Finance and Support Committee - Whangarei · Finance and Support Committee 26 October 2011 c) The term of the loan of 8 years. d) The repayments be made in equal quarterly instalments

Finance and Support Committee

Notice of Meeting A meeting of the Finance and Support Committee will be held in the Council Chamber, Forum North, Whangarei on:

Wednesday26 October 2011

9.00 am

Committee Cr W L Syers (Chairperson)

His Worship the Mayor Cr C B Christie

Cr S J Deeming Cr A J Edwards

Cr S M Glen Cr P R Halse

Cr J S Jongejans Cr G M Martin

Cr B L McLachlan Cr S L Morgan

Cr K J Sutherland Cr M R Williams

Cr J D T Williamson

INDEX Item No Page No 1. Minutes of a Meeting of the Finance and Support Committee

held 28 September 2011...........................................................................................................1 2. Financial Report for the month ending 30 September 2011.....................................................4 3. Northland Regional Council Community Trust Quarterly Report on Activities .................................................................................................26

Recommendations contained in this agenda are NOT final decisions. Please refer to the minutes for resolutions.

Finance and Support Committee 26 October 2011

1. Minutes: Finance and Support Committee Wednesday, 28 September 2011

Minutes of a meeting of the Finance and Support Committee held in the Council Chamber Forum North on Wednesday 28 September 2011 at 9.00am

Present: Cr W L Syers (Chairperson) His Worship the Mayor M C A Cutforth, Crs C B Christie, S J Deeming, A J Edwards, S M Glen, P R Halse, J S Jongejans, G M Martin, B L McLachlan, S L Morgan, K J Sutherland M R Williams and J D T Williamson In Attendance: Chief Executive Officer (M P Simpson), Group Manager Support Services (A Adcock), Group Manager Economic Development (J Thompson), Community Services Manager (O Thomas), Financial Controller (W Stevens), Financial Accountant (K Welford), Media Relations Advisor (A Midson), Councillor Support (J Crocombe) and Senior Meeting Co-ordinator (C Brindle)

1. Confirmation of Minutes of a Meeting of the Finance and Support Committee held on 24 August 2011

Moved Cr Williams Seconded Cr Edwards

“That the minutes of the meeting of the Finance and Support Committee held on 24 August

2011, having been circulated, be taken as read and now confirmed and adopted as a true and correct record of proceedings of that meeting.”

CARRIED

2. Confirmation of Minutes of a Meeting of the Community Funding Subcommittee held on 14 September 2011

Moved Cr Deeming Seconded Cr Williams

“That the minutes of the meeting of the Community Funding Subcommittee held on

14 September 2011, having been circulated, be taken as read and now confirmed and adopted as a true and correct record of proceedings of that meeting.”

CARRIED

3. Financial Report for the Month Ending 31 August 2011

Moved Cr McLachlan Seconded Cr Edwards “That the information be received.”

CARRIED

4. Delegated Authority - Financial

Moved Cr Jongejans Seconded Cr Morgans

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“That the changes to the delegated financial authorisation as listed below be approved as the operative list of delegated financial authorities from 28 September 2011 until further notice.”

Category H Single contracts $2,000.00

Quality Systems Co-ordinator New PIMS/LIMS.

CARRIED

5. Whangarei Cruising Club Loan Request

Moved Cr Christie Seconded Cr Jongejans

“1. That the information be received.

2. That the Whangarei Cruising Club be approved an interest free loan of up to $18,157 subject to the following conditions:

a) That the term of the loan be a maximum of 8 years.

b) That the loan starts 01 December 2011.

c) That loan repayments be made in equal quarterly instalments of $567.41.

d) That the first repayment occurs on 01 March 2012.

e) That the last repayment occurs on 01 December 2019.

f) That the loan be paid out on receipt of approved invoices for the project.

g) That Council take security over the clubrooms at Kissing Point for the duration of the loan.

h) That annual financial statements are provided to Council as soon as possible after they have been audited and adopted by the Club.

i) That Council receives annual reports on the Club’s activities and ways in which this facility is being used to benefit members and the community at large.

j) That the organisation meets all legal expenses in relation to the loan documentation throughout the term of the loan including its subsequent discharge.”

CARRIED

6. Onerahi Soccer Club Loan Application

Moved Cr Williams Seconded Cr McLachlan

“1. That the information be received.

2. That the Onerahi Soccer Club be offered a $100,000 loan from the Whangarei District Council’s Reserve Development Fund on the following terms and conditions:

a) Further funding is secured from ASB and other philanthropic agencies.

b) The sum of the loan be interest free for its term.

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c) The term of the loan of 8 years.

d) The repayments be made in equal quarterly instalments of $3,846.16.

e) The first repayment occurs on 1 March 2013.

f) The loan be secured against the clubhouse building once it is completed.

g) That annual financial statements are provided to Council as soon as possible after they have been audited and adopted by the Club.

h) That Council receives annual reports on the Club’s activities and ways in which this facility is being used to benefit members and the community at large.

i) That the organisation meets all legal expenses in relation to the loan documentation throughout the term of the loan including in subsequent discharge.”

CARRIED

The meeting closed at 9.21am

Confirmed this 26th day of October 2011 W L Syers (Chairperson)

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Whangarei District Council 26 October 2011

2. Financial Report for the Month Ending 30 September 2011

Reporting officer Kylie Welford (Financial Accountant)

Date 12 October 2011

Vision, mission and values

This item is in accord with Council’s vision, mission and values statement as it provides management information for innovation and excellence.

Local Government Act 2002 – The four well-beings

Cultural No direct link.

Economic Financial information for effective decision making.

Environmental No direct link.

Social No direct link.

Attached are detailed reports on the following items:

Executive Summary

Monthly Monitoring Report – 2011/12 – Month 3

Treasury report

Sundry debtors

Capital projects report.

Recommendation

That the information be received.

Attachments

Monthly Monitoring Report

Reports as listed above

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3. Northland Regional Council Community TrustQuarterly Report on Activities

Reporting officer Jude Thompson (Group Manager Economic Growth)

Date 04 October 2011

Vision, mission and values

This item is in accord with Council’s vision, mission and values statement as Economic Development is seen as a major driver for improving the economic wellbeing of the district which in itself is integral to council’s mission of creating the ultimate living environment.

Local Government Act 2002 – The four well-beings

Cultural Economic Development is directly linked to cultural wellbeing through the promotion of our cultural assets.

Economic There is considerable potential in Whangarei to improve its economic wellbeing through increased business growth and activity.

Environmental Economic Development can capitalise on many of Whangarei's outstanding landscape features.

Social Economic Development has positive social impacts in terms of the activities undertaken and employment provided.

The following report was provided to Council by the Northland Regional Council Community Trust (NRCCT).This report covers activities of the NRCCT, Enterprise Northland and Destination Northland. as part of improving communication and collaboration between various agencies involved in economic development.

Recommendation

That the Northland Regional Council Community Trust quarterly report for the period of July to September 2011 be received.

