Sky Convention Centre unlikely to be profitable. So why build it at all?

You have to wonder at the logic of SkyCity. Apparently their ‘gift’ to the nation of a convention centre won’t make them any money.

SkyCity’s international convention centre may end up running at a loss, compensated for by generous gambling concessions.

At the company’s annual general meeting in Auckland on Friday, chairman Chris Moller said the first sod of the huge development would be turned before the year was out.

However, Moller said the board was “under no illusion” that the centre itself would generate any significant profit.

Instead, the return on the $450 million investment will come from gambling concessions granted by the Government, including extension of the Auckland casino licence until 2048.   

Speaking after the meeting, chief executive Nigel Morrison said the centre would be “marginal” as a standalone business.

“We would hope to make a profit out of it, we would hope to do a good job and have some great events out of it – and we might.”

But even earning a few million dollars of profit would not justify the huge capital investment, he said.

Sounds like a bit of risk mitigation there. Perhaps they will build it, then declare that as a business unit it isn’t working, but hey, we have the space and the building now so we will convert it to a new gaming area.

I’m not sure I’d want someone running my business who is planning on spending $50 million with no apparent profit motive.

I’d be looking out for a shake down of the government shortly.


– Fairfax


Do you want:

  • Ad-free access?
  • Access to our very popular daily crossword?
  • Access to daily sudoku?
  • Access to Incite Politics magazine articles?
  • Access to podcasts?
  • Access to political polls?

Our subscribers’ financial support is the reason why we have been able to offer our latest service; Audio blogs. 

Click Here  to support us and watch the number of services grow.

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.