Rotorua Sustainable Economic Development Profile · 2013. 12. 10. · Total GDP $2.8m. Total Population 78,900. Total Size of District 261,906ha. Total Businesses 7,000. Total Employment

Rotorua Sustainable Economic Development Profile

Rotorua Economic Development Council Controlled Organisation

(CCO) Overview July 2012

Total GDP

$2.8mTotal Population

78,900

Total Size of District 261,906ha

Total Businesses 7,000

Total Employment 32,400 ‐

2nd

fastest growthEconomy Diversity

Ranked 5th

Rotorua –

Current Holder of NZ’s

Most Beautiful City Award (6 or the last 10 years)

Overview Of The Current Context Of Rotorua From A

Sustainable Economic Growth Perspective:

1.

Rotorua Economic Development Strategic Direction

2.

Rotorua Economic Development Model

3.

Rotorua Sustainable Economic Growth Strategy

4.

RDC’s

contribution to positioning Rotorua as investment ready

5.

Rotorua Economic Overview & Drivers

PURPOSE

Section 1: Rotorua Economic Development Strategic Direction

ROTORUA SUSTAINABLE ECONOMIC GROWTH STRATEGY (RSEGS)

Strategic Direction for Rotorua:

Leader in:•

Forestry and wood processing

•

Tourism•

Geothermal

•

Agriculture

Recognised as:•

Preferred lifestyle destination

•

Attractive and easy place to invest and do business•

Enabling regulatory environment

Section 2: Rotorua Economic Development Model

Rotorua Sustainable Economic Growth Strategy (RSEGS)

ROTORUA ECONOMIC DEVELOPMENT MODEL

Central Government Growth Strategy

NATIONAL

Bay of ConnectionsBOP Regional EconomicDevelopment Strategy

Focus Areas:

SUB REGIONAL

• Marine / Aquaculture • Forestry & Wood Processing• Energy• Freight & Logistics• Sport & Recreation• ICT• Meat• Dairy• Kiwifruit• Emerging Technologies • Food Processing • Tourism

REGIONAL

• Leader in:•

Forestry & Wood

Processing• Tourism• Geothermal• Agriculture

• Recognised as:•

Preferred lifestyle

destination•

Attractive and easy place

to invest, do business•

Enabling regulatory

environment

Strategic Perspective:


Driving the implementation of Grow Rotorua Ltd’s role as

identified in the Rotorua Sustainable Economic Growth

Strategy through its Primary Focus:

• Understand the Rotorua economic investment opportunities for the following sectors:• Tourism • Geothermal and other sources of renewable energy• Agriculture (including land‐use management/change)• Forest industry

• Within the above sectors:• Develop logically robust investment value propositions•

Communicate and promoting new propositions to the

investment community

• Facilitate private sector investment•

Identify and propose solutions for the barriers to

creating investment wealth

•

Understand and promote to the local education sector

the capability and skills required.

Grow Rotorua Ltd ‐

CCO

•

Leadership in implementing council’s role in the RSEGS

with the CCO, BoPRC

and other key stakeholders• Facilitate cross regional/Central Govt approaches• Creating an enabling regulatory environment•

Creating a customer focused ‘can do’

delivery of

regulatory services functions throughout RDC

•

Marketing the destination as a place to live, work,

invest and visit

• Drive CBD revitalisation • Investment in key community infrastructure• Provide high quality core council services•

Work with Grow Rotorua Ltd to implement proposed

solutions for the barriers to creating investment

wealth.

Operational Perspective –

CCO/RDC:RDC (Rotorua District Council)

Long‐term Plan 2012‐2022Funding

Rotorua District Plan


Operational Perspective – Stakeholders:

COMMUNITY& BUSINESS

•

Work with RDC, CCO

and other relevant

entities to support the

implementation of the

RSEGS.•

Ensure the alignment

of activities with

relevant local, regional

and national plans and

strategies.

CHAMBER OF

COMMERCE

•

Business Development

Support•

Business Start‐up

Support•

Business Feedback

and Advocacy

OTHER

A strong sense or partnership around

implementation to exist between key

stakeholders such as:• Te Arawa entities,• Rotorua Tourism Committee, • Rotorua Regional Airport, • Rotorua Business Community • Scion,•

Bay of Connections, (incl

partner

organisations)•

Relevant central government

agencies•

Rotorua Trust, BoP

Community

Trust, other NGO’s• Wider Rotorua community

Education Sector• Work with key stakeholders to address the capability

and skills required toachieve the objectives

of the strategy.

