Wellington convention centre plans move forward

Wellington City Councillors will vote this week on plans for a purpose-built convention centre and five-star Hilton Hotel proposed for a vacant site opposite Te Papa.

After a a briefing to the Council, Wellingtom Mayor Celia Wade-Brown welcomed the proposal, saying the convention centre is a transformative project that will keep Wellington ahead in the conference market.

Mayor Wade-Brown explained “we’re shifting the game with the convention centre proposal.

“If agreed to, this convention centre proposal will be a great investment in Wellington, and we’ll have a purpose-built five-star facility to help spur the Capital’s growth, contribute to NZ Inc and draw on the Government’s international marketing clout.”

If given the go-ahead, the state-of-the-art 4,400 metre2 facility would be able to host up to 1,200 conference delegates and have a banqueting capacity for up to 1,450 people. It would be built along with the 165-room hotel on the site in Cable Street.

The overall project would be financed by local developer Mark Dunajtschik. The Council would lease the convention centre at an average net cost to the city of about $2 million a year over the lease term.

The convention market earns more than $140 million for the city each year and supports about 1,000 jobs, but Mayor Wade-Brown says without investment in purpose-built convention facilities, the city could lose a lot of that economic activity.

Mayor Wade-Brown added “our facilities, while individually attractive and good for boutique events, are too small and, in some cases, too old, and lacking the flexibility needed for the modern convention market. With new convention centres being built in Auckland, Christchurch and Queenstown, we stand to lose a big part of our existing business.”

If the Council votes to support the proposal, a formal consultation period would run from 8th July to 8th August and be supported by a range of information. During that time, negotiations would continue with the developer and Hilton.

The economic case supporting the Convention Centre proposal

• Wellington is currently New Zealand’s second largest convention destination behind Auckland, making up 15% of the country’s total convention market and earning more than $140 million for the city each year.

• The city stands to lose up to 17% of that business when other newer facilities are built around the country – that’s up to $25 million in lost business and about 170 jobs.

• This new purpose-built centre would protect that business and, we estimate, grow the overall business I Wellington by about 10% – about 74 new events delivering 68,000 delegate days each year..

• As well as protecting the existing market and jobs, that growth would add $30 million in new expenditure and directly create more than 200 new jobs.

• The Council expects flow-on secondary development to occur in time in supporting businesses such as entertainment, hospitality and retail.

• A 5-star Hilton would help attract premier industry events to the Capital and support other economic development initiatives such as the proposed film museum and tech precinct.

• The average net cost to the city would be $2 million a year over 10 years on base operating projections (after accounting for profit share and rates income).

• It would cost the City Council at least $55 million to build a convention centre itself and at least $1.7 million more a year to run – the city would carry all the cost and associated borrowings, and all the risk.

29th August 2013 - WELLINGTON OPENS NEW CONCERT AND CONFERENCE VENUE