Cup cash to target rich tourists

By HELEN TUNNAH

Some of the world's richest tourists will be targeted by the millions of taxpayers' dollars to be given to Team New Zealand if it challenges for the America's Cup in Europe.

America's Cup Minister Trevor Mallard yesterday confirmed the Government might spend up to $33.75 million on Team NZ if they challenge for the cup in 2007.

And he defended himself against groups such as the New Zealand Olympic Committee which have said they would also line up for funding.

"Frankly, coming second in the synchronised swimming in Seoul is not quite the same value, " he said.

Mr Mallard said the spending was a "marketing" partnership, and an economic not a sporting investment.

Very wealthy foreigners, who tend to finance and watch the America's Cup, will be the target market for the tourism and trade promotions which Team NZ will help support through the Government's agency Brand New Zealand.

Team NZ had asked the Government for financial backing even before they lost the last America's Cup 5-0 to the Swiss team Alinghi.

The syndicate this week released a damning report into its loss, citing a dysfunctional management structure for poor decision-making which left an inexperienced crew lacking confidence in a race boat they feared was fragile.

Mr Mallard said that when he first held talks with Team NZ he had not known the extent of their internal problems. "Although I had seen the mast fall over," he told the Herald.

The Government announced four days after the end of the cup it would guarantee $5.6 million to help the syndicate secure key crew, with up to $150 million needed for a European campaign.

The latest grant will be made if a challenge proceeds, private sponsors are found and if a sound business plan outlining the tourism and trade benefits to New Zealand is presented.

"It is not a sporting investment, it is an economic investment," Mr Mallard said.

"It is about building on the trade and tourism opportunities which come about from having some of the richest people in the world, people who we want to attract to New Zealand because they spend a lot of money.

"This is a route to get to them and that is why we're doing it."

He said the tourists targeted would be those who could afford to stay at luxury lodges, which can cost $2000 a bed a night. There had been a 135 per cent rise in that market since New Zealand hosted its first America's Cup in 1999-2000.

"I realise that some people do prefer to have mass tourism and backpackers, but there is a limit to how much of that we can have in New Zealand. I think the high-value end of the market is something which is much more important."

Mr Mallard said he did not know of any other marketing opportunities which matched those provided by Team NZ in Europe.

Team NZ managing director Grant Dalton said whether taxpayers should market New Zealand at other major sporting events was a question for the Government.

He looked at the funding as a trade partnership, not a free lunch. The marine industry was worth $700 million a year, including exports of $400 million, and employed 8000.

Mr Dalton said Team NZ had set budgets and approached domestic sponsors about a future campaign.

"We have put into the private sector market our first proposal."

The response had been "warm", although Mr Dalton would not say from which companies.

Clothing company Line 7, a $10 million backer of the last campaign, has promised to support a challenge while core sponsors Toyota and Steinlager may also stay involved.

Mr Dalton said he wanted to announce by Christmas whether a challenge would go ahead.

Yachting New Zealand last night welcomed an investment in Team NZ but asked the public to realise that the money was not being spent on the sport in general.

YNZ chairman Arthur Stewart said the money was commercial backing for the syndicate which offered strong trade and tourism opportunities.

Amateur sport, including yachting, was actually under-resourced in New Zealand.

Further reading: nzherald.co.nz/americascup