PM, finance minister, defend not backing Auckland America’s Cup
Tuesday, 1 April 2025
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New Zealanders understand there is no “magic money tree” to fund hosting the next America’s Cup in Auckland, the finance minister says, with the Government focused on infrastructure spend.
But Heart of the City chief executive Viv Beck says the city has missed out on a “golden opportunity” given growth is a key priority for the Government, and it was “seriously disheartening” the bid to host couldn’t continue without central Government funding.
“This was a golden opportunity to utilise purpose-built infrastructure and reap a timely economic return,” Beck said.
“It is frustrating that ongoing representation to government about the need for urgency in resolving a sustainable funding mechanism for major events has not yet delivered an outcome. Getting this funding in place must be fast-tracked so missing out to well-funded bidders competing for other major events doesn’t become the norm.”
“This is an event that would bring thousands of people to our waterfront and a boost in business for hotels and local businesses while it’s on. It also brings national benefits - international tourists venture out around the country and there are tangible opportunities for jobs and trade, as well as profiling New Zealand’s marine innovation and technology.”
Finance Minister Nicola Willis on Tuesday morning said supporting the America’s Cup hosting bid was not affordable.
“We’d love the America’s Cup to take place here, but with a cost of $75 million and potentially more, we just judged that at this time those resources are better in our hospitals, our schools, and other pressing needs for New Zealanders,” Willis said.
“Our priority is New Zealanders’ needs, and what they’ve told us is they want to see cost of living relief, they want to see investment in schools and hospitals, and those are our priorities too.
“I think people would love the America’s Cup but people understand that there is no magic money tree. We can’t just pay huge costs for everything. We have to weigh one thing up against another, just like households have to. We can’t always get everything we want at the same time.”
She questioned commentary that suggested Auckland would have seen a $2b economic boost. Team NZ said Barcelona, which hosted in 2024, had seen $1.9b in economic benefits.
A statement from Team NZ ‒ confirming the bid would not proceed ‒ said it was disappointed, but understood the Government had other priorities.
Auckland hosted the America’s Cup in 2000, 2003, and 2021. Team NZ and Auckland Council were agitating to host the 2027 Cup, with Tātaki Auckland Unlimited ‒ Auckland Council’s tourism and events arm ‒ spearheading the bid.
Since winning the Cup in October last year The Royal New Zealand Yacht Squadron and Team New Zealand had “explored the possibility” of defending in Auckland, understanding it would take a combination of private backing, and local and central Government support, a Team NZ statement said.
Auckland mayor Wayne Brown said it was “a shame” the America’s Cup would not be returning in 2027, particularly given the projected financial benefits.
“It takes a strong partnership between the government, local government, and private investment to bring these major events to New Zealand, hence my strong advocacy for a bed-night levy. A bed-night levy means Auckland would’ve met its share of costs.
“We need funding that is going to be workable and does not put the burden on Auckland ratepayers. I acknowledge the work that was done by Tātaki Auckland Unlimited to bring the cup home.”
Willis said the economic benefits numbers were “questionable”.
“I think that there would have to be a lot of analysis to ascertain whether that was the case and I’m not sure that I accept that that would have been the case,” she said of that $2b figure.
“I think often when people are asking for money, they can overstate what they think the impact of spending that money will be, and it’s our job to be judicious and to be clear that spending any money has a trade-off somewhere else in Government.”
Prime Minister Christopher Luxon also said the money was better spent on hospitals, schools, roads and other infrastructure.
“It’s just not something we can support at this time, it would be lovely if we could.”
Opposition leader Chris Hipkins said hosting the Cup would have been a good boost for Auckland, “right at a time when I think the major events pipeline is looking a little empty for Auckland”.
'The whole country benefits from the America's Cup, the flow-on benefits from that aren't just around the event itself but actually you know, having all those teams based in New Zealand, the technology that comes with that, the innovation that comes with that, the opportunities that flow from that.'
Hipkins said he had some regret that his government didn't “push a little harder to see whether we could keep the America's Cup in New Zealand.'
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