FutureCoromandel. The Coromandel will be New Zealand s most desirable place to live, work and visit

Transcription

1 FutureCoromandel Thames-Coromandel District Economic Development Action Plan The Coromandel will be New Zealand s most desirable place to live, work and visit

2 2 FutureCoromandel Economic Development Five Year Action Plan

3 Economic development a priority for Council and community The Coromandel Peninsula is the jewel in New Zealand s crown and is a fantastic place to live, work or visit. White sand beaches, a warm climate, close to the main centres and surrounded by native flora and fauna - there s a place for everyone on the Coromandel. However, like most regions in New Zealand, economic growth has been static in the Coromandel. This reality, compounded by the fact our district s economy is heavily reliant on the discretionary spend from visitors and holiday-home owners has made our district even more vulnerable to recessionary pressures. It is these cold hard facts that have driven our reforms and restructuring at Council, which has resulted in the average residential rate reducing by 5% over the last three years and a refocused work programme based on much more conservative growth projections and priortised investment in strategic initiatives designed to rebuild our economy s foundations. Now that we have successfully refocused the Council, we can turn our attention to our economic development plan. We have avoided the temptation to develop a generic strategy full of jargon, endless words and unachievable targets. We have assessed our district s vital economic statistics. We understand our district s strengths and weaknesses and have developed a common-sense and pragmatic action plan that we know will deliver tangible and meaningful outcomes for the people of the Coromandel. To ensure we re not swimming upstream, the Council s Economic Development Action Plan has been guided by a number of key documents and strategic direction including: y Council s Mission & Vision statements y Council and Coromandel Peninsula Blueprint Outcomes y Government Strategies (The Business Growth Agenda) y Industry and Government s Aquaculture Strategies y The Crown-Maori Economic Growth Partnership y Auckland City Economic Development Strategy y Tourism New Zealand i-site strategy As you will read in this action plan, the Council has already embarked on an ambitious economic development programme which is yielding results, but we need to do more. This economic development plan is all about unlocking the Coromandel s unique economic strengths and opportunities to create real growth, real jobs and real wealth for all who call this wonderful place home. The Coromandel really is a sleeping giant, with so much untapped opportunity given its abundance of natural taonga (treasure), sought after lifestyle, connection and proximity to Auckland, the Waikato and Bay of Plenty. The majority of our holiday-home owners and tourists already come from these areas. Our district s destination brand is The Coromandel - Good for your soul, given our natural treasure, it s easy to see why the Coromandel is New Zealand s favourite holiday destination and a sought-after place to live. At the highest level, our job seems so obvious; we need to create a more diverse and vibrant economy that attracts new investment, more businesses and more people living and visiting here more often. However, a non-negotiable for us is making sure we don t compromise the very things that make the Coromandel so special in the first place in our quest for economic growth. It is also true that the Council alone cannot achieve sustainable economic growth without partnerships with the private sector, Iwi and the community. We need to unlock FutureCoromandel together to guarantee our district will continue to be the most desirable area of New Zealand in which to live, work and visit. Mayor Glenn Leach, JP 3

4 Contents Economic development a priority for Council and community... 3 Section 1: Vision and Outcomes... 8 Council Outcomes... 9 Coromandel Peninsula Blueprint Outcomes... 9 Relevant Coromandel Peninsula Blueprint Objectives New Zealand Government Business Growth Agenda How it all fits together Council Mission and Vision Government Strategies Coromandel Peninsula Blueprint Council Strategies & Action Plans Ten Year Plans, Annual Plan, Community Board Plans Staff work programmes Community Outcomes Local Government, economic development and changes to the Act Our response to the Government's call on local councils to help solve the issue of housing affordability What you ve told us From discussions with the community and the business sector, here s a snapshot of what we re hearing and what s shaping our action plan and thinking: Case Study 1: Up to ten jobs planned for new materials recovery facility at Kopu Section 2: Our Economic Journey Underway DestinationCoromandel ExportCoromandel InnovationCoromandel BusinessCoromandel TeamCoromandel InfrastructureCoromandel Case Study 2: Powerco Investing More into the Coromandel Section 3: FutureCoromandel - Strategic Imperatives and Targets Our Economic Targets Key Project Targets Supporting Council Targets Case Study 3: Substantial economic benefit signalled from Hauraki Rail Trail FutureCoromandel Economic Development Five Year Action Plan

5 Section 4: Strategic Analysis Strengths Weaknesses Opportunities Threats Case Study 4: Minister likes our ConsentBuilder Section 5: Action Plan DestinationCoromandel Goal: We will make the Coromandel the preferred visitor destination in New Zealand Work programme ExportCoromandel Goal: We will focus on facilitating growth in our district s core-export industries as a primary means to grow jobs and incomes in the Coromandel Work programme InnovationCoromandel Goal: We will pursue innovation in our district to diversify our economy and help grow new innovation & cloud-based industries Work programme BusinessCoromandel Goal: We will be known as an enabling Council for businesses to work with Work programme TeamCoromandel Goal: We will develop strong partnerships the private sector, Iwi, communities and government agencies to harness our collective energy to achieve mutual goals for the benefit of the Coromandel Work programme StrongerCoromandel Goal: We will build infrastructure that is identified as critical to unlock the economic prosperity of the district and which connects us locally, nationally and globally Work programme Case Study 5: Coromandel Mayor champions new Great Walk Section 6: Governance Rationale for an internal EDA Governance role Case Study 6: Procurement strategy helps local firm grow capability and jobs 5

6 Section 7: Resources and action plan Commercial and Economic Growth Manager High level job description Business and Events Development Officer High level job description Action Schedules Administration Deadlines DestinationCoromandel ExportCoromandel BusinessCoromandel StrongerCoromandel Action Schedules DestinationCoromandel ExportCoromandel InnovationCoromandel BusinessCoromandel TeamCoromandel StrongerCoromandel Action Schedules BusinessCoromandel ExportCoromandel TeamCoromandel StrongerCoromandel Action Schedules InnovationCoromandel TeamCoromandel StrongerCoromandel Action Schedules StrongerCoromandel Action Schedules InnovationCoromandel StrongerCoromandel Case Study 7: From Basics to Glamping - camping is alive and well on the Coromandel FutureCoromandel Economic Development Five Year Action Plan

7 Appendix 1: The trends and numbers Key tourism trends Cruise ship trends The Maori economy Maori population The Maori at economy at a glance Accounting for the growth Maori Science and Innovation Aquaculture growth on the Coromandel Coromandel and regional numbers: Forecast growth: The Regional Economy The Coromandel Economy GDP by industry /13 Percentage of GDP by Industry GDP by year Employment by industry Employment by year Number of Businesses Unemployment and population rates Appendix 2: Priority work programme, budgets and strategic alignment Appendix 3: Local government s role in economic development So what is Local Government s Contributions to Economic Growth?

8 Section1 Vision and Outcomes Our Vision: The Coromandel will be the most desirable area of New Zealand in which to live, work and visit 8 FutureCoromandel Economic Development Five Year Action Plan

9 Council Outcomes The Council has established very clear expectations in terms of what it expects to achieve for the Coromandel - we call these expectations Council outcomes 1. A prosperous district The Coromandel has a prosperous economy 2. A liveable district The Coromandel is a preferred area of NZ in which to live, work, raise a family and enjoy a safe and satisfying life 3. A clean and green district The Coromandel Peninsula s natural environment provides a unique sense of place Coromandel Peninsula Blueprint Outcomes As the region s multi-agency strategic framework for managing growth and sustainable development, the Coromandel Peninsula Blueprint has also been used to set strategic direction for our Economic Development Action Plan. The Blueprint sets out four outcomes for the future development of the Coromandel: 1. Embraces its natural taonga treasures 2. Diverse and vibrant centres 3. A place where generations can live, work and enjoy 4. Resilient Communities Outcomes 2 and 3 have been the particular focus of alignment for this action plan. Please visit to read the Coromandel Peninsula Blueprint. 9

10 Relevant Coromandel Peninsula Blueprint Objectives y Coromandel Town to re-establish itself as a key sea transport link with Auckland y Creation of a more diversified economy (not so reliant on peak-summer tourism industry) y Ensuring our communities have access to quality infrastructure including high-speed broadband y An increase in permanent population to ensure health, transport, recreational and other services remain viable and cost-efficient (Living is affordable) y Communities are diverse, vibrant and connected y Provide opportunities to appreciate the natural environment y People can settle in the Coromandel and families thrive New Zealand Government Business Growth Agenda The New Zealand Government has clearly articulated its economic development strategy in The Business Growth Agenda. Our economic development action plan has been formulated to align with relevant parts of this government thinking, particularly in the innovation, export and infrastructure work programmes. The Business Growth Agenda focuses on six key ingredients businesses need to grow: Export markets, innovation, infrastructure, skilled and safe workplaces, natural resources, and capital. Each of these has its own programme of work. Infrastructure Export Markets Innovation Please visit for more information about the Government s strategies. Figure 1: The Thames-Coromandel Economic Development Action Plan is aligned with the export, innovation and infrastructure components of the Government s Business Growth Agenda Natural Resources Capital Markets Skilled and Safe Workplaces 10 FutureCoromandel Economic Development Five Year Action Plan

11 Council Mission and Vision How it all fits together The Thames-Coromandel District Economic Development Action Plan is just that, an action plan, and as the diagram below illustrates is aligned with our district s and Government s strategic direction, bringing alignment to our economic development programme to ensure maximum synergies with other agency and Council department work programmes. Figure 2: How our strategies, plans and work programmes deliver a better future for the Coromandel Government Strategies Coromandel Peninsula Blueprint Council Strategies & Action Plans Ten Year Plans, Annual Plan, Community Board Plans Staff work programmes Community Outcomes 11

12 Local Government, economic development and changes to the Act In 2012 the Government changed the purpose of Local Government, removing all references to Local Government promoting the economic, social, environmental and cultural wellbeing of its communities. We are now required to meet the current and future needs of communities for good-quality local infrastructure, local public services and performance of regulatory functions in a way that is cost-effective for households and businesses. This Economic Development Action Plan clearly focuses on our local needs, based on feedback from our communities, research from the business community and direction from our elected members. Specifically, what local infrastructure - both hard infrastructure and soft infrastructure - the Thames-Coromandel District needs to meet the current and future needs of our communities, to ensure vibrant, sustainable and resilient communities into the future. The Action Plan also recognises that Council plays a major role in economic development through its normal business as usual operations. Elements of this Action Plan focus on Council doing its business in a more effective and efficient way. This is ultimately about us delivering a more effective service to our ratepayers and communities. It is for these reasons that we believe that our Economic Development Action Plan is consistent with the new purpose of Local Government. 12 FutureCoromandel Economic Development Five Year Action Plan

13 Our response to the Government's call on local councils to help solve the issue of housing affordability. The New Zealand Government has introduced a number of measures to reduce the cost of building new houses in New Zealand by focusing on increasing land-supply and making the RMA processes more efficient. The Thames-Coromandel District Council has responded to this issue through the review of our District Plan which is rezoning substantial tracts of land in our growth hubs, to reduce the number of consents required and to make the plan easier to use and much more black and white. Through our Economic Development Action Plan we will investigate other incentives to stimulate building and population growth including ensuring our development contributions, rates and consent costs are not barriers to growth in the right places on the Coromandel Peninsula. 13