Attachment

Northland Regional Council Community Trust Quarterly Report on Activities

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Quarterly Report on Activities

Jul-Aug-Sep 2011

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NORTHLAND REGIONAL COUNCIL COMMUNITY TRUST QUARTERLY REPORT JUL – SEP 2011 1 | P a g e

Table of Contents

Section 1: Northland Regional Council Community Trust .......................................................3

Chairman’s Comment....................................................................................................................................................................... 3

NRCCT Trustees ................................................................................................................................................................................. 4

Operational Structure ...................................................................................................................................................................... 5

Staffing and Projects - Enterprise Northland .............................................................................................................. 6

Staffing and Responsibilities - Destination Northland ............................................................................................ 6

Economic Situation ........................................................................................................................................................................... 7

Guest Commentary – An outsiders view .................................................................................................................................. 8

Section Two: Enterprise Northland Quarterly Report on Activities ............................9

Enterprise Northland Operational Strategy ........................................................................................................................... 9

Communication & Leadership .................................................................................................................................................... 10

Northland Intersectoral Forum ....................................................................................................................................... 10

Northland Community PRIDE .......................................................................................................................................... 11

Jobs, Productivity, and Skills Projects ..................................................................................................................................... 12

Northland Regional Business Partnership – Business Growth Team ............................................................. 12

One More Worker Campaign ............................................................................................................................................ 14

Growth Projects ............................................................................................................................................................................... 15

Northland Horticulture Forum ........................................................................................................................................ 15

Northland Minerals Forum ............................................................................................................................................... 16

Project Oyster Shell .............................................................................................................................................................. 17

Growth Investment Projects ....................................................................................................................................................... 19

Rugby World Cup 2011 ...................................................................................................................................................... 19

Inwards Investment Projects ........................................................................................................................................... 21

Appendix to Section Two - Enterprise Northland Consolidated Strategy and Business Plan 2011 ............. 22

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Section 3: Destination Northland Quarterly Report on Activities ............................. 23

Executive Summary – DNL 2010-2011 Business Plan ..................................................................................................... 23

Tourism Sector Macro Objectives - Annual ................................................................................................................ 23

Destination Northland Organisational Objectives – Annual ............................................................................... 24

Key Project Update from 2010 – 2011 Destination Northland Business plan ....................................................... 25

Marketing Collateral ............................................................................................................................................................ 25

WWW.DESTINATIONNORTHLAND.CO.NZ ................................................................................................................. 25

Rugby World Cup .................................................................................................................................................................. 25

Auckland i-Site Training..................................................................................................................................................... 25

Visiting Media ......................................................................................................................................................................... 26

International Marketing ..................................................................................................................................................... 32

TRENZ 2011 ............................................................................................................................................................................ 32

Domestic Media ..................................................................................................................................................................... 32

Conference ............................................................................................................................................................................... 32

Visitor Figures ........................................................................................................................................................................ 32

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Section 1: Northland Regional Council Community Trust

Chairman’s Comment Chairman Andy Britton When economic times are hard, the importance of an effective regional economic development agency is really brought into focus. Unfortunately at the moment we have a “perfect storm” - the fund returns are down, the government programmes (the major funder of our activities) are being cut and all the territorial authorities are under extreme financial pressure. Combining this with the two stated regional development government priorities being; earthquake recovery and making the super city work, is the perfect “development storm” and yet an exciting regional challenge. We need to respond collectively.

Economic development in these tough times is about people and local innovative initiatives. There is not one big solution for our problems but a collective of initiatives that can make a difference. Money and investment are important but nothing matches local innovation and local solutions for making a difference. Because of our limited resources Enterprise Northland is going to concentrate on developing and supporting industries and projects that have the ability to bring step changes to the region. This will be measured by our success in facilitating and supporting functional partnerships to make things happen. Leadership or championship of these projects must come from within the industries or communities that have a direct interest. Our staff has a mandate to find and support step change initiatives and I am confident they will add value to any project in a supportive role. The whole theme going forward is partnerships with collaboration and cohesion to help ourselves – local solutions to local problems.

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NRCCT Trustees Chairman, Andy Britton After working in Environmental Health at a large UK City Authority, Andy switched careers and trained as a Chartered Accountant, qualifying in 1982. Andy has 24 years of assurance and business advisory experience with PricewaterhouseCoopers, including 16 years as a partner. He has provided wide ranging internal and external assurance and business advisory services to a number of companies and other businesses in the UK and New Zealand. These businesses have included many leading publicly listed companies as well as Crown Health organisations and NZ Government Departments. Andy was an appointed auditor on behalf of the Office of the Auditor General for a number of entities. Andy retired from practice with PWC in September 2005 at age 50. Andy is currently the Treasurer for the Tutukaka Coast Promotions Society, a charitable organisation established to promote sustainable tourism. He is a past president and his involvement goes back to the sinking of the Tui and Waikato as Dive wrecks. He is also Chairperson for the Arts Promotion Trust (Northland) and in the past Vice President and Treasurer of the Northland Chamber of Commerce.

Irene Durham Irene is a certified financial planner, property investor, business consultant, and company owner and director. Her work history spans business coaching and consulting, financial planning, and law. Irene was NZ Business Woman of the Year in 1998/99 and holds a Degree in Management and a Dip. Business Studies (Financial Planning).

In addition to her role as trustee of ENT, Irene has held various board positions in Northland and throughout NZ. Irene is currently Chairman of the Board of Trustees of NorthAble, Trustee for NorthHaven Hospice Endowment Trust and on the Board of Northland Business Development Trust. She has a strong desire to see Northland and its people reach their potential.

Bill Shepherd Born and educated in Whangarei, Bill Shepherd went straight into a career in dairy farming. He and wife Sue continue to own two dairy farms, currently operated with 50-50 share milkers.

When Federated Farmers separated the Northland region from Auckland in 1990, Bill established the new Northland Province and became its first president. He rose through the ranks of the national federation, becoming senior vice president for New Zealand. He left Federated Farmers in 1994 and in 1995 took on the position of chief executive of the Northland Chamber of Commerce, which he held until 2001. Currently Bill and his wife have business interests in forestry and childcare as well as their dairy farm businesses.

Rawson Wright As well as his role as Trustee for the ENT, Rawson is chairman of Taitokerau Forests Ltd, Pouto Papakianga Trust and Te Uri o Hau Tangata Development Ltd, and a Member of the Institute of Directors. Rawson has extensive experience in forestry and pastoral farming and lives in Whangarei with his family.

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Operational Structure Northland Regional Council Community trust (NRCCT)is a community trust established by deed in 1996. Northland regional council appoints the Trustees, making it a Council Controlled organisation (CCO) under the local Government ACT (LGA) 2002. Being a CCO, NRCCT must prepare an annual Statement of Intent and undertake a certain amount of public reporting. The Trust Deed allows for eight Trustees. Currently there are four. The purpose of NRCCT as stated in the deed is to: Promote and encourage the development of a vibrant economy that creates wealth and jobs and provides choices and opportunities for people to live, work and invest in Northland while recognising the value of its unique environment for present and future generations. NRCCT has two subsidiaries in the NRCCT group, Enterprise Northland Trust (ENT) and Destination Northland Ltd (DNL). ENT is owned by NRCCT. ENT Trustees appoint their own successors and the current Trustees are the NRCCT Trustees. ENT has been granted Charitable trust Status and is therefore exempt from income tax which brings several financial advantages. ENT is the operational arm of NRCCT. DNL is a limited liability company 100% owned by NRCCT. The purpose of DNL is to: Assist Northland businesses and communities to maximise and manage the sustainable economic benefits of increased visitor numbers. DNL is a “regional tourism organisation” (RTO) with directors appointed by NRCCT Trustees. They currently have appointed themselves.

