The hospitality industry and the organisers of events get politicians and councillors to put taxpayers and ratepayers money into ventures which cost a lot and often end up making losses.  They arrange with consultants to get reports that contain predictions that the local economy will benefit by many millions of dollars. These predictions are based on estimates which are inflated up to ten times by using a multiplier. The only ones to make any real gains are the hospitality industry who get extra customers for the occasion. The consultants who make the most optimistic predictions get the most work so their guesswork cannot be relied on. One form of discretionary spending is diverted from another form of discretionary spending so overall there is little gain and the vast majority of people are no better off.       

Some examples include the following:

1. Hamilton City Council lost $38 million on V8 motor races

2. Auckland City has paid $28 million each year to help the hospitality industry but the current figure is unknown.

3. The New Zealand Government put $34 million into the 2013 Americas cup race on the basis that it would help the New Zealand boat building industry and boost tourism.  This was despite it being a race for billionaires and only being of interest to a few yachtsmen around the world and the brainwashed New Zealand public. The claimed Americas cup benefits were dubious according to Professor Norman Gemel of Victoria University.   Americas Cup Team NZ claimed $1.47 million but in wage subsidies but had no genuine revenue drop.  Team New Zealand tried to get over $100 million from the Government and Auckland Council but this was rejected in 2022.      

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