sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : America's Cup: Critics dealt body blow with Cup benefits to NZ
America's Cup: Critics dealt body blow with Cup benefits to NZ

'Oracle Team USA chases Emirates Team NZ - 2013 America’s Cup, San Francisco'    © Richard Gladwell    Click Here to view large photo

The 34th America’s Cup Regatta in San Francisco delivered a range of direct and indirect benefits for the New Zealand economy, according to two evaluation reports released on Thursday (NZT).

Economic Development Minister Steven Joyce released both an independent evaluation of the Government’s investment in Emirates Team New Zealand and an evaluation of New Zealand Trade and Enterprise’s (NZTE) leveraging programme in San Francisco.

We also present an audio interview with an economist commenting of the accuracy of the reports.

'The economic benefit from our investment in Team New Zealand is considerable. From a $36 million taxpayer investment, the evaluation shows an estimated positive impact of $87 million to the New Zealand economy,' Mr Joyce says.

Team New Zealand obtained 66 per cent ($118.3 million) of their total revenue of $179.8 million from international sources. Team New Zealand needed to source at least $2 for every $1 of Government support and exceeded that with $3.68 secured for every $1.

In total $153 million or 85 per cent of the total campaign budget was spent in New Zealand.

Emirates Team New Zealand welcome home event in Auckland. Minister of Economic development Steven Joyce announces the governments support for the team to continue on to AC35. 4/10/2013 -  Chris Cameron-ETNZ©   Click Here to view large photo
Commenting on the reports , economic lecturer Dr Eric Crampton of the University of Canterbury, and author of the 'Offsetting Behavior' blog, said that he had had a brief look at the reports and they were more credible than most he had looked at. he noted that there was no multiplier effect in the reports - a device often used to inflate the economic impact in such report - through increased spending flowing into other parts of the economy.

The sponsorship money that was sourced from outside NZ amounted to $103million, was money that would not otherwise have been spent in New Zealand. 'It was net new spending that otherwise would not have happened.' A total of 710 people were directly engaged in the NZ boatbuilding industry as a result of this inflow, and a total 1234 estimated as the economic effect of having the boats built and other activities related.

'I have not seen huge obvious holes in it which I have seen in other reports of this kind,'Crampton said. 'I would more to the 710 direct jobs that were created, rather than the indirect ones.'

For the full interview on Radio New Zealand: click here - the comments from Dr Crampton start at 5.45sec

'One of the key benefits of the America’s Cup challenge was the lift it provided to New Zealand’s profile, particularly in North America over the period of the regatta,' Mr Joyce continued.

'With New Zealand continually in the international media over the 55 days of racing, figures show that the tourism, education and construction sectors, as well as the marine sector also felt the positive impact of government investment.

'The reports show that New Zealand agencies successfully leveraged participation in the races to improve international awareness of New Zealand as an innovative place to do business. The recreational marine industry also enhanced its ability to attract and retain highly skilled and professional workers, wanting to be involved New Zealand’s campaign.'

AC45 Construction at Core Builders composite - Warkworth (NZL) -  Ivor Wilkins-www.americascup.com©   Click Here to view large photo

The 212 companies that participated in the NZTE’s America’s Cup business leveraging programme also reported a range of benefits.

'New Zealand design, manufacturing, and technology were on display both on and off the water, and told a compelling story about who we are and what we can deliver. The audience reach of media coverage about New Zealand business was measured up to 86 million,' Mr Joyce says.

'Activity during the Cup has contributed to trade and investment deals so far worth $200 million for New Zealand and a further $120 million of new sales opportunities and investor interest.'

Following the regatta, the Government committed to an interim investment of $5 million to retain key team members for the next challenge. A decision on any further government investment will be made following the delivery of a business case by Team New Zealand to the Government.

'One of the things I have made clear to team representatives is that the Government must have confidence that a strengthened governance structure has been put in place before it will consider a further investment of taxpayers’ money in another challenge,' Mr Joyce says.

'I look forward to having the opportunity to evaluate progress in that regard.'

For more information on the America’s Cup evaluation report and NZTE’s leveraging programme evaluation visit: click here

First sailing day in the Hauraki Gulf, Auckland-NZ, for AC72 Luna Rossa: the italian challenger for the 34th Americ’s Cup In september 2013 in San Francisco. -  Carlo Borlenghi-Luna Rossa©  

Questions and Answers

How much Government funding was invested in Team New Zealand for the 2013 America’s Cup?

In May 2008, Emirates Team New Zealand (TNZ) and the New Zealand Government formed a Strategic Partnership Agreement, which required TNZ to raise at least $2 for every $1 of Government funding (capped at $36m), provided TNZ lodged a competitive challenge for the 34th America’s Cup.

What proportion of Team New Zealand income came from Government investment?
In total, TNZ raised $179.8 million. Government’s investment accounted for approximately 20 per cent of this.
The largest total source of funding came from overseas. This equated to $118 million or 66 per cent of the total income.

What was the total value added to the New Zealand economy by Team New Zealand?

Total value added to the New Zealand economy by Team New Zealand (EIA): $87 million.
Total value added by Team New Zealand and Luna Rossa combined (EIA): $106 million.

What was the additional employment generated by Team New Zealand?

Additional employment contributed by TNZ: 1,220.
Additional employment contributed by TNZ and Luna Rossa combined: 1,480.

What was the tax revenue generated by Team New Zealand?

Total tax revenue from TNZ: $38 – 40 million.
Total tax revenue from TNZ and Luna Rossa combined: $56 – 58 million.