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Staffing and Projects - Enterprise Northland

Enterprise Northland Staffing as at 30 Sep 2011

*Seconded from Northland Regional Council. ** Until end of October 2011

Staffing and Responsibilities - Destination Northland

Destination Northland Staffing as at 30 Sep 2011

General Manager

Wayne Hutchinson

Project Manager (RWC)

Stewart McElwain

Project Manager (NIF Coordinator)

Aurelia Robertson

Project Manager (Aquaculture)

Dr Jacquie Reed*

Business Grow Team

Colin Duncan**

Business Grow Team

David Templeton

Financial Admin

Tammy Fromont

Inwards Investment Contractor Coontractorontractor

Glen Beattie

General Manager

Brian Roberts

International Marketing Marketing

Nineke Metz

Domestic Marketing MarketingCheryl Jensen

Marketing Contractor Co t acto

Sarah Yeates

Admin

Lorraine Jobbitt

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Economic Situation Summary Northland’s economy is slowly pulling out of recession with GDP increasing by 1.4% in the year to June 2011. However, the level of economic activity is still well below its peak from end of 2008. There are signs of an improving labour market in Northland. The number of unemployment beneficiaries declined to 3,600 in the June quarter from 4,000 a year ago. The seasonally adjusted unemployment rate declined to 7.9%. Northland’s housing market is very weak with the largest fall among the regions, apart from Canterbury, in house sales and prices. Residential building activity has been constrained by the weak housing market and a lack of finance for developers. Residential consents have fallen to their lowest level in more than a decade. Prospects for non-residential construction are also poor with the value of consents down to levels last recorded in 2004. On the positive side car registrations increased by 13% and commercial registrations by 7%, although the level of registrations is still well below pre-recession levels. GDP in Northland increased by 1.4% in the year to June 2011 compared to the previous 12 months. The region's growth was higher than the country as a whole (1.3%). (GDP growth peaked in Northland at 5.7% in the year to March 2001).

Regional Economic Activity Year-on year growth, June 2011

Source: National Bank

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Guest Commentary – An outsiders view We need to strike out on new paths

Article from Tony Smale - Forte Enterprise Digest Sept 2011 (Tony is an accredited economic development professional and his experience includes serving on an OECD economic development expert panel.) Over our many years associated with economic development it became apparent that there are two fundamental philosophies in play. The first is to carefully analyse the existing productive base and map out its trajectory and then see what can be done to accelerate that trajectory. That’s a very sound approach if the plan is to get more of what you’ve always got. But that is not what New Zealand – and in fact most of the Western world needs. We need transformation. We need to leverage off what we have but jump to a new plane – one that creates more value per unit of input – capital and time – than we achieve now. A new business model. Otherwise we are simply in a race to the bottom. The alternative is, instead of starting where we are now and drawing a line to some indeterminant future point, we need to design the future that we want first and then work backwards to determine what we have to do to get there. In our office we have a quote on the wall from John D Rockefeller “If you want to succeed you should strike out on new paths rather than travel the worn paths of accepted success.” And we think that is sound advice. The funny thing is – in New Zealand at least - we’ve already gone through the process of figuring out what we want the future to look like - the goals in our Councils Long Term Plans. The Long Term Plans and the Regional Policy Statements should be the foundation of everything our councils do. When we begin economic development planning or review the current ones, here’s a simple process we advocate:

1. What do the LTP goals state? 2. How prominent a role do the goals play in council and councillor, and wider community

decision making? (The goals are intended to be the community goals with the Councils having what might be described as a stewardship role)

3. Are economic development goals aligned with the LTP goals? If not why not? 4. Which goals need to be adjusted?

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Section Two: Enterprise Northland Quarterly Report on Activities

Activities that are commercially sensitive or confidential are covered in a separate report which has a limited distribution.

Enterprise Northland Operational Strategy

Over the last six months Enterprise Northland has been refining the way that it operates and it continues to do so. The Trustees have approved an interim business plan active until the Northland Regional Council review of their Economic Development Activities is complete. The makeup of the strategy behind this business plan is shown as an appendix to this section. The Strategy shown is not the Growth Strategy for Northland but in the absence of a regional plan with buy in from all parties it is a start point based on previous regional economic strategies, the resources we have available, and current economic research. Enterprise Northland’s goal is to facilitate step changes to the economy and the wellbeing of the community. This will be the basis of new project prioritisation. When we talk of step changes the main (and simplest) measurement of success (although not the only one) is changes to GDP per capita. This is only one part of the regional economic growth jigsaw. The Northland Communities and their innovation and commitment to local solutions hold the key to economic prosperity and will have by far the biggest influence on our future economy. All economic development is local. Governments can only provide the tools and assist with nurturing the growth environment. Local solutions to local problems have a greater chance of working. In the trade this is called Community Economic Development.

Definitions Economic Growth is simply the rate of change in a measure that represents a better life for people. In general the measure of economic growth that is used in New Zealand is GDP growth or GDP per capita. There is a difference between economic growth (as measured by GDP) and economic well-being. Economic wellbeing considers the happiness of individuals, whereas GDP assumes that higher incomes have a positive correlation with happiness and well-being. Economic Development is a slightly different concept in that it identifies the processes used to influence economic growth.

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Enterprise Northland does not have the resources or the mandate to assist every community project, which we see in the purview of the district authorities through their economic development officers. However, where we can add value we will assist. There is an element of “picking winners” in our choice of projects and there is also an element of opportunity timing that influences our priorities. Notwithstanding this, Enterprise Northland will initiate projects that are considered a vital need to the region, if no one else steps forward.

Operational Principles There are two major streams of activity under this strategy: growth projects and business support services. These activities will be project based using project and economic development methodology. Enterprise Northland’s staff will not be the champions of projects. Unless there is an identified champion or champion organisation, Enterprise Northland will withdraw from the project. Notwithstanding this, Enterprise Northland will initiate (on direction) projects that are considered a vital need to the region until a leadership group is established. Enterprise Northland will only work with the willing. Enterprise Northland would prefer to be invited to assist a project champion organisation on the basis that their participation will add value. Enterprise Northland will seek project funding from a multitude of sources both external and internal of the region.

Communication & Leadership

Northland Intersectoral Forum The Northland Intersectoral Forum (NIF) is comprised of local and central government agencies working in a collaborative way to make a positive difference on the social, economic, environmental and culture well-beings of Northlanders. As of September, Whangarei District Council (Mark Simpson) and Te Puni Kokiri (Walter Wells) are the new co-chairs of NIF, taking over from Kaipara District Council (Jack McKerchar) and Northland District Health Board (Karen Roach). NIF is made up of four taskforces organised around the 4 wellbeings (the Economic Taskforce, the Social Taskforce, the Cultural Identity Taskforce, the Environment Taskforce) as well as a Communications Taskforce dedicated to the Northland Community PRIDE campaign. Current members of NIF are The Northland Regional Council as well as the 3 District Councils, ACC, Child Youth and Family, DOC, Department of Corrections, Enterprise Northland, Ministry of Education, Family and Community Services, Northland District Health Board, Housing NZ, Department of Internal Affairs, NorthTec, Northland Primary Health Organisations, Police, MSD (Work and Income), Sport Northland, Te Puni Kokiri, and Ministry of Youth Development. NIF collectively funds a Coordinator. The main purpose of the Coordinator role is to lead and manage stakeholder engagement projects effectively and to contribute to marketing and developing the work of NIF.

