Auckland's Major Event Strategy


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The 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.

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Auckland's Major Event Strategy

  1. 1. Auckland’s Major Events Strategy
  2. 2. Message from the Mayor 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. 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 wellresearched 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. 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 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 2 3
  3. 3. Contents Message from the Mayor 03 Foreword 05 Auckland’s future The country’s prosperity 06 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 major events portfolio 20 Roadmap for success 24 Plan for success Invest for success 25 Measure for success 25 Get organised for success 26 Profile Auckland for success 4 25 26 Semi final Damiani Italia Challenge (ITA) v Oracle BMW racing (USA) © Paul Todd/ Vuitton Pacific Series 2009 Foreword Auckland 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. 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 Chairman 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. 5
  4. 4. 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 Auckland’s future The country’s prosperity It 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. 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. 6 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 Events that are driven by and supported by local communities Deliver primarily social outcomes Deliver primarily social outcomes in a local area The opportunity Major 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: 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. » immediate economic benefits » city branding Social wellbeing » social wellbeing » legacy benefits. 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. 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-tobusiness expenditure. 2. The event attracts visitors who spend money in the region. This results in additional consumer-tobusiness expenditure in the economy. 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. 7
  5. 5. Auckland’s future The country’s prosperity A new Auckland Auckland 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. ConFIRMED MAjoR EvEnTS poRTFoLIo In ThE nExT Two To ThREE yEARS InCLuDE: 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. 2015 FIFA U-20 Men’s World Cup 2015 ICC Cricket World Cup 2013 World Softball Championships 2013 World BMX Championships 2012 World Rally Championship 2012 ITU World Triathlon Championships 2011/12 2011 ITU Triathlon World Cup 2011 SoME ExAMpLES oF REguLAR MAjoR EvEnTS InCLuDE: Volvo Ocean Race Rugby World Cup 2011 pasifika Festival Lantern Festival new Zealand Fashion week Auckland Marathon Auckland Arts Festival 8 9
  6. 6. Auckland’s future The country’s prosperity The role of the public sector Not all events are commercially viable on a stand-alone basis, even if they generate regionwide benefits that exceed the cost of running the event. 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. 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. 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). 10 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. 11
  7. 7. Auckland’s future The country’s prosperity Global scan A review of seven comparable cities – Toronto, Sydney, Melbourne, Barcelona, Cape Town, Glasgow, and Torino – revealed some common themes. onE Two ThREE They recognise the strategic importance of major events and plan, and invest accordingly. They recognise the importance of balancing social objectives with economic outcomes. They view mega events as opportunities to transform their social and economic status. FouR FIvE SIx They use distinctive major events to promote and enhance their brand. 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. They 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. 12 Fresh thinking The 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: 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). 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. 13
  8. 8. FReSh ThINkING A portfolio approach to events Both 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. 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. 14 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: Attributes Return on Regional Investment The 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 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. 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. Return on Regional Investment (RORI) Money from outside Auckland Total regional event investment True net benefit 4. Increase Auckland’s international exposure - use events as a platform for promoting Auckland’s people, places and way of life to the world. 15
