A lot more than just a yacht race

By ARNOLD PICKMERE

Last summer, many of us were happily drinking in the atmosphere of the America's Cup Village or watching the yachts out on the water.

But some people were hard at work. Find out, said the Crown's Office of Tourism and Sport, what impact the regatta is having on the Auckland and national economy.

So the McDermott Fairgray Group and Ernst & Young set out to interview about 10,600 New Zealand and international visitors. They completed 360 business surveys and 70 interviews with key informants.

Many things had significant impacts - the yachts themselves, the overseas and local visitors and the super-yachts.

To get a fairer measure, the survey had first to deduct the effect of any spending that would have gone to some other activity (or place) had the regatta not taken place in Auckland.

The significant effects of the 1999-2000 America's Cup regatta started with:

THE SYNDICATES


Syndicates competing to be the Cup challenger totalled 11 - five from the United States, four from Europe and Nippon from Japan and Young Australia.

Some syndicates spent considerable time in Auckland before the finals, with Prada from Italy coming here in the summer of 1997-98. Team New Zealand were actively preparing for the defence from 1995.

Although most of the syndicates' spending took place in their home country (on items such as yacht design, hull construction, rig and sails), they also spent extensively in New Zealand, particularly Auckland.

About 720 syndicate members came to Auckland, all needing accommodation, food, transport, entertainment, communication and other services.

And the syndicates were generally significant business operations needing many goods and services. They leased bases and equipped them, used yacht-lifting and other marine services and bought New Zealand- made boats to use as tenders.

Many had family and friends who came to Auckland for extended periods.

The survey estimates the total spending here and overseas by the defender and challenger syndicates at $515 million. It is calculated they spent an extra $110.6 million in Auckland, including $6 million by friends and families. That was the direct impact of the event.

The total impact was $124.8 million in Auckland and 2100 jobs.

OVERSEAS VISITORS

The survey estimates that 8200 international supporters came to see the regatta in identifiable groups. Another 27,000 international visitors travelling independently were influenced to come for the event.

While most of what they did had an America's Cup focus, they travelled widely in New Zealand.

Most of the supporters and sponsorship travellers spent a substantial time out of Auckland, in Queenstown and other major destinations. The independent overseas visitors also travelled extensively around the country.

In fact, the supporters' groups and those on incentive or sponsored travel spent two to three times more than the normal daily amount spent by overseas visitors.

In all, the overseas visitors spent $120.8 million across New Zealand, with slightly less than half of that in Auckland. The effect on employment was calculated at 1100 jobs in Auckland and 2780 nationally.

SUPER-YACHTS


Some of them arrived under their own steam, others in a ship which lowered itself in the water to allow them to float off. Their wealthy owners followed at their leisure.

Their impact, says the report, was dramatic, substantial and largely unexpected.

Some 80 super-yachts (generally defined as yachts of 25m or more) arrived here mostly between October and December last year and stayed until March.

They were not just the more luxurious viewing platforms around the Hauraki Gulf during the racing. Many of them cruised the coast, visiting other ports and spending money.

Super-yachts keep on costing money - food, drink, fuel, berthage, maintenance and upkeep. Some of them had substantial refits and overhauls, mostly in Auckland but also in Whangarei and Tauranga.

The survey based its super-yacht spending estimates on a variety of surveys and consultations. It calculates the super-yachts spent $86.7 million in New Zealand, including $72.5 million in Auckland, virtually all in the 1999-2000 year.

The super-yacht spending accounted for 21 per cent of the net spending for Auckland. The final figures are what the report's authors could reasonably verify and do not include anecdotal figures on personal spending by rich owners and their guests.

Their spending sustained 580 jobs in Auckland while the total trickle-down employment effect is calculated at 1370 for Auckland and 1920 nationally.

THE MEDIA


Over 1500 media attended the regatta, more than two-thirds from overseas.

Many had extended stays, using accommodation, transport, food, boats to view races and other requirements including air transport, communications and processing facilities.

Media and supporters spent more than $25 million locally.

DOMESTIC VISITORS


About 371,200 New Zealanders came to Auckland, wholly, mainly or partly for the regatta. About 241,000 stayed overnight and 129,000 were day visitors. About 92 per cent visited the cup village, while 9 per cent watched races from the water. They spent about $58 million.

This money represents a transfer in the economy, a gain to Auckland balanced by a net reduction in spending in the rest of the country.

Although the campaign ran over several years, more than 80 per cent of the economic impact came in the year to June 2000.

The economic impact of the Cup, estimated at $640 million, is equivalent to over 0.6 per cent of the estimated GDP for that year.

There are other less quantifiable benefits - improvements to the environment and publicity. How long, then, can we retain the Auld Mug?

Herald Online feature: America's Cup