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It was agreed with NIF that the NIF Coordinator position will be hosted by Enterprise Northland from August 2011 – August 2012, thus furthering the potential for Enterprise Northland to better liaise with NIF. Under this contract, the NIF Coordinator will also support Enterprise Northland’s communications as well as economic development projects endorsed by NIF.

Northland Community PRIDE In 2010 the NIF Communications Taskforce successfully launched the Northland Community PRIDE brand to the mass Northland Market, creating brand awareness across the region.

PRIDE is the acronym for Protect, Respect, Involve, Develop and Educate. The aim of Northland Community PRIDE campaign is to build community ownership of community safety, through people taking care of each other and taking pride in their communities. Northland Community PRIDE is also about looking after our visitors (manaakitanga), taking care of our families, taking care of our youngest and most vulnerable members of our communities, getting to know our neighbours, looking after our environment, and recognising that young people are our future. Prior to the RWC games and in support of the Paint it Red initiative, NIF promoted red Northland Community PRIDE Tshirts. FNDC promoted the Tshirt in 3 district offices. PHO and Sport Northland bought red Tshirts for all of their staff. MSD and DOC staff sold Tshirts at Whero is Red market in September. The brand has great potential for community and business buy-in. A staff member from TPK is dressing his regional rugby team in PRIDE for a tournament in October. The Kawakawa fish & chip shop and Explore NZ in Paihia have their staff wearing PRIDE Tshirts.

Ministry of Youth Development, Manaia Primary Health Organistaions and Work and Income staff and Minister Carter

all showing their Northland PRIDE

The One More Worker initiative detailed under the Jobs, productivity, and Skills Projects in this report will incorporate the PRIDE ethos.

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Jobs, Productivity, and Skills Projects

Northland Regional Business Partnership – Business Growth Team Enterprise Northland in partnership with the Northland Chamber of Commerce

The partnership with the Chamber of Commerce has been in place for six months, and is moving into a phase were we are now engaging with a greater number of more established businesses. The CRM system is meeting the needs of the RBP team and with the link with “SharePoint” will provide a comprehensive data management system for Enterprise Northland. The “Spanner Networks” that we have engaged with have proved to be a very effective way of getting the message out to those businesses who are willing to engage. The team is maintaining those links and is continuing to look to other “Spanners” to promote the service. An area that we are looking to improve on is the connection to the various sector groups. The team has found that the open engagement with the service providers has resulted in a large number of referrals. This is a very open process with no guarantees or expectations that the business will necessarily engage with that provider. We have been impressed with both the depth and quality of providers utilised to date. Anecdotal evidence from client businesses has been very positive. The team is excited about the variety and depth of the business we are interacting and the potential growth of not only the regional economy but the prospect of increased export opportunities. The team is just at the start of the programme, so patterns have not yet been established. Early indications are that formal training is not the dominant need of businesses that we have interviewed. If training needs have been identified it is more in the realm of one on one coaching and assistance in specialist areas. This is the early analysis.

Summary – YEAR TO DATE

Clients – Action Plans - Total Vouchers Issued -

100 87 24

Total Value of Vouchers - Vouchers Validated to Date – Vouchers Expired to Date -

$52,975.00 $21,725.00 $5,500.00

Vouchers issued for - Business Planning, Strategic Marketing. Projected Returns - >80% Business with Export Potential - 22%

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NORTHLAND REGIONAL COUNCIL COMMUNITY TRUST QUARTERLY REPORT JUL – SEP 201113 | P a g e

Quarter 4 - 2010 Quarter 1 - 2011

Quarter 4 - 2010 Quarter 1 - 2011

There has been a marked increase in established businesses engaging and therefore increased uptake and demand for the services.

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Mar

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Augu

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Total Action Plans

Follow Up

Total Follow ups

Activity

Total Activity

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100150200

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Augu

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Total Action Plans

Follow Up

Total Follow ups

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30%

48%

Business Phase Concept Start up Estabished

18%

21% 61%

Business Phase Concept Start up Estabished

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One More Worker Campaign The One More Worker campaign aims at tapping into the Northland Community PRIDE branding and encouraging Northland businesses to take on one more employee. This is specifically targeting Northland’s small businesses. Ministry of Social Development and Chamber of Commerce believe that if we manage to get only 5% of our businesses in Northland to take on 1 more worker – this would have quite an impact on Work & Income’s youth register. This project is currently being led by Work & Income and Enterprise Northland. There is an opportunity to get this project off the ground quickly (October 2011) by linking it to existing initiatives:

» Work & Income Jobs Opportunity with Training - $5K potential funding for employers » Building on the success of the Northland Community PRIDE brand and community spirit

and using existing resources to target businesses:

» Business Growth Team (promoting the initiative with businesses they assist) » Work & Income and Chamber of Commerce business databases » Work & Income 0800 number for employers to call for more information

Media Campaign The One More Worker is essentially an intensive media campaign over a set period. In addition to the existing initiatives above, the idea would be to use local newspapers and radio stations to further promote the campaign:

� good news stories of businesses taking on one more employee

� weekly updates in one of the local newspapers showing our progress to date or a growing list of “Northland Working, Northland PRIDE” businesses

The key messages to promote would be two-fold, targeting:

� Northland’s social conscious : “Northland working, Northland PRIDE”, Zero waste of our youth

� The benefits for employers (free recruitment via Work & Income, potential $5K funding depending on worker eligibility, name in the paper)

The expected time frame of the campaign is:

� Oct-Nov 2011: targeting Whangarei

� Feb-Mar 2011: targeting all of Northland

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Growth Projects

Northland Horticulture Forum

The Northland Horticulture Forum has been meeting regularly to develop a Northland Strategy. The last meeting revolved around making submissions to the Whangarei District Rural Development Strategy. Over the past 20 years, horticulture exports have grown from $NZ 200 million to $NZ 2.2 billion. The area of horticultural crops has also increased 40% to 121,000 ha in just over 10 years. Including domestic sales, the horticulture industry is worth $NZ 4.7 billion - making it New Zealand’s sixth largest export industry. A rough estimation of the Industry export worth to Northland given that Northland has about 4% of the area of horticulture crops (2007) would be $188 million employing in 2010, 1200 FTEs. It is one of major producers of GDP for the region. It is recognised by the regional and the national Industry that Northland is one of the prime areas of future growth for Horticulture. Economists also predict that regions like Northland will grow around industries such as horticulture which has room for expansion and distinct competitive advantages for doing so. Growth is predicted to be with the established crops encompassing new cultivars that when grown in Northland climate and soils will allow early or late season production or a more secure production base. Horticulture New Zealand has produced a national growth strategy which mandates regional industry groups to:

• Develop in liaison with the appropriate authorities a strategy for growth which will address in collaboration barriers or issues that affect growth.

• Develop and align regional strategies with national strategy. • Operationalise national and regional strategies/actions. • Actively engage with the National Governance Group by providing feedback and

information, reporting and attending meetings as required (attendance to be funded from within the region).

• Communicate/engage with government agencies, industry groups, training providers, contractors at a regional level.

• Communicate resource requirements and meet contracted obligations for funding. • Build and communicate expertise and resources relating to labour and training issues in

the region. The Northland Horticulture Forum initially met with the Regional Council to discuss water issues, however they have now taken the opportunity to widen their scope (with the support of the Regional Council) and to address the areas detailed above. The Strategy is expected to be finish by end of November 2011 and will include three growth scenarios.

