Visitor-reliant industries are lauding the Government’s decision to establish an investment fund for drawing major events to New Zealand.

Duco Events founder David Higgins called the move “music to our ears”.

Yesterday Prime Minister Christopher Luxon said he’d approached Tourism and Hospitality Minister Louise Upston and requested a “total rethink” on how Aotearoa approaches major events.

“I think that is something that is genuinely stimulating economic activity. You need to because it’s a pipeline of activity,” Luxon told Newstalk ZB’s Mike Hosking.

“You’ve actually got to stuff it with things that may not pay off just this month, but actually will pay off in a year or two ahead as well.

“And you’ve got to signal that. So I’ve asked for a total rethink on major events.”

He told Herald NOW’s Ryan Bridge that Auckland has some “massive conferencing” coming up, and SkyCity’s International Convention Centre (NZICC) coming on stream should further bolster the pipeline.

Thousands of people are already booked to attend events at the NZICC. Photo / Michael Craig

The new fund, however, would specifically target major events such as SailGP and Eden Park concerts to help drive New Zealand’s economic recovery.

Tātaki Auckland Unlimited chief executive Nick Hill said that pre-Covid Auckland was recognised internationally as an events city, which had encouraged steady investment in hotels.

“We hit a wall at the beginning of 2020 ... Our reputation’s been affected because we haven’t been in the market.”

Luxon said he would look at following a similar model to that of the former Premier of Victoria, Jeff Kennett, who hosted a major event every quarter to help grow the economy.

Higgins said Melbourne takes event attraction ”very seriously” by investing tens of millions in advance and anticipation of events.

“I don’t want to sugarcoat it. It takes money, real cash, and substantial investment to achieve what some role model Australian cities like Melbourne have in this space.

Duco Events founder David Higgins has welcomed the Government's plan to commit millions to an events fund. Photo / Photosport

“If they’re talking about it now, that’s great. Then it’s a matter of those who set the budgets budgeting cash to invest, and then having good panels of decision-making on what events they try to secure for New Zealand.”

Tourism, hospitality and accommodation leaders have long advocated for a coherent national strategy to attract major events, and Hospitality NZ chief executive Steve Armitage said the new fund will provide much-needed reassurance for local businesses.

“Many of our members report their best trading days when major events are in town, with bars, cafes and restaurants filled with patrons, and high accommodation bookings for visitors.”

Restaurant Association NZ’s chief executive Marisa Bidois agreed.

“Hospitality businesses feel the immediate flow-on benefits when New Zealand attracts major events.

“Visitors don’t just attend a concert or a sporting match – they dine out, stay in local accommodation, and spend in communities right across the country.”

Prime Minister Chris Luxon spoke of establishing a major events fund while in studio with Newstalk ZB's Mike Hosking yesterday. Photo / Michael Craig

The Prime Minister’s comments, while welcomed, reflect “what our industry has been saying for a long time”, Bidois said.

Adrian Williams, Accor’s chief operating officer in the Pacific region, said they have seen the impact major events have on stimulating local economies and showcasing New Zealand to the world.

“Accor’s 15 hotels across Auckland experienced a surge in bookings for the Coldplay concerts in November 2024.

“That surge of activity and vibrant energy flowed through the city, filling hotels, restaurants and bars, and creating a huge positive buzz.”

Armitage thought the Government’s call not to progress with a bid to host the 38th America’s Cup in 2027 was a “missed opportunity”. He said having a national strategy with consistent funding is crucial to ensuring we don’t miss out on similar opportunities in the future.

“The reality is that securing large-scale events requires forward planning and investment,” Williams said.

New Zealand hasn't hosted the America's Cup since 2021. Photo / Photosport

“It can take several years to win hosting rights, but the long-term benefits are undeniable.”

Hill found it refreshing to hear the Government so enthusiastic about the economic benefits events have for cities.

“The Auckland economy really needs that kind of stimulus it brings,” he said.

“And not just directly in terms of dollars from visitors, which is spent in businesses here, but actually [from] events that lift people’s confidence and their willingness to go out and do things.”

Bidois said securing even smaller-scale events can have a measurable effect on the economy and wellbeing of businesses.

“A few extra events each year may sound modest, but the cumulative impact on visitor nights, restaurant bookings and regional spending is significant.

“What matters most is a consistent pipeline of events that businesses can rely on, rather than one-off spikes.”

The Government now needs to set up a budget and establish the criteria, framework and decision-making process for choosing what events to bid on.

“If you don’t have any system or funding in place, there will be no events and society will be quite bereft,” Higgins said.

Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.