Major events in Auckland: Exploring the outcomes-driven approach to portfolio design

Proceedings of 13th APacCHRIE Conference

in conjunction with 14th APF Conference

HOSPITALITY AND TOURISM IN A GREENING WORLD: CHALLENGES AND OPPORTUNITIES

10-12 June 2015Auckland, New Zealand

Proceedings of the 13th Asia Pacific Council on Hotel, Restaurant, and

Institutional Education

Editors: Dr Jill Poulston and Dr Peter B Kim

Editorial Coordinator: Michael Kruesi

Programme Coordinator: Dr Dominik Huber

Suggested citation:

Poulston, J. & Kim, P.B. (Eds.) (2015). Hospitality and Tourism in a Greening

World: Proceedings of the 13th Asia Pacific CHRIE Conference, Auckland, New

Zealand, 10-13 June 2015, Auckland University of Technology.

All papers have been blind peer reviewed by one or more reviewers.

Authors retain full copyrights of their work.

Major events in Auckland: Exploring the outcomes-driven approach to portfolio design

Vladimir Antchak

Auckland University of Technology

Abstract

Although many cities around the world actively plan and deliver portfolios of events, a lack

of developed theoretical concepts and empirical research into the nature of portfolio design

exists. To address this knowledge gap a qualitative multi-case research has been conducted

in three cities in New Zealand: Auckland, Wellington and Dunedin. The primary aim of the

research is to explore how different factors, host city’s objectives and event strategies

influence the nature and design of events portfolios in New Zealand. This paper provides an

overview of the preliminary results in regard to the case study in Auckland. The findings

indicate that Auckland employs a so-called outcomes-driven portfolio approach which is

characterised by an ‘agnostic’ attitude in regard to the compositional typology of events,

predominantly economic measures of success and an aggressive bidding campaign.

Although, the recent success Auckland has had in securing a series of international major

events, the city’s global reputational awards and economic indicators justify this approach, a

new tendency to concentrate more closely on local home-grown events and their leverage is

emerging. The achievement of ‘critical mass’ in event sphere in Auckland might be seen as

one of the main drivers for these changes.

Keywords: Auckland, event management, event policy, event tourism, major events,

portfolio of events

Introduction

An event portfolio approach envisages events as strategically selected assets that can be

utilised to support destination marketing, urban development and tourism promotion

campaigns (e.g., Getz, 2013; Ziakas, 2014). Although many cities around the world actively

plan and deliver portfolios of events, a lack of developed theoretical concepts and empirical

research into the nature of portfolio design exists. To address this knowledge gap a

qualitative multi-case research has been conducted in New Zealand focused on three of the

‘core’ cities (Ministry of Business Innovation and Employment of New Zealand, 2012)

including Auckland, Wellington and Dunedin. The primary aim of the research is to explore

how different factors, host city’s objectives and event strategies influence the nature and

design of events portfolios in New Zealand. This paper provides an overview of the

preliminary results in regard to the case study in Auckland. The findings indicate that

Auckland employs a so-called outcomes-driven portfolio approach which is characterised by

an ‘agnostic’ attitude in regard to the compositional typology of events in the portfolio,

predominantly economic measures of success and an aggressive bidding campaign.

Although, the recent success Auckland has had in securing a series of international major

events, the city’s global reputational awards and economic indicators justify this approach, a

new tendency to concentrate more closely on local home-grown events and their leveraging

strategies is emerging. The achievement of ‘critical mass’ (Getz, 2013) in event sphere in

Auckland might be seen as one of the main drivers for these changes.

Literature Review

The belief that events can become a new source of identity, serve to help build social

cohesion and revitalise cityscapes articulates and guides the development of certain city

event policies (Richards & Palmer, 2010). A well-developed event strategy, which takes into

account different perspectives and urban development objectives, can facilitate the

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integration of events into the urban life of the area. Smith (2012) argues that events are most

successful if they support and accelerate the attainment of the pre-existing goals of the city.

‘Eventfulness’ is a modern term that describes the integration of events with other key urban

strategies and policies and encompasses a holistic approach to the organisation and

management of events in a city (Richards & Palmer, 2010). Getz (2013) suggests a relatively

new tendency to shift the focus from single events, their development and marketing to the

portfolios of events, which all managed together to achieve multiple goals. This leads to the

establishment of a new research and practice approach so that events are seen as investment

assets to generate and support long-term benefits for host destinations. The delivery of a

well-planned portfolio can enhance the city’s infrastructure, promote the economic, social as

well as the sport values of a host community (Ziakas & Costa, 2011). Overall, the critical

inquiry into the design of event portfolios can substantially extend the scope and focus of

event studies and event management (Ziakas, 2014). Considering that “the phenomenon of

the event portfolio is currently at an early, or even an embryotic stage of development in

cities and regions worldwide” (Ziakas, 2014, p. 183), this research intends to explore the

variety and complexity of portfolio models within large urban areas by New Zealand

standards and contribute to the development of a theoretical framework in relation to event

portfolio development and management.

Methodology

The research has adopted a qualitative multi-case study methodology. The strategy of

information-oriented selection, whereby cases are selected on the basis of expectation in

terms of their information content has been utilised (Flyvbjerg, 2011). Auckland, Dunedin

and Wellington have been chosen as geographic locations due to their ‘core’ national status

(Ministry of Business Innovation and Employment of New Zealand, 2012) and distinctive

research contexts.

