Auckland Mayor Wayne Brown proposed a bed tax of 2.5% to 3% in December to fund a $7 million shortfall for major events. Any bed tax or levy would need central government legislation.
Over 25,000 people flocked to Auckland’s waterfront to watch the sailing, with Tātaki Auckland Unlimited, the council-controlled organisation (CCO) tasked with promoting and delivering events, forecasting a $5.2m GDP contribution and economic impact from the event. That’s after it forked out $1,050,000 for the hosting fee.
Dean Lonergan believes this was a worthwhile investment but it highlighted the importance of implementing a bed tax in Auckland.
“I think you’d see a whole lot more revenue raised to be put back straight into the creation of great events here,” he told Newstalk ZB’s Jason Pine on Monday.
“I’d like to see a combination of taxpayer-funded events as well as the bed tax but that seems to be pretty controversial ... I don’t understand the resistance to it but it is what it is.”
Lonergan considered the sailing “a massive success” and the “perfect kind of event” for Auckland.
“Those boats are absolute rocket ships on the water. It’s quite incredible watching them go. It’s a great way to show off Auckland Harbour.
“That’s the sort of event you want to see that feeds into publicans, feeds into the restaurants, it feeds into taxis, and the hotel room nights. And of course, we had Luke Combs for two nights selling out bloody Eden Park. So Auckland [is] doing a good job to attract some of the major events. It’d be nice to see them have a bit more money to get a bit more in, but they do their best on a limited budget.”
Promoter Dean Lonergan. Photo / Photosport
Brown told the Herald in a statementhis position on a bed tax was clear, but he was keen for Aucklanders to have their say on this year’s annual budget.
“A bed night levy is crucial if Auckland is going to attract more big concerts and international sporting events like the America’s Cup, and SailGP.
“I acknowledge these events are important to many. While I don’t believe ratepayers should wear the cost, I do support these events taking place. Ultimately, it is up to the Government to decide if they will give Auckland the power to set a bed night visitor levy.”
Meanwhile, Auckland is in discussions to secure a long-term deal for the SailGP, according to its CEO Sir Russell Coutts. He praised the quality of racing and support of the crowds, with the waterfront stadium on Wynyard Point packed out over the weekend and he thought local businesses were doing well as a result.
“We’ve already started the talk about coming back here long-term, which I think is the real benefit for a venue,” Coutts said on Sunday.
“If we can put together a five-year – for example – term, and you come back every year; it’s all very well to have a great one-off event, but if you can come back year after year and build the brand equity and build the awareness, then you will get more people travelling from Australia and so forth, and even the US, coming down here for the event and then holidaying in New Zealand. Which is, of course, what it’s all about.
“We’re certainly keen to do that. We wanted to try Auckland to see if it worked. It clearly has, so we’re talking about a long-term arrangement.”
The event in Auckland was the third of a four-year hosting commitment in New Zealand, with Christchurch hosting the first two editions on Lyttelton Harbour.
