Conventions offer $80m boost

Alan Trotter says conventions can offset seasonal challenges for tourism. Photo / Kenny Rodger

A larger convention centre could boost foreign earnings by $80 million a year, an industry body says.

Multi-day conventions contributed $398 million to gross domestic product in the year to June, according to a survey for Conventions and Incentives, the Ministry of Economic Development, and Convention Bureaux New Zealand.

Conventions and Incentives chief executive Alan Trotter said the economy was getting a $112 million shot in the arm from international convention delegates.

"There is scope to grow this but it will only occur when a convention centre capable of competing for large international conferences is built," Trotter said.

The sector could make an additional $80 million a year of foreign exchange earnings with a larger centre, he said.

Currently conferences could handle about 2500 people "at a pinch" with the sector looking for a centre with capacity for about 4000 delegates.

Five groups have made expressions of interest - The Edge, ASB Showgrounds, Maori, Infratil and SkyCity.

The Ministry of Economic Development was due to report to the Cabinet soon, Trotter said.

"What I would suggest that the Ministry of Economic Development would do is get a short list of the five that goes to Cabinet and then further work will be needed to really have an in-depth study of all the applications in terms of the look, the feel, the design, the size and also how the people propose it to be funded."

Trotter hoped a decision would be made by the end of the year.

"We are agnostic in terms of where it is but what we want it to be as an industry is ... fit for purpose, appropriately sited and obviously the appropriate size," he said.

"I am absolutely confident [there will be a centre] given the contribution from the convention sector, given its potential and given the fact the convention industry is one of the few, in fact probably the only sector of tourism that can offset seasonality challenges."

August and September were the biggest months for convention activity.

"I think the Government [is] backing winners and I think in terms of tourism they recognise that the convention sector is a real winner when it comes to all forms of international tourism."

Roger Wigglesworth, a director in the Ministry of Economic Development, said "multi-day conventions" provided a significant economic contribution to New Zealand.

"It is something we've always believed," Wigglesworth said. "This new survey gives us robust data to back that hunch."

Conventions could also bring other economic benefits such as the transfer of new ideas, business investment and export opportunities, he said.

Trotter said the study strengthened the argument for a larger centre.

"Why are we turning away some of the highest-spending visitors from international markets in the middle of winter when we need them, why aren't we encouraging them?" he said."I think logic must dictate that it will happen."

Find out more
www.tourismresearch.govt.nz/cds