Auckland’s Major Events Strategy

Developing Auckland as a global events destination and using that to drive local and national growth has become vital. I believe major events will play a pivotal role in helping Auckland achieve its long-term economic and social aspirations.

Equally important, this well-researched strategy promotes Auckland to the world. It is about Auckland being globally competitive and confirms that major events help create global networking opportunities for a variety of local businesses, increase visitation to Auckland and provide the opportunity to showcase a variety of industries in Auckland.

My vision is to transform Auckland into the world’s most liveable city. Events not only attract visitors from beyond our borders and help grow the economy, they also bring to Auckland the excitement, culture and entertainment that Aucklanders want in their region. This strategy is an important step in making

this vision a reality. I look forward to working alongside the exciting events industry to make Auckland a truly global city.

Len Brown Mayor of Auckland

opportunity to showcase a variety of

I am impressed by this strategy – a first of its kind for Auckland – and the opportunity that it represents not just for the region, but also for the country.

Message from the Mayor

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ContentsMessage from the Mayor 03

Foreword 05

Auckland’s future 06 The country’s prosperity

The opportunity 07

Events in Auckland 08

The role of the public sector 10

Global scan 12

Fresh thinking 13

A portfolio approach to events 14

Classification system for events 16

Strategic framework 17

Anchor events 18

Summary of current situation 19

Target outcomes for Auckland’s 20 major events portfolio

Roadmap for success 24

Plan for success 25

Invest for success 25

Measure for success 25

Get organised for success 26

Profile Auckland for success 26

ForewordAuckland is poised to become a global events destination and thus to drive the economic growth of the region and the country.

The Board of Auckland Tourism, Events and Economic Development (ATEED) welcomes the opportunity to provide Auckland Council and the region with a blueprint to help achieve this ambition.

With Auckland rapidly gaining international stature and recognition – through our hosting of a large section of Rugby World Cup 2011, quickly followed by the Volvo Ocean Race Stopover in March 2012 – the potential benefits of major events to a city and region are becoming clear. Underpinning visitor economy growth and the region’s transformation into the world’s most liveable city, major events represent a key enabler, not only of our local and national economy, but also of the social and cultural development of Auckland.

The establishment of this strategy to guide future major events selection and development represents an important milestone, as it is the first region-wide cohesive Auckland events strategy.

Our comprehensive research has validated that major events can help provide a means to realise Auckland’s vision and drive the right outcomes, within the context of our region and nation. This includes the global networking opportunities for local businesses that major events consistently deliver back to regional and national economies.

The Board is thrilled to be able to deliver this strategy in support of our mission, and we look forward to working with all of our events industry partners to put the strategy into action.

David McConnell, ATEED Board ChairmanDavid McConnell, David McConnell,

Semi final Damiani Italia Challenge (ITA) v Oracle BMW racing (USA) © Paul Todd/outsideimages.co.nz/Louis Vuitton Pacific Series 2009 54

Auckland’s future The country’s prosperityIt is increasingly recognised regionally and nationally that developing the prosperity of Auckland will trigger a chain reaction that can advance the prosperity of New Zealand. Auckland must, as ever, plan its development and progress in a disciplined and rigorous way. Whilst accepting the role as linchpin in the country’s economy, Auckland must balance this responsibility with due commitment to time and public money.

Auckland has identified the visitor economy as being critical to the economic success of the country and major events are one of the core pillars of this visitor economy.

This strategy sets out a plan for determining the types of major events that are right for Auckland now and in the future, that have the potential to stimulate powerful outcomes for the region.

It applies primarily to major events requiring public sector intervention, and expressly excludes:

» privately funded events » local and community events managed by Auckland Council and its Local Boards

» business events.

However, the strategy must be implemented within the context of the wider event landscape. The principles and frameworks developed within this strategy can be extended to the wider event population at a later date, if required.

The opportunityMajor events can play a key role in helping cities achieve their long-term economic and social aspirations. This has been recognised by many successful cities around the world. The four main benefit streams associated with events are:

» immediate economic benefits » city branding » social wellbeing » legacy benefits.

