America's Cup Challenge 2007 - Economic Impact

Conclusions

The analysis shows that a Team New Zealand challenge based in New Zealand would have a significant impact on the regional and local economies.

The impact would arise from net additional expenditure, arising in part the Government-sourced funding, and in part from other NZ-sourced and overseas-sourced funding. The Government funding is considered to be a catalyst for securing other funding, such that the total impacts would be attributable to the Government funding decision.

There would be significant additional tax revenue generated as a result of the Team New Zealand activity, both from direct recovery of PAYE, GST and other tax revenues, and from the tax on the additional economic activity stimulated by the syndicate’s presence.

This would amount to between $18.9m and $25.5m, in comparison with the Government potential contribution of $33.75m (including GST). There would also be substantial positive impacts for regional and national economies, with total value added ranging between $35m and $53m over the period.

The total employment sustained would range between 540 and 830 FTEs, at the national level. The majority of the impact would accrue to the Auckland economy.