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Home / Bay of Plenty Times / Business

Rugby revellers spend up large

By by Michele McPherson
Bay of Plenty Times·
27 Oct, 2011 12:12 AM4 mins to read

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Tauranga's restaurants, bars and cafes reaped the benefits of Rugby World Cup fever over Labour Weekend while nervous anticipation saw retail spending slow as the big game loomed.

Paymark figures showed a four per cent increase in hospitality spending in the Bay of Plenty while in Auckland, which hosted the final, bar and restaurant owners' tills were ringing to the tune of $24 million - 50 per cent more than last year.

Among those to benefit from an extra $133,000 spent in the Bay of Plenty this Labour Weekend compared with last were Bravo owners Jack and Nancy Hogg.

School holidays coupled with great weather and a positive feeling leading up to the World Cup final saw the inner-city restaurant experience one of its best weeks in a long time, Mr Hogg said.

"Overall we were quite pleased with the way it went so we're holding our breath to see what happens next.

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"Since we've won the World Cup, there seems to be a bit of buoyancy around, so we'll enjoy it."

Mr Hogg said bookings were already coming in for Christmas parties.

"Obviously people are feeling better I think," he said.

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Mount Mainstreet manager Leanne Brown said she had spoken to a handful of retailers who reported a quieter Labour Weekend than last year.

While the same number of spectators turned out for the annual Labour Weekend Busking Festival she felt more were local this year, rather than holidaymakers.

Mrs Brown said while the Rena oil spill may have had a minor effect on the number of visitors to the Bay it had more to do with the Rugby World Cup.

"The fact that people had plans and places to go," she said.

Manager of Savvie bar at Mount Maunganui Frankie McGuire said Friday night was quieter around town than at Labour Weekend last year but Saturday was busier at both bars and restaurants.

"I would say it certainly felt a bit busier on Saturday night. We still got a good rush after 10," he said.

The World Cup final made a big impact in the town on Sunday, coupled with the fine weather.

"We certainly noticed it. Never say no to a bit of extra income," he said.

Mainstreet Tauranga manager Kirby Weiss said the Tauranga Arts Festival had brought more people into the central city on Saturday.

"Sometimes that rolls in to retail sales."

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However, he said it wasn't the busiest Labour Weekend the city had seen and events like the Rugby World Cup and Tauranga Arts Festival brought benefits to different sectors.

Pre-final nerves saw bars and restaurants busier than retail shops, while some fashion stores may have benefited from the arts festival clientele and bookstores were busy with families in town to soak up the holiday atmosphere.

Nationally an extra $26.6 million was pushed through Paymark's network between Friday and Monday, compared with the same four days in 2010.

Hospitality providers again reaped the greatest rewards of rugby revellers' sorrows and celebrations, enjoying a lift of 24.1 per cent, or $9.6 million.

As with other major games, there was a spending surge after the Cup was raised, with a $1 million injection between midnight Sunday and 6am Monday.

Nationwide merriment spilled over to Labour Day, with hospitality spending growth via all cards skyrocketing to an average of 65.4 per cent across the country.

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Regions to experience marked growth in hospitality on Labour Day included Auckland (+122.34 per cent), Wellington (+51.9 per cent), Waikato (+46.5 per cent), Southland (+42.6 per cent) and Nelson (+36.7 per cent).

Foreign card spending through the Paymark network for the Cup to date now totals $260 million, up $70 million, or 36.5 per cent on the same period last year (September 9 to October 29).

Spending in the combined car rental, accommodation and hospitality sectors for all cards is at $603 million, up $55 million or 10 per cent for the same four-day period. By sector, this can be further broken down to hospitality ($449 million, + $46 million), accommodation ($115 million, +$2 million) and car rental ($40 million, +$8 million).

While overseas visitors have been spending up large throughout the World Cup, Kiwis have continued to be more subdued spenders, which resulted in fairly flat spending since the Cup started.

Total spending (excluding fuel) for the country was up $195 million across the Paymark network ( which equates to approximately 50 per cent of retail transactions by value) or 4.2 per cent during the tournament in comparison with the same period last year.

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