14 What you ve told us From discussions with the community and the business sector, here s a snapshot of what we re hearing and what s shaping our action plan and thinking: Cut the red tape and make it easy for us to do business on the Coromandel Waikato Economic Development Agency structures in the Waikato make no sense to the private sector Do our business better as a district Council Establish account management of new business enquiry and trouble-shoot resource management issues Get more people living here and visiting here more often = more jobs, greater visitor numbers Ensure high-speed broadband was available and that new housing developments did not have wait for space at the exchange to encourage more visits by holiday home owners for long weekends, commuters and IT boutique businesses operating in the cloud Focus on transport corridors to effectively make it easier for Aucklanders to get to the Coromandel - by sea and road Reduce compliance and rates costs Build strong partnerships with business associations and key private sector employers Ensure the District Plan is enabling sensible development and the zoning was aligned with existing structure and spatial plans Focus on tourism and aquaculture infrastructure needs Target our holiday home owners to spend more time on the Coromandel and look at higher conversion to permanent population Facilitate private sector collaborations Promote our district s economic opportunities Focus on key anchor projects - Coromandel Walks, Coromandel Wharf and Auckland Fast Ferry * Comments taken from the TCDC Economic Development Survey FutureCoromandel Economic Development Five Year Action Plan

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16 Case Study 1: Up to ten jobs planned for new materials recovery facility at Kopu A brand new materials recovery facility will be established in Kopu - with up to 10 new jobs - following the award of Smart Environmental Ltd as the winning contractor for joint collection of solid waste in Thames-Coromandel, Matamata-Piako and Hauraki. Owned by local Thames-born Grahame Christian, Smart Environmental is New Zealand s largest privately owned Waste and Recycling Company and won the contract over two other tenders received following a call last year for expressions of interest. The new materials recovery facility (MRF) will be established at the Carter Holt Harvey site on Ngati Maru Highway and will include an educational facility and new machinery to further the district s goal of waste minimisation under a joint Council Waste Management and Minimisation Plan (WMMP). The facility will be built at no cost to ratepayers, it will be owned and operated by Smart Environmental Ltd and will not preclude other community-based providers from establishing waste reduction initiatives with other materials not economically viable for Smart Environmental. Among other improvements already announced as part of the new contract is a fortnightly wheelie bin collection for all recyclables other than glass, with the green bin used for glass only in order to reduce contamination of recyclables by broken glass. Mr Christian - the company s Managing Director - owns a property in Whangapoua, and says the joint contract award has provided certainty for locally employed members of the Smart Environmental team and leads to this exciting new project and further job creation for a place he loves. As a local, born in Thames where my mother was also born and a home at Whangapoua where my father was born, I feel so privileged to be working in an area that is home to me and our very large whanau, he said. Smart Environmental has a number of plans to contribute to the clean green and beautiful area that is the Thames Coromandel. We will be undertaking the construction of a new materials recycling facility (MRF) in Kopu at the Carter Holt Harvey site and this will create up to 10 new jobs, he said. The new wheelie bins and crates will ensure that even more recyclables are collected and processed and are not landfilled. We are absolutely delighted to have won this contract back again, it has been a nervous time for all of us and in particular for those whose jobs were affected. Certainty of employment and keeping together in what has been a high performing team for the past 16 years means a huge amount to all of us. There is no doubt that our long standing relationship with Council and the Community has served us all well and we are grateful for a further 10 year term. Alongside Smart Environmental, all councils will continue to stimulate community enterprise in the field of waste reduction. The contract makes room for other providers in our community if they have practical and economically viable initiatives for diverting waste, says TCDC Solid Waste & Asset Database Manager Craig Goodwin. We already support numerous community-based initiatives that educate, reduce waste to landfill and provide employment in our district, and this will continue, he says. This is an industry that has experienced huge change and improvement over recent years and we expect there ll be more opportunity in future for reliable, established community organisations that have an interest in the field of waste reduction and can deliver initiatives alongside Smart Environmental. 16 FutureCoromandel Economic Development Five Year Action Plan

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18 Section 2 Our Economic Journey Underway 18 FutureCoromandel Economic Development Five Year Action Plan

19 The Council has already implemented significant programmes and completed substantial projects over the last few years to support the development of our economy, including the following: DestinationCoromandel y Event Strategy: A new Events Strategy has been approved with new funding sources to create more off-peak events y Local Events: We ve established a dedicated community board events funding and criteria y Tourism: Restructured Destination Coromandel (DC) to focus on delivering more effective and successful visitor marketing y Tourism: More funding has been invested into Destination Coromandel and our Visitor Information Centres y Future Growth: Completed the Marine Precinct Plan for Whangamata y Freedom Camping: Freedom camping has been opened up on the Coromandel bringing new business to Coromandel retailers y Closer Partnerships: We re working with Destination Coromandel and our Visitor Information Centres on joint promotions and projects (e.g. the annual Summertimes' campaigns ExportCoromandel y New industry Support: We re marketing the tender opportunity for the new fish farming zone in the Hauraki Gulf y Aquaculture: Sugarloaf has been selected by the Council as the preferred location for aquaculture wharf expansion InnovationCoromandel y IT Cluster & Software Development: We procure many of our software and IT services locally, which is creating real jobs and real opportunity for the Peninsula y IT Cluster: We re selling our locally developed Online Submissions System to other councils and looking to sell our ConsentBuilder online building consent portal and integrated processing system - refer to for more information BusinessCoromandel y Cutting The Red Tape: We ve got staff set up as Business Brokers to account manage new business start-ups through Council's permits, licences and consents processes y Cutting The Red Tape: We ve introduced a more proactive and flexible Development Contributions Policy and reviewing our District Plan y Funding Grants: We ve introduced Business Grants to help new businesses to the Coromandel create employment y Investment Opportunities: A Property Strategy has been completed and is now being implemented y New Funding Sources For Local Economic Development: We ve established a new Local ED activity in the 2012 Ten Year Plan for use to support local E.D. initiatives when required y Joint-Marketing: We re marketing business opportunities on the Coromandel on behalf of the private sector - y Investment Profiles: We ve established a new Business section on our website at and economic profile at

20 TeamCoromandel y Organisational Restructure: We've created a leaner, more effective and efficient organisation which is closer to the community and more able to deliver Council s outcomes y More Affordable Rates: We ve delivered a -5% average rates reduction over three years and have adopted a prudent Ten Year Plan. y New Strategies: A Disability Strategy and Positive Ageing Strategy have been completed and are now being implemented y New Philosophy: We ve delivered a community governance project to empower local communities and area offices to get on with local development y New Roles: We ve created new Area Manager and Community Development roles to work with groups and businesses to achieve positive outcomes for our district at a local level. y New Technology: A new TCDC intranet to improve the organisation s communication and effectiveness InfrastructureCoromandel y Hauraki Rail Trail: Stage one is completed linking Thames with Paeroa, Te Aroha and Waikino y Walkways: Stage 1 - Moana Anu-Anu Harbour Walkway in Whangamata y Future-Proofing For Economic Growth: Thames Wastewater Treatment upgrade and the Coromandel Wastewater Treatment Plant Upgrade Stage one y Playgrounds: We ve completed the Tairua Youth Zone and Children s Playground upgrades which are proving to have positive local economic implications for the town 20 FutureCoromandel Economic Development Five Year Action Plan

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22 Case Study 2: Powerco Investing More into the Coromandel More than $30m of electricity upgrades and construction work is expected to be invested into the Coromandel in the next four years to cater to future population growth. Almost $10m of this work will be done in the 2013/2014 financial year. It includes: $2.2m Reconducting work between Coroglen to Kaimarama $2.75m Upgrading the Thames Substation $4.4m Constructing a new Kopu to Kaueranga 110KV line The work is being done by Powerco, the utility company that has been providing electricity to the Coromandel since We ve been developing and future proofing our assets around Thames-Coromandel since we came into the region, says Powerco Chief Executive Neil Barbour. We compare how we provide electricity to our customers like building a highway, says Mr Barbour. We are building for traffic levels that will occur in the next years. We see the Coromandel as an area where population growth is going to take off in the not too distant future and we need to be prepared for that market. Powerco has spent $30m upgrading the electricity networks in Thames, Tairua, Whitianga and Coromandel over the past 7 years ( ). In order to do this they had to develop and plan for easements to get power poles across some pretty rugged terrain throughout the Coromandel. As well as working with landowners, DoC and iwi it had to gain resource consents from our Council and the Regional Council. Some of the projects completed in the past five years include: Rebuilding the Whitianga substation Refurbishing Whitianga to Coromandel 66,000 volt line. This means there are two different power lines running to Whitianga. These lines have the capacity to be increased to 110KV if the demand is needed in the future. Refurbishing Kopu to Coroglen line New line from Coroglen to Kaimarama capable of operating volts New 66,000 volt cable from Kopu to Thames Upgraded Tairua substation Created secondary supply to Coromandel Town from Thames via Thames Coast Rd. All this work ensures that customers around the Coromandel experience fewer power cuts. Back in 2007 the average customer here experienced about six power cuts a year totalling 33 hours without electricity. In 2013 Powerco says on average customers should only experience 210 minutes without power from planned outages or power cuts. We have to be accountable to our customers and the Commerce Commission about delivering on this, says Mr Barbour. Powerco is also acutely aware that a reliable supply of electricity underpins economic confidence and growth. It means the difference between deciding to expand or not and we're committed to ensuring the Coromandel continues to grow and prosper." 22 FutureCoromandel Economic Development Five Year Action Plan

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24 Section3 FutureCoromandel - Strategic Imperatives and Targets 24 FutureCoromandel Economic Development Five Year Action Plan

25 To deliver a FutureCoromandel; a Coromandel which is the most desirable place to live, work and visit, our Economic Development Action Plan focuses on six strategic imperatives which will drive our action plan and work programme: 1. DestinationCoromandel We will make the Coromandel the preferred visitor destination in New Zealand 2. ExportCoromandel We will focus on facilitating growth in our district s core-export industries as a primary means to grow jobs and incomes in the Coromandel 3. InnovationCoromandel We will pursue innovation in our district to diversify our economy and to help grow new innovation-based industries 4. BusinessCoromandel We will be known as an enabling Council for businesses to work with 5. TeamCoromandel We will develop strong partnerships with the private sector, Iwi, communities and government agencies to harness our collective energy to achieve mutual goals for the benefit of the Coromandel 6. StrongerCoromandel We will build infrastructure that is identified as critical to unlock the economic prosperity of the district and which connects us locally, nationally and globally 25

26 Our Economic Targets We are setting six major economic targets to achieve with the private sector, Iwi and other public-sector agencies. These are: 1. An average annual increase in real exports of greater than 5% (includes tourism) so that the ratio of exports to GDP is 40% by An average real GDP increase of greater than 2.5% by the end of A permanent population increase of 2500 by the end of 2018 (as measured in the next national census) 4. An increase in rateable units of greater than 2.5% by the end of A 5%+ annual increase in visitor guest nights 6. Increase in employment on the Coromandel by 5% by the end of 2018 Key Project Targets There are three anchor projects the Council has identified that are imperative to the district s economy. These are: the Coromandel Great Walks, Coromandel Harbour Strategy and the Hauraki Rail Trail extension to Kaiaua/Miranda. 1. The Coromandel Great Walks Business Plan approved by June Establish the first section of the Coromandel Great Walks project (Hot Water Beach to Cathedral Cove) by end of Two new sections of the Coromandel Great Walks under-construction by the end of The Kaiaua/Miranda to Kopu leg of the Hauraki Rail Trail completed by the end of The Coromandel Harbour Strategy approved by June Fast Ferry service established between Auckland and Coromandel Town (direct) by end of 2018 Supporting Council Targets The Council plays a major role in economic development through its normal business as usual operations. The following internal targets have been set to ensure Council contributes to economic growth through its day-to-day business objectives and work programme 1. Increase overall customer satisfaction by 5% (as measured in the 3 yearly customer survey) per annum 2. Reduce the number of District Plan activities that require resource consents by end of Increase CAPEX delivery from 68% to 85% by the end of Ensure the average residential rate is on-par with the New Zealand average by the end of Develop an ease of business survey to establish new benchmarks by end of FutureCoromandel Economic Development Five Year Action Plan