Immediate economic benefits

Events can deliver immediate economic benefits by bringing new money into the economy. This can occur through two distinct channels:

1. The event sources some of its income from outside the region and spends it in the region to deliver the event. This results in additional business-to-business expenditure.

2. The event attracts visitors who spend money in the region. This results in additional consumer-to-business expenditure in the economy.

City branding

Hosting major events can have a significant impact on a city and its image, and can be a cost-effective means of promoting the city’s brand to a wide audience of potential visitors, investors and immigrants.

Social wellbeing

As well as their short-term benefits, events make cities more vibrant and interesting places to live, bringing people and communities together and giving them a sense of identity and belonging.

Legacy benefits

Elevating the host’s global stature and accelerating its economic and social development, major events can be a significant catalyst for change.

Cities have used major events to give focus to their priorities such as fast-tracking city infrastructure or developing long-term business and trade connections.

This strategy sets out a plan for determining the types of major events that are right for Auckland now and in the future, that have the potential to stimulate powerful outcomes for the region.

There are a number of funders that support Auckland’s broader events programme. The focus of this strategy is on major events that ATEED delivers.

Major events Regional events Local events

ATEED Auckland Council (Governing Body) Auckland Council (Local Boards)

Events of national or international interest Events that are pivotal to Auckland’s brand Can deliver economic and/or social outcomes

Events that attract regional visitation or participation

Deliver primarily social outcomes

Events that are driven by and supported by local communities

Deliver primarily social outcomes in a local area

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Auckland’s future The country’s prosperity

2011 Rugby World Cup 2011

2011 ITU Triathlon World Cup

2011/12 Volvo Ocean Race

2012 ITU World Triathlon Championships

2012 World Rally Championship

2013 World BMX Championships

2013 World Softball Championships

2015 ICC Cricket World Cup

2015 FIFA U-20 Men’s World CupConFIRMED MAjoR EvEnTS poRTFoLIo In ThE nExT Two To ThREE yEARS InCLuDE:

A new AucklandAuckland has a rich major events heritage, having successfully hosted a number of high-profile international events over the past two decades that have delivered significant social, economic and legacy benefits for the region. The city and region are now poised to take the next step.

Auckland’s reputation as a major event city was tarnished in the early 2000s due to a relatively thin major events calendar and the loss of some high profile events to other cities.

However, since 2007 there has been a resurgence in major event activity, with Auckland more aggressively bidding for and securing one-off major events and also increasing capability, co-ordination and resource in preparation for Rugby World Cup 2011.

This resurgence has occurred despite the region’s fragmented approach to event attraction and delivery prior to the amalgamation of Auckland’s unitary authorities in November 2010.

Auckland Council has articulated a vision with major events as a priority goal. Within Auckland Council’s new framework of government, Auckland Tourism, Events and Economic Development Ltd (ATEED) is the entity that has been established to help Auckland achieve its economic potential, supporting both a regional and national growth aspiration.

The recent changes in local governance give Auckland the opportunity to advance this goal and the formation of ATEED marks an exciting step change – it is a first for New Zealand and a first for Australasia. Equally important, this Major Events Strategy presents the first step towards realising Auckland’s ambition to be a global events city.

The frameworks and techniques within this strategy are based on considered thinking and evaluation from subject experts and have been peer-reviewed by those in public and private sectors, both locally and internationally.

Auckland has an ambitious major events portfolio - RWC 2011 is just the beginning.

Auckland Arts Festival

Auckland Marathon

new Zealand Fashion week

Lantern Festival

pasifika FestivalSoME ExAMpLES oF REguLAR MAjoR EvEnTS InCLuDE:

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An event may generate region-wide benefits that exceed the cost of running it. But it could still fail to be commercially viable if the operator does not secure enough of those benefits to gain a return on investment. So however worthwhile in the wider sense, such an event will fail to find support from the private sector.

