14 June 2004

Govt confirms trade and tourism investment

Minister for the America's Cup Trevor Mallard today confirmed the government's trade and tourism investment in Emirates Team New Zealand's challenge for the 2007 America's Cup, following research showing it will deliver significant spin-offs for New Zealand.

"Research to identify and quantify the benefits for New Zealand has been completed and we are satisfied that a substantial return on the $33.75 million investment will be made, as we leverage tourism and trade spin-offs from the European regattas," Trevor Mallard said.

"Increased economic activity from the Auckland-based build-up to the challenge is estimated at a minimum of $85.5 million, and tax revenue at between $18.9 million and $25.5 million. Significant global media exposure for New Zealand tourism and trade is also expected."

"Clearly there will also be potential benefits for New Zealand in the Middle Eastern market. The Auckland-based 2000 and 2003 regattas each generated about half a billion dollars for New Zealand. Ultimately, our hope is that Emirates Team New Zealand will win and bring the America's Cup back home, but regardless, the 2007 event will still deliver New Zealand tangible and valuable benefits.

"We now wish Emirates Team New Zealand well in the three years ahead and look forward to a competitive challenge that does New Zealand proud."

Tourism Minister Mark Burton said the government sponsorship of Emirates Team New Zealand for the challenge in Europe would provide a platform for New Zealand Trade & Enterprise and Tourism New Zealand to work in partnership with the team and its commercial sponsors.

"This is an ideal venture to promote New Zealand as a premiere destination for business, investment, and to our target tourism visitors in the lucrative European market. We will also be developing a strategy to take advantage of tourism opportunities for New Zealand from the Middle Eastern market. The regattas will also provide significant opportunity for New Zealand businesses to break into new markets offshore."

A copy of the research into the potential benefits of the 2007 challenge for New Zealand is available on www.tourism.govt.nz

ENDS

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