10

Rotorua Economic Development CCO

(Chair + 6 Board Members)

Council

CEO

Council Delivery

of its functions

as identified in

RSEGS

CEO

CCO delivery of

its functions as

identified in

RSEGS

3 month reporting cycles

Annual funding Agreement ‐

SoI

ROTORUA ECONOMIC DEVELOPMENT CCO

•

Strong accountability for outcomes

•

Greater autonomy and independence to act/facilitate

•

Greater ability to focus activity on outcomes and limit peripheral distractions

•

Better allocation and use of scarce resources

•

Healthy tension between RDC and CCO to keep focussed on economic development

KEY RATIONAL FOR CCO MODEL

Council

CEO

Economic & Regulatory

Services (ERS)Infrastructure Services

(IS)Corporate & Customer

Services (CCS)

• Building • Planning • Regulatory Services • Economic Projects • Destination Rotorua Marketing • I‐Site • Events & Venues • Museum• City Services

• Engineering Admin• Engineering Services • Hydrus• Parks & Recreation• State Highways & Road Safety• Utilities Operations • Works • Asset Management

• Business Support• Civil Defence• Community Policy• Corporate Planning • Customer Centre• Finance• Information Services• Library

CE’s Group

12

A NEW APPROACH – NEW RDC STRUCTURE 2010

RTC CCO

•

Standing Committee of RDC

•

Chaired by Tony Marks

•

Core Functions:1.

Strategic Planning –

RTC – Tourism Strategic plan

–

Destination Rotorua Marketing Business Plan (three year)

2.

Monitoring & Reporting on the Performance of DRM

3.

Advocacy

4.

Communication

with the Industry

5.

Tourism sector issues

6.

RDC resource allocation advocacy

7.

Advisory–

DRM

–

I‐Site

–

Event & Venues

–

Economic Projects

–

Others areas of RDC

ROTORUA TOURISM COMMITTEE

LEARNINGS FROM BRIGHT ECONOMY

•

Bright Economy Strategy established 2005

•

Advisory Board established to advise RDC on implementation •

Chaired by Bryce Heard

•

Board of 10 – Representative of sectors

•

No implementation budget

•

Board resigned on‐mass 2009

•

Key factors:•

Lack of buy‐in from business community and council

•

Perceived conflicts of interest by Board members

•

Large size of Board

•

Lack of connectivity with RDC management and council

•

Lack of status of Economic development within RDC

•

Lack of role clarity – strategic direction–

Complexity of structure and accountability

Bright Economy Has Been Before:

•

Political risk–

Med/High – 7/5 vote

•

Lack of focus (everything to all people)–

Med –

sticking to the strategy focus areas

•

Te Arawa support (lack of)–

Low –

good buy‐in & board position

•

Major current investors (support/push‐back/threat to positioning)–

Low –

good buy into the strategy process & CCO decision, could

increase if cuts into their investment positioning?

•

Lack of buy‐in RDC management–

Low –

Commitment of CEO

•

Conflicts of interest–

Low – rational for the board selection criteria

POTENTIAL BARRIERS TO SUCCESS

Section 3: Rotorua Sustainable Economic Growth Strategy (RSEG)

17

Strategy Vision:

Rotorua — Living the Dream. World Class in Every Way

Strategy Goal:

•

Lift the overall economic performance of the Rotorua District.

•

Alignment and focus existing economic development strategies.

•

Focus on outcomes which Rotorua is able to influence and where it is deemed best to allocate resources.

