WREDA report supports case for new Wellington indoor arena

A new report shows Wellington is missing out on large performances, family and sport events because it doesn’t have an indoor arena of the appropriate size.

The report, from sport and entertainment agency Gemba on behealt economic development agency WREDA, puts forward the strategic case for a new indoor arena. It looks at the constraints of the TSB Arena, trends in arena development, the competitive landscape, the health of the live entertainment and large event industry, the optimal size of a new arena, and possible options for managing the venue. 

Currently the TSB Arena hosts around 40 events a year; that number could almost double to a projected 78 per year if a new 12,000 seat indoor arena was built.

WREDA Chief Executive Lance Walker says the additional events would be worth an estimated $26 million in GDP to the region per year, advising “if Wellington wants to continue to attract new entertainment and sporting events then our venue offering needs to stack up. While the region already hosts plenty of great events, we’re also missing out on large music concerts, family shows like Disney on Ice and Cirque de Soleil, and potentially major one-off sporting events because we don’t have a venue to accommodate them.

“Globally the live entertainment industry is thriving and we know there is audience demand.  The sell-out performance of The Killers on Saturday night was one example of that. But while Auckland and Dunedin are seeing growing economic returns in the sector, Wellington is just maintaining our position.

“The aim isn’t just to see more events, we also want more variety. We want large-scale arena events that cater for parts of the community such as youth and families that currently aren’t appearing in Wellington.”

The Gemba report recommends an ideal seating capacity for a new Wellington arena of 12,000, which would maximise new event opportunities.

Walker stated “the 6,000-capacity TSB Arena is Wellington’s only major indoor venue that supports sport, entertainment and business events. Its size means it doesn’t even really compete with Auckland, Christchurch and Dunedin venues, which can hold 12,000, 9,000 and 31,000 respectively.

“When a promoter has an act that can sell double the amount of tickets in Auckland than in Wellington, it’s unsurprising that Wellington misses out on some opportunities.”

If Wellingtonians want a new arena to be built then Walker says a Public-Private Partnership (PPP) is an option that could be considered. 

Walker added “Wellington has some major infrastructure projects on the horizon in addition to the Indoor Arena. Looking at a PPP for this project is an option that has been used successfully elsewhere in arena development globally.”

The report was tabled at a Wellington Regional Strategy Committee (WRC) meeting today. The WRC, chaired by Wellington Mayor Justin Lester, is made up of members of all the Wellington region’s councils. It is tasked with overseeing WREDA and promoting, supporting and facilitating economic growth in the region.

Key report findings:

• Market analysis and expected growth indicates that a new Wellington arena could host up to 78 entertainment events annually, approximately 30 more than the TSB Arena is currently hosting. 
• The recommended optimal capacity of a new Wellington Arena is a scalable 12,000. This would provide Wellington with the best opportunity to compete domestically and internationally for events and cater for the needs of the market. 
• TSB Arena’s capacity limitations are contributing to Wellington missing out on major events. Addressing these shortcomings will allow Wellington to compete within a growing market.
• Changing music consumption preferences away from album sales to streaming services has resulted in artists touring more often. This means there is more live music events, complimented by a growing family and other entertainment market. 
• A small number of entities (promoters) have considerable control over the live music industry value chain. These entities are increasingly diversifying to include other entertainment offerings such as family entertainment and comedy.
• New sporting content opportunities are scarce. Basketball and netball provide regular content but this is constrained to home fixtures. Major events provide supplementary content opportunities but are finite, cyclical and subject to competition from other venues.

Image: Concept design for the proposed Wellington indoor arena.

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20th December 2017 - NEW DIRECTORS APPOINTED TO WREDA BOARD

19th December 2017 - WESTPAC STADIUM FIRST WITH HOSTING OF OUTDOOR ICE HOCKEY 

29th November 2017 - GEMBA TO LAUNCH NEW DATA AND INSIGHTS DIVISION 

5th September 2017 - GEMBA CHIEF EXECUTIVE CALLS FOR A FIFTH TENNIS GRAND SLAM IN CHINA 

2nd September 2017 - VISION FOR NEW WELLINGTON INDOOR ARENA BACKED BY REGIONAL MAYORS

19th June 2017 - WELLINGTON REGION MAYORS ADVANCE PLANS FOR NEW 12,000-SEAT ARENA 

17th May 2017 - PROMOTERS SLAM EXCLUSIVE WELLINGTON VENUES TICKET DEAL 

28th March 2017 - GEMBA CONSULTANCY APPOINTS NEW HEAD OF STRATEGY ASIA PACIFIC 

29th January 2017 - NEW ERA FOR F1 AS LIBERTY MEDIA COMPLETES TAKEOVER

20th October 2016 - GEMBA CONTINUES GROWTH WITH BULLET MARKETING ACQUISITION 

8th September 2016 - US-BASED MEDIA INTERESTS CONFIRM US$4.4 BILLION ACQUISITION OF FORMULA 1

21st March 2016 - GEMBA ANNOUNCES INTERNATIONAL EXPANSION

22nd November 2015 - GEMBA AUSTRALIA EXPANDS ASIAN PRESENCE WITH NEW BOARD APPOINTMENT 

24th September 2015 - NEW WELLINGTON AGENCY AIMS TO BOOST CITY’S PROSPERITY

13th September 2015 - $1 MILLION BOOST FOR REGIONAL ARTS AND CULTURAL ACTIVITIES IN WELLINGTON

24th July 2015 - WESTPAC STADIUM CELEBRATES ITS 15TH BIRTHDAY 

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