You might struggle to make the link between an international sporting event and management accountancy, but it’s stronger than you think. The Rugby World Cup 2019 presents a major opportunity for businesses to boost their performance. And it’s management accountants who are the key drivers.
According to a recent report from Ernst & Young, an estimated ¥216.6 billion (Japanese Yen) will be fed back into the domestic economy during the Rugby World Cup 2019. Understandably, not every sector will enjoy a financial lift from the World Cup. However, businesses in hospitality, tourism, transport, construction and marketing stand out as the main beneficiaries.
Food and drink gains
International visitors to the Rugby World Cup are expected to spend on average ¥20,000 a day (almost £150) during the tournament. It’s not just venues benefiting from this additional spend – worldwide television audiences will also dig deep into their pockets for food and drink to enjoy during the games.
Post-event analysis of the 2015 Rugby World Cup hosted in England and Wales revealed a total spend of £188m on food and drink. Across the nation ‘fanzones’ were established so that supporters could watch games together if they didn’t have tickets for the events themselves. These zones opened doors for food and drink companies to attract additional business.
Right now, businesses around the world are gearing up for new opportunities. They might change their menus, add world-cup merchandise to their offering or run marketing campaigns around the event. It’s an exciting time for business – and management accountants working within them. Forecasting profits, assessing potential reputational gains and overseeing research to decide how additional revenue will be best generated are just a few of the tasks management accountants have on their plates this summer.
Hotels worldwide get ready for the lift
During the 2015 Rugby World Cup, 406,000 international visitors stayed an average of 14 days each in the UK. Management accountants were central in driving performance for hotels to secure additional profits.
It’s no different in Japan this September; right now management accountants are driving strategies to ensure businesses are maximising their profits whilst meeting specific business and market needs.
Don’t forget – hotels could also use brokers to create attractive packages or offer topical additions (like themed meals and decoration). Gullivers Sports Travel, for example, is currently advertising a range of overnight packages for people to enjoy the games in Japan with no extra fuss. The potential profits of these opportunities all need to be carefully analysed – and it’s management accounts who have the skillset to do this.
Although demand means there is an opportunity for hotels to charge more, management accountants look at the bigger picture and take into consideration the knock-on effects of decisions made now.
Long-term legacy: construction and transport
To cover the cost of stadia and other infrastructure it’s anticipated that Japan will make a ¥18.1 billion investment to hold the games. The long-term financial and environmental impact of this investment is for management accountants to assess. They’ll need to consider the lasting economic impact on communities around them, using their analytical skills and deep insights to assess the success of legacy projects.
Innovation for growth
Management accountants are bringing numbers to life before, during and after the Rugby World Cup 2019. They’re deciding if new opportunities are worth it, both in the short and long term. Your business could be looking to do something as small as adding language support to your website and marketing, and the financial gains will need to be weighed up.
As businesses pull together to make the most of the Rugby World Cup’s value, we’re thankful for all the management accountants who ensure the additional revenue is brought to fruition.
No longer just number crunchers. Management accountants drive impact, deliver solutions and create value – driving success for businesses worldwide.
 Report downloaded from here:
 Report downloaded from here:
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