Emirates Team New Zealand has announced Auckland will not host the next defence of the America’s Cup international yacht racing series.

“Since winning the 37th America’s Cup in October last year, The Royal New Zealand Yacht Squadron and Emirates Team New Zealand have been intent on exploring the possibility of hosting the 38th America’s Cup in Auckland with the understanding it would take a combination of private backing, local government as well as central Government support to make it happen, but not at the expense of funding other priorities in the tough economic climate,” it says.

“In this time, the team have had comfort in the level of private support and have been working with Tātaki Auckland Unlimited who have been proactively spearheading the bid.

“So, it is with both disappointment and understanding to hear MBIE and central Government have decided not to back the 38th America’s Cup in Auckland in 2027.

“While the significant economic benefits of hosting the America’s Cup and other major events are well proven, such as €1.034b ($1.9b NZD) of economic benefits in Barcelona in 2024, we understand there are other priorities for the New Zealand Government right now.”

The announcement has been met with disappointment by organisations such as Hospitality New Zealand, which says it’s a “blow for the hospitality and accommodation sectors, and highlights the urgent need for sustainable, coordinated investment in events”.

“Hospitality NZ chief executive Steve Armitage says large-scale events play a crucial role in supporting New Zealand’s economy, particularly for industries that rely on visitor spending.

“Major events like the America’s Cup drive demand across the host city, from hotel bookings to restaurants, bars and cafés.

“The flow-on benefits touch almost every part of the hospitality sector, and so many other sectors.”

Armitage says major events also often encourage people to travel to New Zealand and travel beyond the event location, generating economic benefits that are felt across the country.

The announcement by Emirates Team NZ further reinforces the need for a consistent, nationwide approach to event and tourism funding, he says.

“Hospitality NZ supports mechanisms like a bed tax in principle to fund events, but we are not in favour of piecemeal, region-by-region approaches that create confusion and inconsistency. We need to do it once and do it right.

“A national strategy is what’s needed to give councils, event organisers and businesses the certainty they need to plan and invest.

“Without that, our sector, and many others, continue to operate in an uncertain environment that undermines long-term recovery and growth.”