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Home / Business / Economy

Lions Tour games boost economy significantly

Holly Ryan
By Holly Ryan
Business Reporter·NZ Herald·
4 Jul, 2017 12:47 AM3 mins to read

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The second test between the All Blacks and British and Irish Lions last week. Photo/Mark Mitchell

The second test between the All Blacks and British and Irish Lions last week. Photo/Mark Mitchell

It may have been a bad night for the All Blacks, but last week's rugby game as part of the Lions Tour led to a significant boost in spending across the country.

The latest data from electronic payments company Paymark showed hospitality and entertainment spending in particular had benefited in June.

Spending through merchants selling food and alcohol rose 2 per cent compared to the previous three month average.

More than $647 million was spent in the sector for June - up 11.6 per cent on the previous year.

"A large proportion of the additional hospitality spending occurred in the region of a Lions game, around the time of the game," Paymark said.

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"Subsequent to June, there has also been an extra $2.6m through Wellington food and liquor services sector on the first two days of July, relative to May, also very likely associated with a Lions game," it said.

Spending in bars, pubs, clubs and cafes around games three to eight of the Lions tour, increased by $5.1m on average or 10 per cent over the three days around each game compared with the previous month.

Taxis, casinos and the rest of the entertainment sector also reported growth likely associated with the tour Paymark said.

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In total, $904m was spent on food, alcohol and entertainment for the month of June - up 11.3 per cent on the same period in 2016.

The largest extra spending was in the Auckland and Northland area, which was up $9m.

In percentage terms, the Bay of Plenty experienced the biggest growth, up 16.6 per cent on June last year.

Accommodation merchants also did well for the month with national spending in the sector amounting to $103.8m in June, up 15.4 per cent on June 2016 and continuing a period of strong growth in the industry.

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"It is likely that the tour and the extra foreign tourist spending was a key factor behind the higher monthly spend amongst [food, alcohol and entertainment] spend," Paymark said.

"There will be other payments also associated with the Lions tour that are not recorded in Paymark figures, including payments through other channels on the day of expenditure, such as cash, and payments made in previous months, including for match tickets and accommodation," it said.

In comparison, other sectors showed modest to low growth rates in June with clothing and footwear decreasing by 1.1 per cent.

Lower petrol prices were a major influence on spending amongst fuel retailers being 4 per cent lower than in June 2016, according to Paymark.

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