Cup a $71m injection

By JOHN ARMSTRONG

The build-up to this year's America's Cup has injected an extra $71 million into the Auckland economy and generated the equivalent of 1320 jobs, says a study done for the Ministry of Tourism.

The report by Market Economics estimates the economic benefits of the two-year build-up as being roughly double that of the last defence, after one-off construction costs are excluded.

That reflects the greater level of preparation by challenger syndicates this time.

"The strength of the Team New Zealand defence in 2000 meant that challengers had to accept that one-boat campaigns, or single-season build-ups, were unlikely to be successful," the report says.

"More substantial challenge campaigns have been developed, with larger budgets than in 2000, more expenditure on securing key personnel as well as yacht design and technology, and wider commitment to two-boat campaigns."

The substantial presence of defender and challenger syndicates in Auckland had meant a "significant impact" on the economy, with 430-500 challenger sailing and shore crew based in the city at peak times, says the report.

"In addition, the longer build-up period is believed to have resulted in more of the syndicate crews bringing family and friends to live in Auckland."

The main features of the spending outlined in the report are:

* Construction at Viaduct Harbour as syndicate bases have been upgraded and expanded, with total expenditure estimated at $8.1 million.

* Syndicate spending on accommodation and general living needs of sailing and shore crew-members, and travel to and from their homelands, estimated at $24.1 million.

* Syndicates' other expenditure on sailing activity and preparations, including some capital purchases (such as support vessels), running shore bases, operating and maintaining their practice yachts, and the limited presence of the super-yachts, estimated to total $27 million.

* Crews living and working in Auckland have also spent their own money, over and above the costs met for them from the syndicate budgets.

This includes some meals, entertainment, travel and shopping, plus the living costs of relatives and friends associated with the syndicates.

Most of this additional money, estimated at $73 million nationwide, has been spent in Auckland.


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