•

Identify and expand on activities that will deliver long term sustainable economic growth in the district.

www.rdc.govt.nz

RSEGS BACKGROUND

http://www.rdc.govt.nz/

Sustainable

RSEGS IN SIMPLE TERMS

Economic Growth

= Prosperous Healthy

Communities&

Over The Next FIVE Years RSEGS Will:

•

Change the reputation of Rotorua to be: –

leader in tourism, forestry and wood processing, and geothermal industries

–

Preferred choice as a lifestyle destination

–

Known as an innovative and sustainable District across all industry sectors

–

Attractive place to invest and do business

–

District with an enabling regulatory environment

•

Lift the performance of the local economy by:–

Number of start‐up companies ahead of the national average

–

Strong policies on business retention

–

Increasing employment annually by 0.1 percentage points ahead of

the NZ average

growth rate (currently 1.3 points behind)–

Increasing population annually by 0.1 percentage points ahead of

the NZ average

growth rate (currently 0.6 points behind)–

Increasing the average room nights and spend to at least equal the national average

rate of growth (domestic and international visitors)

RSEGS OBJECTIVES (1)

Over The Next FIVE Years RSEGS Will:

•

Raise living and skills standards by:–

Increasing average household income above the national average growth rate

–

Reducing the percentage of households in the bottom quartile of national income

–

Increasing the level of skills in the workforce relative to the national average

RSEGS OBJECTIVES (2)

Entities Implementing RSEGS Will Contribute By:

•

Collaboratively working with all stakeholders

•

Prioritising and avoiding replication and duplication

•

Acknowledging the initiatives of other agencies contributing towards economic outcomes in the District

•

Acknowledge the regulatory framework e.g.. District plan

•

Provide adaptive management programme’s for its activities

•

Use innovative techniques to achieve outcomes

•

Focus on areas where a “difference”

can be made

•

Focus on strategic opportunities

•

Respect key players and strategic sectors

RSEGS ECONOMIC DEVELOPMENT PRINCIPLES

RSEGS MEASURES OF SUCCESS

Population Growth:

Population

020,00040,00060,000

80,000100,000120,000140,000

2006 2011 2021 2031 2041 2051

Year

Popu

latio

n

Target High Medium

Year Medium High Target

2006 68,100 68,100 68,1002011 69,364 69,364 69,3642021 71,986 76,075 78,9282031 73,203 80,920 89,8102041 74,264 84,480 103,0502051 75,326 88,040 116,282


Visitor Nights

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,000

2011 2021 2031 2041 2051

Year

Num

ber of Visito

r Nights

Target High Medium


2011 3,531,000 3,531,000 3,531,000

2021 4,025,340 4,131,270 4,240,222

2031 4,588,888 4,833,586 5,092,027

2041 5,231,332 5,655,296 6,217,694

2051 5,873,776 6,477,005 7,343,631

Visitor Nights Growth:


Households Growth:

Households

0

10,000

20,000

30,000

40,000

50,000

60,000

2006 2011 2021 2031 2041 2051

Year

Total H

ouseho

lds

Target High Medium


2006 26590 26590 26590

2011 27348 27790 27348

2021 29655 31145 32516

2031 30712 32801 37680

2041 31463 34045 43,705

2051 32214 35289 49731

Research Was Undertaken By APR Consultants In November 2006 To Conduct Two Surveys:

1.

Rotorua as a place to Live, Work and Learn

2.

Rotorua as a place to Invest and Do Business

Anecdotal updates since suggest little has changed

RSEGS THE PERCEPTION/REALITY CHALLENGE

Positive Perceptions:• Tourism Industry• Geographic Location • Events / Activities• Infrastructure• Community Spirit

Negative Perceptions:•

Employment

Opportunities• Housing • Education • Safety

RSEGS LIVE WORK & LEARN PERCEPTIONS WHAT THE OVERALL GROUP HAD TO SAY

Positive Perceptions:• Outdoor environment• Cultural facilities• Proximity of amenities • Housing affordability• Sports facilities• Primary & Secondary education

Negative Perceptions:• Career progression• Wage rates • Tertiary education• Primary education

RSEGS LIVE WORK & LEARN PERCEPTIONS WHAT THE LOCAL RESIDENTS HAD TO SAY

Key Positive Perceptions:• Tourism • Access to outdoors• Access to amenities • Lifestyle• Housing

Key Negative Perceptions:• Legislation / Compliance• Labour force• Safety • Economy • Investment environment • Education

RSEGS INVEST PERCEPTIONS WHAT INVESTORS/BUSINESSES HAD TO SAY

Section 4: RDC’s

Contribution To Positioning Rotorua As Investment

Ready

•

Three Key Themes1.

Economic Prosperity 2.

Environmental improvement 3.

