Events industry contributes $479 million to Auckland's economy
23 October 2009
A unique evaluation of the economic contribution of events to the Auckland region
has shown that they contributed at least $479 million of consumption to the Auckland
economy in 2008.
This equates to at least a $440 million contribution to Auckland's GDP in 2008
and 7,227 full time equivalent employees.
The research was commissioned by Auckland City Council to develop a better understanding
of the ways in which events contribute to the economic well-being of Auckland.
It focused on events held in the Auckland region in 2008, of which there were
at least 1,674, ranging from Pasifika Festival to Air New Zealand Fashion Week.
Total attendance at these events was estimated at 5.82 million. This included
486,000 people who were attracted to Auckland specifically by events, comprising
452,000 domestic visitors and 34,000 international visitors.
Events also generated 719,000 visitor
nights in Auckland in 2008.
Councillor Greg Moyle, chairperson of the Arts, Culture and Recreation Committee,
says that while there have been studies of the economic benefits of some individual
major events, information about the economic benefits generated by the events industry
as a whole is not well documented.
"This assessment of the economic contribution of Auckland's entire events portfolio
has demonstrated the importance of the events industry to our region. Events encourage
increased employment opportunities and improvements in infrastructure and facilities
as well as attracting visitors and additional spend," he says.
The Mayor of Auckland city, Hon John Banks, says "Not only do events deliver
a good economic return, they are critical to the vitality and dynamism of a successful
supercity, which I aspire to Auckland becoming."
A break down of consumption in the Auckland economy directly attributed to events
held in the region shows:
- $138 million spent by event organisers on local goods and services required
to deliver events in Auckland
- $80 million of discretionary consumption at events in addition to mandatory
expenses such as ticket purchases
- $75 million of pre and post event consumption by Auckland residents
- $150 million of consumption by people visiting Auckland specifically to
attend an event (excluding mandatory event expenses such as ticket purchases)
- $23 million spent by sponsors on event leveraging
- $13 million spent by local agencies that support the organisation and delivery
of events in Auckland
The events portfolio in 2008 did not include any major outliers in economic terms.
These events have a profound impact on the contribution that events make to the
economy.
For example, the Louis Vuitton Pacific Series held in Auckland earlier this year
generated $16 million of additional output, which created a regional GDP impact
of $12 million.
"Major international events are significant economic generators that increase
international and domestic tourism and spend, and support key business sectors,"
says Mr Moyle.
"Over recent years Auckland City Council has made a conscious decision to take
a lead role in attracting events to Auckland, with recent successful bids to host
the FIBA U19 Men's World Basketball Championship, the ISA World Junior Surfing Championships
and the FIA World Rally Championship. This research reinforces the importance of
local government investing in event attraction," he adds.
The research findings are being shared with all parties who contributed information
to the research process.
The outcomes of this research give council's the ability, collectively, to quantify
the benefits that our investment in events delivers to the region's economy and
to ratepayers. The information will also act as a guiding document for the new Auckland
Council by providing them insight into the contribution of events to the region.
