Editorial: If not the America’s Cup, what’s the next big thing for New Zealand?

Team New Zealand will now look for a city to host the next defence of the America's Cup. Photo / Photosport

EDITORIAL

Ahead of the summer tourism season, there’s some nervousness about the country’s visitor industry’s chances of getting close to pre-pandemic levels.

Auckland Airport is the nation’s main gateway and its chiefs have observed that recovery in what was once New Zealand’s biggest foreign exchange earner appears to have flatlined. Tourism recovery has been bobbing around the 80% to 85% level for most of this year.

It is estimated the country is missing out on more than $3 billion in overseas visitor spending and, at the very least, close to half a billion in GST that’s not being collected by a Government that is desperate for money.

Aotearoa has been sidelined to some extent in the post-pandemic rush to travel. For many, this country is an increasingly expensive long-haul destination and they’re choosing to go elsewhere in their droves.

Auckland Airport’s roster of international arrivals is just past 90% recovered. Importantly, capacity from China is hitting 2019 levels – even if arrivals from that country aren’t. There is again strong interest from US carriers and hope that Virgin Australia may well return to something like its pre-pandemic operation. But there is little prospect of the big 2015-2019 surge in capacity and new airlines in the short term.

Big events such as the 2011 Rugby World Cup, the America’s Cup defence in 2021 and co-hosting of the Fifa Women’s World Cup last year were catalysts for an influx of big-spending tourists to come here.

The Lord of the Rings trilogy similarly put New Zealand on the bucket list for many diehard fans and stirred curiosity about the country for others. While assessing the impact of big events can be distorted by hyperbole, the intangible spin-off around lifting the spirits can’t be denied.

An event such as the America’s Cup is polarising. Vocal critics attack the wealth of those involved and highlight Emirates Team New Zealand’s sometimes uneasy relationship with sections of the public. But there is little doubt hosting the Cup does boost Auckland in particular and showcases this country’s world-leading boat-building and technology in other sectors.

It may be a vain hope to attract the event back to New Zealand but anything that can be done, which doesn’t involve committing vast public resources and financial support, should be discussed. The Government says it’s open to such a discussion but Sports Minister Chris Bishop is attaching that big rider.

“Any Government support would need to be assessed against many other competing priorities in these tight economic times, and demonstrate clear value for money and economic benefits.”

Otherwise, the big events calendar is looking rather bare. There are no blockbuster events on the radar, a pity because convention centre and hotel capacity is, or soon will be, sitting ready to go.

Tourism Minister Matt Doocey says he’s well aware of the value of big events, saying they can provide countless benefits.

But within the tourism sector, there’s a feeling that not enough is being spent on attracting them. The Government has other spending priorities and local authorities are cutting funding for attracting and co-funding them. A national bed tax, advocated by Hotel Council Aotearoa, would be one way of boosting funding.

At this stage, Doocey is not specific about whether such a levy will be imposed, saying only that he is “committed to working collaboratively with the tourism and hospitality sector to explore options for addressing gaps in funding”.

Now would be the time to speed up that process.