New Zealand expects loss on World Cup

New Zealand expects to make a loss on its hosting of the Rugby World Cup later this year, Deputy Prime Minister Bill English told reporters.

“We will lose money on the Rugby World Cup,” English, who is also finance minister, said during a trip to meet finance chiefs in Hong Kong and Singapore.

“These events... their direct economic impact is overestimated. You can always find a consultant who will tell you that an international event will make you much richer – that is not true,” he said.

English did not specify the extent of the losses he expected, but earlier this month Rugby World Cup chief Martin Snedden denied claims that the cost of hosting the tournament had blown out to NZ$500 million ($400 million).

English said yesterday the event would “be a big boost for confidence... and will put us on the world stage” as well as countering misconceptions that New Zealand was “shut down” after twin earthquakes that hit Christchurch this year.