19 Sep 2013

America's Cup benefits may be 'more muted' than expected

7:34 pm on 19 September 2013

New Zealand is just one win away from bringing back the America's Cup.

By conservative estimates the regattas of 2000 and 2003 were together worth $1.2 billion.

San Francisco is still waiting to see if it'll realise the $US1.4 billion boost it was promised.

There's a prediction the economic boost for this country may be less than some expect.

First NZ Capital director of economics and strategy Chris Green says if New Zealand does win the America's Cup one of the biggest effects could be the "feel-good factor" and potentially an increase in spending.

But he says from a tourism perspective the effect is often more muted than originally anticipated because some people may defer their travel to New Zealand if it wins the cup because prices could be higher as a result of the country hosting an international event.