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Crankworx 2018 report
2 August 2018
Crankworx 2018 report
Rotorua Lakes Council staff are to undertake work with Mountain Bike Events Limited to identify a sustainable level of ongoing public investment in Crankworx Rotorua.
 
The Operations and Monitoring Committee has asked that council staff report back in due course on options for how this may best be achieved.
 
The motion requesting the work be done was put by committee chair Cr Charles Sturt and passed unanimously following a presentation today from Crankworx Rotorua event organiser Ariki Tibble.
 
This year’s event had an estimated $4.2m economic impact for Rotorua, taking the total estimated economic impact of the annual mountain bike festival since 2015 to $18.49 million. The estimated economic impact is based on surveys undertaken each year at the main Crankworx Rotorua site, Skyline. There are also events held in other locations such as Tokorangi and Whakarewarewa Forest and the inner city.
 
The Rotorua event is one of four Crankworx festivals held worldwide and Rotorua signed an unprecedented 10-year contract with the event’s Canadian owners in 2016, securing the event through to 2027.
 
Council contributes $75,000 per year towards the event as well as providing an underwrite. The underwrite has not been drawn on for the past two years.
 
Mr Tibble spoke about the balancing act between trying to increase commercial revenue in the face of reducing non-commercial revenue while at the same time keeping ticket prices to a level that ensures the event is accessible to the community.
 
In response to questions about what level of support the event team was seeking from council in future Mr Tibble said the event would be tailored to whatever level of support was provided but any additional financial support from Council would be welcome. Like any major event in New Zealand, Crankworx Rotorua could not happen without some level of public investment and it was up to each party to determine the value of the event and the level of support they wanted to provide.
 
Crankworx Rotorua was extended from 5 days in 2015 and 2016 to 9 days these past two years but will revert back to 5 or 6 next year according to Mr Tibble who said 2019 would be a year of consolidation for the event.
 
Councillor Dave Donaldson, who is on the board of the non-profit company which delivers Crankworx Rotorua and co-presented with Mr Tibble, did not take part in debate on Cr Sturt’s motion and did not vote on the motion.
 
Facts and figures
  • Commercial revenue has grown each year: $514,728 in 2018; $401,214 in 2017; $378,369 in 2016; $249,915 in 2015.
  • Non-commercial investment:  $678,524 in 2018 compared with $745,435 in 2017; $476,522 in 2016 and $600,000 in 2015.
  • Ticketing revenue and registration: $270,037 in 2018; $314,293 in 2017; $269,797 in 2016; $235,310 in 2015. Ticketing revenue was down despite attendance increasing due to the reduced ticket pricing to ensure the event was accessible to the community.
  • There were 39,937 people through the gate at the main Crankworx venue at Skyline.
  • International viewership: 11.6m in 2018, up from 11.4 million in 2017 and 4.6 million in 2015.
  • People surveyed stayed in the city for an average 7.4 nights.
  • 367 volunteers this year, mostly locals.
  • More than 400 children enjoyed Kidsworx events during the course of the festival
 
Background
 
Crankworx Rotorua is run in conjunction with its Canadian owners Crankworx Events Incorporated, the local festival organiser and not-for-profit company Mountain Bike Events Ltd.
 
Council agreed to provide an underwrite for Crankworx of up to $500,000 between 2015 and 2021, on the basis of the anticipated economic benefits for Rotorua.  The underwrite called upon for 2015 was $94,000 and in 2016 it was $39,000 with no underwrite required for 2017.
 
Aim, vision and mission
 
The event aim is to promote and facilitate major mountain bike events in Rotorua.
 
The vision is to showcase Rotorua as the world’s premier year-round mountain biking resort and significantly grow the local economy and reputation of the district as a compelling place to visit, live, work, play and relax.   The mission is to sustainably deliver an outstanding Crankworx festival with legacy effects contributing to the goals of Rotorua’s 2030 vision.
 
Today’s Operations and Monitoring Committee hui/meeting was livestreamed and the Crankworx presentation was the first presentation. You can access the recording of the meeting at THIS LINK on Council’s website.
 
The Crankworx presentation slides and the committee agenda can be viewed at the same link