Investing in New Zealand sports events: a case study on the 1992 AMP New Zealand Golf Open

Abstract

Event tourism concepts and the economic impact of sports events to New Zealand are reviewed. Sufficient doubt is raised concerning economic impact models to allow exploration of a sports event from an investment perspective. The 1992 AMP Golf Open was selected for a case study analysis, using an investment framework. The findings indicate that a sports event can be treated as an investment decision, particularly if investors focus on establishing pre-required returns, carefully evaluate potential risks and assess the opportunity cost associated with the investment. With regard to the future of New Zealand sports events, there is a need for a cohesive approach which classifies events by their size, commercial viability, economic, environmental, political and social impacts. A New Zealand Events Corps, with representation from sport, tourism, commercial and public bodies, should be established to address these issues.