Covid slashes cash haul for America’s Cup

The 36th America’s Cup in Auckland returned 79 cents for every dollar invested by the Government and the Auckland Council, a new study has shown.

The economic benefit assessment, produced by consultancy Fresh Info, said that nationwide a total of $744.2 million was invested publicly, but it generated revenue of just $588.1m.

The performance in the host city of Auckland was better, returning 85c in the public dollar, with $629.4m spent and $537.8m generated.

The extra economic activity generated nationwide in 2021 is smaller than 2000’s $640m revenue, but bigger than 2003’s $529m.

The formula used has some unusual features, including $92m of Auckland Council infrastructure that was not cup-specific.

The benefits also don’t include the value of overseas television and media coverage, which politicians put great store in during the regatta for showing Aotearoa as active during the Covid-19 global pandemic.

The pandemic ensured the event fell far short of providing the $600m to $1 billion expected boost to the New Zealand economy that was forecast in 2017 – a return of between 99.7c and $1.14 for every dollar invested. The biggest loss was the spending by visiting superyachts that largely remained absent, and with the absence of foreign cup-related tourists and overseas media and sponsors.

The analysis shows a far greater investment of $215m, by cohost the Auckland Council, than the $113m figure it had budgeted for cup-related infrastructure.

The report also included investment triggered by the event even if it was not directly related, such as the council’s $92m expenditure on work in areas redeveloped for the cup, that would save costly retrofitting later. The report said the figures were not directly comparable to previous forecasts because they included social, environmental and cultural benefits.