Auckland Council agency's $89,000 bill to entertain top-notch clients

Auck Tourism, Events and Economic Development spent $89k in entertainment costs last year. Photo / Getty

The Auckland Council's economic growth agency spent a smooth $89,000 showing off the city - and all its potential - to clients last year.

The Auckland Tourism, Events and Economic Development (Ateed) group has today released figures showing the money it spent on entertainment costs for January through to December, 2017.

The costs generally relate to business-related non-travel expenses.

"Because our key economic development priorities such as attracting business and investment and growing multiple components of the visitor economy require Ateed to grow relationships with a range of partners - including multi-national companies and international investors considering projects in Auckland, tourism agencies and business or major event organisers - staff are sometimes required to undertake hosting as part of their role or hold external meetings with key stakeholders.

"Staff are also regularly called upon to help Auckland leverage the economic development opportunities provided by the region's investment in a portfolio of major events,'' a statement said.

"This involves hosting guests from overseas or around New Zealand and showcasing Auckland's business capability and destination assets.''

In January, a total of $7356 was spent on guests, made up of multi-national companies or international investors.

The later months proved not to be as expensive; with $2338 spent in October and just over $2500 in November.

Christmas time was the least expensive; with the entertainment/ hosting bill coming in at $2034 in December.

The most expensive month last year was in June, when an eye-watering $25,580 was forked out for entertainment expenses.

It was noted that the majority of the costs incurred during that month related to hosting international business visitors as part of the leveraging of the DHL New Zealand Lions Series.

Auck Tourism, Events and Economic Development spent $89k in entertainment costs last year. Photo / Brett Phibbs

HOSTING VITAL PART OF GROWING CONNECTIONS:

Ateed chief executive Nick Hill said corporate hosting was a vital part of growing connections with partners and potential investors.

He said China was one of Auckland's most crucial export markets for a range of sectors - including food and beverage, tourism and screen.

Hosting was a big part of demonstrating respect and intent to do with business in the Chinese culture.

Hill confirmed Ateed had hosted investors and entrepreneurs who had gone on to make significant investments in Auckland.

"For example, the principal of an international property development company was hosted at a business event during the Lions Tour in 2017.

"That meeting outside of a formal business environment helped to cement a long-term relationship which eventually resulted in the company making an investment in Auckland which will be worth more than $200m to the regional economy.''

Hill said "many millions'' had also been invested by Chinese buyers in the Karaka horse sales after hosting investors through a programme focusing on golf, equine, marine and screen sectors.

Ateed said its lower monthly totals seen since last September reflected the fact the agency began a strategic review and assessment of priorities at the time.

That, in turn, reduced incidences of external meetings or hosting of key stakeholders.

"With the strategy taking shape by mid-2018, the entertainment spend is likely to return to a slightly higher average monthly level,'' Ateed said.

Hill said the total spent on entertainment last year was approximately 0.17 per cent of Ateed's annual budget.