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28 Case Study 3: Substantial economic benefit signalled from Hauraki Rail Trail Hauraki Rail Trail is drawing a wealthier than average clientele who have each contributed on average $ expenditure while enjoying the sights on a day trip to the attraction, preliminary research shows. Almost half the 200 or more cyclists interviewed as part of interim research by the University of Waikato earned above or significantly above the country s average income, a highly sought after market anywhere in the world. With thousands of riders expected in the coming few years the report gives encouraging signs of a significant economic impact from the trail, says TCDC Communications and Economic Development Manager Ben Day. An economic impact like this will create meaningful, real jobs, over time. The research was gathered since September last year and is an intercept survey, with interviewers stationed on the trail collecting information from riders on randomly selected days. A representative sample of more than 200 people showed a total expenditure of almost $24,000 giving a mean expenditure of $ each, the draft report shows. It showed 133 of those interviewed were aged between 46 and 65 years. Some 31 per cent of a representative sample of riders earned above average income and 14.5 per cent earned significantly above average income. It confirms our prediction of the target market that most would be of middle age to a slightly older age group. Globally that is a very attractive type of visitor to reach, which is why cycleways are great. They offer something active to baby boomers, who generally seek nothing too arduous or adventurous, and cycleways fit into that. Auckland, at 23.7 per cent, drew the most visitors to the trail followed by visitors from Hamilton at 14.5 per cent and, closer to home, Te Aroha who made up just fewer than 11 per cent and Tauranga 9.1 per cent of those interviewed on the trail. Good exercise, fun with friends and family, a sense of freedom and a good way to enjoy landscapes were the reasons given by cyclists interviewed on the Hauraki Rail Trail. The trail takes riders through farmland, over historic bridges and through tunnels and alongside rivers in a serene setting with local eateries, wineries and accommodation providers along the way. The research confirms they re out there with family and friends to enjoy the landscape. The caveat is they want to cycle in good weather. Almost three quarters of cyclists had stayed at their own home prior to their day of cycling but 4.5 per cent of those interviewed had chosen to stay a night prior to their ride in motel accommodation. After cycling the trail, eight per cent of those interviewed had booked into a motel for a night. Other accommodation included hotels, farm stays, backpackers, holiday homes and friends homes. 28 FutureCoromandel Economic Development Five Year Action Plan

29 Good research is important not just in terms of understanding economic impacts of the trail, rider numbers and their spend but in fine tuning the marketing of the trail. "The Principal Trail Manager and operators can understand who we re currently reaching and who we need to reach, says Mr Day. It s early days but there seems to be four distinct types of riders emerging based on common characteristics. The information gleaned allows marketers of the trail to group consumers and pitch the messaging right. For example, baby boomers that aren t looking for anything too adventurous may differ from the families cycling the trail, which won t be necessarily looking for wineries but more family activities." On the Hauraki Rail Trail - 10,000 cyclists in one section of trail during January alone The Karangahake Gorge section of the Hauraki Rail Trail drew 10,000 cyclists in the month of January. The trail s Principal Trail Operator says forward bookings for March, April and May are really positive as people plan their trip in the cooler months of summer. Electronic counters have been installed in other sections of the trail which should soon give similarly reliable figures on numbers of people using other sections of the trail including from Thames to Paeroa. 29

30 Section 4 Strategic Analysis 30 FutureCoromandel Economic Development Five Year Action Plan

31 The Coromandel is blessed with unique strengths such as its natural environment and close proximity to our major centres in the North Island. Like many provincial communities, the Coromandel also suffers from the effects of an aging population and lack of employment opportunities for its young people. Before the Council can develop economic strategy that leverages our opportunities and strengths we need to understand our district s inherent weaknesses and potential threats. Strengths y Our natural taonga (treasure), including our white sand beaches, coastal environment and native forests y Temperate climate and good summers - one of the highest quality lifestyles in NZ y The Coromandel is a strong and preferred visitor destination, especially for domestic tourists in the summer holidays y Proximity to the Golden Triangle, Auckland-Hamilton-Tauranga and an International Airport y The Hauraki Rail Trail (Stage 1 between Thames-Paeroa-Te Aroha and Waikino) and a large range of recreational activities y The Coromandel offers a superior lifestyle for all those who choose to call the Peninsula home y There is an abundance of hidden talent on the Coromandel people who have come from all over New Zealand and the world - many of whom are well-travelled and successful y The Coromandel can offer businesses a more cost-effective operating environment than the large urban centres y A strong events portfolio during the summer season and in some parts of the shoulder seasons y The cost of living is less than costs imposed in major cities 31

32 Weaknesses y The Coromandel is considered off the beaten track by some and there is no regular or direct air or sea service from Auckland y Access to the many parts of the Coromandel by road from our major centers involves long and arduous car journeys y The summer-peak visitor season is short and compressed into a few months of the year y Wharf and boat ramp infrastructure in many parts of the Coromandel is inadequate, often not able to meet demand y The Coromandel has a lack of conference facilities and hotel accommodation to make it a viable alternative for conference event organisers y The Coromandel has a lack of market ready international tourism product y Businesses don t understand Council EDA structures y Nationally, just over 30% of businesses operate online or provide ecommerce facilities, we suspect it would be a smaller percentage on the Coromandel y Council red tape can get in the way of sustainable development on the Coromandel, particularly with projects that require multiple consents and licenses y Tourism signage on the Coromandel is of a poor quality or non-existent in key areas and gateways y Business acumen on the Coromandel is variable and there is no major mentoring programme to up-skill businesses to ensure they are able to grow y Broadband is very slow on the Coromandel which limits business growth and use of the Coromandel for longer weekends' living and working from home 32 FutureCoromandel Economic Development Five Year Action Plan

33 Opportunities y The Rural Broadband Initiative bringing faster internet services to the majority of the Peninsula y The close proximity to Auckland by air, land and sea offers immense opportunity to attract more residents to the Coromandel who can commute to Auckland for work and for more visitors and non-permanent residents y The growth potential in our aquaculture industry, including the establishment of a new fish farming industry y The Hauraki Collective Treaty Settlement bringing new capital to the district and opportunities for the Maori economy to grow (the Maori economy is already a significant opportunity given its growth and importance in our country) y A large and under-utilised holiday home inventory y A large non-resident population who can afford to own a second home on the Coromandel y A high-level of infrastructure capacity (waste water) and consented sub-divisions on the East Coast to accommodate future growth y Housing shortages & traffic congestion in Auckland leading many families to leave Auckland to live in other centers y On the Coromandel, people can find the ultimate work-life balance given the development of cloud technology y The national i-site strategy provides clear direction and opportunity to maximise the Coromandel s investment in the Visitor Information Centre network y The increase in Cruise Ships visiting offers major opportunity to the Coromandel, particularly given we are not yet a major stopover destination y Kopu offers the Coromandel exciting opportunities with upgraded water infrastructure and plenty of land for job creating industries to relocate Threats y An ageing population will often result in older residents leaving for the cities to seek closer proximity to medical facilities y Lack of employment opportunities for young people, forcing them to leave the district in search of work y The Coromandel is very reliant on discretionary spending from its holiday-home owners and visitors making the district vulnerable to recession and the effects of poor summer trading due to unfavourable and prolonged weather conditions y Compliance costs related to aquaculture expansion y Regional population decline y Lack of medical facilities in Mercury Bay leading to many people eventually leaving the district to be closer to regional facilities y Lack of future investment in broadband ultrafast fiber networks in our main towns y Changing demographics in tourism with more short haul and Asian visitors - the Coromandel may not have the international tourism product to always match these changing demographics y A lack of funding to market the Hauraki Rail Trail to F.I.T. travellers is holding back visitor growth y Other regions in New Zealand have much more advanced aquaculture strategies and collaborative partnerships y The slow uptake of RBI and the slow adoption of new technology to maximise faster speeds is a threat to population growth on the Coromandel and more non-residents visiting more often to live and work here y Vulnerability of schools and hospitals if jobs leave the Coromandel taking families away from our communities 33

34 Case Study 4: Minister likes our ConsentBuilder Processing building consents through a fully automated online service is the way of the future at Thames-Coromandel District Council and its also generating huge interest from central government. Building and Housing Minister Maurice Williamson was in Thames today viewing a presentation by Council staff on our ConsentBuilder building consent application portal. What I saw was spectacular, with all the tools I think modern applications should be using, he says. It has the flexibility and the usability. This is exactly the direction the industry should be going. ConsentBuilder is the country s first fully streamlined package where building consent applications are submitted and processed online. The beauty of the ConsentBuilder package is that it s a paperless system. You can submit your building plans and documents, answer the online questions relevant to the building code, (the number of questions change depending on how simple or complex your project), and do the whole application online. The ConsentBuilder online service will work for anything from an application for a fireplace to the Empire State Building. You just upload everything from your computer straight into Council s systems, including all your drawings and plans. More than 50 per cent of building consents use Computer-Aided-Design (CAD) programmes so these can be submitted online. But even if someone drew plans by hand, had them scanned at the library and ed those in, they could still be processed, says our Building Business Unit Manager John Kardas. Many councils are semi-digital, says Mr Kardas. But they re still scanning and typing in the information. With ConsentBuilder it s a fully digital system. A person can just submit their application online, it s uploaded to all the relevant areas at Council for processing and then we it back when it s completed. Up to 20 other councils around the country have already shown an interest in ConsentBuilder. 34 FutureCoromandel Economic Development Five Year Action Plan

35 As Minister for Building and Housing and an IT expert himself, Mr Williamson is looking to develop a consistent standard approach like that used by ConsentBuilder for his department within the next couple of years. So it s really exciting that he s here to see what our Council has developed, says Mr Kardas. The ConsentBuilder concept began two years ago when our staff began looking at how we could streamline the building consent process to make it quicker, easier and simpler for customers to use. Mr Kardas says it started out as a basic idea just for TCDC and blossomed into an online portal suitable for use anywhere in the country and for every kind of consent including commercial and industrial. A partnership was formed between our Council and InfoMaster, a private company we ve worked closely with before on other projects. ConsentBuilder has been trialled by a handful of builders over the past six months. They ve come back to us with their input and we ve made tweaks from their feedback, says Mr Fowler. The idea is that in the next two to three weeks we will get in up to ten builders who will use the system live. If that runs smoothly then the number of people who can submit their projects will increase. The intention is that we ll be able to process both online and paper applications for six months and then decide from there whether to stop paper applications all together. This system is a win-win for both councils and anyone wanting to submit a building application. Builders will be able to save time and money, because instead of coming into Council during working hours, they can submit their applications online when they want, from wherever they are. For councils, ConsentBuilder can simply connect online users to any Council s current setup, feeding all the right information into whatever systems that Council uses. Minister Williamson says ConsentBuilder ticks all the boxes he wants to see ticked and going in the right direction. He told those at the presentation, We have one warrant of fitness system in this country and I want the same for the building industry. TCDC IT Manager Murray Foster says ConsentBuilder is designed to make it easy for the building industry and councils to have exactly that. 35