Continuous improvement (incl

Lean Thinking)

•

Fiscal Parameters–

Rates increase: 2012/13 – 2.9%; 2013/14 – 3.1%; 2014/15 3.2%–

Debt <$200m

•

Key Sustainable Economic Growth Funding Inclusions (Snap‐Shot):–

Creation and funding of Economic Development CCO–

District Plan notification and adoption (note infrastructure linkages)–

Airport funding (community asset)–

CBD revitalisation projects–

Destination Marketing – Visit, live, work & invest marketing plan–

Museum Business plan–

Lakefront development plan –

Sewage scheme upgrades – mostly lakes water quality related / TERAX plant–

Kuirau

Park development plan –

Aquatic Centre upgrade –

Roading

‐

Victoria Street Arterial / Rotorua Eastern Arterial–

National cycle way & mountain bike park –

Water supply upgrades –

City Safe Guardians

RDC LTP 2012‐2022

•

Rotorua Economic Growth Strategy Process

•

Regular Iwi Hui

(many levels)

•

Regular Chamber communication

•

Six monthly business roundtable functions:–

Advisory / Resource Consultant community

–

Property services sector

–

Bankers / professional service sector

–

CBD landlords

•

Rotorua Tourism Committee

•

Staff encouraged to host sector / issue specific sessions

RDC ENGAGING MORE WITH BUSINESS COMMUNITY

Project Manager Nick Dallimore

Manager Economic Projects (July 2011)

RDC CBD REVITALISATION PROJECT

8 Point Strategy:

•

Urban Design Framework •

Lakefront Precinct

•

Tutanekai Street Spine•

Haupapa Street Precinct

•

District Plan (integration and linkages)•

Development Contributions Incentive Package

•

Marketing Communications•

CBD Investment Manager

Lakefront Precinct:

•

Village Green, Lakefront, QE Site, Sulphur Point

& Eat Streat

Strategies / Actions:

•

Lakefront development and implementation program and communicate to the market

–

Key stakeholder buy‐in

–

Completing an assessment of options for

implementation structure designed to create value for

all

–

Creating certainty for the key stakeholders to move

forward together.

–

Complete a high level staged lakefront implementation

program (balance between commercial and

community use)


Eat Streat:

•

Dedicated Eat Streat Operational / Management plan and regulatory compliant policy established and implemented

•

Weather proof Eat Street and create permanent alfresco dining precinct through partnership with private sector

stakeholders in the Eat Streat precinct


RDC CBD REVITALISATION PROJECT TUTANEKAI ST SPINE

Haupapa

Street Precinct:

•

Bus Transport centre to be located on Haupapa St.•

Targeted Haupapa St Precinct property redevelopment plan, (and how

it will link to surrounding precincts)•

Night markets

•

Better functioning local city bus network •

Strong link to the I‐Site, Gov Gardens, Tutanekai St etc

•

Influence the flow of foot traffic to stimulate investment generating a platform for block redevelopment.

•

Stimulation of additional activities in the CBD to stimulate increased vibrancy and activity outside normal business hours


Incentive Package:

•

Development contributions incentive package

•

Remove all DC’s except for Water and Waste water (Equivalent to approx 50‐80% of the DC in general)

•

Application must be approved in the period 01 July 2011

to June 30 2012 and development works fully completed 30 June 2014

•

Each application will be assessed and agreed with the applicant by way of a private developer agreement (PDA). Note the PDA contains the ability for

deferred payments to be considered


Communication/Marketing/Management:

•

Proactive stakeholder communications strategy

•

Defined focal point for communication, project development and information sharing

•

Rotorua CBD incentive marketing package

•

Dedicated Internal RDC Project Team established across all of the key departments

–

Manager ‐

Economic Projects

–

Business Marketing Manager

–

Client Support Manager

Outcomes:

•

Better informed and engaged CBD stakeholder community.

