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Deloitte report reveals benefits of hosting Rugby World Cup

The Rugby World Cup (RWC) has the potential to generate over £2 billion in economic impact for the host country according to a report by the Sports Business Group at Deloitte, the business advisory firm.

The report, commissioned by Rugby World Cup Limited (RWCL), assessed the potential economic impact of the Rugby World Cup.  Key findings include:

  • Deloitte estimates that the tournament can generate up to £2.1 billion in economic benefits for a Host Nation, with a relatively low investment required - capital expenditure costs on stadia are among the lowest for an event of this magnitude.
  • The Rugby World Cup is one of the world’s major international sports events and attracts a collective worldwide television audience of over four billion.
  • RWC has one of the largest paying attendances of any major sports event. Attendances have grown to exceed two million for the most recent RWC in 2007 (in France). 
  • RWC presents an opportunity for the Host Nation to increase its profile and deliver increased tourism in the long term.
  • RWC benefits from high attendances leading to significant expenditure focused on the travel, hospitality and leisure markets. Direct expenditure into the Host Nation’s economy by RWC visitors could be as high as £810 million and the impact of the RWC is spread across the whole of the Host Nation due to the spread of matches.
  • The event could generate between £260m and £1billion in Gross Value Added (GVA) terms – an accepted measure of additional economic impact - to the Host Nation economy.
  • The Government of a Host Nation stands to benefit from considerable tax revenues. In sales tax alone, the figure may reach over £100 million in certain countries.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “The announcement in August 2008 that ten nations had expressed an interest in hosting the Rugby World Cup in 2015 and 2019 demonstrates the global prestige associated with this event.

“Deloitte’s analysis confirms that the Rugby World Cup has the potential to deliver a very significant economic benefit to a Host Nation and, for a number of countries, this can be achieved without the large scale infrastructure development which can introduce increased cost and financial uncertainty to the hosting of a major sporting event.

“The figures from the Deloitte report highlight how important the high numbers of visitors, and particularly international visitors, are to the event, since spending by these individuals during their stay also directly drives sales tax revenues for the government.”

The full report is available to download from Deloitte’s website here: www.deloitte.co.uk/sportsbusinessgroup

Ends

Note to editors:

About the Sports Business Group at Deloitte
Over the last 15 years Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser.

For further information on our services you can access our website at www.deloitte.co.uk/sportsbusinessgroup

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country’s leading professional services firms.  Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press. For further information, visit our website at www.deloitte.co.uk 

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