36 Section 5 Action Plan 36 FutureCoromandel Economic Development Five Year Action Plan

37 After assessing all our district s strengths weaknesses, opportunities and threats and with a good understanding of the strategic direction of government, Council and industry, we ve developed the following goals and associated work programmes to ensure we can achieve our ambitious economic targets. Please refer to the appendices to understand more about our economy, vital statistics and emerging trends. DestinationCoromandel Goal: We will make the Coromandel the preferred visitor destination in New Zealand The Coromandel is blessed with natural taonga that make the district one of New Zealand s favourite places to take a holiday. We have a well-established tourism industry and our proximity to Auckland International Airport and New Zealand s major cities make this an industry with more potential to provide increases in export earnings. Tourism is also a major focus on the New Zealand Government with its investment into destination marketing programmes increasing over the past few years. After the successful restructure of our RTO, Destination Coromandel, which has placed more resources into our destination marketing programme, it s now time to review the Towards 2020 Tourism Strategy and check in with our progress, to reset our strategy if required and to ensure we are on the right course to build this vital export industry. We do know from our analysis, the district will need to invest more resources into the tourism industry to facilitate the development of more international product, effective and efficient transport connections with Auckland and to encourage longer tourism seasonality. Work programme Review the 2020 Tourism Strategy with a view to enhancing the value of our tourism exports As our economic statistics testify (refer appendices), tourism is a critical component of the Coromandel economy. With the Government s renewed focus to increase export earnings and with the establishment of Government initiatives such as cycle ways, increases in tourism marketing and growth partnership funding and with changing visitor demographics towards more short haul and Asian markets, it s time to review this critical document. The strategy should also include work on conference facilities and improving the Coromandel as a conference destination market. Develop and implement tourism signage strategy An easy win for us all is a review of our tourism signage and a development plan to improve it. Anecdotally, the current state of tourism signage is not in good shape or completely missing in key gateway zones. 37

38 Develop and implement business transition plan for key i-sites transition to RTO ownership and give effect to national i-site strategy A major opportunity exists with the recent publication of a national I-SITE Strategy which speaks of a renewed commercial focus and rationalisation of sites, which fits with the Council s strategic direction to change the business model for the Coromandel network. Expand Summertimes programme to attract nonpermanent population back to the Coromandel and better utilization of baches & conversion to permanent population Council has already taken a leading role in economic development initiatives such as the launch of the Summertimes campaign in 2011 to reach our large non-resident population and to provide our visitors with targeted Coromandel visitor propositions. This programme has been undertaken within Council budgets and needs to be funded formally under the economic development activity and a business plan developed to guide this programme more strategically. Expand Destination Coromandel marketing programme to support more event marketing and Hauraki Rail Trail marketing for FIT travellers In the short term, prior to a review of the tourism strategy, Destination Coromandel requires specific funding to support marketing programmes around events and the Hauraki Rail Trail, given the Council s ongoing funding commitments to these tourism activities. It is not realistic under the current funding arrangements for our RTO to support these products within existing budgets. Continue to develop and enhance our events strategy and outcomes to develop shoulder season economic activity The Council adopted an events strategy in June 2013 and has made funding decisions to support the establishment of new events. It is critical that the strategy be reviewed constantly and as events become established that new events are identified in the pipeline. Support expansion of the film industry on the Coromandel and as a location for TV and film productions The Coromandel is an under-utilised location for film and TV productions. We have had some notable films shot here; however we could be doing more to market our district to film location scouts. Investigate feasibility of hosting more cruise ships in Mercury Bay The Mercury Bay Business Association has established a project to investigate the cruise ship industry s potential for the Mercury Bay area. Given the export earning potential of this industry, the success other regions have had and the importance of land-side infrastructure, it is recommended that Council work with the Business Association on a feasibility study and cruise ship strategy. We need to understand how to influence cruise ship itineraries, what landside infrastructure is needed, what tourism product we need and what demographics to target. Please refer to the appendices for more information on the associated work programme, how it aligns with government, industry and district strategy and the key facts and figures related to this industry sector on the Coromandel. 38 FutureCoromandel Economic Development Five Year Action Plan

39 ExportCoromandel Goal: We will focus on facilitating growth in our district s core-export industries as a primary means to grow jobs and incomes in the Coromandel It is clear from the Government s Business Growth Agenda, the key to improving our economy and creating jobs is the need for our export sector to grow. If we are serious about jobs then we need to ensure we are seeing our export industries thrive on the Coromandel. Our major export industries include niche manufacturing, forestry, aquaculture and tourism. We as a Council need to understand our export economy more thoroughly and help facilitate growth and connections with government and agencies that can help. In this regard, the Council will need to form stronger relationships with agencies such as New Zealand Trade and Enterprise. We need to develop a regional aquaculture strategy to ensure the Coromandel is well positioned nationally and internationally and we need to ensure investments in infrastructure and the links between aquaculture and tourism remain strong. Tourism is a major foreign exchange earner for the Coromandel and an important export industry, which is why this industry has been given particular and individual focus in this action plan. Work programme Work with local export businesses and government agencies to support job growth and export opportunities and investigate opportunities to increase growth in primary export sector The Council should facilitate an export focused initiative to understand the specific opportunities the Coromandel export sector has before it and what role Council can play with relevant Government agencies to support growth in this important sector. Update the Aquaculture and Seafood Trail and develop a new marketing plan for its promotion The former Hauraki-Coromandel Development Group invested in the development and marketing of an Aquaculture and Seafood Trail. The marketing programme and product needs reviewing and updating. Refer to Support the establishment of a sustainable Fish Farming Industry on the Coromandel The Council has already developed an investment prospectus and has made staff available to host potential investors for a tour of the Coromandel and its infrastructure. Once industry partners are selected to farm the allocated water space, the Council will need to understand what support it can give this new industry. Please refer to the appendices for more information on the associated work programme, how it aligns with government, industry and district strategy and the key facts and figures related to these industry sectors on the Coromandel Develop and implement an industry-led Aquaculture Strategy with WRC, ATEED, Aquaculture New Zealand and the Coromandel Marine Farmers Association It is clear the other major aquaculture regions in New Zealand are far more developed in terms of strategy development and implementation, with well-defined and established collaborative partnerships with multiple agencies and private sector players. 39

40 InnovationCoromandel Goal: We will pursue innovation in our district to diversify our economy and help grow new innovation & cloud-based industries The Coromandel is perfectly positioned to benefit greatly from the cloud revolution and we re seeing signs of it already as more IT companies move to the Coromandel for a better lifestyle, enabled by fast broadband and cloud technology which enables them to operate from the Peninsula. We need to do more in this industry to ensure we have the best infrastructure and incentives to ensure IT clusters can develop all over the Peninsula. Working from home is an option like never before, we have a large non-resident population who shouldn t need much convincing to spend more time here and longer weekends. We should not be satisfied with a post-rural Broadband Initiative (RBI) world; we need Ultra-Fast Broadband in our key towns as well if we are to truly foster an environment that will bring this sector to our shores. Find out what we re already doing in this space to support IT clusters at Work programme Establish an IT Hub in our main centres to continue to foster a growing IT cluster and support training opportunities with WINTEC - continue to market the IT cluster work programme The Coromandel has huge potential given its close proximity to our country s major centres to offer IT companies and their staff an improved business operating environment and lifestyle. IT Hubs are one way to foster innovation and share overheads. The Coromandel must take full advantage of the online revolution and cloud based trends. Review broadband infrastructure deficits in a post- RBI world to ensure the Coromandel can attract more cloud businesses and working from home demographics Is the fully implemented RBI programme and our existing copper/fiber network enough to make the Coromandel a competitive environment for businesses to operate here and for our non-residents to live and work and play more on the Coromandel? We need answers to these questions. Establish a Coromandel Online project to get all Coromandel businesses online with their own website and social media platforms and trained to maximise online opportunities The Coromandel economy, like most of provincial New Zealand, is made up of SMEs, many of which are not online or are not well trained to maximise the potential. The Council could play a role in enabling Coromandel businesses to start their online and digital marketing programmes and training to ensure our business sector is keeping up with the digital revolution. Support the delivery and uptake of the RBI programme on the Coromandel Having the broadband infrastructure is one thing, ensuring it is being used is another. The Council can play a role in marketing the uptake of RBI and also educating our residents and ratepayers about the technology that can be used to make the most of these much faster broadband speeds. Continue to invest in local software companies to develop solutions for local government Existing products such as Online Submissions, ConsentBuilder, Track 24, eplan need to be enhanced for their own use at the Council, but also to ensure the products are able to be on-sold across New Zealand and Australia. As Council develops future products with local suppliers, such as those in web development, resource consenting, CRM and e-commerce areas, these products need to be built and marketed to the sector. Please refer to the appendices for more information on the associated work programme, how it aligns with government, industry and district strategy and the key facts and figures related to these industry sectors on the Coromandel BusinessCoromandel Goal: We will be known as an enabling Council for businesses to work with Councils by their very nature are a major player in economic development given their role in regulation, planning and infrastructure. 40 FutureCoromandel Economic Development Five Year Action Plan

41 However, we know we can get in the way unnecessarily of the private sector and we want to do better and enabling investors and business owners create wealth and jobs here. We are committed to improving our relationships with business leaders and ensuring we are enabling sustainable development that will benefit the Coromandel. For small businesses requiring multiple consents, permits and licenses, dealing with Council is not often easy - we need to deliver a clear pathway for business owners to the end game which we can achieve with a smart online enquiry tool, like we already have for resource consents. Find out what we re already doing in this space to support business at Work programme New building incentive package We have plenty of capacity in our infrastructure services in many towns, especially on the eastern sea board. One of our goals is to grow our population and rateable units to ensure our rates requirements are spread across more people and to take advantage of this infrastructure capacity. Therefore, we will investigate developing a package of incentives to encourage new residential building where we have capacity and where we are also rezoning land in the new District Plan to a residential zone. Possible incentives to stimulate new building development could include: y Introducing reductions in rates or rates holidays y Reduce the user-pays component of building and resource consent fees y Reducing development contributions y Packaging Council-related new building costs into one fixed price with longer repayment terms y Introducing new fast-consent processes for offthe-plan buildings and houses y Establish key account managers to work with developers and building companies y Establish a joint-marketing fund to partner with real estate agents and developers to assist in profiling the district's real estate opportunities Review the Council s organisational structure to ensure it is able to deliver all of Council solutions for the FutureCoromandel work programme and agenda The Council is reviewing its structure, post the reorganisation of its activities due to the community governance strategy. Economic Development is in scope of this review to ensure the activity can be delivered effectively. Part of the review scope will also include how Council can become more business friendly. Create an online Permits, Consents, Concessions and Licence Enquirer Tool to give business owners a clear pathway through Council processes It is clear from surveys with business and through anecdotal feedback, that Council processes are not clear for investors and business owners when it comes to developments and projects that require multiple Council transactions. Streamline the Council s resource consent and planning processes and create user-friendly guidance collateral The conversion to online resource consent applications over the next few years and an e-version of the District Plan make it possible to streamline the resource consent process like never before. It is crucial that our planning and consent processes are user-friendly and efficient and that customers have a clear pathway forward when applying with a full understanding of costs and process. Develop a new Digital and Web Strategy to improve access to Council services and transactions online and improve the OpportunityCoromandel website with improved investment and business information To reduce our own transaction costs (and rates requirements) and given that a large percentage of our ratepayer base don t live in the district permanently, it is imperative that we revise our own digital strategies to ensure all of our services are available 24/7. The website needs to be enhanced with added functionality and investment information as part of this wider investigation into our online and digital assets. Create training curriculum to ensure CDOs, Customer Services staff are more enabled to manage business and event enquiry An outcome of the creation of the customer-centric user guidance material for the consents area of Council will be the development of internal curriculum to ensure our customer services staff, Community Development Officers and Economic Development staff are able to be trained more effectively to guide customer enquiry more effectively. 41

