The document outlines Auckland's strategy to develop a portfolio of major events. It begins by stating that major events can help drive Auckland's economic growth and transform it into the world's most liveable city. It then discusses that Auckland has historically hosted some large events but now aims to take its event hosting to the next level by developing a comprehensive strategy. The strategy involves taking a portfolio approach to evaluate and select a mix of events that will deliver specific outcomes for Auckland, such as expanding the economy, growing tourism, and enhancing liveability. It also discusses tools like Return on Regional Investment that can be used to measure the performance and value of the overall event portfolio.
2. Message from the Mayor
I am impressed by this strategy â a first of its kind for
Auckland â 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 worldâs 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
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4. There are a number of funders that support Aucklandâs broader events programme.
The focus of this strategy is on major events that ATEED delivers.
Major events
Aucklandâs future
The countryâs 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 countryâs
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.
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Regional events
Local events
ATEED
Auckland Council (Governing Body)
Auckland Council (Local Boards)
Events of national or international
interest
Events that are pivotal to
Aucklandâs 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 cityâs 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 hostâs 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.
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5. Aucklandâs future
The countryâs 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.
Aucklandâs 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 regionâs
fragmented approach to event attraction and delivery
prior to the amalgamation of Aucklandâs 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 Councilâs 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 â it is a first
for New Zealand and a first for Australasia. Equally
important, this Major Events Strategy presents the
first step towards realising Aucklandâs 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 Menâs 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
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6. Aucklandâs future
The countryâs 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. Aucklandâs 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 sectorâs role.
Auckland must be âevent-friendlyâ 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.
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7. Aucklandâs future
The countryâs prosperity
Global scan
A review of seven comparable cities â Toronto, Sydney, Melbourne,
Barcelona, Cape Town, Glasgow, and Torino â 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 âanchor eventsâ.
This strategy highlights the challenge Auckland faces in creating a step-change in the performance of its major event
programme â 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.
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Fresh thinking
The benefits of an enhanced events economy extend well beyond the
immediate social and economic impacts â 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 Aucklandâs 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.
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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 âticking all the boxesâ at the
programme level, rather than requiring each event to
âtick all the boxesâ 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
Councilâs 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 âdistinctively Aucklandâ
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 Aucklandâs 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 Aucklandâs 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 Aucklandâs international exposure
- use events as a platform for promoting Aucklandâs
people, places and way of life to the world.
15
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 Aucklandâs 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 â A2 and A3
»
major social events â B1 and C1
»
niche events â B2, B3, C2, and C3
»
local events â 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 â 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.
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17
10. FReSh ThINkING
Anchor events
Anchor events are the social and
economic pillars of a cityâs event
portfolio. They are typically large,
regular events with distinctive
qualities that cities become known
for. It is important to distinguish
between social anchors â events
that generate significant social
capital; and economic anchors â
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 Aucklandâs 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. Australiaâs 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 Aucklandâs 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.
Aucklandâs 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.
Aucklandâs current investment in regular Tier A events is inadequate. Auckland only has
four regular major economic events and whilst these are important pillars of Aucklandâs
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 â the remainder are niche and local events.
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19
11. FReSh ThINkING
»
expand Aucklandâs economy
»
grow visitor nights in Auckland
»
enhance Aucklandâs liveability
»
increase international exposure for Auckland.
eCONOMIC GROWTh (RORI)
M ES
nSu
GROWTh IN
VISITOR NIGhTS
vE ouTCo
eNhANCe
AUCkLANDâS
LIVeABILITy
D u CTI
M p T I v E o u TCo M
p Ro
Aucklandâs 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 Aucklandâs
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
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13. Roadmap for success
Plan for success:
redesign Aucklandâs
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 Aucklandâs
liveability
Increase Aucklandâs
international
exposure
»
aggressively pursue Tier A and mega-events
»
review ATEEDâs investment in niche events
The identification and development of four
economic and four social anchor events is pivotal
to Aucklandâs success as a major events city.
These events must be âdistinctively Aucklandâ 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
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expand Aucklandâs
economy
Worldâs most liveable city
Aucklandâs 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 âMajor
Events Fundâ 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.
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14. ROADMAP FOR SUCCeSS
Growing Aucklandâs visitor economy is pivotal to
achieving Aucklandâs 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 Aucklandâs 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
âevent-friendlyâ city, Auckland must:
ACTIon: Establish a Major Events Stakeholder
Forum
TIvE puBL
SuppoR
IC
Get organised
for success
AuCKLAnDâS 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