3 Sep 2011

Benfits of rugby tournament questioned

10:46 am on 3 September 2011

Some economists say the high New Zealand dollar and difficult global economy may mean the Rugby World Cup does not provide the financial boost that was previously predicted.

With the tournament starting next Friday, it's predicted international visitors will spend $700 million.

The Reserve Bank has said the event will be a boost to the economy, but it may not be as much as hoped.

RBNZ senior economics adviser Michael Reddell says those hoping for post-Cup spinoffs may be disappointed, as tourists may be put off by the high exchange rates and their own high levels of debt.

The New Zealand Institute of Economic Research says predictions for large sports tournaments are usually overly optimistic.

More on this can be heard on Insight on Sunday.