This is why a major events portfolio requires public sector investment. But how much? Australian cities offer interesting comparisons, though the following figures often reflect funding between local, state and federal agencies. Nevertheless, there are huge disparities. Auckland’s budget is less than a third of South Australia, despite the similarity between their population sizes.

These are funds allocated to annual event programmes. Funding for one-off events, in particular mega events such as the Olympic Games or Rugby World Cup, fall outside of operating budgets.

Funding is only one part of the public sector’s role. Auckland must be ‘event-friendly’ and easy to do business with.

Also required is an event-friendly approach to infrastructure (e.g. provision of venues, tourism and transport) and regulatory processes (to avoid red tape and facilitate gaining approvals).

public sector funding levels for events

Baseline funding $nZ million Resident population Funding per capita

($nZ)

Victoria $71.6 5.55 million $12.91

Queensland $18.9 4.52 million $4.18

New South Wales $51.1 7.24 million $7.06

South Australia $19.1 1.64 million $11.66

Wellington $6.0 0.49 million $12.27

Auckland $6.0 1.49 million $4.03

*Note: Funding amounts as at June 2011.

Major events must not just be a priority of the events agency but of the broader city, with co-operation between the Council, local boards, transport agencies and venues.

The role of the public sectorNot all events are commercially viable on a stand-alone basis, even if they generate region-wide benefits that exceed the cost of running the event.

Auckland’s future The country’s prosperity

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A review of seven comparable cities – Toronto, Sydney, Melbourne, Barcelona, Cape Town, Glasgow, and Torino – revealed some common themes.

onEThey recognise the strategic importance of major events and plan, and invest accordingly.

FouRThey use distinctive major events to promote and enhance their brand.

TwoThey recognise the importance of balancing social objectives with economic outcomes.

FIvE They host a range of events that are common across cities e.g. major sports events, international film festivals, gay and lesbian festivals, visual and performing arts festivals, international comedy festivals and food festivals.

ThREEThey view mega events as opportunities to transform their social and economic status.

SIxThey build their event programmes around between five and ten ‘anchor events’.

This strategy highlights the challenge Auckland faces in creating a step-change in the performance of its major event programme – it is competing with other like-minded cities for major events, many of which are better resourced than Auckland and can provide a more compelling commercial proposition. Auckland will therefore need to adopt a more innovative approach to events than other cities if it wants to develop a competitive advantage.

Fresh thinkingThe benefits of an enhanced events economy extend well beyond the immediate social and economic impacts – the bigger picture is an exciting, globally connected city, internationally relevant and therefore with a competitive advantage in retaining and attracting talented people. In the long-term this will lead to higher quality of life and a more productive and prosperous economy. These outcomes are encapsulated in the following vision statement for Auckland’s events portfolio:

The outcomes delivered by events can be broadly classified as either productive or consumptive. Productive outcomes result in greater economic activity, while consumptive outcomes result in greater social and cultural wellbeing.

Events are a cornerstone of the visitor economy and make Auckland a highly desirable place to live and work. Auckland has a portfolio of exciting, distinctive events that make its people proud of who they are and where they live. It understands the positive social and economic outcomes events can deliver, and their impacts on quality of life.

Given the positive link between social wellbeing and long-term economic growth, Auckland needs to strike a careful balance between productive events that result in greater economic activity, and consumptive events that make Auckland a more exciting and attractive place to live.

Events that can deliver both simultaneously are highly desirable (e.g. Rugby World Cup 2011).

Global scan

Auckland’s future The country’s prosperity

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FReSh ThINkING

AttributesThe attributes (characteristics) of individual events are also important because they can have a material impact on the value of the portfolio. The overall performance of the event portfolio therefore depends on both the outcomes and attributes of the events within it; hence careful consideration must be given to each dimension.

