Five sites in Wellington are being considered for a new, bigger and better indoor events centre by the Wellington Regional Economic Development Agency.
The agency (WREDA) commissioned a report, released today, which showed the number of live shows and events in the capital could almost double, if the city decided to invest in a new 12,000 seat covered area.
The report, carried out by sport and entertainment company Gemba, called Wellington's biggest venue - TSB Arena - "poor" as it could only fit 6000 and had limited, ageing technology.
WREDA chief executive Lance Walker said without a bigger venue Wellington was missing out.
"Its [TSB Arena] size means it doesn't even really compete with Auckland, Christchurch and Dunedin venues which can hold 12,000, 9000 and 31,000 respectively," he said.
"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."
The report, tabled today at a Greater Regional Council meeting said a new venue would boost the region's GDP by $26 million per year.
That figure was based on attracting visitors, particularly from the South Island, and retaining locals who would have otherwise gone out of town for an event.
WREDA marketing general manager David Perks said who would foot the bill was still up for debate, but a public private partnership was one option, as was partnering with a big events company such as Live Nation.
The region's residents could also contribute to the costs, but he said the investment would be worth it.
"We've got good evidence over a very long period of time that events in Wellington sell really well, both to locals and to people visiting Wellington."
Mr Perks said a 12,000 seat arena would attract big international acts, and large family events like the Disney on Ice shows, but could also be scaled down for other uses.
"The testing showed that at 12,000 - that's the point where you get to where you wouldn't use it frequently enough above that to make the return on the investment.
"I think it's really important that what we look at is something that is scaleable, so it is useable to a smaller audience as well - and of course that gets harder when you get bigger and bigger."
Wellington mayor Justin Lester said he supported the idea.
He said with the right business plan it could become a reality sooner rather than later.
"We've got a placeholder in time and we don't know when that is but we can bring it forward with the stroke of a pen. If someone says we can build this in three to four years then we'd happily do so. What it needs is a strong business case ... we want to get it right."
He said he expected some initial opposition.
"In the past there have been naysayers, people who didn't want to have the Dunedin stadium, likewise our own Westpac stadium or even Te Papa people didn't want it to be built they thought it would be a waste of money.
"With the benefit of hindsight - and I think good judgement - people have thought all of those facilities are a very sound and wise investment."
At the meeting David Perks said they were investigating five potential sites in areas near the port, Westpac stadium and the railway station.
He said those reports are due back within a matter of months.