42 Establish key account management for major Coromandel businesses and employers The top five or ten employers in the district need a single point of contact in Council to ensure we are managing our district s key accounts effectively. Our research clearly illustrates the fact that business wants one person in Council to deal with when it comes to transacting with us. Review Economic Development rates structures in the 2015 to ensure equity in E.D. funding across the district The Economic Development rate will be reviewed as part of the 2015 Long Term Plan to ensure the activity is being fairly funded across the business and commercial sector. Deliver a District Plan that is an enabler of economic growth and land requirements This was a clear direction setting mandate by the Council when it established the District Plan Review project. Please refer to the appendices for more information on the associated work programme, how it aligns with government, industry and district strategy and the key facts and figures on the Coromandel. TeamCoromandel Goal: We will develop strong partnerships with the private sector, iwi, communities and government agencies to harness our collective energy to achieve mutual goals for the benefit of the Coromandel The key theme in any successful economic development programme is team work and partnerships - we must work together, understand each other s businesses and connect people and ideas. Council is naturally placed to play a really important role in facilitating team work and partnerships and helping companies work together. The Maori economy in New Zealand is growing at a fast rate of knots and the district s local iwi and hapu will also be settling with the Crown in the next few months. We need to understand the economic ambitions of local iwi and any post-treaty settlement entity and do all we can to facilitate the achievement of their goals. We are also surrounded with support agencies, idea incubators, Economic Development Agencies and private sector entrepreneurs, so we should establish good networks and systems to support the private sector and to work across district boundaries for the greater good of the region. Work programme Establish a Coromandel Business Week Many cities and regions in New Zealand offer business awards programmes and business week initiatives to encourage business success, collaboration, training and access to international and national key note speakers. The Coromandel Business Week should be established to: y Celebrate business success and improve the national profile of our business sector y To encourage business networking and collaboration y To give access to knowledge, trends and success case studies Develop an MOU and joint-work programme with ATEED In principle, the Auckland Council has indicated they support the development of a Memorandum of Understanding with the Thames-Coromandel District Council. Auckland Tourism, Events, Economic Development (ATEED) are an obvious partner to work with to develop areas of mutual benefit in tourism, aquaculture and other areas of economic development. Given Auckland s growth potential and the problems associated with population growth, the Coromandel is well placed to offer solutions to some of these issues. Develop a joint Economic Development work programme with Hauraki Collective post-treaty settlement entity The Maori economy is growing significantly in New 42 FutureCoromandel Economic Development Five Year Action Plan

43 Zealand and with the ratification of the impending Hauraki settlement likely in 2014, Iwi will be restored to becoming a major landowner and economic driver in the district. Once a post-treaty settlement entity is created, the Council should support the development of a specific Maori Economic Development Strategy in terms of understanding Iwi direction and objectives and developing plans to facilitate the achievement of these strategies. Develop a strategic relationship with Callaghan Institute / Waikato Innovation Park The Callahan Institute accelerates commercialisation of innovation by firms in New Zealand. They create and deliver innovative products and services that enable businesses to invest more in research, science, engineering, technology and design, so that they can be more successful in the global market. Council will ensure that businesses on the Coromandel have good access to this service. Establish a quarterly business forum with key business accounts with a focus on large employers, exporters and manufacturers Case studies in Economic Development clearly demonstrate that where there is strong networking, collaboration and partnerships in an economy across sectors and government, success is more likely to occur. The Council will facilitate a quarterly business forum with strategic agendas to ensure our business sector is working together and able to identify synergies more effectively. We have a major opportunity in many of our communities on the Eastern Seaboard in that we have good capacity for growth. Council needs to work with the private sector to stimulate development in areas where we have the infrastructure capacity already built to maximise our investment and to reduce debt and development contribution burdens in these areas. Investigate business mentoring services on the Coromandel with a view to increasing support and effectiveness To grow businesses and jobs on the Coromandel our business leaders need to stay plugged into support programmes, new skills development initiatives and mentoring advice services. We need to investigate the effectiveness of current service offerings and explore how Council can improve or intensify business support services on the Coromandel. Business Mentors NZ is currently supported via the Hamilton Office of the Waikato Chamber of Commerce for the Thames-Coromandel district. Please refer to the appendices for more information on the associated work programme, how it aligns with government, industry and district strategy and the key facts and figures related to these industry sectors on the Coromandel. The Forum will also be a way for Council and various agencies to understand how it can facilitate achievement of the private sector s objectives. Support greater utilisation of the district s holiday home stock We need to understand how we can maximise the use of our large holiday home stock on the Coromandel. If each holiday home was rented for an extra week a year the impact on our economy, especially off-peak, could be dramatic. How can Council work with the private sector to achieve this objective? We need to do some work to understand the opportunities more fully. Support initiatives that attract greater utilization of consented property developments and Council s waste water capacity on the Eastern Seaboard 43

44 StrongerCoromandel Goal: We will build infrastructure that is identified as critical to unlock the economic prosperity of the district and which connects us locally, nationally and globally. This is the most important section of the action plan - building infrastructure to connect the Coromandel with Auckland by sea, land and air is critical. The Auckland economic vortex is to our advantage as people look for weekend getaways, commuting and holiday home options and business opportunities - we must make it easier for people to get here. We need to continue to build the Hauraki Rail Trail to get it closer to Auckland and to ensure it is a multi-day ride in our quest to build better tourism product. It is already a successful addition to our tourism industry as it is. Alongside this is the need to connect the Coromandel and its towns with a series of great walks to bring more tourists to our district. Also, we have an ageing population - how can we capitalise on this trends in the retirement industry? We have a real need for quality hospital services in Mercury Bay to ensure the population stays in our district because it has access to the services it needs. Work programme Implement Coromandel Great Walks project business plan The Coromandel Great Walks project has been identified as an anchor project for this Council. The business plan needs to be adopted and implemented via the Economic Development Activity and via a newly established EDA, with major leadership from the district s RTO. Implement Coromandel Harbour Strategy to enable aquaculture industry expansion, recreational boating facilities and the fast ferry direct to Coromandel Wharf/Town Another anchor project with national significance, the Coromandel Harbour Strategy is a vital plan that will determine prioritised investment in facilities to ensure we can sustain growth in the recreational fishing industry, aquaculture and establish a tourism/commuter fast ferry from downtown Auckland which will open up the Coromandel to significant visitor numbers and commuters. The Strategy needs to be implemented via the new EDA Committee and Council. Revise Kopu Structure Plan and develop urban design programme to establish the gateway to the Coromandel The main entrance to the Coromandel at Kopu is of strategic importance to the district and its development will need to be carefully managed. The current Kopu Structure plan is inadequate to manage the main entrance zone to the Coromandel and with the completion of the new Kopu bridge in 2011, development is much more feasible around that area. A revised Kopu business strategy and expanded structure plan and land-use concept is urgently required to ensure we encourage development appropriate to the entrance to New Zealand s premier lifestyle and visitor destination. Build the Hauraki Rail Trail to Kaiaua and work with ATEED to look at feasibility of Stage 3 to Auckland Resource consent work is being undertaken to build the Rail Trail to Kaiaua and funding will be required from the Council to build the stage 2 section of track. A possible extension closer to Auckland should be signalled now as a future possibility and a project that could be used to develop stronger relationships with ATEED. The closer the cycle way can get to Auckland the more people will use the cycle way and the more economic benefits the Coromandel will incur. Develop a tourism precinct for the Placemakers Site in partnership with owners and industry The vacant Placemakers in Thames is a site of district significance if an appropriate development can be encouraged on the site. Development of this site must align to the Thames Urban Development Strategy. Strategically the site should be home to a tourism precinct to open up lanes and side streets to Grahamstown, with the establishment of a boutique hotel and conference facility (a major weakness in our economy), retail stores, the I-SITE, bus terminus, offices for our RTO, and the Hauraki Rail Trail facility. 44 FutureCoromandel Economic Development Five Year Action Plan

45 Encourage new competition in the Grocery Industry in Thames A theme coming from public consultation during the early stages of strategy development was the high cost of fuel and groceries in Thames and the lack of choice and competition. Gull has since moved to Thames bringing with it lower fuel prices and more competition. However, there is only one major supermarket in Thames and for a population and catchment the size of Thames and its surrounds, it seems feasible that a second competitor to Thames in the grocery trade is possible. Whitianga will soon be home to two supermarkets as well (which has a smaller population base for most of the year). The Council should be open to work with developers and land owners to see a second supermarket open in Thames as a priority. Facilitate the development of more sophisticated medical services in Whitianga It has been identified as major threat to the viability of Whitianga as a growth hub, particularly with an ageing population, that many residents move from the town to be closer to regional medical facilities, The Council should be working with local landowners, developers and the medical industry to see the establishment of facilities in Whitianga that will stop people leaving the district to seek medical services in larger centres. Facilitate a regular passenger air service from Whitianga to Auckland A major opportunity to open the Coromandel up to Auckland and also international visitors is the establishment of a direct and scheduled air service between Whitianga and Auckland. The Council needs to understand the strategic direction from the owners of the airfield and investigate the feasibility of establishing an air service. We need to make it far easier to live, work and visit the Coromandel. Develop a new Coromandel Road Strategy to reduce travel times to and from Auckland A major threat to the viability of the Coromandel is the roading infrastructure, which is full of one-lane bridges (which are blocked during summer with queues), long and winding roads that could do with straightening and a real lack of passing lanes. We need a dedicated and specific roading strategy designed to cut the travel time from Auckland to the Coromandel (especially to the Eastern Seaboard where much of our growth capacity lies). Again, we need to make it far easier to live, work and visit the Coromandel. Investigate aged care facility infrastructure and opportunities to take advantage of the baby boomer retirement trends While many view the ageing population as a negative, the Coromandel should be poised to take advantage of these demographic trends with the facilities and support to create new industries related to this movement. The Council has already adopted and implemented positive ageing and disability strategies, which will go a long way to ensuring we can cater for these demographics on the Coromandel. However, what opportunities exist to grow new retirement industries in the Coromandel? A feasibility project needs to be established to investigate what can be done to establish industries related to ageing populations here on the Peninsula. Please refer to the appendices for more information on the associated work programme, how it aligns with government, industry and district strategy and the key facts and figures related to this industry sector on the Coromandel. 45

46 Case Study 5: Coromandel Mayor champions new Great Walk Thames-Coromandel District Council has allocated budget to conduct a feasibility study on building the country s 10th Great Walk on the Coromandel Peninsula. Mayor Glenn Leach told Wilderness Magazine the idea of a Great Walk on the Peninsula has been kicking around for decades, but has never taken off. Community groups have been working hard on building tracks around the Peninsula and have vision for more in their areas, Leach said. They re enthusiastic people and we don t want to undermine them in any way, we want to work with them. This project is about creating a world-class multi-day walk that links strongly with towns and communities on the Coromandel to drive economic development through tourism. Imagine building a walking track from the top of the Peninsula down to Waihi across to Karangahake Gorge, taking coastal routes and along the spine of the ranges linking all our towns on the east and west coasts. Much of the track already exists; it s about joining them all up. Leach wants the central artery to be a grade 1, two metre wide track with lower grade tracks branching off it. Rather than building new huts along the track, Leach said local communities will provide accommodation. We have 55 per cent absentee home owners on the Peninsula, he said. We could utilise these homes. To build the track, Leach envisions drawing on volunteers from around Coromandel and engaging school leavers and the unemployed and teaching them new skills along the way. He said many older retired or semi-retired local residents would get involved with the project bringing important know-how. Leach aims to have the feasibility study completed by September and will then meet with community groups, iwi, business, DoC and others to discuss the project s strategy and principles. March next year Leach wants to be ready to take a detailed proposal to Wellington to request funding and support from the Government. I believe this is the sort of initiative that Government can t walk away from, Leach said. The economy has been in decline for quite some time now and we re stepping up to the plate and saying things might not get better for a long, long time so let s get in and do something that s real while we can. This could be the 10th Great Walk in New Zealand and one that is north of Taupo where the bulk of the population is. Ten years down the road I see this as being the biggest income for the Peninsula. Before entering politics, Leach ran Aotearoa Adventures, an outdoor adventure company that ran guided trips into the Kaimanawa and Kaweka Ranges. 46 FutureCoromandel Economic Development Five Year Action Plan

