Dunedin could be doing more to help cement its place as the event capital of the south.

The Dunedin City Council Grants subcommittee has allocated more than half a million dollars to fund everything from car rallies to fashion shows.

Otago Chamber of Commerce chief executive Dougal McGowan says events that bring people into the city help both the mood and the economy.

"Particularly some of those in the mid winter time when visitor numbers are low, it provides a bit of a boost to the shops and to retailers and business."

McGowan says the Council's dedication to hosting events is not just good for the economy.

"These events are really important to the city from a number of perspectives. One is how we feel as a city providing events that the local people can go to as well as visitors."

Events that received funding include the Dunedin Marathon, the New Zealand Pipe Band Championships and ID Fashion Week.