The Prime Minister says New Zealand could reap $54 million from Auckland's hosting of the World Masters Games in 2017.
The games were officially awarded to the city Thursday afternoon at a ceremony attended by John Key and the mayor of Auckland Len Brown.
Mr Key says the event is expected to draw 35,000 visitors from 95 countries.
They will participate in 30 sports including track and field, basketball, surfing, swimming, cycling and volleyball.
The Government and the Auckland Council are both paying $11 million towards hosting the games.
Mr Key says that money goes towards promoting the event, a fee payment to the organisers and other costs.