•

A more robust and targeted market awareness of the potential

investment opportunities within the CBD


RDC INVEST WORK & LIVE MARKETING

Renee Nathan – Business Marketing Manager,

Economic Projects (Nov 2011)

LEADERS IN: Forestry & Wood ProcessingTourismGeothermalAgriculture

RECOGNISED AS: A preferred lifestyle

Mission:To work with stakeholders to build positive perceptions and lift Rotorua’s reputation as

RECOGNISED AS: An attractive & easy place to invest & do business

RECOGNISED AS: A district with an enabling regulatory environment

Key Focus Areas:•

Working with key influencers to develop tools to:

–

retain and attract new businesses and investment–

increase employment–

increase population

•

Create an official Rotorua Ambassador program targeting key markets eg BOP, Hamilton, Auckland, Australia, China and Sister Cities

•

Implement local community campaign ‘Rotorua Spirit’

to build community pride and passion

•

Develop collaborative partnerships to achieve strategic aims

•

Increasing level of Governance and strategic direction from Rotorua Tourism Committee

•

Serviced delivered through Events & Venues

Major Events Vision:

Experience Rotorua, Experience Great Events

Major Events Mission:

To inspire and support events, which enhance Rotorua as a great place to live, work and invest

Four Focus Areas:

1.

Economic Growth – Increase the overall economic impact from events

2.

Showcase Rotorua – To promote Rotorua through events

3.

Community engagement – Increase community support for events

4.

Our Capability – improve how we support events in Rotorua

ROTORUA MAJOR EVENTS STRATEGY

Peter McLeod –

Manager, Events and Venues

•

Governance and strategic direction from Rotorua Tourism Committee

•

Undergoing major refocus

New Re‐focused Business Plan Built On 5 Objectives ForImplementation Over The Next 3 Years:

1.

Improve the visitor experience at the RVC on two levels: • Customer service delivery by frontline staff, support services and

management• Interaction with and use of facilities and products in the RVC itself

2.

Promote retention and lift performance of staff and management3.

Gain the confidence and support of industry stakeholders and local residents

4.

Scope and prioritise innovation and opportunities that will drive the reduction in the net cost to ratepayers of the RVC operational budget

5.

Raise the profile and recognition of services provided of the RVC for visitors and residents

RDC ROTORUA VISITOR CENTRE & i‐SITE

Graham Brownrigg –

Manager, (July 2012)

•

Governance and strategic direction from Rotorua Tourism Committee •

Services delivered through Destination Rotorua Marketing

Key Focus Areas:

•

Aggressively target and grow the Asian visitor market – specifically China•

Grow and increase Rotorua’s share of the Australian visitor arrivals to New

Zealand –

especially off peak•

Increase the average room nights and spend to be at least equal to the

national average for both international and domestic visitors to

Rotorua•

Increase the Auckland visitor market by 5% ‐

50,000 visitor nights

•

To create value and work in partnership with Rotorua region operators•

To take a leadership position in online marketing and travel search

•

Increase ease of access to Rotorua as a visitor destination

RDC TOURISM MARKETING STRATEGY

Oscar Nathan – General Manager,

Destination Rotorua Marketing (Jan 2012)

Focus on the commitment to a whole of council approach

to creating an enabling regulatory environment–

Regulatory policy (DP)

–

Delivery of Services

RDC PLANNING DEPARTMENT RE‐FOCUS

Liam Dagg –

Manager Planning Services (2011)

•

Client Support Manager role

•

Strategic refocus of compliance/enforcement function –

establishment of Quality Assurance Team

•

Change in accountability and delegations

•

Better communication – Fortnightly meetings with key consultants

•

Developing a better web‐based toolkit–

Online Consent tracker

–

48 hour consents –

Controlled Minors

ROTORUA DISTRICT PLAN REVIEW

A New Approach:•

Considerable feedback on the draft released in 2011, Council has

listened

•

Alignment with RSEGS

•

Set clear direction from the first chapter

•

Enabling approach to key drivers

Key Focus Areas Of District Plan:•

Forestry and innovation–

Permissive approach to forestry establishment–

Zoning that reflects future directions at Scion and Waipa

•

Agriculture–

Permissive approach to most pastoral activities –

Land use change focus in Lake Rotorua Catchment

•

Geothermal–

Enabling rule that take a lead from the renewable electricity natural policy statement–

Policy framework based on clear understanding of those geothermal fields identified for

development and those for protection

•

Tourism–

Specific zones for accommodation and activity–

Major renewal and development focus in city centre

A whole of Council 1‐stop shop for significant economic projects

Mission:

To provide an integrated customer

and outcomes‐focussed

service to significant and/or complex development proposals that are consistent with the

objectives of the Rotorua Sustainable Economic Growth Strategy

RDC PLANNING DEPARTMENT RE‐FOCUS

Paul Spurdle – Client Support Manager, Planning Services (2011)

