The letter said Auckland destination marketing and major events could lose $2m of private funding. Photo / Alex Burton
The letter said Auckland destination marketing and major events could lose $2m of private funding. Photo / Alex Burton
Auckland Mayor Wayne Brown faced losing $2 million in private funding if major events were council-controlled.
Brown’s plan to strip Tātaki Auckland Unlimited of its roles was amended after industry lobbying.
The Auckland Destination Advisory Group warned private investment would be compromised under council management.
Auckland Mayor Wayne Brown was told by big hitters in the tourism sector that he stood to lose $2 million of private funding if major events and destination marketing were brought under council control.
Brown’s bold plan to regain democratic control of the council-controlled organisations (CCOs)included stripping Tātaki Auckland Unlimited (Tau) of its major events and destination roles.
Following lobbying by Tau itself and allies, the mayor amended his plan to allow it to keep major events and destination marketing and only bring its economic development role in-house.
Two weeks before Brown presented an amended plan to councillors for a final decision, he received a letter from the Auckland Destination Advisory Group warning him of the consequences of his original plan.
Mayor Wayne Brown promoting Auckland for the FIFA Women's World Cup at Eden Park. Photo / Alex Burton
The group, which includes Auckland Airport, SkyCity, Weta Workshop Unleashed, Fullers 360, and major hotels, said 145 tourism businesses had contributed $2m to address a funding shortfall in destination marketing in the 2024 financial year.
“It is our respectful view that retaining or growing this level of private sector investment would be compromised if the destination and major events were run out of the council,” the letter said.
The group said arms-length regional tourism organisations were the most common and best way to drive visitors and major events, saying Tau has performed well in the destination sector.
Tau chief executive Nick Hill and board chairwoman Vicki Salmon delivered a similar message when council officers sought feedback when drawing up the mayor’s reform package.
They said more than half of Tau’s income came from non-rates revenue and bringing destination and major events into the council was out of step with comparable cities.
“Cities who have successfully used their visitor economies to drive vibrancy, regional and city benefits like Melbourne and Brisbane have pioneered stand-alone agency models.
Cities such as Melbourne have pioneered stand-alone agency models to promote the city. Photo / Natalie Slade
“These models are preferred because the city needs to work with businesses operating commercially who want confidence in decision-making affecting investment and risk management over multi-year timeframes,” they said.
Asked about the tone of the letter raising the possibility of losing $2m of private sector funding and whether this influenced his amended plan for Tau, a spokesperson said the mayor wanted the best outcome for Auckland ratepayers.
She said the mayor had worked with stakeholders, including the Auckland Destination Partnership Advisory Group, whose views were considered as part of the final mayoral proposal.
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