Business sees gold in sailors' big win

By BUSINESS HERALD STAFF

Financial and psychological rewards are expected to flow for Auckland business after the America's Cup victory.

Business leaders believe the win will justify huge investments in the downtown area and keep tourists coming back for more.

And they say a national feel-good factor will encourage spending.

The Cup success will help raise the international profile of local industry "in a way you could never possibly do with limited financial budgets in New Zealand," said Lane Finley, executive director of boating export group Marex.

He said the win had created overseas opportunities not possible without the Cup.

Of the $80 million estimated to have been made by the boating industry during the Cup, about $50 million came from the 100 superyachts attracted to the event.

Ports of Auckland chief executive Geoff Vazey said the America's Cup had increased demand for its Westhaven Marina and given an early boost to its Hobson Marina facility.

The cruise industry, which Ports of Auckland services when the ships berth in Auckland, was another winner, he said.

This year, around 30 liners were scheduled to visit Auckland. So far, 31 had confirmed they would be coming next year.

Studies had shown that each cruise ship generated about a quarter of a million dollars a day in "economic activity" while in port.

Spin-offs for businesses not directly involved in the American Express NZ Cup Village have yet to be comprehensively calculated.

But the victory is expected to spur further development in Auckland, including another multimillion-dollar hotel and yet more shops.

Many retailers outside Auckland's central business district have not yet seen any direct benefits from the racing, but they hope the win will continue to boost consumer confidence.

The Retail Merchants Association's Auckland regional manager, Russell Sinclair, said the country needed the victory.

The Cup had put New Zealand in the international eye, inspiring confidence throughout the country, he said.

"When people feel good about themselves and their country, they loosen the purse strings."

Marketing efforts to capitalise on the Cup have also been winners.

After a controversial beginning, the red socks fundraiser had been a "complete success" with almost every pair of socks sold, said project coordinator Sally Tye.

About 300,000 pairs of socks, at $9.95 a pair, were made last year to raise money for Team New Zealand.

The tourism industry is looking forward to a bumper summer next year, thanks to the publicity surrounding the Cup, as well as other major events such as Apec, the millennium celebrations and the Sydney Olympics.

Although consultants McDermott Fairgray are not due to release a final report on the economic impact of the Cup until May, tourism chiefs believe it will show the financial spin-offs have already exceeded expectations.

Alex Swney, chief executive of the Heart of the City Business Association, said he expected the Cup to have "spectacular spin-offs, and not just financial."

Development that had already taken place in Auckland had helped save the city centre from near-extinction.

"The America's Cup has focused minds and money and investment down there," he said.

"Now that it's there, we're up and running and loving it and prospering and we're all so much better off for it."