The promoters say a roofed velodrome would be used for big events such as concerts. Photo / File
The promoters say a roofed velodrome would be used for big events such as concerts. Photo / File
A sport economics academic says economic benefit figures in a business case to roof Whanganui's velodrome should be taken "with a grain of salt".
Supporters of roofing the velodrome arrived at figures about its economic benefit by talking to potential promoters and using a standard formula to multiply the dollarsthey are told will be spent.
However, Massey University senior lecturer Dr Sam Richardson, who specialises in sport economics, said while a roofed stadium would definitely benefit cycling, he was sceptical about the economic benefit figures.
"You do take these things with a grain of salt," Richardson said.
"They're put together to make a convincing case, typically for government involvement. The benefits tend to be lower."
The figures are in a business case prepared by consultant and former Whanganui district councillor Martin Visser and from surveys undertaken by Whanganui-based Graeme Colman, who owns Horizons Research.
Sports people, especially cyclists and speed skaters, would be the main users of a roofed velodrome. To make the $26.3 million cost of roofing it worthwhile, the velodrome would also have to be used for big events such as concerts and kapa haka competitions.
"A velodrome on its own wouldn't stand up as providing economic benefit to anybody. It's a huge cost," Regional Velodrome Development Trust chairman Leigh Grant said.
Regional Velodrome Development trustees Leigh Grant (left) and Bob Smith. Photo / File
The business case predicts the number of larger events in the velodrome would increase from 13 a year to 36 a year within 10 years.
In the business case, event promoters Lez Kiriona, the late Ian Magan of Showcase Entertainment Group and New Zealand Opera School founder Donald Trott propose concerts that would add an extra 64,000 visitor days a year to Whanganui.
A roofed velodrome would mean events can't be rained out, Kiriona said, and Whanganui is very central for the North Island. When artists are looked after well, a venue will get a good reputation, he said.
Four to five big concerts a year could easily be held in a covered velodrome, Kiriona said.
"I'm pretty convinced we can do it in Whanganui."
But Richardson said venues in bigger cities were lucky to have five or six big concerts in a year, and Whanganui would be competing with them to get the artists.
The Te Matatini kapa haka nationals could be held here in 2023, bringing more than 200,000 visitors, the business case says. However, the nationals only brought 50,000 to 55,000 people to Wellington in 2019, according to Radio NZ.
"The project does not rise or fall on the basis of kapa haka, though it would be nice to have for Whanganui," Visser said.
A national Horizons Research poll in October 2019 asked New Zealand adults whether they would "definitely consider attending" concerts, opera and dance events in Whanganui. There were 2220 Auckland people who said they would consider coming to an orchestral event, 1870 who would consider coming to a DJ or reggae event and 2070 who would consider coming to an opera event.
They were also asked how they would travel here and whether they would spend the night. The business case has those staying the night spending $340 - the Statistics NZ 2018 average.
That number is multiplied 2.31 times - a standard multiplier for wider effects in a local economy - to get a net economic benefit for the region of $174m over 10 years.
Figures about economic benefit also need scrutiny, Richardson said.
People might come in and spend money, but they might also crowd out other enterprises that would also make money. And the materials needed to host them might have to be imported from elsewhere.
The business case arrived at the number of jobs that would create - 500-plus - by dividing $174m by the Whanganui average wage.
Those jobs would be for people providing accommodation, food, amusements and transport to the visitors.
Groups have wanted to roof the velodrome since it was built in 1995. Whanganui District Council has asked Government for the $26.3m cost as one of its "shovel-ready" projects to boost economic development after Covid-19.
Roofing the velodrome is among eight council projects short-listed, and Grant said a funding response is expected within two weeks. In late August sport, leisure and funding adviser Steve Bramley will present a report on the project to the Whanganui District Council.
The council-commissioned report will provide an overview of eight previous reports on the project. It will be released to the public about mid-September, chief executive Kym Fell said.
Meanwhile, a Horizons Research poll surveyed 418 Whanganui adults on July 22-27 and found 83 per cent hope Government will provide the funding.
Horizons polls are voluntary and conducted online. They are weighted by age and gender to match 2018 Census results for New Zealand adults, Colman said. The July poll has a 4.9 per cent margin of error.
The trust has about $6m in funding ready, Grant said. Whanganui District Council has promised $1m, donors have given $100,000 and the rest is grants from trusts and contributions in kind. There is a givealittle page for online donations.
The other trustees are Bob Smith, Stuart Bruce, Mark Stoneman and Marty O'Fee.