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Northland Minerals Forum The aerial survey has finished with the data now being translated by GNS Science. This is expected to be ready for public distribution by Feb 2012. The next steps are:

� Recognition of mineral potential in regional plans and policy statements � Uptake of airborne geophysical data by different industry sectors � Attract mineral exploration investment

o Facilitate access for exploration o Increase prospectively to attract explorers by providing new information:

� Airborne geophysical surveys (Surveys funded by MED commenced in February 2012)

� Promotional information package (website, international conferences, direct marketing to target companies)

� Targeted studies to encourage exploration for additional commodities

There are three critical criteria required to attract investment to Northland: � Strong prospects - clear potential value � Good survey data to assess potential, identify specific areas and develop plans � Strong support from the local government regime

The potential users of the information from the survey are:

� Mining and quarrying sectors - Exploration and mining investment Community � Councils - Regional and district planning, geological hazard assessment � Primary industries - Agriculture, forestry, horticulture, viticulture � Infrastructure - Buildings, wind farms, roading, sewerage systems, electrical reticulation � Iwi - Maori land development � DoC - Conservation estate management: management of biodiversity/resource development

conflicts

The data pack is due for release in Feb 2012, and will be provided in the form of a DVD and information will be made available through MOU partners websites (Including Enterprise Northland). Data is expected to include:

• Digital Terrain model • Magnetics - Total Magnetic Intensity, Reduction to Pole, Analytical Signal • Radio metrics - Total Counts, Ternary Image, Ratio's, Ground concentrations • Geological interpretation

200 copies accompanied by a detailed prospectus will be released simultaneously in Northland, Wellington, London, China, and Sydney. A meeting is scheduled with Hon Tim Groser, Minister Foreign Affairs & Trade, to discuss opportunities to present to Chinese investors.

43


Project Oyster Shell There is an estimated 25,600m³ (6,400 tonnes) of waste oyster shell and 270m3 (297 tonnes) of waste timber in the Waikare Inlet, in the Bay of Islands. This waste covers a total area of 30 ha. The build-up of waste has occurred over the last decade because the oyster farms were closed due to an outbreak of norovirus. Recent upgrades to the wastewater treatment plant in Kawakawa have improved the water quality in the Waikare Inlet (e.g. norovirus outbreaks have reduced from 40 to 1 in the last 18 months) and so the oyster farms are now open for business. Today, the oyster farms have so much waste timber and oyster shell that they have to clean it up before new harvesting areas can be built. (The estimated income of a fully operational oyster industry in the Waikare Inlet is >$5M/year (Enveco, 2010)). This project will be managed by staff at Enterprise Northland.

Project Oyster Shell Launch 2nd Sept. 2011

� In the first year, the project is expected to divert 297 tonnes of waste timber towards mulch

� From the second year the project is expected to divert 700 tonnes of waste shell from landfill as an ingredient for calcium-based products. If secured for development, the reclamation will divert 15,000 – 22,500 tonnes of soil material from storm damaged land-slips tonnes

� In the third year, provided that the reclamation and shore base are completed, 5700 tonnes of waste shell is expected to be processed.

The aquaculture industry in Northland is expected to be worth $216M per year and employ 2821 FTEs (Enveco, 2010).

44


Growing our opportunities

The project will be achieved by using Waste Minimisation funding and other funding sources to: � Enable Enterprise Northland to contract a local company (tentatively entitled Waikare Waste

Recovery Company) which will be established to recover waste timber and shells from oyster farm sites in the Inlet and recycling it rather than disposing of it to landfill. The Waste Minimisation Fund will be directed towards the costs of Enterprise Northland’s project management, the company’s onsite coordinator, waste minimisation labour costs, and specialist recycling equipment and plant. Alternative funding will be applied to elements of the project which are not directly associated with waste minimisation, e.g. clean-up. Finding the line between what is Waste Recovery and what is Clean-up is difficult so the so the project is proposing a 60/40 split of the total clean-up/ recovery costs.

� Facilitate the development of a land reclamation site and its subsequent fit-out as a shore base for the final processing and storage of waste material prior to sale and transport. The Waste Minimisation fund will be used to meet 20% of the costs of the reclamation and land-based processing of the recycled waste. Alternative funding will be used for Resource Consent and to develop the reclamation, and improve road access to the site. There is a longer term strategy to further develop this site for processing oyster meat as well as waste shell, which will firmly re-establish the industry in Northland and contribute much-needed employment.

� The reuse, recycling and recover of oyster shell waste could be undertaken across the country as the shell is a high quality grade product. The aquaculture industry could utilise the outcome of this venture to promote shell recovery in New Zealand. In Northland, there are a total of 679 ha of designated oyster farm areas of which 58% is currently built (or 395 ha). The Bay of Islands has 30ha of waste shell built up and the Kaipara Harbour has 17ha of similar shell build-up, and an estimated 11,000m3 of waste shell and timber. If this project is funded and the Waikare Inlet is cleared of oyster farm waste the expertise, methodology and equipment could be transported to the Kaipara Harbour and other areas throughout the North Island to start a similar shell reuse and recycling programme.

For the purposes of this project, a distinction is made between the costs of waste minimisation (i.e. converting waste timber and shells to other uses) and clean-up (i.e. enabling the oyster farms to be become productive). The Waste Minimisation Fund will be used to meet the costs associated with waste recovery and recycling. Alternative funding will be used to meet the costs of any activity or equipment which might occur in spite of the waste minimisation project (e.g. lifting the timber and shells from the water, and most of the reclamation development). In keeping with this distinction, some of the project costs will be invoiced to the oyster farmers who benefit from the clean-up. The farmers will also provide labour and equipment as part of their share towards the project.

45


Growth Investment Projects

Rugby World Cup 2011 A great deal of collective pride can be taken from realising two sell-out RWC 2011 Pool A Match Days at the Northland Events Centre – Tonga v Canada, Wednesday 14 September and Tonga v Japan, Wednesday 21 September - notably the first of the non-metropolitan stadia of the Tournament to do so and both pre-Match Day. The Regional Coordination Group has received many and very public commendations on the positivity and unified collaboration that surrounded the lead-up-to and each Match Day, the manner in which the in-stadia match management ‘worked’, the success of the traffic management plan and coach parking, and the hospitality and genuine warmth extended both hosted teams and their supporters alike.

Paint It Red The ‘Paint It Red’ umbrella catch-cry applied across all work streams has caught the imagination and attention of not only our local Northland communities and business enterprises but has also received national and international media plaudits and that also of Tournament organisers – considered by the latter as an exemplary of how to get behind the Tournament and the adopting of a ‘second’ team. A Best (red) Dressed shop window/business house competition was successfully run in conjunction with print and radio media and 40km of PIR banner bunting tape was supplied to the likes of business houses/associations, schools, community organisations and local government on the TCDH (consequently seen to adorn everything from lamp-posts, trees, fences, bridges, shop windows, building facades, table tops and even people).

Enterprise Northland and NRC Staff Painting it Red

The Regional Coordinator, Stewart McElwain has been invited to present Day 4 (Monday 17 October) at the Rugby World Cup 2011 Observers Programme; Auckland being the only other region to be invited to present. Invitees to the event are organisers of other major sporting events around the globe - such as RWC 2015 and RWC 2019, 2012 London Olympics etc.

