Nov 21, 2017 - MBIE commissioned Market Economics to evaluate the potential economic impact of an Auckland-based 36th America’s Cup. In summary it estimated the following:
· From 2018-2021 provides between $0.6 - $1.0 billion in value add to New Zealand’s economy and an employment boost of between 4,700 and 8,300. The range reflects different assumptions around the number of syndicates competing, visiting super yachts, international tourists and the cost of hosting.
· Impacts positively on sectors like services, manufacturing (mainly around boat building and super yacht refits) and tourism, including food, retailing and accommodation.
· The cost-benefit analysis for the period of the 36th America’s Cup (excluding any future benefits associated with any new infrastructure, or ongoing benefits to the marine industry) is positive, ranging from 1.2 to 1.8. This cost-benefit ratio is for the economy as a whole; the costs included relate to all parties, including for example the Crown, Auckland Council, syndicates, Emirates Team New Zealand, retailers and tourism providers.
The economic evaluation does not capture any of the broader benefits associated with hosting an event of this scale, including showcasing New Zealand to international audiences (and associated reputation impacts), high performance sport outcomes, and participation and engagement of New Zealanders that may have “feel good” effects (increasing national identity and pride).
The study makes no assumptions around location or whether there are any incursions into the harbour or not. It does not, therefore, take account of any loss of value from reducing the available harbour space. At the time of commissioning, the location was undetermined.
The study is consistent with Treasury guidelines for studies of this kind. This is one input into the discussions between government, Auckland Council and ETNZ. Any decision needs to stack up for ETNZ, and the New Zealand ratepayers and taxpayers.
A full copy of the evaluation is available on MBIE’s website: http://www.mbie.govt.nz/info-services/infrastructure-growth/americas-cup
| An MBIE release || November 21, 2017 |||