47 47

48 Section 6 Governance 48 FutureCoromandel Economic Development Five Year Action Plan

49 The Council will need to establish an effective governance structure to oversee the economic development activity, strategy and work programme. It is recommended that an internal Economic Development Agency (EDA), as a committee of Council be established in this regard. External EDA s (as a Council Controlled Organisation) are an expensive exercise and vulnerable to funding changes and uncertainty given the political environment and 3 year election cycle. The internal EDA, called the Economic Development Committee, should be made up of no more than seven members, with four elected members and three externally appointed members to provide more private sector perspective and links with commerce. Rationale for an internal EDA y The district is too small to establish a separate EDA, which would require significant resources to be successful y An internal EDA would avoid duplication of overheads and allow Council staff to share in-kind resources y EDA s can be political footballs, given the three year political cycle and nature of Ten Year Plan processes - it would be more effective to keep the EDA in-house to reduce this turbulence y With external members on the Committee the EDA will have the ability to include vital private sector perspective y In a small district, the power to effect change is inside the Council and many of the projects in the action plan are to be developed and implemented by Council staff so it makes sense to keep the EDA in-house y Due to pending changes in the local government landscape in the Waikato over the next few years, it would not be wise to establish a new EDA entity y Council has a conducive organisational structure with strategic staff operating in economic development including Area Managers, Senior Staff and Community Development Officers which would suit the establishment of an internal committee It is recommended that Destination Coromandel remain in its current structure, separate from Council, given the funding relationship that exists with Hauraki District Council and the success it has started to generate only three years after its last restructure. 49

50 Governance role The internal EDA will provide governance over strategically important portfolios at Council including: y Implementation and monitoring Council performance with regards to the Economic Development and Events Strategies y Oversight of the strategic direction and performance of Service Level Agreements with Destination Coromandel and the district s Visitor Information Centres (and any other SLAs in the portfolio) y Implementation and monitoring of future MOUs i.e. ATEED and Auckland Council y Implementation and monitoring of participation in regional projects in the Waikato y Oversight of the commercialisation of Council Intellectual Property y Oversight of the Business Grant and Major Events programme y Appointment of Council members to other multi-agency governance entities such as the Coromandel Great Walks Committee, Hauraki Rail Trail Trust and Destination Coromandel y Provide advice and be the Council s voice on matters pertaining to Economic Development in the local, regional and national arenas y Investment strategy and public-private sector partnerships y Provide Governance to the Council s major economic development projects including:»» Coromandel Great Walks»» Aquaculture infrastructure development and strategy»» Coromandel Harbour Strategy»» IT Hubs 50 FutureCoromandel Economic Development Five Year Action Plan

51 51

52 Case Study 6: Procurement strategy helps local firm grow capability and jobs Thames-based new media technology company Guru Digital Media is advertising for another IT developer growing staff numbers from eight to 17 in little more than a year New products are being developed and its client base now includes private enterprises including the country s largest construction firm and several local authorities, thanks in part to partnering with Thames-Coromandel District Council on the development of some of its products. Says founder Sean Cuttriss: TCDC moved its web and digital services contract from a Wellington firm to us based in Thames - from this solid based we ve been able to develop expertise in local government solutions which means we ve been able to sell into other councils across New Zealand base on our experience with TCDC. Guru Digital Media is a boutique Web and Digital production based agency specialising in New Media technology. The digital products offered by Guru have expanded from smooth motion videos and animation to include HR and e-learning training modules after Sean identified a need, letting his staff do the development. The company also develops websites for businesses of all sizes, among its services. General Manager James Pass became part-owner of the business at Christmas, after initially joining as Manager of Operations. The pair credits the business s success to their blend of sales, creativity and business acumen (Sean) with management, processes and marketing expertise (James). Their wives call it bromance but jokes aside, for Sean and James it was a partnership that capitalises on the market interest in its range of IT solutions. Sean, a master salesman and creative person with lesser strengths in documentation and management, took a sideways step to maximise on the skills he identified in business partner James. James joined us as Operations Manager and after two months I said to him Hey, you would make a much better GM than me, why don t you take over my job. It never was about ego - it s what s best for the business, says Sean. I d rather have less of an ego and a better business than a bigger ego and a less successful business. Located on the Coromandel, Sean and James can make Auckland meetings in an hour with no traffic. Customers include Southern Cross Hospitals, TCDC, Fisher and Paykal and Jucy Rentals. 52 FutureCoromandel Economic Development Five Year Action Plan

53 In a world of marketing in which approximately six per cent of the world s mobile data traffic is predicted to be video by 2014, the company has grown to offer these organisations web development, micro-sites and analytics, filming, editing videos in-house, animation, design and illustration and smooth motion video. For TCDC, Guru works with Tairua-based communications contractor Alison Smith who provides PR, copywriting, photography and content, and together with the Communications team, they have produced online electronic versions or G Books of brochures and booklets that can be downloaded from the TCDC website. Just over a year ago there were three full time staff in development including New Media Manager Corey Sewell, who is self-taught and from Paeroa. Guru had experienced 200 per cent growth in 2011, increasing staff from four to nine. Sean and James forecasted another 50 per cent growth in , and have already more than doubled that. I ve had to stop Sean selling, says James. The business has actually wanted us to grow faster than we have let it. To assist in the training and management of staff, James modified an e-learning module that the company developed for New Zealand Hockey, and now they re selling that to Office Max and its branches nationwide. Sean says the Coromandel remains a great place to live, work and play. He investigated contracting out work in cheaper labour markets such as India, where he said the prices were fantastic but soon found out the pitfalls of working in opposing time zones with language barriers. He prefers to keep everything in-house and enjoy a beer on the deck on a Friday with his staff. Regardless of growth, Thames will remain the company s base as long as he is involved. We re confident one day we may have account managers and satellite offices around the world, that s fine, but we never want developers outside of Thames. 53

54 Section7 Resources and action plan 54 FutureCoromandel Economic Development Five Year Action Plan

55 Individual project and programmes will be approved by Council and the Economic Development Committee via business plans and budgets and in the normal annual plan and ten year plan processes. It is recommended that a Senior Economic Development Officer be recruited immediately to work with the Council s Economic Development Manager to ensure the Council s economic development action plan can be delivered. Commercial and Economic Growth Manager As identified in the Thames Urban Development Strategy (UDS), the Council requires a position with private-sector commercial skills sets related to initiating, establishing and managing private-public sector partnerships and the project management of critically important district economic development projects. While the Thames UDS recommends the establishment of a Council Controlled Organisation to achieve this outcome, with the employment of a specialist commercial and well-connected economic development official, the same outcomes are possible. It is critical that this position also be responsible for the outworking of the Council s property strategy given that this document is key to redistributing Council s investments to achieve critical outcomes. High level job description y Development of private-public sector partnerships and investment strategy for the Council s anchor projects y Lead the implementation of the Council s Property Strategy, with support from Council s legal counsel and property officer y Key account management of significant private sector, Iwi and commercial partners y Overall project management of key Council initiatives, projects and investments y Government relations with relevant departments related to economic development y Lead the commercialisation of Council s Intellectual Property 55

56 Business and Events Development Officer The events strategy adopted by the Council in June 2013 recommended the option of the recruitment of an event development role to coordinate Council event processes and assist major event growth strategy. This role also has the opportunity to focus on medium-level business and investment inquiry, particularly around the account management of complicated commercial property development which includes multiple consents, licence and permits. High level job description y Implement the Thames-Coromandel Event and Economic Development Strategies y Coordinate systems and processes related to the Major Events Fund y Work with Major Event organisers in developing growth strategy and deploying project plans y Account management of business and event inquiry and Council processes related to key accounts y Operational liaison role with Destination Coromandel on joint project initiatives y Develop, promote and maintain the district s economic development and investment profiles y Provide governance support to the Economic Development Committee 2013 Action Schedules Administration Deadlines y Establish an Economic Development Committee and assess staff resources to deliver action plan DestinationCoromandel y Develop and implement business transition plan for key i-sites transition to RTO ownership and give effect to national i-site strategy y Expand Summertimes programme to attract non-permanent population back to the Coromandel and better utilisation of baches + conversion to permanent population y Continue to develop and enhance our events strategy and outcomes to develop shoulder season economic activity ExportCoromandel y Update the Aquaculture and Seafood Trail and develop a marketing plan BusinessCoromandel y Review the Council s organisational structure to ensure it is able to deliver all of Council solutions for the FutureCoromandel work programme and agenda y Establish key account management for major Coromandel businesses and employers StrongerCoromandel y Develop a tourism precinct for the Placemakers Site in partnership with owners and industry 56 FutureCoromandel Economic Development Five Year Action Plan

57 2014 Action Schedules DestinationCoromandel y Review the 2020 Tourism Strategy with a view to enhancing the value of our tourism exports y Support expansion of the film industry on the Coromandel and as a location for TV and film production y Investigate feasibility of hosting more cruise ships in Mercury Bay y Develop and Implement Tourism signage strategy y Expand Destination Coromandel marketing programme to support more event marketing and Hauraki Rail Trail marketing for FIT travellers ExportCoromandel y Develop and implement an industry-lead Aquaculture Strategy with WRC, ATEED, Aquaculture New Zealand and the Coromandel Marine Farmers' Association y Work with local export businesses and government agencies to support job growth and export opportunities and investigate opportunities to increase growth in primary export sector InnovationCoromandel y Support the delivery and uptake of the RBI programme on the Coromandel y Continue to invest in local software companies to develop solutions for local government y Investigate the establishment an IT Hub in Thames to continue to foster a growing IT cluster and training opportunities with WINTEC BusinessCoromandel y Streamline the Council s resource consent and planning processes and create user-friendly guidance collateral y Develop Web Strategy 2.0 to improve access to Council services and transactions online and improve OpportunityCoromandel website for investment and business information y Deliver a District Plan that that is an enabler of economic growth and business land requirements y Create training curriculum to ensure CDOs, Customer Services staff are more enabled to manage business and event enquiry TeamCoromandel y Develop an MOU and joint-work programme with ATEED y Develop a strategic relationship with Callaghan Institute y Establish a quarterly business forum with key business accounts with a focus on large employers, exporters and manufacturers y Support greater utilisation of the district s holiday home stock y Support initiatives that attract greater utilisation of consented property developments and Council s waste water capacity on the Eastern Seaboard StrongerCoromandel y Adopt and Implement the Coromandel Great Walks project business plan y Adopt and Implement the Coromandel Harbour Strategy y Revise Kopu Structure Plan and develop urban design programme to establish the gateway to the Coromandel y Develop a Coromandel Road Strategy to reduce travel times to and from Auckland 57

58 2015 Action Schedules BusinessCoromandel y Create an online Permits, Consents, Concessions and Licence Enquirer Tool to give business owners a clear pathway through Council processes y Review Economic Development rates structures in the 2015 TYP to ensure equity in E.D. funding across the district ExportCoromandel y Support the establishment of a sustainable Fish Farming Industry on the Coromandel TeamCoromandel y Establish a Coromandel Business Week y Investigate business mentoring services on the Coromandel with a view to increasing support and effectiveness StrongerCoromandel y Establish the first section of the Coromandel Great Walks between Hot Water Beach and Cathedral Cove y Establish a project to investigate or facilitate a regular passenger air service from Whitianga to Auckland y Investigate aged care facility infrastructure and opportunities to take advantage of the baby boomer retirement trends 58 FutureCoromandel Economic Development Five Year Action Plan