46


Four very successful team engagement events were staged:

� Canada (Official) Airport Acknowledgement; Bay of Islands Airport, Kerikeri; Sunday 4

September

� Canada (Official New Zealand) Team Welcome/Powhiri and Tournament Capping Ceremony;

Waitangi Treaty Grounds, Bay of Islands; Monday 5 September

� Tonga Civic Welcome & Gifting Ceremony; The Hub, Town Basin, Whangarei; Monday 12

September

� Japan Gifting Ceremony & Tane Mahuta/Footprints Waipoua experience; Hokianga; Sunday

18 September

In addition, of the three regionally hosted teams, Canada and Tonga availed themselves most positively of many community engagement events ranging from school visits to church services, and attendances at Real New Zealand Festival events throughout the region. Ongoing areas of focus until the end of the Tournament will be:

� Communications - maintenance and refreshing of www.northland2011.com and the

publishing of e-newsletters; issuing of media releases

� Northland Welcome Centre, Kaiwaka – open 1 September to 26 October, 8am to 6pm daily

� Official Northland Passport Scheme – a visitor passport encouraging visitors to ‘Take the long way round’ travelling the Twin Coast Discovery Highway; available to be uplifted at key visitor, accommodation and attractor locations throughout Auckland City and Northland; supported by advertising media placement

� Region wide banner programme – from late-August/early-September the installation of #492+ ‘Tournament time look & feel sponsor rotation’ banners in Kaiwaka, Whangarei City and Bay of Islands and #138 ‘pre-Tournament variants bookending regional’ banners in Kaitaia, Kaikohe, Omapere, Opononi, Dargaville, Ruawai, Maungaturoto, Mangawhai and Waipu

� Volunteer Programme – personnel scheduling supporting the Northland Welcome Centre, cruise ship visitations to the Bay of Islands and (in-stadia Match Days) our North Harbour neighbours

� Business Club, Inward Investment and Sector Showcasing – activity and one-on-one engagement focussed around four key sectors: Forestry & Wood Processing; Aquaculture; Marine Engineering; and Minerals – Northland tourism and food & beverage industries being showcased/utilised in event deliver

47


Inwards Investment Projects Enterprise Northland’s current inwards investment activities revolve around three areas:

1. Opportunity development Investment ready activities such as IM and cluster development in the following sectors:

� Aquaculture Park – facilitating activities around the development of an Aquaculture Park at Bream Bay and developing associated investment opportunities

� Mining – facilitating discussions with a multi-national technology company looking for opportunities in New Zealand.

� Forestry – developing opportunities from Enterprise Northland study

� Engineered wood products – IM development

� Northland Spa – Luxury spa offering indigenous treatments across New Zealand

� Multi-national added-value company – development of investment opportunity with honey industry

2. Securing Investment Using networks to secure investment in Northland in the following:

� Aquaculture – negotiating investment from an off-shore company as well as helping an established Northland aquaculture company secure investment to expand.

� Marine sector - pursuing international company seeking investment in marine sector

� Forestry – pursuing an international wood processing/forestry company looking to establish in Northland

3. Opportunity awareness Enterprise Northland is advocating opportunities in Northland. Enterprise Northland is currently working with Canada and Japan consulates to ensure awareness of opportunities in Northland. Enterprise Northland is hosting through Rugby World Cup activities potential investors and trade partners in:

� Aquaculture � Forestry � Mining � Food & Beverage

48

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49

Section 3: Destination Northland Quarterly Report on Activities

Executive Summary – DNL 2010-2011 Business Plan This plan has been developed in partnership with the Northland Tourism industry using the 2009 Northland Visitor Strategy as a base document and also taking into account the current international economic environment and the new marketing direction of Tourism New Zealand. As a result of the international situation and limited funding, the activities of Destination Northland will be focused in the following areas.

� Continue to proactively market the region using northlandnz.com � Focusing on the Australian and domestic markets while maintaining a small level of activity in

UK-Europe. � Continue to maximise opportunities via visiting media. � Driving a number of product development projects as a way of increasing visitor expenditure in

Northland. � Ensuring strategic partnerships are developed and maximised. � Actively target opportunities to ensure Northland secures maximum benefits from the 2011

Rugby World Cup. � To commence a series of activities to enhance the economic impact from visiting cruise ships.

Despite funding limitations the plan has set aggressive targets to grow market share and address seasonality and international expenditure.

Tourism Sector Macro Objectives - Annual These are collective Northland visitor industry targets. DNL contributes to these however no single business or organisation can be held directly responsible

1. To grow Northland’s market share of visitor nights from 5.10% to 5.40% (Source: Commercial Accommodation Monitor). Result: 5.07%, Market share (numbers) has increased by 2.5%

2. To grow visitor expenditure by 3% on 2009/2010 level

Result: Static: NZ International -6% Domestic -1 %

50


3. To grow the shoulder season by 3% to 400,000 visitor nights in commercial accommodation (CAM) Result: Nil Growth

4. To increase the percentage of Northland international visitor nights from current figure of 35%

to 40% Result: 41%

Destination Northland Organisational Objectives – Annual

5. To maintain, as a minimum, the existing funding base of $960,000 from the private sector for co-operative joint marketing with Destination Northland Result: $960,000 July-June 2010 $1,025,000 July-June 2011

6. Northlandnz.com is the leading site for the promotion of Northland and acts as a portal for those

interested in the region as a place to work, live and play Result: Unique visits +2% , Total visits +1%, Paid listings +19%, Page views +2%

7. To increase the visitor numbers from Australia by 5% over 2009/10 for participants in the

Australian Trade Marketing Group Result: + 2.5%

8. To increase the percentage of Northland international visitor nights from current figure of 35% to 40% Result: currently 41%

9. To ensure Northland has maximum product exposure with the Official Rugby World Cup Travel agents itineraries Result: 18 out of 20 agents profiling Northland

10. Increase domestic media coverage by 5% over 2009/10 value Result: $ 424,000 Jul 2009 – June2010 $6.9 million July 2010 –June 2011 ( Includes TV North $4m )

11. Initiate and drive 2 new business case studies for major new tourism development projects

which will generate increased visitor expenditure Result: Major BOI Conference study completed will require Central Government partnership, however due CHC earthquake no funding available in short term.

DNL – Taking active facilitation role with Cultural product development project

12. Develop and set a benchmark reporting system against similar other New Zealand RTO’s. Result: Benchmark report completed

51


Key Project Update from 2010 – 2011 Destination Northland Business plan

Marketing Collateral Trade Guide: Sales for the 2011 Northland Trade guide have increased by 10% resulting in an increased size of 44 pages this is a DNL key tool for influencing brochure itineraries with International wholesalers.

WWW.DESTINATIONNORTHLAND.CO.NZ A new DNL corporate website has been established to communicate the activities of DNL and also to profile visitor industry statistics on Northland.

Rugby World Cup Destination Northland is currently working with Tourism NZ on draft media itineraries for RWC Tourism NZ have indicated they will be sponsoring around 40 targeted media, however around 2000 media are expected to be in the country for the 7 week event. DNL will partner with Tourism NZ to vet and target specific media & it is expected DNL will be extremely busy with media handling during RWC time. DNL has been advised to expect around 60 -70 Japan media for co-ordinating pre the 21 September game and at this stage approx 6 Canadians the week prior. The visiting media in the last two weeks of the tournament to come North could be potentially very large and also very last minute, thus DNL is planning on having “ Shelf “ media itineraries available to meet this potential demand.

Auckland i-Site Training Destination Northland was invited to two Auckland i-Site training sessions during July to present to frontline staff prior to the influx of visitors for RWC.

