19 April 2018

Media: Rotorua Daily Post

Topic: Crankworx financials

Enquiry

Rotorua Daily Post requested the total amount Council has spent on Crankworx for the past four years.

Response

Council's contribution

Crankworx was an investment in Rotorua's economy (http://www.nzherald.co.nz/business-around-new-zealand/news/article.cfm?c_id=1503701&objectid=11313063)

Crankworx Rotorua has had an estimated economic impact of $14.8 million over 3 years - 2015-2017 with 2018 data still to come

2015:

• Overall net direct output added to Rotorua's economy in March 2015 attributable to all event attendees' Rotorua visit expenditure, estimated to be $2.47m with overall economic benefit estimated at $3.68 million.
• Average length of stay for visitors was 3.8 nights.

2016:

• The number of visitors to Rotorua whose main reason for visiting was to attend Crankworx as a spectator is estimated to have increased from 3696 in 2015 to 9344 in 2016, according to an economic impact assessment and visitor analysis conducted by APR Consultants.
• The estimated $8m spending by event attendees was $4.2m up from the estimated $3.7m impact the previous year with 72.5% ($5.8m) of the expenditure attributable to domestic visitors and 27.5% $2.2m) to international visitors.
• Increase in economic impact primarily driven by an increase in domestic visitors who came to Crankworx as spectators. Out-of-town Crankworx competitors stayed in Rotorua an average 9.6 nights and spectators an average 4.2 nights.

2017:

• 95.3% of visiting spectators to Rotorua indicated that Crankworx was their primary reason for visiting Rotorua (2016: 95.6%).
• Average length of stay was 7.8 nights in Rotorua (49 nights in NZ for International Visitors)
• 67.1% of respondents said that Crankworx Rotorua improved their perception of Rotorua.
• $4.5m economic impact on Rotorua's economy in 2017

2018:

• Results to come.

Council's contribution

• The council sub group established to oversee council's interests in the event signed an Underwrite Deed of Agreement with the company in December 2014.
• In 2016 Council agreed to continue the underwrite on the basis of the economic benefits for Rotorua. (http://www.nzherald.co.nz/rotorua-daily-post/business/news/article.cfm?c_id=1503434&objectid=11771760)
• Financials for the 2018 Crankworx festival in Rotorua have yet to be finalised.
• There was no underwrite required last year (2017) but the underwrite called on in 2016 was $39,000 and in 2015 it was $94,000.

Background/facts/benefits

• International audience of more than 11 million in 2017 with coverage of the festival also promoting Rotorua + ongoing views of the coverage providing ongoing exposure for the district.
• Competitors and media (more than 100) from around the world.
• The event - and mountainbiking in general - is helping to improve perceptions of Rotorua as a place to visit, live and do business (see event economic impact results below; see real estate agency perspective HERE; see article HERE re impact of mountainbiking and events like Crankworx; see video HERE, Tak Mutu on impact of mountainbiking; see 2012 article HERE re Scion research re economic impact of mountainiking)
• People who come to Rotorua specifically to go to Crankworx stay for an average 8.9 nights (2017 data) with international visitors staying an average 49 nights.
• Local businesses report increased trade during the Crankworx festival (Burger Fuel's story HERE; Ride Central's story HERE).
• Crankworx Rotorua is run in conjunction with its Canadian owners Crankworx Events Incorporated, the local festival organiser and a not-for-profit company Mountain Bike Events Ltd, which is a joint venture between Rotorua Lakes Council, Skyline Rotorua and event organiser Tak Mutu.
• The vision: By hosting Crankworx and other world-watched events that showcase Rotorua as the world's premier year-round mountain biking resort, significantly grow the economy and the reputation of Rotorua as a compelling place to visit, live, work, play and relax.
• Mountain Bike Events Limited aims to sustainably deliver an outstanding Crankworx Festival with legacy effects contributing to Rotorua's 2030 vision and goals.
• In 2016 Crankworx Rotorua signed an unprecedented 10-year contract with the event's Canadian owners, confirming the world's biggest mountain biking event will stay in Rotorua until at least 2027.
• Festival organisers also give back to the community through Share the ride, running Kidsworx at the event which teaches children mountainbiking skills, through the volunteer programme (306 in 2017, 95% local) and through locals days which give free entry to Rotorua residents on specified days of the festival. In addition, the organising committee pick projects and causes each year to support such as Suicide Awareness and Prevention in 2017, Rotorua Trails Trust in 2018 and the Dual Slalom track situated on Tarawera rd.

By the numbers

*Further clarification was also supplied advising that this year the Skyline venue was open for 5 of the 9 days which is where the numbers were counted 'through the gates'.

Crankworx Rotorua by the numbers (2015)

• Days: 5 days
• Spectator visitations (numbers through the gate): 24,220
• Athletes: 724 (including Enduro World Series event)
• Kidsworx sessions: 292
• Volunteers: 196 (more than 95% of them local)
• Events: 10

Crankworx Rotorua by the numbers (2016)

• Days: 5 days
• Spectator visitations (numbers through the gate): 34,484
• Athletes: 464 (no Enduro World Series this year which impacted on overall competitor numbers)
• Kidsworx sessions: 258
• Volunteers: 221 (more than 95% of them local)
• Events: 10

Crankworx Rotorua by the numbers (2017)

• Days: 9 days
• Spectator visitations (numbers through the gate): 35,826
• Athletes: 705 (including EWS)
• Kidsworx sessions: 368
• Volunteers: 306 (more than 95% of them local)
• Events: 17

Crankworx Rotorua by the numbers (2018)

• Days: 9 days
• Spectator visitations (numbers through the gate): 39,937
• Athletes: 530 (no Enduro World Series this year but returning to Crankworx Rotorua in 2019 which will increase number of competitors and international media)
• Kidsworx Competitors: 400+
• Volunteers: 363 (more than 90% of them local)
• Events: 21