According to a recent projection, the highly anticipated Te Kaha stadium in Christchurch could potentially pump $50 million annually into the local economy.
The stadium, which is set to be roofed and is scheduled to be up and running in mid-2026, carries a total budget of $683 million. The funding for this project comes from a mix of central government contributions and ratepayers’ contributions, which will be spread over a period of 30 years, with an average weekly contribution of approximately four dollars.
Venues Otautahi, the business that will operate Te Kaha, believes that its estimate of $50 million in economic impact is conservative. The estimate is based on the assumption of 200 annual events, including a handful of concerts, sporting events, and business gatherings.
However, it’s important to note that the $50 million figure is just a piece of the larger economic puzzle. Factors such as promoting Christchurch and enhancing its global image must be considered.
Hospitality and Tourism Revival Through Te Kaha Stadium
The stadium’s most significant impact is expected to be on the quality of life for residents and businesses alike. Half a million people will likely attend events at Te Kaha annually, with 100,000 of these being visitors to the city who will spend approximately $28 million on accommodation, food, and leisure activities. The stadium is also expected to employ over 1,000 temporary staff.
Adding in the local employment and the supply of goods would result in approximately $50 million of direct contribution to the local economy once the venue is operational in 2026. Business owners and employees are expected to benefit directly and indirectly through increased tourism and spending during events.
Peter Morrison, the president of Hospitality NZ Canterbury branch, emphasised the impact on hospitality businesses, saying that the last 12 years have been incredibly tough for the industry. He believes that Te Kaha is the much-needed boost the city needs. He also predicts that the stadium will draw large events that have been missing from Christchurch for the past decade, which will have a significant ripple effect on local businesses.
From Local Events to Global Headlines
He cited the example of Taylor Swift’s 2024 Australian tour dates, which generated significant interest among New Zealand fans. The demand for concerts in New Zealand is so high that fans are willing to travel internationally to see her perform. Eden Park boss Nick Sautner stated that if Taylor Swift were to perform in New Zealand, Eden Park would be filled to its capacity with over 60,000 people for every concert.
The Federal Reserve Bank of Philadelphia reported that Swift’s tour in the United States had boosted travel and tourism in the region, adding an estimated $5 billion to the global economy. This suggests that backing events or projects can be beneficial if the economy is in a weak phase and you’re trying to stimulate spending at a time when demand is low.
Te Kaha stadium represents a significant investment in Christchurch. The impact extends beyond the initial build, with local businesses hoping to see a boost in customers, job creation and highlighting our city across the globe.
Photo supplied by: Christchurch City Business Association
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