SKYCITY welcomes announcement of Convention Centre

MEDIA STATEMENT

JUNE 2011

SKYCITY welcomes announcement of New Zealand International Convention Centre

SKYCITY Entertainment Group (SKYCITY) has welcomed the announcement by the government today that it has been selected as the preferred developer of the New Zealand International Convention Centre (NZICC) on its three acre site at 101 Hobson Street.

SKYCITY Chief Executive Nigel Morrison said this is an important and long anticipated development for both Auckland and the New Zealand convention and tourism industries.

"SKYCITY is excited to be involved in this development and we welcome the opportunity. We envisage that the New Zealand International Convention Centre on this site will be an iconic building in the heart of Auckland, central to hotels, universities, theatres, entertainment and all forms of hospitality. It will be something we can all be proud of.

"Once completed and fully operational, this development will create approximately 800 new skilled jobs for young New Zealanders, rejuvenate the surrounding precinct and create substantial new business, retail and tourism opportunities," said Mr Morrison.

Mr Morrison said in addition, approximately 1000 people will need to be employed during the construction phase. SKYCITY would aim for the New Zealand International Convention Centre to be opened in January 2015.

Experts predict that the proposed New Zealand International Convention Centre will attract over 183,000 delegates each year, generating over 350,000 delegate days attending international and domestic conferences, events and exhibitions. It is estimated the NZICC will generate around $90m of visitor expenditure in the local economy every year.

Mr Morrison said "Auckland will now be in a position to attract major international conferences and exhibitions that New Zealand currently misses out on. These will bring large numbers of new international convention delegates and visitors to Auckland and New Zealand.

"SKYCITY is an award winning operator in the conventions industry, currently operating the largest convention facility in Auckland. We look forward to working together with the Government, the Auckland Council and the convention and hospitality industries to make this vision a reality," said Mr Morrison.

SKYCITY is prepared and able to fund the full development costs, estimated to be around $350 million. Mr Morrison said "This is subject to reaching a satisfactory outcome from the discussions with government, to ensure SKYCITY achieves an overall acceptable return on this substantial investment."

As part of the proposed deal, SKYCITY will negotiate with government some changes to the regulations that cover its casino activities. These changes include an increase in the capped number of gaming tables and machines and an extension to the existing casino licence in Auckland beyond its current renewal date of 2021.

"We are looking to expand the existing casino and entertainment complex to accommodate the future growth from this development and as Auckland continues to grow as an international world-class city.

"We are about to start negotiations with government on the regulatory changes we need to support the investment in the convention centre development. The Government has made it clear from the outset, matters they will not negotiate on and SKYCITY is entirely comfortable with the Government's non-negotiables.

"SKYCITY is simply seeking - and government is prepared to consider - changes to the gaming regulations to extend the term of our operating licence and to increase the scale and efficiency of our casino facilities in Auckland," Mr Morrison said.

ENDS

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