52


Visiting Media The 2010- 2011 year has been a record in terms of visiting media handled via Destination Northland, with a total media exposure of $7.0 million of equivalent advertising dollars achieved just for domestic New Zealand media, highlighted by the TV1 North series.

Media Articles - Year to date – July 2010 – June 2011 International Publications Country Circulation

Sunday – Escape Travel Supplement (6 states)

Australia 2,345,961

Life & Leisure Australia 77,470

Getaway – Hokianga Australia 927,000

Travel Weekly UK 16137 weekly

Supersport footage – Bob Skinstad Sth Africa unknown

Shepparton News (Vic) – Weekend News

Australia 16,565

Courier Mail – Peter Gosnell Australia 211,230

Cruising NZ (published in Australia) Worldwide 5,000 hardcopy 12,000 web download

Lonely Planet (UK edition) UK 55,000 copies

BBC.com (Lonely Planet online) UK 26,000,000 unique users monthly

Courier Mail (Peter Gosnell) Australia 211,230

Jetstar Inflight Magazine Australia 1,000,000 monthly readers

Sunday Telegraph (UK) ONLINE (the sacred beauty of NZ’s Bay of Islands

UK 31 million global uniques 10 million UK

uniques.

Sunday Telegraph (UK) ONLINE (travel essentials for NZ’s Bay of Islands

UK 31 million global uniques 10 million UK

uniques.

Sunday Telegraph (UK) UK 501,430 Weekly

Badische Neueste Nachrichten (Julia Schoon)

Germany 144,646

Elite Traveller Magazine China 320,000

53



Daily Mail UK 2.129 million 2.15 million online unique users

Around the world (Episode five) China 542,000

Around the world (Episode four) China 544,000

ilOnline (Daily mail online travel diary) UK 22,877,431 unique users per month

Good Life Connoisseur Canada 50,000

Tentomushi UC Card Magazine Japan 500,000 copies

Ski Journal Japan 40,000 copies

Escape Magazine Singapore/ Malaysia

50,000 copies 200,000 readership

enRoute.ca & onAir email Canada Web 60,000- 80,000 uvpm Email 3.5 million subscribers

TorontoStar.com Canada 2.6 million uvpm

Falo Magazine Japan 35,000 copies

ilOnline (Daily mail online travel diary) UK 22,877,431 unique users per month

Good Life Connoisseur Canada 50,000

Tentomushi UC Card Magazine Japan 500,000 copies

Ski Journal Japan 40,000 copies

Escape Magazine Singapore/ Malaysia

50,000 copies 200,000 readership

enRoute.ca & onAir email Canada Web 60,000- 80,000 uvpm Email 3.5 million subscribers

TorontoStar.com Canada 2.6 million uvpm

Falo Magazine Japan 35,000 copies

Arts and Auto Netherlands 100,000 copies

L’Express Styles France 451,344

54



Tidings Magazine Canada 35,000

Toronto Star Canada 419,070

Les Echos (Culture) France 121,357

Apple Daily (Northland) Taiwan 500,000

TravelRich (Northland) Taiwan 75,000

World Travel Weekly (Northland) Taiwan 85,000

The Daily Telegraph (Sean Fitzpatrick RWC)

UK 673,000

Le Monde (Maori and history) France 296,609

Sina Blog (Bay of Islands) Taiwan 10,000 daily 16,286,867 total visits

Expat Living Magazine (BOI) Singapore 70,000

Elite (CZ Inflight Mag) (BOI) China 150,000

Marie Claire (BOI) France 431,966

55


Year to date – July 2010 – June 2011 Domestic Publications Circulation/

Readership Value

Backpackers News (July, Aug 2010) 20,000 4,095

Northern Advocate (Emily Kernot) 14,167 3,172

Pacific Beat St (TV3 prize giveaway) n/a

Backpacker News Sept,Oct 2010 20,000 2,730

Weekend Magazine 45,000 33,950

Hi Society (Medical Assurance Society) 18,000 2,000

Corporate Events Guide 27,000 4,200

Backpacker News Sept,Oct 2010 20000 2,730

Weekend Magazine 45,000 33,950

Hi Society (Medical Assurance Society) 18,000 2,000

Corporate Events Guide 27,000 4,200

Northern Advocate 31.7.10 BOI 14,167 2,300

Northern Advocate 17.7.10 Mangonui 14,167 700

AA Travel (Bookabach deal) 40,000 4,000

NZ Geographic (magazine & Map insert) 17,000

228,000 readership 54,400

Tourist Times Sep-Oct 15,000 1,042

NZ Digital – MICENET (Northland Escape) 7,328 subscriptions 11,100

Let’s Travel December 2010 12,000

60,000 online 6,500

56


Golf Vacations (Aus & NZ) 20,000 34,500

Golf Vacations (online) 1,000,000 subcribers $7350

Herald on Sunday (Detours section) Liz Light on Russell

380,000 7,650

Online version of Herald on Sunday 130,000 weekly

impressions 10,400

Herald on Sunday (Detours section) Liz Light on Tutukaka

380,000 16,090

Kia Ora Magazine (AirNZ inflight mag) 258,000 readership 60,000

Herald on Sunday (Detours section) Liz Light on Mitimiti (inc front page)

380,000 16,090

Herald on Sunday (Detours section) Liz Light on Hokianga history 30.1.11

380,000 $7,650

NZ Herald – Travel section 1.2.11 (Bream bay) 302,000 $10,102

Let’s Travel Feb-Mar 2011 12,000

60,000 online $6,500

FRESH cookbook 3,000 NA

Wilderness Magazine June 2010 10,000 $1,978

Wilderness Magazine August 2010 10,000 $1,978

Travel Digest 1,500 $4,650

TNT Autumn 2011 25,000 $7,590

TNT online – 3 online articles 100,000 unique users per

month n/a

Next 51,500 $22,000

Weddings 99,000 $4,000

21 Feb 2011 Breakfast show Tamati Coffey’s morning coffee special, 30 sec x 5 crosses per day Marc Ellis – No roads tour show

229,000 Unique viewers

$17,200

North Series (13/2 – 20/3) $3,906,000

Bounty Inn Episode $1,175,000

57


The Press, Christchurch – Tutukaka 83,024 $5,900

Meeting Newz (March/April) 6,000 $1,430

Backpacker News 20,000 4,095

Cuisine May 2011 407,000 $39,120

The Press, Christchurch – Far North 83024 $5,900

Sunday Star Times – Escape (Paihia) A Heritage Boutique Hotels itinerary

160,592 $10,000

NZ Herald – Weekend (Shop till you drop) 400,000 readers $9,600

NZ Herald – Weekend (BOI, Puketi) 400,000 readers $11,000

NZ’s Next Top Model (Episode 1, TV3) 320,000+ $1,356,000

NZ’s Next Top Model - Episode On Demand Twitter-Reached the number 2 on the 'trending topic' lists worldwide that night

54,762 in first 10 days 262,133 pg impressions on NZNTM website first

month

NEXT July 2011 (Bay of Islands) 47,000 $22,000

Life & Leisure (Whangarei) 22,884 $27,500

Onboard (Interislander) magazine – Tranz Scenic

20,000 $2,300

Meeting Newz April/May article 6,000 $8,945

Total

$ 6,993,587

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International Marketing DNL attended Kiwi Link 2011 in Seattle with an East Coast extension to Philadelphia and Toronto. This Trade event is in partnership with Tourism NZ and targets agents ( 200 ) that specialise in selling New Zealand. DNL activities are focused on updating these agents on new and also enhanced Northland products with the objective of increasing the brochure exposure for the region. A similar event was also held in Sydney, attended by 100 agents.