1. Extent to which the event is ‘distinctively Auckland’

2. Origin of event

3. Event frequency

4. Time of year

5. Extent to which the event can be used to develop local industries

6. Potential for the event to generate long-term legacy benefits

A portfolio approach to eventsBoth one-off and regular events are currently evaluated based on their individual merits with little consideration given to the outcomes delivered by other events in the programme. This approach has worked reasonably well for Auckland in the past, but now requires a higher level of master planning that would be expected from a global events city. The risks of not working to a master plan include:

» the possibility of competition between events in the programme (e.g. two events held at the same time of the year that compete for participation and sponsorship dollars)

» a lack of balance between the productive and consumptive outcomes delivered by the programme

» losing sight of the outcomes the event programme should be achieving for Auckland.

These risks can be mitigated by focusing less on the stand-alone outcomes of an event, and more on how the outcomes of a single event combine with those of other events. This means ‘ticking all the boxes’ at the programme level, rather than requiring each event to ‘tick all the boxes’ on a stand-alone basis.

This can be referred to as a portfolio approach to events. Auckland needs to take a portfolio approach to events. To invest optimally in events, Auckland needs to be clear on the outcomes the portfolio should deliver for Auckland, and how they should be measured. These outcomes should be guided by the Council’s vision for Auckland.

Outcomes Auckland has determined four key outcomes for its events portfolio:1. Expand Auckland’s economy - inject new money into Auckland and/or minimise leakage out of Auckland - this would be demonstrated by a high Return on Regional Investment (RORI).

2. grow visitor nights in Auckland - attract domestic and international visitors to Auckland and encourage them to extend their stay.

3. Enhance Auckland’s liveability - make people proud of who they are and where they live by making Auckland more interesting and exciting.

4. Increase Auckland’s international exposure - use events as a platform for promoting Auckland’s people, places and way of life to the world.

In practice this means thinking about the event programme as an investment portfolio, the value of which is the sum total of the events within it.

Return on Regional Investment

This strategy advocates the use of a new measurement and evaluation methodology developed specifically for Auckland called return on regional investment (RORI).

RORI is a useful tool for making investment decisions, as well as measuring and evaluating outcomes and attributes - including those delivered by a major event. Because ATEED is investing in events on behalf of the region, it is appropriate to assess major event return on investment at a regional level.

RORI is calculated as the Gross Domestic Product (GDP) impact caused by the event (the return), divided by the amount of money sourced from Auckland to run the event (the investment). All sources of event income should be considered, including local and central government funding, private sector sponsorship and sales of tickets to local residents and businesses.

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Return on Regional Investment (RORI)

Money from outside Auckland

Total regional event Total regional event investmentinvestment

True netTrue netbenefitbenefit

Money from outside Auckland

Total regional event investment

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FReSh ThINkING

Classification system for eventsA key part of the strategy process has been the development of a simple event classification system that can be used to understand the strengths and weaknesses of Auckland’s current major events portfolio. The framework segments the event portfolio across two dimensions: geographic reach (international to local); and scale (large to small).

This segmentation provides a useful framework for describing and analysing a portfolio of events, and can be represented in a simple tabular format as shown below.

On average, economic benefits are likely to grow in an upwards and leftwards direction in the matrix, which have social and community outcomes to the right.

The purpose of this framework is not to strictly or prescriptively order events on the basis of economic impact, but rather to organise them into broad classes that are relevant at a strategic level.

TIER A TIER B TIER C TIER D

Recognised international event; or 2,000+ international nights; or Strong export focus

High international media coverage

Not Tier A; and National showcase event; or 10%+ of

attendees are visitors; or More than 2,000 visitor nights

Not a Tier A or B event; and Mainly Auckland residents; and Regional showcase event; or

<80% local participants

Not a Tier A, B or C event

LEvEL 1 >50,000 visitor nights >50,000 attendees >50,000 attendees >25,000 attendees

LEvEL 2 10,000 - 50,000 visitor nights

10,000 - 50,000 attendees

10,000 - 50,000 attendees

5,000 - 25,000 attendees

LEvEL 3 <10,000 visitor nights <10,000 attendees <10,000 attendees <5,000 attendees

Event classification matrix

Smal

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Productive International

Consumptive Local

Strategic frameworkThe event classification matrix can be simplified into the following quadrants:

» mega events – A1 » economic events – A2 and A3 » major social events – B1 and C1 » niche events – B2, B3, C2, and C3 » local events – all Tier D events » anchor events (please see details on page 18)

Simplified event classification matrix

TIER A TIER B TIER C TIER D

LEvEL 1 Mega eventsMajor social events

Local eventsLEvEL 2

Economic events*Niche events

LEvEL 3

*Economic events also have the ability to deliver social and community outcomes.

