NZ made $156m loss on hosting America’s Cup

Photo: Photosport / Chris Cameron RNZ.

New Zealand made a loss of $156 million from hosting the America's Cup event in March.

An evaluation report released by the Crown and the Auckland Council shows that for every dollar spent, 28 cents was lost.

The loss is put down to higher than projected public investment, few international visitors, and only three of the potential 10 challengers racing.

The Ministry of Business, Innovation and Employment (MBIE) and Auckland Council cost-benefit analysis found 38,745 people who visited Auckland during the event spent $298m, and it was the most watched America's Cup of all time.

However, it found the economic return for the event was lower than had been forecast due to Covid-19 restriction visitors, media and superyachts.

"The cost-benefit analysis (CBA) for Auckland has identified a benefit-cost ratio of 0.85. In other words, for every dollar put in Auckland got 85 cents back," it says.

"When considering financial returns only, Auckland got 72 cents back for every dollar put in."

The Cup got a total global audience of 941 million people and a dedicated audience of 68.2 million viewers across the world, the report said. They watched 52 hours of live broadcast in 236 territories.

Despite the cost to the host, 94 per cent of attendees said they were "satisfied" or "very satisfied" with their overall experience, and 89 per cent of attendees living in Auckland said it increased their pride in the city.

Meanwhile, America's Cup organiser's report on their own event has described it as a "highly successful global event,” given the challenges of hosting the regatta during a pandemic.

America's Cup Event (ACE) today released its 110 page review, detailing the highlights and challenges behind the scenes.

It says there had been 860,000 visits to the Cup Village during the racing from December to March, and planning and running the Cup had been challenging due to restrictions because of Covid-19.

"The sudden change in circumstances had an immediate impact on planning for AC36.

“Aspirations and expectations from all involved in the hosting of AC36 needed to be recalibrated, as the reality of the situation sunk in and the global pandemic continued to rage throughout the world."

About 26,000 international visitors had been expected before the pandemic changed that outlook.

"Early indications are that AC36 was the most watched Americas Cup ever, surpassing the viewership of the 35th America's Cup in Bermuda in 2017."

The report shows the organisation spent $45 million, mostly from Crown funding, but also including sponsorships and TV revenue.

It spent $26m on administration, $3.7m on TV production, $2.4m on the Race Village, $1.1m on social media, $629,000 on website costs, and $7m on "challenger or record event costs" (Team NZ's event costs).

It also details the organisation's frustrations in working with the public sector, with some processes described as "cumbersome and time consuming".

ACE says it was required to attend 32 regular meetings, "most of which were unproductive and resulted in conflicting information and instructions being delivered to ACE".

"Unfortunately, due to the number of people who attended and the fact that they were led by Auckland Unlimited who was not responsible for delivering the event, they became very unproductive, and required outcomes were not able to be achieved."

The report says the regatta was the catalyst for the redevelopment of Auckland's waterfront "and work will continue in this space over the coming years so that the area can be enjoyed by future generations".

The America's Cup Challenger Series began on 15 January, and the Cup finished on 21 March.


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Pretty much.....

Posted on 20-07-2021 20:53 | By groutby

...sums up the enonomic knowledge within the current government, ...idealism vs reality.....time and time and time again.......but let’s blame all of it on Covid!