TRENZ 2011 Destination Northland and 10 Northland operators attended a very successful TRENZ in Queenstown. DNL had 97 appointments with international wholesalers and 2 appointments with media. (Getaway, Australian TV show and Lonely Planet) . There was a lot of interest from Chinese and Japanese wholesalers for Northland, with both countries planning North Island only itineraries. Northland hosted 6 individual famils (2 US, 1 Canada, 1 Russia, 1 Danish and 1 German agent), and a group of 18 Chinese agents (Southern World Airlines) visited Northland during the TRENZ week.

Domestic Media DNL’s involvement with both TVNZ and TV3 culminated in the launch of three new programmes featuring Northland during the quarter. TV1’s North series had an equivalent airtime value of $3.9 million; the launch episode of NZ’s Next Top Model filmed in the Bay of Islands, was watched by over 320,000 viewers; and the launch episode of TV3’s Café Secrets was filmed in Rawene and highlighted the Northern Crossing multi-sport event.

Conference DNL co-ordinated the Northland stand at Convene Auckland in April. DNL attended Meetings 2011 in Rotorua, the largest exhibition held in NZ for the conference, meetings and incentives market attracting 250 buyers from NZ, Australia, China and the US and resulting in around $25m worth of business nationally DNL’s appointments generated at least 12 leads.

Visitor Figures The 2010 -2011 year has been a challenging 12 months for both the Northland and New Zealand Visitor Industry. The ongoing effects from the economic crisis have had a big effect on visitor numbers from UK & USA which are longer stay markets for our region, and although events in Christchurch, Japan and Chile may be many kilometres from our region the flow on effects have been felt in Northland, especially from the Christchurch earthquakes resulting in cancellations of total NZ visits, particularly in the March – May period. Overall however Northland’s visitor numbers have performed to a similar level as the previous 12 months -1% compared to a -1.9% for NZ.

59


Commercial Accommodation Monitor

Results as supplied by Statistics New Zealand VISITOR NUMBERS % Change

Northland 2009/2010 2010/2011 2010/2011

Aug-10 35,353 31,470 -11

Sep-10 43,246 41,188 -4.8

Oct-10 59,219 61,712 4.2

Nov-10 64,697 61,646 -4.7

Dec-10 91,211 88,827 -2.6

Jan-11 118,718 121,900 2.7

Feb-11 88,704 83,650 -5.7

Mar-11 81,001 82,197 1.5

Apr-11 69,336 72,695 4.8

May-11 39,827 39,417 -1

Jun-11 32,224 31,660 -1.8

Jul-11 35,675 40,506 13.5

New Zealand 2009/2010 2010/2011 2010/2011

Aug-10 1,020,793 1,001,283 -1.9

Sep-10 1,159,564 1,138,242 -1.8

Oct-10 1,355,367 1,307,428 -3.5

Nov-10 1,473,529 1,494,314 1.4

Dec-10 1,675,668 1,634,135 -2.5

Jan-11 2,044,175 2,019,706 -1.2

Feb-11 1,825,711 1,770,186 -3

Mar-11 1,792,850 1,661,480 -7.3

Apr-11 1,500,286 1,420,933 -5.3

May-11 997,050 972,710 -2.4

Jun-11 898,991 871,839 -3

Jul-11 1,111,619 1,102,018 -0.9 Northland numbers

NZ numbers

00.20.40.60.8

11.2

Jan-00

#REF!

2009/2010 00.20.40.60.8

11.2

Jan-00

#REF!

2009/201000.20.40.60.8

11.2

Jan-00

#REF!

2009/2010 00.20.40.60.8

11.2

Jan-00

#REF!

2009/201000.20.40.60.8

11.2

Jan-00

#REF!

2009/2010 00.20.40.60.8

11.2

Jan-00

#REF!

2009/201000.20.40.60.8

11.2

Jan-00

2009/2010

2010/2011 00.20.40.60.8

11.2

Jan-00

2009/2010

2010/201100.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/201000.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/201000.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/20100

10,00020,00030,00040,00050,000

2009/2010

2010/2011 0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,000

Aug-10 Oct-10

2009/2010

2010/201100.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/201000.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/201000.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/201000.20.40.60.8

11.2

Jan-00

2009/2010

2010/2011 00.20.40.60.8

11.2

Jan-00

2009/2010

2010/201100.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/201000.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/201000.20.40.60.8

11.2

Jan-00

Series1

2009/2010 00.20.40.60.8

11.2

Jan-00

Series1

2009/2010020,00040,00060,00080,000

100,000120,000140,000

2009/2010

2010/2011

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2009/2010

2010/2011

60


VISITOR NIGHTS % Change

Northland 2009/2010 2010/2011 2010/2011

Aug-10 65,264 64,057 -1.9

Sep-10 85,051 77,926 -8.4

Oct-10 115,757 119,965 3.6

Nov-10 125,737 118,307 -5.9

Dec-10 208,473 201,866 -3.2

Jan-11 331,933 327,332 -1.4

Feb-11 183,454 171,758 -6.4

Mar-11 164,582 159,565 -3

Apr-11 145,653 149,789 2.8

May-11 86,900 84,919 -2.3

Jun-11 65,956 66,884 1.4

Jul-11 71,628 82,315 14.9

New Zealand 2009/2010 2010/2011 2010/2011

Aug-10 2,026,212 2,025,246 0

Sep-10 2,210,753 2,183,848 -1.2

Oct-10 2,524,809 2,482,187 -1.7

Nov-10 2,650,414 2,702,784 2.0

Dec-10 3,241,970 3,165,264 -2.4

Jan-11 4,438,860 4,334,874 -2.3

Feb-11 3,326,033 3,275,448 -1.5

Mar-11 3,273,647 3,095,870 -5.4

Apr-11 2,821,076 2,715,326 -3.7

May-11 1,881,253 1,898,174 0.9

Jun-11 1,730,887 1,736,350 0.3

Jul-11 2,215,500 2,259,131 2.0

Northland nights NZ nights

0

20,000

40,000

60,000

80,000

100,000

Aug-10 Sep-10

2009/2010

2010/2011 0500,000

1,000,0001,500,0002,000,0002,500,0003,000,000

Aug-

10

Sep-

10

Oct

-10

Nov

-10

2009/2010

2010/2011050,000

100,000150,000200,000250,000300,000350,000

2009/2010

2010/2011

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,000

2009/2010

2010/2011

61


12 months ended July 2011 % Change

2009/2010 2010/2011 2010/2011

Northland Visitor Numbers 759,239 756,866 -0.3 Northland Visitor Nights 1,650,388 1,624,682 -1.6 NZ Visitor Numbers 16,855,603 16,394,274 -2.7

NZ Visitor Nights 32,341,414 31,874,502 -1.4

Percentage change from previous year 12 mths ended July 2011 Northland NZ

International guest nights -2.9% -5.6%

Domestic guest nights -0.6% 1.6%

12 mths ended July 2011 Northland NZ

Hotels -5.8% -0.4%

Motels -4.5% -1.1%

Backpackers -0.6% -3.8%

Holiday Parks 2.8% -2.1%

TOTAL accommodation -1.6% -1.4%

62

Documents

Finance and Support Committee - Whangarei · Finance and Support Committee 26 October 2011 c) The term of the loan of 8 years. d) The repayments be made in equal quarterly instalments