4th June 2018
The 2021 America’s Cup: What it Means for Airbnb and the Short-Term Rental Market
The 36th America’s Cup is Coming to Auckland
Auckland, the city of sails, is set to live up to its name in the next few years as the Waitemata Harbour is prepared for the upcoming America’s Cup race. Team New Zealand defending their title is predicted to attract thousands of sailing fans from around the globe and the rest of New Zealand. As such a large-scale event draws closer, businesses across industries rush to arrange to cater for the influx of regatta organisers, sailing fans and tourists. The number of visitors is expected to reach 26,000 international and 175,000 domestic. While the winner of the cup is in anticipation, one thing is for certain – they’re all going to need somewhere to sleep.
The America’s Cup is scheduled to take place at the beginning of 2021 with months of build-up coming to a head as New Zealand defends their title. As the largest event for the international yachting community, high-interest is expected to generate over the months leading up to the event. This is highlighted by a series of preliminary races and celebrations.
As this is the first time New Zealand has hosted the competition since 2003, significant developments are required for the success of the event. Auckland’s Viaduct Harbour has recently been given the go-ahead for base villages to be settled along the waterfront. The areas designed to house competing teams are expected to require significant development to the waterfront in the lead up to the event.
Preparations for the America’s Cup Have Already Begun
While the main event will attract the most attention, the impact of the America’s Cup will be consistent throughout the next couple of years. As developments take place, workers begin to set-up and enthusiasts survey the area, New Zealand’s economy will benefit in many aspects.
An event to the scale of the America’s Cup requires careful thought, planning and timely execution. These factors, driving visitors to Auckland and beyond, will boost the demand for accommodation. While the entire country is expected to reap the benefits, Auckland City will feel the biggest pull. Scores of America’s Cup fans and workers will be seeking short-term accommodation in the central city.
Impact on New Zealand Economy
From now until the event, the Ministry of Business, Innovation and Employment estimates that the America’s Cup will add between $0.6 – 1 billion to the economy. This massive addition also comes with thousands of new jobs across several related industries. MBIE bases these factors on the arrival of the organisers, competition, spectators and related tourism.
The New Zealand Government is investing over $200 million in public funding to the America’s Cup event. This huge contribution shows just how big this competition is and how much of a difference it will make to the economy. The race is forecast to have one of the biggest impacts of the next few years in several sectors, namely in accommodation.
With a guaranteed boost to tourism, the America’s Cup is well-renowned for its accompaniment of super yachts, luxury travellers and racing fans. This tourist is different from the usual holiday-makers due to their participation in high-expenditure in activities and accommodation. With the APEC event also booked for late 2021, this year is intended to be a very important time for the luxury travel industry.
Accommodation Will be in High Demand
Currently, existing Auckland hotels don’t have the capacity to accommodate for surging guests during a large event such as this. While 3000 new rooms are expected to be built with new hotel developments before 2021, the arriving guests will push traditional accommodation to its brink. CBRE NZ’s director recently stated that he expects the residential apartment market to assist in catering for these numbers. This means that Airbnb will play an important role in accommodation during the America’s Cup and build-up.
Lasting Impact – New Zealand on the Main Stage for Global Events?
It’s clear that with generally increasing tourism rates and the impending boom from the America’s Cup, the need for short-term accommodation is impressive and not just temporary. Following the 2003 race, tourism continued to spike in the months after the event. Many believe that major international events like this continue to build New Zealand’s brand and encourage more tourism. This is fantastic news for short-term accommodation providers like Airbnb. With the large numbers of visitors, the desire for upper-range Auckland city apartments is going to be high.
The new developments to the Auckland waterfront are expected to attract an increasing number of Super Yachts in the immediate years following the event. MBIE estimates the maximum annual amount of Super Yachts visiting Auckland to be at 131 by 2025. These numbers reflect a growing luxury travel sector as a direct response to the 2021 America’s Cup.
Airbnb Will Play an Important Role in Supporting the America’s Cup
Airbnb is the perfect option for visitors looking to stay during the America’s Cup, business travellers setting up in the coming months, and the tourists attracted to New Zealand in the aftermath of the event. Hosts can expect a high concentration of visitors in the near-future as preparation begins and this is only going to increase as we get closer to the event.
For those looking to get started succeeding as an Airbnb host, proper consideration should be taken to make sure they’re equipped to handle the influx of visitors. You can check out our beginner’s guide to Airbnb hosting to have the best chance of performing well on this platform.
Prepare Your Investment with Superior Airbnb Management
If you’d like to find out more about hosting on Airbnb and the property management services Zodiak Management can offer, please visit our Airbnb services page. The next few years are an exciting time for the accommodation industry. Our team can help you make the most of your investment by preparing for the 2021 America’s Cup and coming events.