LVPS Added $16 Million to Auckland Economy.

More evidence that yacht racing events, when done properly, contribute to both the local economy and the ‘brand’ of a destination. It has been reported that the The Louis Vuitton Pacific Series, sailed on the Waitemata Harbour in February, injected at least (NZ?)$16.1 million of additional cash into the Auckland economy.

A draft report commissioned by AucklandPlus, the region’s economic development agency, completed by Covec this week, reveals the yachting regatta resulted in a range of very tangible benefits for Auckland.

AucklandPlus Chairman Michael Barnett says the $16.1m cash injection translates to an $11.54m increase in Auckland’s regional GDP.

To put that in context, in terms of GDP that is more than twice the impact of the 2007 World Netball Championships. The economic result is a fantastic return on investment for the Auckland region.

Auckland City Council, Tourism Auckland and AucklandPlus each invested $20,000 to help secure the event for Auckland, with Auckland City Council providing significant additional in kind support.

The Covec report described the Louis Vuitton Pacific Series as a resounding economic success during a challenging period for local businesses.

$9m of the benefit went to local marine businesses. That included super yacht maintenance and refit work that would not have occurred in the absence of the event and sales of marine equipment to teams and individuals.

Mr Barnett says the event also has the potential to deliver further economic benefits to Auckland through the international profile it generated.

The report uses ‘reach’ as a proxy for television impact – while domestic television viewing of the regatta was relatively low, internationally the daily highlights packages achieved 340 hours of air time over 30 channels in more than 100 countries, and reached more than 600 million viewers.

When you add all these things together the event was clearly a fantastic success for Auckland and we would obviously relish the opportunity to host it again.

He says the success of the Louis Vuitton Pacific Series highlights the value of major events to Auckland’s economy, even in the most challenging of times.

‘AucklandPlus has been focussing on what is needed to position Auckland as a major events destination. We need a regional approach to major events in order to secure the right type of events and build a strong portfolio of major events for Auckland.’