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The Economic Benefits of the RBS Six Nations to Wales

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Wales was a hive of activity this weekend with thousands flocking to the capital city to watch Wales versus England in the RBS Six Nations. It wasn’t just the Principality Stadium that was full, but also Cardiff’s bars and restaurants. The RBS Six Nations generates a huge boost to the economy in Wales, and Natwest has given Business News Wales some stats to reflect this:

millennium_stadium_6_nations

This season’s RBS 6 Nations matches played at the Principality Stadium will generate[1]:

  • £52 million of revenue for Wales’s economy
  • £30 million of revenue for Cardiff’s economy
  • 360 jobs[2] in Wales
  • 240 jobs in Cardiff.

 

Of the £52 million revenue generated in Wales:

  • £18 million comes from spending by visitors who attend the matches and their family and friends who accompany them to Cardiff
  • £17 million comes from spending on tickets, hospitality, sponsorship and TV rights
  • £17 million comes from the knock-on effects of the other £35 million because, for example, hotels, restaurants, bars and the WRU have to make purchases from suppliers and because people employed in these businesses spend the incomes they receive as a result of those purchases.

 

Of the £30 million revenue generated in Cardiff:

  • £14 million comes from spending by visitors who attend the matches and their family and friends who accompany them to Cardiff
  • £10 million comes from spending on tickets, hospitality, sponsorship and TV rights
  • £6 million comes from the knock-on effects of the other £24 million because, for example, hotels, restaurants, bars and the WRU have to make purchases from suppliers and because people employed in these businesses spend the incomes they receive as a result of those purchases.

 

Of the 360 jobs generated in Wales:

  • 260 result from spending by spectators and their friends and family who come to Cardiff but do not attend matches
  • 10 are roles at the stadium
  • 90 result from spending by the 270 people who are directly employed as a result of visitor spending and at the stadium.

 

Of the 240 jobs generated in Cardiff:

  • 200 result from spending by spectators and their friends and family who come to Cardiff but do not attend matches
  • 10 are roles at the stadium
  • 30 result from spending by the 210 people who are directly employed as a result of visitor spending and at the stadium.

 

Stephen Boyle, Chief Economist at RBS, said:

“The RBS 6 Nations is one of the world’s most recognised sport events and its economic and business impact is very real, extending way beyond the immediacy of the stadium and its fixture list.

“For Wales one of its positive effects is the impact on tourism during a quiet, post Christmas period. Thousands of visitors, international and domestic, arrive for the match but will often tour and take in other parts of local culture and activities.

“We estimate that the competing countries benefit collectively to a figure of around £470m – a figure that has continued to grow with each year of the tournament.”

Other points

The economic benefits of RBS 6 Nations matches are high because of three features of the competition that make it different from many other major sporting events. First, Principality Stadium already exists, so there is no need to build new facilities. The capital cost of hosting the matches is nil. Second, the RBS 6 Nations takes place in winter. During February and March, 30% of Cardiff’s hotel rooms are empty compared with 20% in summer. That means there is plenty of spare capacity for people who visit the city to watch the matches and they are not ‘displacing’ visitors who would otherwise have wanted to come. Third, no public money has to be spent to attract the matches to the city.

[1] Components may appear not to sum to totals because of rounding.

[2] A ‘job’ is a full-time equivalent job for one year