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Sunday, January 5, 2020 10:54:32 AM

TV directors love moments when a cut to one of the coaching boxes tells us the story of the game. Mid-way through the first half in Yokohama, Gregor Townsend provided the required image. Like his team, he was powerless, on the outside looking in. And then the rain came. Please log in or register with Independent.

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In this article, we examine how hosting the tournament affected the New Zealand economy. As the tournament spanned the September and December quarters, we have analysed data collected in both quarters.

We looked at: how many visitors came to watch the tournament how much they spent while here how New Zealand and the rest of the world watched the tournament how the tournament affected GDP.

Visitor numbers, accommodation bookings, overall spending, and GDP all rose in the September and December quarters. The RWC may have contributed to these increases.

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However, it is difficult to separately identify the impact of the tournament. All BoP figures quoted are in current prices. As the graph below shows, arrivals increased significantly between June and October Everyone arriving in New Zealand fills out an arrival card, which asks about the purpose for their visit holiday, business, visiting family.

All of these visitors needed somewhere to stay. Guest nights also rose 7. Overall visitor numbers were higher than usual in September and October Most visitors came from Australia, the United Kingdom, and France.

However, visitors from Australia also included 3, United Kingdom citizens, 2, Irish citizens, South African citizens, and French citizens living in Australia.

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The graph below shows visitor arrivals, by country. Visitor arrivals boost transportation exports When non-residents fly to New Zealand on New Zealand resident airlines, their airfares are captured as an export of transportation services in the balance of payments.

Most RWC visitors arrived in the September quarter. This includes the amount international visitors spend on internal travel, food and beverages, and accommodation. In our statistics, spending on travel is attributed to the quarter when visitors leave New Zealand rather than when they arrive.

Seasonally adjusted exports of travel services increased in both the September and December quarters. This could be due to a number of reasons, including the following. Displacement effect — some visitors who came here for the world cup would have come here anyway. Natural disasters in New Zealand and key visitor markets affecting the travel decisions of non-RWC visitors.

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Visitors stayed for an average of 16 days rather than When we examine the migration statistics alongside spending, it seems that overseas visitors were not only spending more money than usual in October, they were also spending this money in a shorter time frame.

However, this remains at a high level compared with previous December quarters. This reflects the way we proportioned these transactions over the September and December quarters. Based on games played in each quarter, 69 percent of these payments were attributed to the September quarter, and 31 percent to the December quarter.

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The increase primarily came from: retail spending accommodation and restaurants activity Gross domestic product measures the volume of goods and services produced in an economy. We calculate what each separate producer adds to the value of a final product or service.

Gross domestic product statistics measure both expenditure and production.

The production measure of GDP measures the volume of goods and services produced in the economy, while the expenditure measure shows how those goods and services were used.

Retail, accommodation, and restaurants Activity in the retail, accommodation, and restaurants industry increased 2. In the December quarter, retail, accommodation, and restaurant activity was at its highest quarterly level since the series began in June Combined retail trade activity for the September and December quarters was 5.

Retail trade includes goods sold by supermarkets, grocery stores, and other goods retailers. Accommodation and restaurants activity also increased over the September up 4. These increases reflect increased numbers of domestic and international RWC spectators and participants who needed places to sleep and eat during the tournament.

The amount of goods and services used in the economy expenditure on GDP increased 1. Household consumption spending contributed to both of these increases. We cannot determine how much RWC-related expenditure contributed to these increases, as it is difficult to isolate the impacts of the RWC from other reasons for expenditure.

Household consumption measures total spending by New Zealand resident households. It includes what New Zealand households spend overseas, but does not include what overseas tourists spend in New Zealand.

Household consumption spending increased 1. The increase in the September quarter was the largest increase since a 2. Household consumption expenditure is now at its highest levels since the series began in the June quarter. Three components make up total household consumption spending.

Durables —goods that are not consumed in one use. This includes spending on merchandise, souvenirs, and other RWC-related products.

Non-durables — goods that are consumed either immediately in one use or within three years, such as food, alcohol, and petrol. Services — products other than tangible goods. Household spending on non-durable goods increased 3.

In both quarters, spending on food and beverages drove the increases.

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This is consistent with the increase in the amount of goods and services produced in the retail trade sector, which was fuelled by a rise in spending on food and beverages. Durable goods purchased by New Zealand households increased 1. The increase in the December quarter results from increased spending on furniture and major appliances, such as televisions.

This increase is consistent with the increase in the number of goods and services sold in the retail trade industry. The volume of household spending on services increased 0.

A rise in spending on food and alcohol in restaurants drove the increase in the September quarter. Increased spending on air travel contributed to the increase in the December quarter.

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Stadium building included in gross fixed capital formation In preparation for hosting the RWC, New Zealand companies upgraded or built stadiums, other non-residential buildings, and infrastructure. This work happened before the tournament began; any boost to the economy was shown in GDP statistics before the September and December quarters.

Investment in non-residential building is measured partially using Value of Building Work Put in Place data. Building Work Put in Place data estimates the actual dollar value of building work done on residential and non-residential buildings.

Work is included in gross fixed capital formation as the building takes place; construction of one particular building is spread over several quarters.

This makes it difficult to separate stadium building from other building projects that were unrelated to the Rugby World Cup. This paper explored where the RWC would be seen in our statistics for the upcoming September and December quarters.

New Zealand resident households also contributed to this increase in spending on goods and services.

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