Tourism buoyant from Cup traffic

WELLINGTON - The impact of the America's Cup on the economy could be worth more than $500 million.

The full effect is still being assessed, but Tourism New Zealand chief executive George Hickton said it should be worth at least that. The figure is based on average spending by tourists.

The tourism industry is riding high, with figures released this week showing international visitor numbers increased by 9.3 per cent in the year ended February 2000, to more than 1.6 million. Arrivals in February rose 14 per cent, apparently a direct link with the staging of the America's Cup in Auckland.

Mr Hickton said there was evidence that the large number of superyachts that had moored on Auckland's waterfront had pumped as much as $100 million into the country's economy through their running and building costs.

Tourism New Zealand this week launched the "second wave" of its $30 million 100 Percent Pure New Zealand marketing campaign.

Mr Hickton, who wanted to see another one million international visitors a year in five years, said research showed travellers were looking for experiences away from tourist resorts.

"We are focusing on the holiday experience. We are branching out from 100 Percent Pure brand to areas like 100 Percent Pure Adventure."

Meanwhile, Mr Hickton said the dispute with Saatchi & Saatchi over payment for its work on Tourism New Zealand's dumped global marketing campaign remained unresolved.