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Auckland economy gets Lion’s share

5 October 2005

Auckland economy gets Lion’s share

An economic impact report shows that the Auckland economy received a boost of more than $50 million during the DHL Lions Series in June and July this year.

Auckland City Council’s Economic Development and Sustainable Business Committee today received a report from an independent economic consultancy, outlining the rugby tour’s economic impact on the region.

It reveals that the series generated an additional $53 million of revenue in the Auckland region, which translates to a $43.2 million increase in the region’s Gross Domestic Product (GDP)*.

The chairperson of the council’s Economic Development and Sustainable Business Committee, Richard Northey, says the results are impressive and obviously valuable for Auckland.

“The Lions Tour has been a massive boost to the Auckland economy, with the region securing a significant amount of the total amount spent by visiting rugby fans nationwide.

“It just goes to show that major events have very real economic spin-offs for the region and it’s imperative that we continue to encourage events like the Lions Tour.

“Events like this not only present a unique opportunity to showcase the best that Auckland has to offer, but they’re also a prime opportunity for many of Auckland’s industries to flourish,” he says.

Tourism Auckland chief executive Graeme Osborne says the economic benefit is a
significant boost for the tourism industry, particularly as the tour took place during the traditionally quiet period for tourism.

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“Auckland’s tourism, retail and hospitality sectors worked hard to ensure they were prepared for the fans. We’re thrilled to see that these businesses have reaped the rewards,” he says.

Of the more than $50 million international and domestic visitors spent in Auckland during
the series, the majority was spent on food and beverage ($11.2 million), followed by air fares ($10.6 million), accommodation ($9.3 million), retail shopping ($6 million) and transport ($4.9 million).

The study says more than 144,000 additional visitor nights were spent in Auckland as a result of the Lions Tour.

Mr Osborne says in addition to the economic impact of the event, the DHL Lions Series will have positive long-term flow on effects for Auckland and New Zealand.

“We expect the positive word-of-mouth marketing will be vital in helping keep New Zealand and Auckland top of mind in the United Kingdom – one of the our most important visitor markets,” he says.

Mr Northey says that bodes well for the future.

“The fact that this event has been so successful reinforces Auckland’s reputation as a city that is able and willing to host major international events and that sets us up well for the future.

“The recently released Auckland City Events Strategy will also build on that reputation as we put in place mechanisms to attract events, like the Lions Tour, which contribute to the economy and vibrancy of the city,” Mr Northey says.

The report by Covec Limited was commissioned by Auckland City Council, Tourism Auckland, the Ministry of Tourism and Tourism Dunedin.


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