  9. 9. FReSh ThINkING Classification system for events Strategic framework A 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). The event classification matrix can be simplified into the following quadrants: 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. Event classification matrix 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) Consumptive Local TIER A TIER B TIER C 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 LEvEL 1 >50,000 visitor nights >50,000 attendees >50,000 attendees >25,000 attendees 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 TIER A Not a Tier A, B or C event LEvEL 2 Large » Simplified event classification matrix Productive International Small mega events – A1 » 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 D LEvEL 1 Mega events TIER B TIER C TIER D Major social events Major social anchors LEvEL 2 Local events Economic events* Economic anchors Niche events LEvEL 3 *Economic events also have the ability to deliver social and community outcomes. 16 17
  10. 10. FReSh ThINkING Anchor events Anchor 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. All 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. Summary of current situation Applying this new framework to Auckland’s current major events programme highlights the following strengths and weaknesses: 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. 18 19
  11. 11. FReSh ThINkING » expand Auckland’s economy » grow visitor nights in Auckland » enhance Auckland’s liveability » increase international exposure for Auckland. eCONOMIC GROWTh (RORI) M ES nSu GROWTh IN VISITOR NIGhTS vE ouTCo eNhANCe AUCkLAND’S LIVeABILITy D u CTI M p T I v E o u TCo M p Ro 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. ES 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. 20 Current and future performance of the Auckland Major events Portfolio Co Target outcomes for Auckland’s major events portfolio Auckland must have a major events portfolio that delivers on all four outcomes: CURReNT PORTFOLIO FUTURe (balanced) PORTFOLIO INCReASe IN INTeRNATIONAL eXPOSURe 21
  12. 12. FReSh ThINkING The Major events Strategy has determined that the events in ATeeD’s event portfolio should deliver the following outcomes by 2021: 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 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 surveyed Average of 8/10 across Aucklanders surveyed 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 Social anchors 2 3 4 Economic anchors 0 1 4 Enhance Auckland’s liveability Increase Auckland’s international exposure Annah Stretton Air New Zealand Fashion Week 2008, © Michael Ng ouTCoME Anchor events 22 23
  13. 13. Roadmap for success Plan for success: redesign Auckland’s major events portfolio Auckland, via ATEED, must immediately redesign its major events portfolio. There are three key elements to this redesign: » Auckland 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: Invest for success Measure for success Get organised for success Grow visitor nights in Auckland enhance Auckland’s liveability Increase Auckland’s international exposure » 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. ACTIon: Identify and develop four economic and four social anchor events for Auckland Industry development Profile Auckland for success 24 expand Auckland’s economy World’s most liveable city Auckland’s Major events Strategy Plan for success identify and develop anchor events for Auckland ACTIon: Aggressively pursue and secure Tier A (economic) events for Auckland Legacy ACTIon: Review and develop niche events Invest for success ACTIon: Secure an appropriate ‘Major Events Fund’ for major events ACTIon: Support the investigation of future funding mechanisms for tourism and major events Measure for success Good 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: 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. 25
  14. 14. ROADMAP FOR SUCCeSS Growing 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. 26 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 Su pp oR TI AI v Rp o R AuCKLAnD TRAnSpoRT » Traffic management » Transport services BL IC MAjoR EvEnTS wATERFRonT AuCKLAnD » Provision of venues and waterfront spaces ATEED Event delivery » Event promotion » Sponsors assistance » Tourism promotion » Visitor experience » pR ov IDE RS Su pp vEnuES oR TIv E pu B LIC Profile Auckland for success ACTIon: Support capability building in the national events sector REgIonAL FACILITIES » Provision of venues RT 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. AuC KLA nD » ACTIon: Establish an agreed framework for major event partnerships with central government CounCIL Regulatory support » Local community engagement » DIA ME ensure that major events and their associated benefits are acknowledged and supported by all public agencies across Auckland S IE nC pu gE vE TA TI MEn govERn oR pp Su » T puBLIC TIvE oR pp Su take a region-wide, co-ordinated approach in planning for and delivering major events ACTIon: Advocate for major events in regulatory change and infrastructure provision E 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. C LI uB p puBLIC oRTIvE Sup upp S po RT Iv DATIon Mo poL E M pu ICE Co C A & B SE Cu ounCIL nE C Tw A nD R oR KL C K AuCKLAnD Au C LI » ACTIon: Establish a Major Events Protocol A robust network comes together to support the planning and delivery of major events within the Auckland region. y IT To successfully enhance itself as an ‘event-friendly’ city, Auckland must: ACTIon: Establish a Major Events Stakeholder Forum TIvE puBL SuppoR IC Get organised for success AuCKLAnD’S Co-oRDInATED MAjoR EvEnTS SuppoRT nETwoRK po Co nS A MM TR ER IC CIA BL L pA RTIES/SponSoRS pu Su Iv E pp RT o RT po Iv E pu S up B LIC 27
  15. 15. Contact us Tel: +64 9 365 0500