59 2016 Action Schedules InnovationCoromandel y Review broadband infrastructure deficits in post-rbi world to ensure the Coromandel can attract more cloud businesses and working from home demographics y Establish a Coromandel Online project to get all Coromandel businesses online with their own website and social media platforms TeamCoromandel y Develop a joint Economic Development work programme with Hauraki Collective post-treaty settlement entity StrongerCoromandel y Encourage new competition in the grocery industry in Thames y Establish a project to investigate or facilitate the development of improved hospital facilities in Whitianga 2017 Action Schedules StrongerCoromandel y Two new sections of the Coromandel Great Walks under-construction by the end of Action Schedules InnovationCoromandel y Investigate establishment of IT Hubs in Whitianga and Whangamata StrongerCoromandel y Fast Ferry Service established between Auckland and Coromandel Town by the end of

60 Case Study 7: From Basics to Glamping - camping is alive and well on the Coromandel Better range of affordable options for camping families. A new campsite featuring old forestry cabins refurbished in retro 60s style has opened in Whangapoua, broadening the choice of camping options for visitors to one of the Coromandel Peninsula s most popular and beautiful stretches of coastline. The spectacular winding coast from Whitianga to Coromandel now offers an even better array of affordable options for families seeking that true Coromandel camping experience with the opening of the Whangapoua Holiday Park. Suzanne and Aaron Morgan and Aaron s parents Jim and Gail Morgan worked solidly to open the campsite just in time for Christmas. The younger Morgans developed the concept on Jim and Gail s 11ha property, which once housed a state-owned forestry Head Quarters and cabins for single men working in the forest. All our neighbours including DoC, Earnslaw and local iwi and residents have been really positive and already we ve had some wonderful guests staying, says Suzanne. One of our first guests got engaged at New Chums Beach while they were staying with us and we had some bottles of champagne in the fridge ready for New Year's, so we pulled them out and celebrated with them. I ve been surprised how much people work together and develop friendships in the camp ground; we re really enjoying the business. The campground has six refurbished cabins that sleep 2-3, another two larger cabins being completed, 10 tent sites and 10 campervan sites with a modern ablution block and shared kitchen. Further stages will include another ablution block, kitchen, barbecue area, lounge room and manager s house and office. Developing the concept and completing the planning application took almost 18 months for Suzanne - a planner by trade - who did the work herself whilst busy caring for her twin boys Thomas and James (aged 2 years and 10 months). The couple live in Matarangi having moved to the Coromandel from Auckland where they left 60hr-plus a week jobs. Aaron s parents offered the site to us as a business opportunity and we came up with a few ideas. But it leant itself to a campground because the cabins were already here and in such good condition. The Government built it so everything was done well, with water here and our primary wastewater already available. Aaron has done much of the work with help from a builder and his parents, and Suzanne has had fun kitting out the cabins with a retro theme and more landscaping and signage planned to give finishing touches to stage one. Suzanne and Aaron Morgan and sons James and Thomas 60 FutureCoromandel Economic Development Five Year Action Plan

61 61

62 Appendix 1: The trends and numbers 62 FutureCoromandel Economic Development Five Year Action Plan

63 63

64 The Maori economy Maori population According to the 2006 Census: y 565,329 people, or about one in seven people (14.6 percent) identified with the Mäori ethnic group and usually lived in New Zealand y The median age of Māori was 22.7 years y The median age of Māori females was 24.1 years y The median age for Māori males was 21.3 years y the size of the Māori population aged under 15 years had continued to grow, with just over onethird (34.5 percent) aged under 15 years y The largest increase in the Māori population since 2001 had been in the working-age group of 15 to 64 years (up 30,132 or 9.7 percent from 2001) y The proportion of Māori aged 65 years and over has increased from 3.4 percent in 2001 to 4.1 percent in 2006 y Most Māori (87 percent or approx. 491,000) lived in the North Island with just under one-quarter (24.3 percent or approx. 135,000 in Auckland) y In the Auckland Region New Zealand s total population in September 2011 was estimated to number 4.4 million, compared with 4.02 million in 2006 The Maori at economy at a glance y The asset base of the 2010 Māori economy was estimated at $36.9 billion, an increase of $20.4 billion in This represents real growth of 18 percent, or 4.3 percent per annum. y The Māori asset base is made up of:»» trusts and incorporations of $4 billion»» other Māori entities of $6.7 billion»» businesses of self-employed Māori of $5.4 billion»» businesses of Māori employers of $20.8 billion. y In GDP terms the operating surplus income of Māori enterprises totalled $3.3 billion, while capital spending totalled $1.4 billion y The employment and capital income in terms of GDP totalled $10 billion, while spending amounted to $16.6 billion. 64 FutureCoromandel Economic Development Five Year Action Plan

65 Accounting for the growth The increase of $20.5 billion in the Māori Asset base between can be broken down as: y $11.6 billion due to wider coverage and more robust assumptions y $3.1 billion due to capital goods price inflation y $5.7 billion due to real growth in the asset base of the Māori economy. In real percentage terms the real growth component represents an expansion of 18 percent, or a rate of 4.3 percent per annum over the periods. Maori Science and Innovation Research commissioned by Te Puni Kökiri in 2010 on Māori Science and Innovation found successful alignment with the needs of Māori entities would potentially lead to: y an additional $12 billion per annum in GDP for the Māori economy by 2061 y an additional 150,000 jobs per annum in New Zealand s economy by 2061 y more than 50,000 of these jobs in professional occupations approximately 30,000 of these jobs in skilled trades y a boost to New Zealand s per capita GDP of between $4,800 to $7,500 per annum by 2061 y an expansion of New Zealand s export sector by an additional $12 billion by

66 Aquaculture growth on the Coromandel Global consumer demand for seafood will almost double from 45 to 85 million tonnes by 2015 Coromandel and regional numbers: y Total production: 31,000 tonnes of mussels and 400 tonnes of oysters y Total output of the industry within the region: $72 million (total value of sales) y Contribution to the regional domestic product (mussels and oysters): $31 million ($15 million from farming, $16 million from processing) y Contribution to the nation s GDP: $77 million ($24 from farming, $53 from processing) y Direct regional employment: 297 (121 in farming, 176 in processing) y Total employment in the region including indirect and induced jobs: 432 (158 from farming, 274 from processing). y National direct employment: 551 y National total employment: 1193 y Contribution to regional household income (wages) is $10.6 million (indirect and induced household income is another $6 million). y Contribution to household income nationally is $18.9 million (indirect and induced household income is another $23 million). Forecast growth: By 2025 the report forecasts that the mussel and oyster industry will contribute: y More than $60M in GDP to the regional economy y An extra 354 regional jobs y A finfish industry will generate over $34M per annum in GDP ($56 in turnover) within the region. y Nationally, the Coromandel finfish industry would bring in $45 million in GDP, and create 473 new jobs. 66 FutureCoromandel Economic Development Five Year Action Plan

67 67

68 The Coromandel Economy GDP by industry Industry by Counting by Region Source: Infometrics Regional Data Service Accessed 19 June 2013 Unit of measurement: $million in 95/96 prices Industry Quarter 2010/ / / / / / / / / / / /12 A - Agriculture, Forestry and Fishing B - Mining C - Manufacturing D - Electricity, Gas, Water and Waste Services E - Construction F - Wholesale Trade G - Retail Trade H - Accommodation and Food Services I - Transport, Postal and Warehousing J - Information Media and Telecommunications K - Financial and Insurance Services L - Rental, Hiring and Real Estate Services M - Professional, Scientific and Technical Services N - Administrative and Support Services O - Public Administration and Safety P - Education and Training Q - Health Care and Social Assistance R - Arts and Recreation Services S - Other Services T - Unallocated Total FutureCoromandel Economic Development Five Year Action Plan

69 2012/13 Percentage of GDP by Industry GDP by year 69

70 Employment by industry Source: Infometrics Regional Data Service Accessed 19 June 2013 Note: Includes self-employment Industry Quarter 2010/ / / / / / / / / / / /12 Agriculture, Forestry and Fishing ,040 Mining Manufacturing 1,053 1, ,039 1, ,006 1,071 1,203 1,053 1,102 Electricity, Gas, Water and Waste Services Construction 1,302 1,321 1,347 1,332 1,334 1,309 1,304 1,323 1,407 1,520 1,505 1,452 Wholesale Trade Retail Trade 1,713 1,590 1,570 1,629 1,732 1,603 1,600 1,718 1,756 1,758 1,776 1,886 Accommodation and Food Services Transport, Postal and Warehousing Information Media and Telecommunications Financial and Insurance Services Rental, Hiring and Real Estate Services Professional, Scientific and Technical Services Administrative and Support Services Public Administration and Safety 1,464 1,198 1,019 1,172 1,275 1, ,183 1, , Education and Training Health Care and Social Assistance Arts and Recreation Services 1,058 1,096 1,112 1,132 1,193 1,163 1,188 1,204 1,292 1,350 1,371 1, Other Services Total 11,472 11,161 10,821 11,235 11,489 11,128 10,838 11,398 11,691 11,880 11,571 11, FutureCoromandel Economic Development Five Year Action Plan

71 Employment by year 71

72 Number of Businesses Industry Quarter Area Thames-Coromandel District Year Total Industry Total Industry A Agriculture, Forestry and Fishing B Mining C Manufacturing D Electricity, Gas, Water and Waste Services E Construction F Wholesale Trade G Retail Trade H Accommodation and Food Services I Transport, Postal and Warehousing J Information Media and Telecommunications K Financial and Insurance Services L Rental, Hiring and Real Estate Services M Professional, Scientific and Technical Services N Administrative and Support Services O Public Administration and Safety P Education and Training Q Health Care and Social Assistance R Arts and Recreation Services S Other Services Unemployment and population rates Territorial authority Quarter 2010/ / / / / / / / / / / / Thames-Coromandel FutureCoromandel Economic Development Five Year Action Plan

73 Appendix 2: Priority work programme and strategic alignment Adopt Economic Development Strategy Support Objectives Establish Economic Development Committee and review staffing resouces DestinationCoromandel Goal: We will make the Coromandel a preferred visitor destination in New Zealand Initiatives Strategic Alignment Review the 2020 Tourism Strategy with a view to enhancing the value of our tourism exports 1. Creation of a more diversified economy (not so reliant on peaksummer tourism industry) ; 2. Business Growth Agenda - Building Export Markets & Increasing Value from Tourism; 3. Council objective - to support and promote activities to tourism which have the potential for employment and economic growth in the Coromandel. Develop and Implement Tourism signage strategy 1. Ensuring our communities have access to quality infrastructure; 2. Business Growth Agenda - Building Export Markets & Increasing Value from Tourism; 3. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel. Develop and implement business transition plan for key i-sites transition to RTO ownership and give affect to national i-site strategy 1. Tourism New Zealand i-site Strategy; 2. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel. Expand Summertimes programme to attract non-permanent population back to the Coromandel and better utilisation of baches + conversion to permanent population 1. People can settle in the Coromandel and families thrive 2. Creation of a more diversified economy (not so reliant on peak-summer tourism industry) ; 3. An increase in permanent population to ensure health, transport, recreational and other services remain viable and cost-efficient (Living is affordable); 4. Communities are diverse, vibrant and connected Expand Destination Coromandel marketing programme to support more event marketing and Hauraki Rail Trail marketing for FIT travellers 1. Creation of a more diversified economy (not so reliant on peaksummer tourism industry) 2. Business Growth Agenda - Building Export Markets & Increasing Value from Tourism; 3. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel. 73