Would these benefits have been achieved without Government’s investment?
The evaluation concludes that the positive economic benefits would not have occurred in New Zealand without the strategic partnership agreement between the Government and TNZ.

What was the purpose of NZTE’s business leveraging programme?

The programme was designed to successfully leverage New Zealand’s business, technology, food, wine, marine, aviation and tourism ties to the United States, and has helped forge meaningful business relationships for New Zealand companies.

During the programme, New Zealand companies and sectors hosted current and prospective clients, including a number of VIPs and High Net Worth Individuals, as part of deepening existing relationships and laying the foundation for future partnerships.

How much did NZTE invest in its leveraging programme around the America’s Cup?

The Government approved NZTE investing $3.9 million to support the America’s Cup Leveraging programme.

What were the results of the business leveraging programme?

Activity during the Cup has contributed to trade and investment deals worth $200 million for New Zealand and a further $120 million of new sales opportunities and investor interest.

What steps have been taken to ensure the independent nature of the evaluation of the strategic partnership agreement between Team New Zealand the Government?

Following a robust procurement process, Market Economics was appointed as the independent evaluator. They are a New Zealand research firm based in Auckland. Their work was peer reviewed by NZIER.

What investment has Government committed to Team New Zealand for the next America’s Cup?
Government has agreed to an interim investment of $5 million.

What is the purpose of this investment?

The interim investment will be used to retain key team members until a decision has been confirmed regarding TNZ involvement in the 35th America’s Cup.

Will Government invest further if Team New Zealand decides to enter the 35th America’s Cup?

A decision will be made following the receipt of a business case from Team New Zealand, along with the details of the 35th America’s Cup protocol.


by Sail-World


  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=120495

10:47 AM Fri 28 Mar 2014GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.

Click for further information on
2016-2017 America's Cup

Related News Stories:

27 Mar 2014  America's Cup: Five Emmy Award nominations for Video and Technology
21 Mar 2014  America's Cup: Loick Peyron talks about Artemis in San Francisco
20 Mar 2014  America's Cup: Artemis Racing training on San Francisco Bay + Video
20 Mar 2014  America's Cup: Oracle Team USA completes first session in Australia
15 Mar 2014  America's Cup: Images from Oracle Team USA training on Sydney Harbour
14 Mar 2014  America's Cup: Kiwi World Champion signs with Italians
14 Mar 2014  America's Cup: Rome Kirby: 'What we did was pretty cool'
13 Mar 2014  America's Cup: Loick Peyron re-signs with Sweden's Artemis Racing
12 Mar 2014  America's Cup: Australia versus USA on Sydney Harbour
12 Mar 2014  America's Cup: Larry on the Big Picture for AC35
MORE STORIES ...






News - USA and the World











































International Moth Worlds: Rashley ahead as Aussies close in by Mark Jardine / YachtsandYachting.com,




















International Moth Worlds - Mothballed on day 4 + Video by Mark Jardine / YachtsandYachting.com,




Gladwell's Line: A change of direction needed in the America's Cup *Feature
29er North American Championship - Day 1 in Kingston
Red Bull 49erFX: First look at the Olympic sailing venue at Rio
Fuerteventura Kiteboarding Grand Slam - Classic conditions on day 3
NYYC Race Week Part II images by Rolex/Daniel Forster
Drowning or electric shock? What you need to know to help save a life
BIC Techno 293 Worlds 2014 - Day 1
Six Metre European Championship - Blazing sunshine on opening day
National Sailing Hall of Fame to present Lifetime Achievement Award
International Moth Worlds: Greenhalgh and Rashley tied at the top
PWA Pozo World Cup - Fantastic finale determines winners
Six Metre Class British Open Championship - Llanoria and Valhalla win
Anna Tunnicliffe set to compete at the CrossFit Games
America's Cup: Oracle Team USA holds foiling camp at Wangi SC
Volvo Ocean Race: Abu Dhabi OR completes double Atlantic crossing
Volvo Ocean Race: Team SCA has a 'pull through day' off the Canaries
No tiller sailing - how to steer using just the sails + Video
International Moth Worlds: Three bullets in a row for Greenhalgh
U.S. Junior Women’s Singlehanded Championship - Sophia Reineke wins
BIC Techno 293 Worlds 2014 - Day 0 Opening
Fuerteventura World Cup - Slalom action highlights day 2   
2014 Governor's Cup - Sam Gilmour of RFBYC victorious again   
Farr 40 West Coast Champ - Skipper Alberto Rossi leads Enfant Terrible   
Flying Dutchman World Championships - Magyars are the Masters   
Final day shakes up standings at Cape Panwa Hotel Phuket Raceweek   
2014 -15 Volvo Ocean Race: Team Alvimedica pushing towards Southampton   
NYYC Race Week - Saving the best for last   
VX One North American Championship - Chris Alexander commands   
2014 Cape Panwa Hotel Phuket Raceweek - Waiting game on Day 3   
International Moth Worlds: Thunderstorms delay racing on Day 1   
Fuerteventura World Cup - Impressive tricks on day 1   
2014 Governor's Cup - Two former winners in the finals   
America's Cup: Iain Murray explains reasons for Australian withdrawal *Feature   
Wilson and Roble remain number one match racers in U.S.   
2014 ISAF Youth Match Racing World Championship - Set to start   
PWA Pozo World Cup - Moreno twins dominate home spot   
ISAF Youth Worlds - Record breaking regatta in Tavira + Video   
Melges 32 European Championship - Robertissima remains out front   
Farr 40 West Coast Championship - Italians take one-point lead   
Melges 32 European Championship - Day 3 images by Carlo Borlenghi   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News







Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL NEW US
LocalAds   DE  ES  FR  IT