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Home / Business / Small Business

Rugby World Cup yet to do the business for firms

Isaac Davison
By Isaac Davison
Senior Reporter·NZ Herald·
15 Sep, 2011 05:30 PM4 mins to read

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Taxi companies say business is even worse than usual. Photo / Thinkstock

Taxi companies say business is even worse than usual. Photo / Thinkstock

Beer and coffee are flowing in downtown Auckland as the Rugby World Cup boosts the hospitality sector, but other industries say they're still waiting to reap benefits.

Many business sectors hoped the tourism growth over September and October would provide long-awaited relief to years of difficult economic conditions.

But a week into the tournament, the retail sector is yet to register even a flicker of an upturn in sales. Other industries, such as taxi companies, say business is even worse than usual.

Cab drivers said they did not expect the tournament to provide a silver bullet, but they also did not expect their business to drop off so dramatically.

Alert Taxis driver Lindsay Gilmore said: "I haven't taken a single tourist. You wouldn't even know there's a World Cup here."

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He said that his most regular clients, business people, had cancelled their appointments in Auckland because accommodation was full of rugby fans.

Another driver, Shim Jae Myung, said the plethora of free shuttles and other transport put on for the tournament had made his taxi redundant.

One taxi driver was concerned that the dent to his income could be irreparable.

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Tourism officials estimated that only 10,000 more visitors than usual would be in the country at this stage.

A greater influx of around 80,000 visitors was expected next month for the final rounds of the World Cup.

The retail sector, which has never fully recovered from recessionary conditions, said the tournament had not yet made its mark.

Newmarket Business Association head Ashley Church said there was plenty of excitement in his area, but that had not translated into significant sales.

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"What's happened so far doesn't hugely surprise us. The restaurants are humming a little more than you would expect at this time of this year, but the anticipation of a large influx of money has yet to come."

He pointed out that the number of tourists was no greater than a typical February in New Zealand.

Bars and hotels have welcomed the spike in customers, though Hospitality Association chief Bruce Robertson said spending had so far been mostly limited to match days and match venues. He said the bars that had embraced the tournament, decking their interior with flags, had seen a great response.

Brew Bar duty manager William Baker said his downtown Auckland venue made nearly three times its usual profit on Friday, and had sold slightly more beer on non-match days.

Auckland coffee bean suppliers confirmed that demand had spiked in the past two weeks, especially in CBD locations.

SUBURBS GET BEHIND TEAMS

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Business centres are yet to feel the benefits of adopting a second side, but are outdoing each other to try to bring in the rugby fans.

Suburbs from Wellsford to Pukekohe have been assigned Rugby World Cup teams by the Auckland Council, after putting a case why they should adopt their preferred team.

Ponsonby Business Association, which has adopted England, said it hoped the team stayed in the tournament long enough for the suburb's support to pay off.

General manager Vivienne Rosenberg said the association had hired a vintage red London bus, which would ferry fans and shoppers between the suburb and the city.

Takapuna schoolboys gave the suburb's adopted team, France, a mass haka on their arrival last week.

Waiuku locals are throwing their support behind Russia. The town will host a "Russia Day" celebration on October 1, when Russia play Australia.

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Pukekohe has adopted one of the more obscure choices, Namibia.

Business association general manager Kendyl Gibson said there was a Namibian family living in Pukekohe "and they came out with us to welcome the team".

For details of what team your suburb has adopted, see www.auckland2011.com

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