 
Executive Summary
Scope
This study examines the economic impact of the build-up to the 2003
America's Cup Defence.
The 2000 event provided a significant boost to the Auckland and New
Zealand economies, from expenditure by syndicates, organisers, sponsors,
super-yachts, tourists, and government, and the 2003 America's Cup Defence
is also expected to have a considerable economic impact. The build-up to
the Louis Vuitton Cup challenger series and Defence began in 2000, with
syndicate activity centred on Auckland's Viaduct Harbour, generating
substantial demand for goods and services from Auckland businesses in the
marine, accommodation, construction, hospitality, and transport sectors.
The economic impacts for the 2001/2002 year, and total 2000-2002 period,
have been measured in terms of value added ($m) and employment sustained
(FTE years). These impacts are based on net additional expenditure in the
Auckland and New Zealand economies, which has been analysed through an
input-output economic model, to identify the direct and total effects.
Impacts 2001/2002
This syndicate and related activity brought an estimated $62m of
additional expenditure to the New Zealand economy, with the major share
($60m) being spent in Auckland. This expenditure generated $22m of direct
value added, and $46m of total value added in the Auckland economy, and
sustained 1,110 FTEs of employment in the 2001/2002 period. Total impacts
over the 2000-2002 period are estimated at $55m in total value added for
the Auckland economy, and 1,320 FTE years of employment.
While most of the expenditure was directed to Auckland, at the national
level the $62m direct expenditure generated $55m of total value added, and
sustained 1,240 FTE years in 2001/2002. Total national impacts over the
2000-2002 period, from $73m of additional expenditure, are estimated at
$65m in total value added, and 1,470 FTE years of employment.
Sectors
The main sectors to benefit from the syndicate and related activity have
been the construction sector (expenditure on expanding syndicate bases),
the commercial accommodation and hospitality sector (housing and catering
for syndicate crews), marine services (maintenance, repairs of yacht
equipment and sails), retail and entertainment (from expenditure by crews
and families), and transport (especially international air travel).
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