•

Focus on the commitment to a whole of council approach to creating an enabling regulatory environment

•

Real continuous improvement focus – more than 200 improvements over last 2 years

•

Hugely uncertain and moving regulatory environment (mainly result of Christchurch, leaky buildings & recent Govt department efficiency drive)

Major Focus Areas:

•

Earthquake prone building policy – large impact on Rotorua CBD •

Reduction of RDC’s

risk profile around outdated consents

BUILDING DEPARTMENT

Darrell Holder –

Manager, Building Services

Focus of Business Plan:

To deliver sustainable economic growth by focussing on the customer needssupported by an enabling regulatory environment

Major Focus Areas For An Enabling Regulatory Environment:

•

Interpretation of the regulations

•

Benchmarking to ensure the district is not being disadvantaged

•

Welcoming and acting on feedback, especially from the customer

•

Adaptable to change

•

Looking for opportunities for greater efficiencies – Lean Thinking approach

•

Remove risk averse culture

•

“Can do”

attitude

•

What does the customer want?

•

Work to ensure the customer is listened to, “Business Friendly”

REGULATORY SERVICES DEPARTMENT

Neven Hill –

Manager, Regulatory Services (May 2012)

New re‐focused business plan for implementation over the next 3 years

Vision: To be New Zealand’s leading regional museum and gallery

•

Objective is to enhance the Rotorua Museum product to a position

of:

–

One of the top three NZ Museum experiences –

One of the top five Rotorua visitor attractions (by visitor numbers)–

Reduction of net cost of service to the rate payer year on year to zero by FY2021 ($2.2m)

•

Through the following core strategies:–

Complete the Centennial Project upgrade –

A focus on investment in the development and implementation of a marketing & sales plan–

Improve the retail offer of the business–

Grow the venue hire business in partnership with Events and Venues

ROTORUA MUSEUM BUSINESS PLAN

Greg McManus – Director Rotorua Museum

Section 5: Rotorua Economic Overview & Four Priority Drivers

2011 Annual Economic Profile – Infometrics:

ROTORUA GDP GROWTH


INDUSTRY CONTRIBUTION TO GDP

2010 2011

Overall Ranking (66 TLA’s) 57 37

*7th

Most improved 2010‐11 Last 5 years Avg

City Ranking (20 Cities) 19 12 19

Employment Growth Ranking

‐ 2 16

GDP Growth Ranking ‐ 5 13

Population Growth Ranking

‐ 16 N/A

Business Growth Ranking ‐ 17 N/A

Basis of Ranking:

– Resident Population

– Business Units

– GDP

– FTE

– Relative Openness

BERL REGIONAL RANKINGS 2011

BUSINESS ADVANTAGES

•Access to 50% of NZ’s population within 3 hrs drive

•International gateway to BOP and wider CNI

•Rotorua Trans‐Tasman airport

• 45min to/from NZ’s largest export port

•

Strong infrastructure in place ‐

capacity to cater for 90,000

people

•

Strong land transport linkages

to the rest of N.I

• Pioneers in Forestry & Tourism

•

Great value for money ‐

affordable land, access to skilled

labour

and quality of life

• Enabling regulatory environment

LIFESTYLE ADVANTAGES

• 18 volcanic lakes, access to 16 – most in the world

•

No traffic jams, everything so central including

proximity to beaches, ski fields, private schools

•

Largest Redwood Grove in NZ used daily for

recreation ‐

< than a 10min drive from the city centre

•

Officially NZ’s

best city –

Rotorua has won this award

6 times in 11 years and still holds the title today

•

Value for money, slower pace, plenty to do, friendly

people less stress ‐

excellent work and life balance

•

Easy access to the most ‘world class’

outdoor

attractions and activities in NZ including mountain

biking, fishing, hunting, swimming, cycling, water‐

skiing, sailing, camping, kayaking, horse riding, hiking

and geothermal bathing

DriverDriver subsector

assessed for the

following:

Core asset of the Rotorua CommunityGenerates significant economic activity with value capture

in the DistrictPoint of differenceCompetitive advantagePotential to generate significant additional employment

growth and economic output

Total Rank

F&WP Forest asset, Wood processing, Services 1

TourismInternational brand strength, Infrastructure, Service sector, Events,

Natural resources2=

Geothermal Tourism feature/wellness, Energy supply, Living environment 2=

Agriculture Dairy/sheep and beef and other, Processing, Services 2=

R&D Intellectual Property, Commercialisation 5

Lakes enviro. Lifestyle product, Tourism and other development 6

Education Skills development and Innovation, International students 7

Regional city

scaleServices (business/social), Infrastructure capacity, Availability of

development opportunities8

Location Centrality (ie, proximity to market) 9

PRIORITY DRIVERS OF ECONOMIC GROWTH

FORESTRY & WOOD PROCESSING

At A Glance:

• Rotorua’s largest GDP contributor

• Installed capacity:

Capacity to process 6.7 million m3 logs p.a.

• Home to Australasia’s largest sawmill, Red Stag Timber

•

Home to one of the worlds leading forestry research centre, SCION (CRI)

• Location:

Proximity to supply ‐

CNI largest forestry & wood processing

region in the country (45% NZ annual harvest)

Proximity to other major processors –

Kawerau/

Taupo/Tokoroa

Port Tauranga (NZ’s

largest port)

Potential renewable energy competitive advantage

GDP = 18%JOBS = 2,327


FOREST & WOOD PRODUCTS

Growth Opportunity:

•

In the next 10 years, the harvest is forecast to

significantly increase by between 3.2m ‐

5.5m3 p.a.*

• Value added products

• Wood based structural systems

• Wood design & utilisation

• Smart packaging

• Biofuels and bioenergy – energy advantage

• Waste recovery

* (Bay Connections Strategy)

FORESTRY & WOOD PROCESSING

TOURISM

At A Glance:• Rotorua is the birthplace of tourism in NZ

• Tourism is Rotorua’s largest sector employer

• Rotorua brand built on

Maori, Geothermal Spa and Wellness, Lakes and Natural

Environment, Mountain Biking, Adventure and Luxury

•

Rotorua has introduced many ‘world firsts’

‐

Maori evening

experiences, Te Puia, Luge, Zorb, Schweeb, Rail Cruisers

(launched Nov 11), Maori home hosted dinners (Jan 12)

•

In the past 7 years, $200m+ has been invested into Rotorua

both new and existing business.

•

Rotorua has a well developed Tourism infrastructure.

(Accommodation, Attractions, Transport, Service Sector)

•

Realisation need to reposition our core propositions and the

region in the domestic & international market

GDP = 11.5%JOBS = 7,471


TOURISM


HOSPITALITY & ACCOMMODATION

TOURISM

Opportunity:

•

Conference market – leveraging off Trans‐Tasman services and Auckland’s proposed new centre

• Health and wellness –

geothermal

• Niche markets (mountain biking, fishing)

• National cycleway and Cycling centre of excellence

•

Iconic events that leverage off natural environment Ability to increase domestic visitors especially from growing population bases like Auckland, Hamilton

and Tauranga

•

Continued investment into core propositions being Maori, adventure, luxury and world first

developments. ($200+million recent years)

GEOTHERMAL – GREATEST POTENTIAL

At A Glance:

•

For over 170 years visitors have been attracted to admire and experience the thermal wonders of the area

•

A strong cultural importance – for over 300 years people have used the resources for daily heating, cooking and

bathing

•

Rotorua’s geothermal resource sustains both the forestry and tourism sectors

•

Rotorua has the most geothermal fields in NZ. Developing this in a sustainable way offers a national &

global competitive advantage

•

Geothermal is a significant lifestyle advantage providing proven relaxation and rehabilitation benefits

•

Internationally recognised as a unique ecosystem in the world protected for future generations to enjoy


Growth Opportunity:

•

Another significant driver for iwi

investment to

maximise the economic potential of their natural resource asset base

•

Renewable Energy (self‐sufficient in energy production, with security of supply)

• Tourism product development (health & wellbeing)

•

Energy intensive manufacturing leveraging the renewable energy generation (Forestry/Agriculture)

•

Possible R&D, Technology commercialisation around the sustainable geothermal utilisation / management practices


AGRICULTURE

Growth Opportunity:•

Enhanced farm management practices (possible R&D CoE

sustainable farm management practices)

•

Diversification of land use eg: horticulture, low nutrient

farming practice, boutique industries, organic farming etc

At A Glance:

