Govt refuses to back Auckland's bid

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New Zealand will have to accept it cannot host top international events, disappointed supporters of a failed Commonwealth Games bid say.

Prime Minister John Key said yesterday the Government would not support a bid for Auckland to host the 2018 Commonwealth Games.

"It's very, very expensive and we can't see the economic payback," he said. "The economic loss was so great that we just couldn't justify it."

AucklandPlus chairman Michael Barnett, who led talks with the Government on the bid, said the focus on cost was "a pretty narrow perspective".

"If you look at the whole game – the long game – we had a totally different perspective from the Government," he said.

"I don't think it sends a good message from New Zealand that we've stood aside from this, and I'd hate to think it was forever off the agenda."

The Games project was expected to cost nearly $600 million, which would have been split between central and local government. It was expected about $180m of that would have been spent on upgrading facilities.

The Government is footing at least $265m of the 2011 Rugby World Cup bill, $225m of which is on stadiums. It believes the tournament will boost gross domestic product by $507m.

Key said the economic analysis the Government had received showed the Games loss could not be recouped through tourists.

Barnett said New Zealand had to earn a reputation for hosting major events.

"You've got to earn that and you've got to retain it. You can't just do one major event and then move on and say we've got the reputation now," he said.

"Yes, we've got the Rugby World Cup in 2011, but what do we have after that? Nothing."

New Zealand had to keep trying for big events but "may have to be a little more selective", he said.

Auckland Mayor John Banks said the Commonwealth Games was cost-prohibitive for a small country like New Zealand.

"Lord only knows how the African states that are chasing the 2018 bid are going to manage all of this financially," he said.