A 'feel-good factor' resulting from New Zealand's Rugby World Cup win could have a positive impact on the economy. Photo / Brett Phibbs
A multi-million-dollar economic windfall is on the cards for New Zealand as a result of the All Blacks' World Cup triumph over France, research suggests.
The study, commissioned by MasterCard and undertaken by the Centre for the International Business of Sport at Britain's Coventry University, used an analysis of other
major sporting events to estimate that the country that won the tournament would reap a benefit of between $43.7 million and $62.5 million.
That would come on top of the $700 million the Reserve Bank estimated would be injected into the economy from foreign fans who arrived in this country for the event.
MasterCard's New Zealand manager, Albert Naffah, said the All Blacks would receive a number of benefits as a result of winning the tournament, such as bonus payments and improved returns from future sponsorships.
The research said there were a number of intangible impacts that would arise from the win, such as a "feel-good factor" that could prompt further positive economic impact.
New Zealand Retailers Association chief executive John Albertson said this week that the uplifting of the nation's mood as a result of the World Cup win would drive a resurgence in consumer spending.
"The fact that we won helps - it puts us in a positive frame of mind," Mr Albertson said. "Without it, we could be quite depressed at the moment in the lead-up to Christmas."
The research said there was evidence that suggested sporting success could have a positive impact on the winning nation by prompting positive stock exchange movements.
The NZX-50 index of this country's 50 biggest publicly listed firms rose only 0.1 per cent between Tuesday morning - when it opened following Monday's public holiday - and 3pm yesterday.
France's CAC 40 index, on the other hand, dropped 1.6 per cent between Monday and its close on Wednesday.
Shamubeel Eaqub, principal economist for the New Zealand Institute of Economic Research, said it was difficult to gauge the economic benefit of major events until well after they had finished.
"My view, still, is the economic impact of an event is pretty small," Mr Eaqub said.
"It doesn't matter whether you win or lose. The fact of the matter is that when you are hosting an event you spend a lot of money to prepare and a lot of that money could perhaps be better spent elsewhere."
