identifying opportunities from the RWC, said overseas rugby supporters were generally better-heeled than other sports supporters.

"New Zealand is unique in that rugby is the game of the people. [Rugby's] financial base is higher socio-economic than most other sports."

Grice said that unlike the Olympics, staging a rugby tournament did not require the building of swimming pools or Games villages. "What we have done is take existing assets and leverage them. You get a lot more bang for your bucks."

Grice's confidence in the economic spinoff of the RWC is echoed by the soon-to-be-axed Auckland Regional Council development agency, AucklandPlus, which will soon be swallowed up by the new council-controlled organisation, Tourism, Events and Economic Development (Teed). The agency's manager Clyde Rogers said the $267 million estimate stood up to scrutiny.

"That number is quite robust, built on the number of pre-sales."

Rogers said the importance of the RWC was recognised in Auckland's local government restructuring.

"They have provided in Teed for a team to be focused on the RWC."

He said a priority of Auckland local government restructuring was to create and develop business opportunities around the RWC and that would be a "core focus" under the Super City.

AucklandPlus' business opportunities programme around the RWC targets multinational corporations, especially Australian-based companies, and has a long-term aim of attracting trade and investment.

It includes a VIP programme aimed at hosting international visitors and investors coming to New Zealand for the RWC, targeting sectors such as infrastructure and information and computer technology.

AucklandPlus also has an investment-ready programme providing workshops to "adequately prepare businesses and industry leaders to benefit and participate in [RWC] leverage activity".

There is an "offshore rugby ball leverage" programme, aimed mainly at Australian multinationals, to promote Auckland as a great place to do business and invest in.

Other activities include promoting a guide to business opportunities, launched in 2009, a RWC speaker series covering topics as diverse as tendering, sustainability, commercial rights and restrictions and skills needed to be developed in readiness for the RWC, and an online event-ready kit which is available at www.auckland2011.com.

Long term, AucklandPlus hopes the RWC will attract foreign direct investment to Auckland and establish long-lasting international business relationships.

It sees the RWC as an opportunity to improve skills in the hospitality sector and increase the ability of Auckland businesses to handle more work.

It is also an opportunity for local business to target skilled migrants and expatriates.

Rogers said the Super City would have the wherewithal to build on the business development programmes centred around the RWC.

"We have an opportunity to deal with some of these issues with a lot more capacity and resource than in the past. We have a stronger platform for future events.

"Hopefully we will take the lessons of the RWC and build a portfolio of major events moving forward."

Rogers said there were numerous examples where major sporting events shaped international perception of cities and that the event was an important brand-building exercise for business and tourism.

"A good visitor experience will do wonders to New Zealand's international reputation."

Already the National Boat Show has been moved to the time of the World Cup to take advantage of the large numbers of international visitors in the region and a food and beverage festival is also being held.

Rogers said Melbourne was the ideal example of a city that developed business around sporting events.

He said there was sometimes a long gestation time for trade and investment to follow sporting events. AucklandPlus' aim, which is also that of the new coucil-controlled organisation, is that Auckland is "perceived the world over as a globally competitive city and a great place to do business and invest".

* From the New Zealand Herald feature, 'Project Auckland - our city'