Stadium could give $50m boost

Friday, 9 February 2024

Christchurch’s new Te Kaha stadium could pump $50 million a year into the Canterbury economy, a new forecast says.

The roofed stadium is due to open in mid-2026 at a total cost of $683m, of which $200m has come from central government. Ratepayers’ contributions, spread over 30 years, will peak at an average of $4 a week this decade.

Venues Ōtautahi, the city council’s venues management business which will run Te Kaha, said its estimate of a $50m economic impact is conservative.

Chief executive Caroline Harvie-Teare said the figure is based on 200 annual events, including concerts, sporting and business bookings.

She said the sum does not include the full economic picture, such as showcasing Canterbury and increasing its international profile.

Economists have said the cost to ratepayers of servicing the debt and running the stadium make it unlikely to create a net financial gain for the city.

In 2019 before a series of cost overruns, a cost-benefit analysis estimated the local economy would only get back 87 cents from every dollar spent on the stadium.

Gareth Kiernan, a director of economics forecaster Infometrics, said this week it was “hard to make the numbers stack up” solely on a financial basis when building a new stadium.

“Because they are expensive, you can’t necessarily justify them in terms of just the financial return,” he said.

“Sometimes assumptions made for civic facilities, and what they will drive, can be quite generous.”

Kiernan said there would be other sorts of benefits.

“If Christchurch didn’t have a facility for major sporting events and concerts it might struggle to attract more residents. People look at what sort of experiences a city can offer.”

Harvie-Teare agreed the most significant impact of the stadium would be on the quality of life.

She said half a million people are expected to attend events at Te Kaha in a year, of whom 100,000 would be visitors to the city spending a total of $28m on accommodation, food and drink, and activities. She also predicted the stadium would likely employ more than 1000 casual staff.

Adding in local employment and supply of goods would bring that to “around $50 million of direct contribution to the region’s local economy once the venue is open in 2026”.

Harvie-Teare said business owners and employees would benefit both directly and indirectly through tourism and increased spending around events.

She said they “do not expect there to be any reduction in forecast economic impact” from Te Kaha on its other venues, such as Wolfbrook Arena.

Te Pae is also not anticipating losing business as demand means it is turning away bookings.

Hospitality NZ Canterbury branch president, Peter Morrison, said the impact on hospitality businesses could not be underestimated.

'The last 12 years have been incredibly tough for hospitality in this region,“ he said.

“Between the earthquakes, Covid and challenging economic conditions, it has been challenging for businesses to keep their heads above water. Te Kaha is exactly the injection of life we need.”

Morrison said the stadium would attract “the kind of large events we have been missing out on in Canterbury for the last decade, and this will have a significant flow-on effect for local businesses”.

Paul Lonsdale, manager of the Central City Business Association, said Te Kaha would also stimulate retailing, tourism, real estate, manufacturing, and agriculture.

“There are hundreds of local businesses – if not more – who will benefit from the construction or operation of this venue in some way.”

Venues Ōtautahi estimates a yearly schedule at Te Kaha could include:

• 6 Super Rugby (Crusaders) matches

• 4 domestic rugby games

• 1 All Blacks test

• 2 other rugby events

• 1 football match

• 1 rugby league match

• 2 other sporting/entertainment events

• 4 large exhibitions

• 3 large concerts

• 4 small concerts

• 180 events on the floor of the stadium

• 1 mega event (perhaps masters games or world cup tournaments) could be expected about every six years.

Meanwhile, construction of the stadium is continuing, with the western stand now at full height.

The first of 40 trusses to support the roof was installed just before Christmas and the remainder will be erected over the coming year.

Four of these will be built on site and lifted into place by crane in the coming weeks.

Within the western stand, framing is being installed along with services and the building lining.

The stadium remains on track to open in 2026.