Decision on centre a long way off

Building a national convention centre in Auckland is viable but a decision on whether it will go ahead is still a long way off, according to the Ministry of Tourism.

The Government gave $250,000 to the ministry in May to scope out a 4000-seat convention centre and the department was expected to report back this month.

But ministry managing director Ray Salter said work on the planned cruise facilities for Queens Wharf had slowed the scoping work for the convention centre by a month.

"We have done a fair bit of work on updating the 2006 work done by the Committee for Auckland. But the Auckland office has been distracted by Queens Wharf."

Despite that Salter said that at this stage the national convention centre looked "viable" but it would depend on the number of big international conferences New Zealand could attract and the capital cost. "Otherwise there is definitely a market there," he said.

Research showed New Zealand was likely to be able to "punch above its weight" when it came to competing with Australia as New Zealand would have a single venue, unlike the Australians, who had many.

Salter said the ministry would now begin to look at site options and building type.

The 2006 report had suggested three size scenarios but Salter said further investigation had shown only the largest - capable of seating 4000 people - would be worth building.

He would not be drawn on the cost but initial estimates have previously put it at around $300 million to build the facility, with land additional.

The Government has already said the convention centre will not be ready in time for the Rugby World Cup.

But Salter said given the Government's fiscal position he did not expect a decision on whether it would go ahead any time soon.

"I can't see it happening fast - the Government entered into it when there was a better fiscal position."

He hoped a decision would be made before the end of next year.

The convention business at present attracts 70,000 people and spending of $250 million a year but there are hopes to grow it to $500 million by 2015.

Tourism Auckland believes a new convention centre would have the potential to bring between $75 million and $100 million into the New Zealand economy a year, of which $60 million would be spent in Auckland.

THE NUMBERS

* $250 million - Value of convention tourism to New Zealand economy.
* 70,000 - Number of people who come to New Zealand for conventions.
* $75 million-$100 million - What a new convention centre could be worth to the national economy each year.
* $300 million - Estimated cost of building a convention centre.