America's Cup Economic Impact Felt Throughout NZ
A report into the economic impact of the 1999-2000 America's Cup Regatta shows that such large-scale events have a spin-off which benefits the whole country, Prime Minister Helen Clark and Minister for the America's Cup Trevor Mallard said today.
Doug Fairgray's report, commissioned by the Office of Tourism and Sport and launched this morning, suggests that the America's Cup regatta generated $640 million of economic activity in New Zealand.
The impact for the Auckland region made up $473 million of the total value added.
"The Report provides a rigorous analysis of the amount and distribution of value added and employment associated with the additional spending generated by the America's Cup regatta," Trevor Mallard said.
"It is a very valuable resource document which helps the Government, the business community, sponsors and suppliers to assess and measure the economic impacts from such a huge international event.
"The government is now working with Team New Zealand to ensure that the next America's Cup regatta is successful, with economic benefits for the whole country."
"The national pride which winning this year's challenge created was evident following the historic win. Doug Fairgray's report illustrates the massive economic spin-offs," said Helen Clark.
"While Auckland gained enormously, it's good to know that the flow-on effects benefited the country as a whole."
Attached: Summary of the report. The full report is available from midday, Thursday 26 October, at www.otsp.govt.nz
Summary of Conclusions
1. The America's Cup Regatta was an important economic event for the Auckland Region and for New Zealand.
2. It generated $640 million of value added in the New Zealand economy.
3. It generated $473 million of value added in the economy of the Auckland region.
4. The Report measures "net" economic activity and does not include expenditure that would have taken place even without the Regatta.
5. The Report is based on 10,600 interviews with international and domestic visitors, 360 business surveys and 70 in-depth interviews with - key informants to help estimate the magnitude and distribution of expenditure for the duration of the event.
Report identified the net additional expenditure in the
economy. A share of this is additional direct value added.
The study measured the direct value added, and also the flow
on effects of this through the economy, to identify total
value added – a measure broadly equivalent to GDP. From
this, it was possible to identify the total value added
generated from the spend by each sector. Major impacts
arose from spending by
* Syndicates ($149.2 million)
* Regatta organisers and sponsors activity ($44.3 million)
* Infrastructure & Government ($130.9 million)
* Superyachts ($118 million)
* Media ($12.8 million)
* International Visitors ($164 million)
* Spending by businesses ($20.2 million)
7. The report also identified where the spending was directed, to show the value added impacts generated from the extra activity in each sector of the economy. Major impacts arose from the extra activity:
* Marine sector $126.7 million
* Transport $79.6 million
* Construction $91.7 million
* Accommodation $64.2 million
* Restaurant & hospitality $51.3 million
* Retail $56.8 million
* Entertainment & leisure $33.2 million
* Media & Communications $23.6 million
* Government $34.4 million
* Business & Households $29.9 million
* Other $48.1 million
8. The additional activity sustained 10,620 full time equivalent years of employment in New Zealand.
9. It sustained 8,070 full time equivalent years of employment in Auckland.
10. In addition to a
total economic impact of $640 million nationally and $473
million regionally, the Regatta was the catalyst for a
number of benefits to Auckland and New Zealand
* advertising equivalent" global media exposure
* long term credibility and publicity for the marine sector
* international visitor awareness
* focussing private sector construction investment in the Viaduct Basin area, helping open up the waterfront and supporting regional growth policies of consolidation