The research methods include semi-structured interviewing of event planners from city

councils and relevant council controlled organisations and the analysis of event-related city

documentation. The applied thematic analysis (Guest, MacQueen, & Namey, 2012) of the

collected data was carried out. This report presents the preliminary findings in regard to the

city of Auckland.

Results

The ‘agnostic’ attitude of city event planners in relation to the nature of major events is one

of the characteristics of the predominance of an outcomes-driven portfolio approach in

Auckland. The major events strategy does not specify the content of the portfolio. The

specifications include the set of outcomes which should be achieved by the selected events.

Events would be sponsored notwithstanding their thematic nature, if they can potentially

guarantee the achievement of at least one of the four outcomes which include: 1) to bring

new money into the economy; 2) to grow visitor nights; 3) to increase liveability and 3) to

increase international exposure. The outcomes-driven approach advocates a new basis for

the compositional nature of the portfolio, whereby a conventional split of events by genres is

replaced by the programming on the basis of audience motivators (to celebrate, to

participate, to support) and audience directionality (family, youth, subcultures). Granting

this quite reasonable point, the outcomes-driven approach, however, can negatively affect

the synergetic value of the city of Auckland’s portfolio of major events in achieving multiple

long-term city objectives and meeting the perceptions and expectations of the local

community. Several issues in portfolio design call upon a careful analysis and strategic

decisions. The predominantly economic orientation of city event planners caused the

situation where current major social events in the city, which are supposed to deliver mostly

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social outcomes and reflect the cultural diversity of Auckland, are being strongly criticised

by the local community for losing their identity in favour of positive economic results. 2015

Pasifika Festival is a good example. The event which has a 23-years history of celebrating

Pasifika Islands’ traditions, music and food was labelled by the participants and attendees as

“too commercialised, too regimented and very expensive” (Tapaleao, 2015, March 13). The

recent dominant focus of the city on bidding strategies and a relative loyalty in terms of event

genres places Auckland into a significant dependence in terms of its reliance on relationships

in regard to the external institutions and event rights holders. The majority of events the city

would be involved in are run or underwritten by external agencies, for example, international

sporting federations or promoters. In a successful effort to secure quick economic benefits

and outcomes from hosting major events, Auckland tends to lose control over the

compositional value and consistency of its portfolio.

Although, currently there are no premises for event planners in Auckland to change their

effective outcomes-driven major events strategy, the respondents emphasized the beginning

of the formation of a more proactive approach in terms of the utilisation of major events in

the city and the upcoming re-fresh of the major events strategy. One of the critical factors that

has determined this shift could be the achievement of ‘critical mass’ in the city’s major

events sphere which refers to the minimum number of events and event-related resources

required to achieve a self-sustaining portfolio (Getz, 2013). The critical mass in Auckland

comprises a basic number of events and event venues, the development of a guiding event

strategy as well as collaboration of the key stakeholders, legitimization and is reliant on the

successful track records of the city and local event industry capability.

Discussion

The employed outcomes-driven portfolio approach in Auckland can be compared with a

portfolio model for immediate and maximum tourism\economic gain suggested by Getz

(2013). Although, this type of a city event strategy is not recommended for the sustainable

destination development, it can be used by cities which are entering the international event

market or if a re-branding of the host city is required (Getz, 2013). The achievement of

critical mass in terms of major events can be seen as a significant milestone in destination

development, when an alliance of stakeholder actions, political will, finance and knowledge

(Getz, 2013) provide a transformational point for a destination to become an ‘eventful city’

(Richards & Palmer, 2010). The case of the city of Auckland demonstrates that although

portfolio planners in the city have been actively engaged in the realisation of the integrative

major events strategy using the outcomes-driven approach, it is only after the city has

achieved a condition of critical mass that the intention to work with events on a holistic long-

term basis has appeared. This includes a proactive analysis of the gaps in the portfolio, along

with a focus on home-grown events, orientation on leveraging initiatives and a re-fresh of the

current strategy. Overall, the analysis of the city of Auckland’s case can serve as a good

starting point in revealing key aspects of portfolio planning, its optimal composition and role

in urban development.

References

Flyvbjerg, B. (2011). Case study. In N. K. Denzin & Y. S. Lincoln (Eds.), The Sage

handbook of qualitative research (4 ed., pp. 301-316). Los Angeles, LA: Sage Publications.

Getz, D. (2013). Event tourism: Concepts, international case studies, and research. New

York, NY: Cognizant Communication Corporation.

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Guest, G., MacQueen, K., & Namey, E. (2012). Applied thematic analysis. Los Angeles, CA: Sage Publications.

Ministry of Business Innovation and Employment of New Zealand. (2012). New Zealand

core cities: Research summary. Wellington, New Zealand. Retrieved from

http://www.med.govt.nz/sectors-industries/regions-cities/pdf-docs-library/core-cities-

research/Core%20Cities%20Research%20Summary.pdf

Richards, G., & Palmer, R. (2010). Eventful cities: cultural management and urban revitalisation. Amsterdam, the Netherlands: Butterworth-Heinemann.

Smith, A. (2012). Events and urban regeneration: The strategic use of events to revitalise

cities. New York, NY: Routledge.

Tapaleao, V. (2015, March 13). Pasifika too far from its grassroots, say critics. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz

Ziakas, V. (2014). Event portfolio planning and management: A holistic approach.

Abingdon, England: Routledge.

Ziakas, V., & Costa, C. A. (2011). Event portfolio and multi-purpose development:

Establishing the conceptual grounds. Sport Management Review, 14(4), 409-423.

doi:10.1016/j.smr.2010.09.003

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