Major events investment benefits NZ – report

Economic Development Minister Steven Joyce has welcomed the findings of an economic analysis of the Government’s investment in major events.

The ‘Economic Evaluation Outcomes Meta-evaluation Report’ outlines the results of an approach modelled on a cost-benefit analysis methodology undertaken by the Ministry of Business, Innovation and Employment in 2012.

Eighteen events that received funding between February 2010 and April 2012 were evaluated including the New Zealand International Festival of the Arts 2010, World Rowing Championships 2010, Winter Games 2011, and the Volvo Ocean Race 2011-12 Auckland stop over. To protect the commercial nature of each event, individual events have not been identified in the report.

“This evaluation shows the Government’s investment in major events through the Major Events Development Fund is generating substantial net economic benefit to New Zealand,” Mr Joyce says.

“The Government’s investment of $7.2 million in 18 major events over 26 months collectively generated $32.1 million of net benefit for the country.

“Besides the immediate economic gain, the Government’s investment in major events generates significant long-term benefits. For example, the Volvo Ocean Race 2011-12 Auckland stop over increased employment and GDP receipts in the marine industry in Auckland, and the Winter Games 2011 has developed and maintained a 400-strong volunteer workforce since 2011, helping support the 2013 event.

“The Government is continuing to invest in major events that benefit New Zealand. Yesterday we announced a contribution of $5 million to co-host Cricket World Cup 2015 in New Zealand. This event provides an opportunity to attract more visitors to New Zealand and grow our tourism markets – particularly the huge Indian market. 

“As the evaluation report shows, nearly all events that delivered high returns also attracted a high number of international visitors. Besides increasing our tourism revenue, this leads to increased trade and business opportunities.”

The report is available at: www.majorevents.govt.nz