Confirmation that Auckland is unable to proceed with a bid to host the 38th America’s Cup (AC38) in 2027 is a disappointing blow for the hospitality and accommodation sectors, and highlights the urgent need for sustainable, coordinated investment in events.
Hospitality New Zealand, Chief Executive Steve Armitage says large-scale events play a crucial role in supporting New Zealand’s economy, particularly for industries that rely on visitor spending.
In a statement, Team New Zealand said it’s “been exploring the possibility of hosting the 38th America’s Cup in the city, with the understanding it would take a combination of private backing, local government and central government support to make it happen, but not at the expense of funding other priorities in the tough economic climate”.
Team New Zealand said it’s disappointed but understands why the Government has made its decision.
“The team has had comfort in the level of private support and has been working with Tātaki Auckland Unlimited, who have been proactively spearheading the bid. So, it is with both disappointment and understanding to learn MBIE and Central Government have decided not to back the 38th America’s Cup in Auckland in 2027.
“While the significant economic benefits of hosting the America’s Cup and other major events are well proven, such as $1.9 billion of economic benefits in Barcelona in 2024, we understand there are other priorities for the New Zealand Government right now.”
Team New Zealand successfully defended their America’s Cup title in Barcelona last year.
Auckland Council’s Tātaki Auckland Unlimited (TAU) also released a statement confirming that Auckland won’t host Team New Zealand’s next defence of the Auld Mug.
Contingent On Three Way Funding
“The America’s Cup is a fantastic sporting event that provides significant benefits to the host city and country, so it is with great disappointment that Tātaki Auckland Unlimited (TAU) confirms that Auckland is unable to proceed with a bid to host the next America’s Cup 38 in 2027.
“Auckland’s bid was contingent on a three-way funding partnership between Auckland Council, Central Government and the private sector. MBIE has informed TAU that the government is unable provide the funds required and on that basis the bid cannot proceed.
“The TAU team has worked incredibly hard to try and make this opportunity work for Auckland; we already have the infrastructure and major events expertise in place and really wanted to be able to host our sailors on home waters.”
“Major events like the America’s Cup drive demand across the host city, from hotel bookings to restaurants, bars and cafés. The flow-on benefits touch almost every part of the hospitality sector, and so many other sectors.”
“Major events also often encourage people to travel to New Zealand and travel beyond the event location, generating economic benefits that are felt across the country.”
Consistent Approach Required
Hospitality NZ’s Steve Armitage says the AC38 announcement further reinforces the need for a consistent, nationwide approach to event and tourism funding.
“Hospitality NZ supports mechanisms like a bed tax in principle to fund events, but we are not in favour of piecemeal, region-by-region approaches that create confusion and inconsistency. We need to do it once, and do it right.”
“A national strategy is what’s needed to give councils, event organisers and businesses the certainty they need to plan and invest. Without that, our sector, and many others, continue to operate in an uncertain environment that undermines long-term recovery and growth.”