74 Continue to develop and enhance our events strategy and outcomes to develop shoulder season economic activity 1. Communities are diverse, vibrant and connected; 2. Creation of a more diversified economy (not so reliant on peak-summer tourism industry) ; 3. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel. Support expansion of the film industry on the Coromandel and as a location for TV and film productions 1. Creation of a more diversified economy (not so reliant on peaksummer tourism industry); 2. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel. Investigate feasibility of hosting more cruise ships in Mercury Bay 1. Creation of a more diversified economy (not so reliant on peaksummer tourism industry); 2. Ensuring our communities have access to quality infrastructure; 3. Business Growth Agenda - Building Export Markets & Increasing Value from Tourism ; 4. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel. ExportCoromandel Goal: We will focus on facilitating growth in our district s core-export industries as a primary means to grow jobs and incomes in the Coromandel Initiatives Strategic Alignment Develop and implement an industrylead Aquaculture Strategy with WRC, ATEED, Aquaculture New Zealand and the Coromandel Marine Farmers' Association 1. People can settle in the Coromandel and families thrive 2. Creation of a more diversified economy (not so reliant on peak-summer tourism industry); 3. Business Growth Agenda - Building Export Markets; 4. Aquaculture NZ Strategy - Building a billion dollar sector by 2025 and strengthening partnerships with government; 5. Council objective - to support and promote activities related to aquaculture which have the potential for employment and economic growth in the Coromandel. Work with local export businesses and government agencies to support job growth and export opportunities and investigate opportunities to increase growth in primary export sector 1. Creation of a more diversified economy (not so reliant on peaksummer tourism industry); 2. People can settle in the Coromandel and families thrive ; 3. Business Growth Agenda - Building Export Markets Update the Aquaculture and Seafood Trail and develop a marketing plan 1. Business Growth Agenda - Building Export Markets & Increasing Value from Tourism; 2. Council objective - to support and promote activities related to aquaculture & tourism which have the potential for employment and economic growth in the Coromandel. Support the establishment of a sustainable Fish Farming Industry on the Coromandel 1. Aquaculture NZ Strategy - Building a billion dollar sector by 2025 and strengthening partnerships with government; 2. Business Growth Agenda - Building Export Markets ; 3. Creation of a more diversified economy (not so reliant on peak-summer tourism industry); 4. People can settle in the Coromandel and families thrive; 5. Council objective - to support and promote activities related to aquaculture which have the potential for employment and economic growth in the Coromandel. 74 FutureCoromandel Economic Development Five Year Action Plan

75 InnovationCoromandel Goal: We will pursue innovation in our district to diversify our economy and grow new industries Initiatives Strategic Alignment Establish IT Hubs in major centres to continue to foster a growing IT cluster and training opportunities with WINTEC - continue to market the IT cluster work programme 1. Creation of a more diversified economy (not so reliant on peaksummer tourism industry) ; 2. Business Growth Agenda - Developing Innovation Infrastructure & Encouraging Business Innovation; 3. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel. 4. Thames UDS Review broadband infrastructure deficits in post-rbi world to ensure the Coromandel can attract more cloud businesses and working from home demographics 1. Ensuring our communities have access to quality infrastructure including high-speed broadband; 2. Business Growth Agenda - Developing Innovation Infrastructure & Developing high-speed broadband telecommunications; 3. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel. Establish a Coromandel Online project to get all Coromandel businesses online with their own website and social media platforms 1. Business Growth Agenda - Developing Innovation Infrastructure Support the delivery and uptake of the RBI programme on the Coromandel 1. Ensuring our communities have access to quality infrastructure including high-speed broadband; 2. Business Growth Agenda - Developing Innovation Infrastructure Continue to invest in local software companies to develop solutions for local government 1. Creation of a more diversified economy (not so reliant on peaksummer tourism industry); 2. Business Growth Agenda - Developing Innovation Infrastructure & Encouraging Business Innovation/ Boosting Public Investment 75

76 BusinessCoromandel Goal: We will be known as an enabling Council for business to work with Initiatives Strategic Alignment Review the Council s organisational structure to ensure it is able to deliver all of council solutions for the FutureCoromandel work programme and agenda 1. Council objectives: Enabling accountability and responsibility to take place as far down the organisation as is practicable: 2. To operate a lean organisational structure which is simple in form, easy to understand, and has few layers. 3. To reduce costs while providing a satisfactory level of service so as to ensure our ratepayers receive good value. 4. Council vision; to provide excellent customer service; 5. Being a highly effective and fast moving organisation Create an online Permits, Consents, Concessions and Licence Enquirer Tool to give business owners a clear pathway through council processes 1. Council vision; to provide excellent customer service; 2. Being a highly effective and fast moving organisation; 3. To reduce costs while providing a satisfactory level of service so as to ensure our ratepayers receive good value Streamline the Council s resource consent and planning processes and create user-friendly guidance collateral 1. A key Council objective Develop Web Strategy 2.0 to improve access to council services and transactions online and improve OpportunityCoromandel website for investment and business information 1. Council vision; to provide excellent customer service; Being a highly effective and fast moving organisation; 2. To reduce costs while providing a satisfactory level of service so as to ensure our ratepayers receive good value Create training curriculum to ensure CDOs, Customer Services staff are more enabled to manage business and event enquiry 1. Council objective; Enabling accountability and responsibility to take place as far down the organisation as is practicable: 2. Council vision ; to provide excellent customer service Establish key account management for major Coromandel businesses and employers 1. Council vision; to provide excellent customer service; 2. Being a highly effective and fast moving organisation; 3. Business Growth Agenda - Encouraging Business Innovation Review Economic Development rates structures in the 2015 to ensure equity in E.D. funding across the district 1. To reduce costs while providing a satisfactory level of service so as to ensure our ratepayers receive good value Deliver a District Plan that that is an enabler of economic growth and business land requirements 1. Project direction - To give effect to the Coromandel Blueprint; 2. Reduce resource consents and encourage sustainable economic growth 76 FutureCoromandel Economic Development Five Year Action Plan

77 TeamCoromandel Goal: We will develop strong partnerships with the private sector, Iwi, communities and government agencies to harness our collective energy to achieve mutual goals for the benefit of the Coromandel Initiatives Establish a Coromandel Business Week Strategic Alignment 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel. 2. Business Growth Agenda - Encouraging Business Innovation Develop an MOU and joint-work programme with ATEED 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel Develop a joint Economic Development work programme with Hauraki Collective posttreaty settlement entity 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel. 2. Working with and having meaningful and ongoing consultation with our communities including Iwi and other stakeholders. 3. Alignment with Crown-Maori Economic Growth Partnership Develop a strategic relationship with Callaghan Institute 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel. 2. Business Growth Agenda - Encouraging Business Innovation Establish a quarterly business forum with key business accounts with a focus on large employers, exporters and manufacturers 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel. 2. Business Growth Agenda - Encouraging Business Innovation Support greater utilisation of the district s holiday home stock 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel Support initiatives that attract greater utilisation of consented property developments and council s waste waster capacity on the Eastern Seaboard 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel Investigate business mentoring-services on the Coromandel with a view to increasing support and effectiveness 1. Council objective: To support and promote activities which have the potential for employment and economic growth in the Coromandel. 2. Business Growth Agenda - Encouraging Business Innovation 77

78 StrongerCoromandel Goal: We will build infrastructure that is identified as critical to unlock the economic prosperity of the district and which connects us locally, nationally and with the world. Initiatives Blueprint Strategic Alignment Implement Coromandel Great Walks project business plan 1. Provide opportunities to appreciate the natural environment; 2. Communities are diverse, vibrant and connected; 3. Ensuring our communities have access to quality infrastructure; 4. Supporting economic opportunities that protect environmental values; 5. Business Growth Agenda - Increasing Value from Tourism; 6. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel Implement Coromandel Harbour Strategy to enable aquaculture industry expansion, recreational boatie facilities and the fast ferry direct to Coromandel Wharf/Town 1. Coromandel Town to re-establish itself as a key sea transport link with Auckland; 2. Communities are diverse, vibrant and connected; 3. Ensuring our communities have access to quality infrastructure; 4. Business Growth Agenda - Strengthening rail, sea and air; 5. Council objective - to support and promote activities have the potential for employment and economic growth in the Coromandel Revise Kopu Structure Plan and develop urban design programme to establish the gateway to the Coromandel 1. People can settle in the Coromandel and families thrive; 2. Business Growth Agenda - Increasing Value from Tourism Build the Hauraki Rail Trail to Kaiaua and work with ATEED to look at feasibility of Stage 3 to Auckland 1. Communities are diverse, vibrant and connected; 2. Business Growth Agenda - Increasing Value from Tourism; 3. Council objective - to support and promote activities which have the potential for employment and economic growth in the Coromandel 78 FutureCoromandel Economic Development Five Year Action Plan

79 Develop a tourism precinct for the Placemakers Site in partnership with owners and industry 1. Communities are diverse, vibrant and connected; 2. Creation of a more diversified economy; 3. Business Growth Agenda - Increasing Value from Tourism; 4. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel. 5. Thames UDS Encourage new competition in the grocery industry in Thames 1. An increase in permanent population to ensure health, transport, recreational and other services remain viable and cost-efficient (Living is affordable); 2. People can settle in the Coromandel and families thrive Facilitate the development of hospital facilities in Whitianga 1. An increase in permanent population to ensure health, transport, recreational and other services remain viable and cost-efficient (Living is affordable); 2. People can settle in the Coromandel and families thrive Facilitate a regular passenger air service from Whitianga to Auckland Develop a Coromandel Road Strategy to reduce travel times to and from Auckland Investigate aged care facility infrastructure and opportunities to take advantage of the baby boomer retirement trends 1. Communities are diverse, vibrant and connected; 2. An increase in permanent population to ensure health, transport, recreational and other services remain viable and cost-efficient (Living is affordable); 3. People can settle in the Coromandel and families thrive; 4. Business Growth Agenda - Strengthening rail, sea and air; 5. Council objective - to support and promote activities which have the potential for employment and economic growth in the Coromandel 1. Communities are diverse, vibrant and connected; 2. Communities are diverse, vibrant and connected; 3. An increase in permanent population to ensure health, transport, recreational and other services remain viable and cost-efficient (Living is affordable); 4. Business Growth Agenda - Building our roading network 1. People can settle in the Coromandel and families thrive; 2. Communities are diverse, vibrant and connected ; 3. Council objective - to support and promote activities related to tourism which have the potential for employment and economic growth in the Coromandel 79

80 Appendix 3: Local government s role in economic development Local Government has a huge role to play in economic development given the impact its day-to-day business operations have on a district and region. Here are a few statistics to put things into perspective: y 78 Councils y FTEs y 54 Districts y $7.1B expenditure y 2.1B contribution to GDP y $103B in total assets y $92B in infrastructure y Spends $144M directly in the economic development activity (2% of LG expenditure) So what is Local Government s Contributions to Economic Growth? y Council expenditure and employment y Business facilitation/attraction/retention y Delivery of core services and infrastructure y Regulation y Delivering community outcomes and amenities With or without an Economic Development Strategy, TCDC plays a huge role in economic development and can support or hinder economic growth with the role it plays delivering its coreservices 80 FutureCoromandel Economic Development Five Year Action Plan

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82 For more information: For further information about our economic development work programme Please contact: Benjamin Day - Economic Development and Communications Manager ben.day@tcdc.govt.nz Stay in touch with us: and Subscribe to our economic development enewsletter at Follow us at