Major social anchors

Economic anchors

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FReSh ThINkING

Anchor eventsAnchor events are the social and economic pillars of a city’s event portfolio. They are typically large, regular events with distinctive qualities that cities become known for. It is important to distinguish between social anchors – events that generate significant social capital; and economic anchors – events that attract new money into the economy.

Summary of current situationAll anchor events (both social and economic) must have the following properties:

» be distinctively Auckland i.e. they must be consistent with Auckland’s brand, or inform the brand

» be regular (ideally annual) » have mass appeal.

In addition, a social anchor must involve at least 200,000 people (participants and spectators), but is not subject to any economic thresholds. Social anchors will generally be large B1 or C1 events due to their scale, and will therefore have strong consumptive properties. These events will play a key role in enhancing quality of life and make Auckland a more attractive place for talented people to live.

To be an economic anchor an event must generate an immediate Return on Regional Investment (RORI) of at least NZ$5 million. Economic anchors will almost invariably be Tier A events due to the required RORI. Some economic anchors will also deliver significant social benefits (e.g. Australia’s Melbourne Cup and Boxing Day cricket test), but it will be rare for social anchors to deliver significant economic benefits.

Auckland has a good portfolio of major social events, including many of the types of events a global city would be expected to host. Pasifika and Lantern festivals are currently the only major social events that are large enough, and distinctive enough, to be considered social anchors.

Auckland’s current investment in major social events is adequate but not excessive. It would not be feasible to reduce investment in these events without undermining the social benefits they deliver.

Over recent years Auckland has done well to attract one off economic events, for example the 2012 Volvo Ocean Race. This proactive approach must continue.

Auckland’s current investment in regular Tier A events is inadequate. Auckland only has four regular major economic events and whilst these are important pillars of Auckland’s portfolio, none currently generate sufficient returns to be considered economic anchors.

Only one third of the regular events Auckland invests in are currently major social or major economic events – the remainder are niche and local events.

Applying this new framework to Auckland’s current major events programme highlights the following strengths and weaknesses:

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FReSh ThINkING

Auckland must have a major events portfolio that delivers on all four outcomes:

» expand Auckland’s economy » grow visitor nights in Auckland » enhance Auckland’s liveability » increase international exposure for Auckland.

This will require a shift in the current approach, investment levels and effort to ensure a greater focus on developing events with productive outcomes, whilst also maintaining the strong performance of the current portfolio across consumptive outcomes.

The required step change is indicated on the figure opposite.

Target outcomes for Auckland’s major events portfolio

Auckland’s current portfolio demonstrates strong performance against consumptive / social outcomes but requires a step change to meet productive economic outcomes. So while Auckland is doing well against one of the four outcomes, a continued focus is needed to achieve the three economic-facing objectives and deliver a balanced portfolio.

Current and future performance of the Auckland Major events PortfolioCurrent and future performance of the Auckland Major events Portfolio

GROWTh IN VISITOR NIGhTS

eCONOMIC GROWTh (RORI)

INCReASe IN INTeRNATIONAL eXPOSURe

CURReNT PORTFOLIO

FUTURe (balanced)

PORTFOLIO

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20 21

FReSh ThINkING

ouTCoME KpI 2010/11 2012/13 2020/21

Expand Auckland’s economy RORI $14 million $30 million $80 million

Grow visitor nights in Auckland Visitor nights 55,000 95,000 250,000

Enhance Auckland’s liveability

Local attendance 1.2 million 1.38 million 2 million

Local enjoyment n/a Average of 8.5/10 across entire portfolio

Average of 8.5/10 across entire portfolio

Local pride in Auckland n/a Average of 8/10 across

Aucklanders surveyedAverage of 8/10 across Aucklanders surveyed

Increase Auckland’s international exposure

International media exposure

0 regular events with high levels of

international media exposure

1 regular event with high levels of

international media exposure

4+ regular events with high levels of

international media exposure

Anchor eventsSocial anchors 2 3 4

Economic anchors 0 1 4

The Major events Strategy has determined that the events in ATeeD’s event portfolio should deliver the following outcomes by 2021:

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Invest for successPlan for success: redesign Auckland’s major events portfolioAuckland, via ATEED, must immediately redesign its major events portfolio. There are three key elements to this redesign:

» identify and develop anchor events for Auckland

» aggressively pursue Tier A and mega-events » review ATEED’s investment in niche events

The identification and development of four economic and four social anchor events is pivotal to Auckland’s success as a major events city.

These events must be ‘distinctively Auckland’ and will directly support and/or inform the Auckland brand. Auckland will become locally, nationally and internationally famous for these events.

Roadmap for successAuckland has an opportunity to build a portfolio of exciting, distinctive events that increase civic pride and enhance social and economic wellbeing. The Major events Strategy has determined that the following actions are required to transform Auckland into a legitimate global events city:

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Plan for success

Invest for success

Measure for success

Get organised for success

Profile Auckland for success

expand Auckland’s economy

Grow visitor nights in Auckland

enhance Auckland’s liveability

Increase Auckland’s international exposure

Industry development

Legacy

Measure for successGood information is required to make good investment decisions. Auckland must develop a consistent and systematic approach to event evaluation in order to measure the outcomes generated by the events it invests in.The evaluation framework will be used to assess the outcomes delivered by individual events, as well as the overall portfolio. It will be important to monitor the outcomes delivered by the entire portfolio over time to ensure that ATEED is achieving an acceptable social and economic return on its investment in major events.

ACTIon: Aggressively pursue and secure Tier A (economic) events for Auckland

ACTIon: Review and develop niche events

ACTIon: Secure an appropriate ‘Major Events Fund’ for major events

ACTIon: Support the investigation of future funding mechanisms for tourism and major events

ACTIon: Identify and develop four economic and four social anchor events for Auckland

ACTIon: Develop a consistent and systematic approach to event measurement and evaluation

ACTIon: Implement the use of Return on Regional Investment (RORI) as the preferred economic impact methodology.

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ROADMAP FOR SUCCeSS

AuCKLAnD’S Co-oRDInATED MAjoR EvEnTS SuppoRT nETwoRK

A robust network comes together to support the planning and delivery of major events within the Auckland region.

Drawing together a collection of skills and support from key partners, this network ensures that major events in Auckland are supported at every stage of the process.

Get organised for successTo successfully enhance itself as an ‘event-friendly’ city, Auckland must:

» take a region-wide, co-ordinated approach in planning for and delivering major events

» ensure that major events and their associated benefits are acknowledged and supported by all public agencies across Auckland

» ensure that ATEED, as the lead major events agency, has capable, credible and experienced human resources aligned to the needs of the Major Events Strategy.

Profile Auckland for successGrowing Auckland’s visitor economy is pivotal to achieving Auckland’s wider economic aspirations. Investment in domestic and international promotion of major events must increase to capitalise on an enhanced major event programme.

ACTIon: Establish a Major Events Stakeholder Forum

ACTIon: Establish a Major Events Protocol

ACTIon: Advocate for major events in regulatory change and infrastructure provision

ACTIon: Establish an agreed framework for major event partnerships with central government

ACTIon: Support capability building in the national events sector

ACTIon: Enhance domestic and international marketing of Auckland’s major events

ACTIon: Develop and implement a global event attraction marketing plan

ACTIon: Clearly articulate the benefits of major events to Auckland residents and ratepayers

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ATEED » Event delivery » Event promotion » Sponsors assistance » Tourism promotion » Visitor experience

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engagementREgIonAL FACILITIES

» Provision of venues

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» Traffic management » Transport services

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» Provision of venues and waterfront spaces

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