Determinants of Attendance and the Value of Consumption Benefits for Provincial Rugby in New Zealand : The Case of Wanganui 1972-1994

This paper develops a model of attendance for provincial rugby in New Zealand by considering representative games played in Wanganui from 1972-1994. The model is comparable with similar studies in that it encompasses economic and sport-specific dimensions of game attendance. The price elasticity of demand for rugby was found to be -0.2199, a result consistent with several similar studies in the literature, and suggests a price setting focus on utility maximisation rather than profit maximisation. International matches and playoff games generated significant increases in attendance. Third division National Provincial Championship (NPC) games generated positive effects on attendances, although the effect of various NPC division structures (including the introduction of semifinals and finals) was insignificant. This result could be due to the emergence of substitutes for rugby as recreational activities or entertainment options in the early 1990's. The consumer surplus accruing to Wanganui spectators was estimated as between $42,000 and $145,000 in 1994. The net present value of private consumption benefits to local residents generated by rugby in Wanganui was estimated as approximately $588,000. This suggests that there is some justification for local government involvement in financing a rugby-only facility