•

Dairy, beef and sheep farming are prominent land uses. Deer

also farmed

•

Well established farming communities and operations within

the district

•

Some Major agricultural processing facilities include Duncan

Processors Ltd, Venison Rotorua Ltd & Fonterra Reporoa etc

• Significant iwi agricultural interests

•

Some current farming management practices required to

change including land use change to allow future sustainable

agriculture to sit along side sustainable lakes water quality

for the future

GDP = 5%JOBS = 1,513


AGRICULTURE


TRANSPORT & LOGISTICS


MACHINERY & EQUIPMENT

Median Personal Incomes by Age Group

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

20‐24 25‐29 30‐34 35‐39 40‐44 45‐49 50‐54 55‐59 60‐64 65+

New Zealand Rotorua

MEDIAN PERSONAL INCOMES BY AGE GROUP

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%20.0%

up to$20K

$20‐30K $30‐40K $40‐50K $50‐70K $70‐100K $100K +

Household Incomes (2006 census)

New Zealand

Rotorua

HOUSEHOLD INCOMES

• Housing costs in Rotorua are lower than the New Zealand average

•

Rotorua households, on average, probably pay $3,000 less rent each year than the national average

• House prices are 30% lower than the national average

• This makes mortgages easier to pay off

•

65% of Rotorua households own the home they live in, similar to the national average

•

This all helps compensate for lower household incomes and supports the service and retail sectors

HOUSING COSTS

THE OVER 65 POPULATION IN THE ROTORUA DISTRICT

The Over‐65 Population in the Rotorua District

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2006 2011 2016 2021 2026 2031

Year

Num

ber of Over‐65

s

+8,400

+ 2,900

+ 6,200

Rotorua Visitor Nights 2005‐2010(Sources: MED Regional Tourism Data 2005‐2010)

3.35

3.27

3.20

3.25

3.30

3.35

3.40

3.45

2005 2006 2007 2008 2009 2010

Year ending December

Visito

r Nights (m

illions)

ROTORUA GUEST NIGHTS 2001 ‐

2011

Rotorua Visitor Night Targets by Key International Market Regions (Sources: MED Regional Tourism

Data 2005‐2010; RDC LTP 2021)

227280

727

465

360

265

144 134100150200250300350400450500550600650700750800

2005 2007 2009 2011 2013 2015 2017 2019 2021


Visito

r Nights (000

)

CHI, KOR & JAPAustral iaUK & GERUSA

INTERNATIONAL ‘VISITOR NIGHTS’ FORECASTS FOR ROTORUA BY ORIGIN

Rotorua Market Share of International Visitor Nights in New Zealand 2005‐2010

(Sources: MED Regional Tourism Data 2005‐2010)

2.9%

3.1%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%

3.6%

2005 2006 2007 2008 2009 2010


Market sha

re

ROTORUA MARKET SHARE OF INTERNATIONAL GUEST NIGHTS 2001‐2011

Rotorua Domestic vs International Visitor Night Targets

(Sources: MED Regional Tourism Data 2005‐2010; RDC LTP 2021)

1.941.89

1.39 1.41

2.55

2.18

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

2005 2007 2009 2011 2013 2015 2017 2019 2021


Visito

r Nights (m

illions)

DomesticInternationalTarget

DOMESTIC VS INTERNATIONAL ‘VISITOR NIGHTS’

FORECASTS FOR ROTORUA

Rotorua Visitor Expenditure Target(Sources: MED Regional Tourism Data 2005‐2010;

RDC LTP 2021)

$491$474

$740

$300

$350

$400

$450

$500

$550

$600

$650

$700

$750

$800

2005 2007 2009 2011 2013 2015 2017 2019 2021


Visitor E

xpen

diture m

illions)

ActualTarget

ROTORUA FORECAST VISITOR SPENDING

•

We expect that “high‐income”

households in Rotorua account for 25% of sales in the district …

• … Even though only 15% of households are high‐income

• “Medium to high‐income”

households make up another 40% of sales

•

Overall, targeting the top 50% of Rotorua households can give 65% of the retail sales

HOUSEHOLD ECONOMIC SURVEY FIGURES

Documents

Rotorua Sustainable Economic Development Profile · 2013. 12. 10. · Total GDP $2.8m. Total Population 78,900. Total Size of District 261,906ha. Total Businesses 7,000. Total Employment