Economic Development Strategy for Whanganui Ohanga rautaki, Whakatupu rautaki. 1 P age

Transcription

1 Economic Development Strategy for Whanganui Ohanga rautaki, Whakatupu rautaki 1 P age

2 Wanganui District Council Strategy Originator: Whanganui & Partners Contact person for enquiries: Adrian Dixon Whanganui & Partners Manager Approved by: Council Date approved: 25 August 2015 Date by which a review should be carried out: 2018 Policy Inventory number: Hubble reference 2 P age

3 Table of Contents WANGANUI DISTRICT COUNCIL STRATEGY... 2 Originator:... 2 Contact person for enquiries:... 2 Approved by:... 2 Date approved:... 2 Date by which a review should be carried out:... 2 Policy Inventory number:... 2 EXECUTIVE SUMMARY... 4 Introduction... 6 Why we need a strategy... 6 Scope of strategy... 6 STRATEGY CONTEXT... 7 BACKGROUND AND ISSUES VISION AND PRINCIPLES Vision statement GOALS AND STRATEGIES MONITORING AND EVALUATION Funding for Economic Development APPENDIX ONE ACTION PLAN APPENDICES AND REFERENCES P age

4 Executive summary The Economic Development Strategy is closely related to Council s overarching vision and has an important role to play in assisting our district achieve the aspirational vision to become Leading Edge. Whanganui & Partners, established in 2014, represents a new model of economic development agency for New Zealand designed to strengthen community partnerships, Iwi relationships and regional cooperation. Whanganui & Partners three advisory boards (Business Whanganui; Visit Whanganui; and Education Whanganui) play a lead role in the planning of local economic growth activities for their sectors. To deliver a prosperous Whanganui our Economic Development Strategy focuses on eight strategic imperatives/priorities which drive our action plan and work programme: Eight key priority areas: 1. Business and sector development existing business retention, growth, succession and/or capital injections. Supporting the strategic themes: Deeply united; Globally connected; Powered by creative smarts; and Works for everyone. 2. Business, talent and investment attraction research based sector specific strategies and business proposals. Includes new tourism operators. Supporting the strategic themes: Deeply united; Globally connected; Powered by creative smarts; Flowing with richness; and Works for everyone. 3. Education workforce availability and capability, attracting international students, enhancing and expanding UCOL and other providers. Supporting the strategic themes: Globally connected; Powered by creative smarts; and Works for everyone. 4. Sharing our stories, communication and marketing making Whanganui the place to live, work, invest, and play. This includes the Reputation Project and Tourism Promotion. Supporting the strategic themes: Globally connected; Powered by creative smarts; and Flowing with richness. 5. Regional engagement respond to/implement regional studies (projects) and enhance co operation. Supporting the strategic themes: Deeply united; Globally connected; Powered by creative smarts; Flowing with richness; and Works for everyone. 6. Māori Economy/Iwi relationships engagement to achieve mutually beneficial social and economic outcomes. Supporting the strategic themes: Deeply united; Globally connected; Flowing with richness; and Works for everyone. 7. Infrastructure active engagement to ensure all infrastructure is in place to support economic growth. Supporting the strategic themes: Deeply united; and Globally connected. 8. Arts/Culture/Sport/Community Development social, environmental and cultural life is a key part of attracting people to an urban economy (tourists and new residents). Culture includes indigenous art and Maori cultural tourism 4 P age

5 experiences supported by the Visit strategy. Community Development and Sport Development are delivered through other council strategies and programs, the economic development strategy links to these and supports the activity. Supporting the strategic themes: Deeply united; Powered by creative smarts; and Flowing with richness. This strategy has been developed through a review of the 2012 Economic Development Strategy and community consultation to ensure economic development strategies and activities aligned with the new vision and the purpose of Whanganui & Partners. The strategy aims to strengthen partnerships and collaboration; provide and develop supporting infrastructure; and attract, build and retain investment, talent and business capability in Whanganui. It also aims to make it easier to be innovative, showcase our strengths and benefit from our sectors of competitive advantage; including tourism leveraging our strong cultural roots, arts, sport facilities and our river. The strategy flows from the leading edge strategy and links to the 10 year plan, the district plan, the digital strategy, the destination marketing strategy, sport & recreation strategy, infrastructure strategy and financial strategy. Economic Development Strategy Urban Transportation Strategy Parks and Open Spaces Strategy Town Centre Strategy Safer Whanganui Strategy Visitor Strategy Urban Streetscape Strategy Tree Strategy Heritage inventory Emergency Management Strategy Digital Strategy Cycling Strategy Physical Activity Strategy Earthquake prone buildings policy Positive Ageing Strategy Reputation Management Strategy Shared Pathways Strategy Sports and Recreation Strategy Castlecliff rejuvenation Strategy Disability strategy Rural Directions RCB Strategy Infrastructure Strategy Waste management and minimisation Public Art Strategy 5 P age Youth Strategy

6 The economic growth targets contained in this strategy have been set based on current economic conditions, short to medium term forecasts of economic activity and alignment with the above strategies. Changes in external economic conditions and environmental conditions may impact on the implementation of the strategy. It is estimated that existing and planned infrastructure spending is sufficient to support the population growth target of Introduction Why we need a strategy The purpose of this strategy is to make Whanganui a prosperous community. To do this we need a clear, collaborative, achievable strategy: one that will help bring about a major change in the way Whanganui does business sustainably and achieves growth. This document sets out a strategy (based on the review of the 2012 strategy) to achieve this and identifies targets against which progress will be measured. Whanganui s businesses with their investment, innovation and people are the engine room of our economic growth. This strategy therefore reflects a partnership with business, central government, Iwi and a range of other community partners, and identifies a range of economic and socio economic actions that will improve prosperity in Whanganui, as well as underpinning improvement in social outcomes. The strategy aims to: Strengthen partnerships and collaboration. Provide and develop supporting infrastructure. Attract, build and retain investment, talent and business capability in Whanganui. Make it easier to be innovative, showcase our strengths and benefit from our sectors of competitive advantage including tourism. Leverage our strong cultural heritage, arts, sports facilities and our river. Scope of strategy We reviewed the 2012 strategy and collaboratively developed an updated response through a series of discussions and from feedback received via interviews and s. It was also informed by the Regional Growth Study and agribusiness strategies due to be published in July Some projects will have Council funding confirmed through the 10 Year Plan budget process and are included in the statements of intent of Whanganui Holdings and Whanganui & Partners as the Council Controlled Organisations (CCOs) and advisory board memorandum of understandings (MOUs). The economic strengths, weaknesses, opportunities and threats were researched in the development of the strategy. These provide the context and framework within which the actions and tactics have been developed. Arising opportunities and 6 P age

7 changing economic conditions will be tested against the strategy in order to develop future tactics. Strategy context and Vision The Economic Development Strategy is closely related to Council s overarching vision and has an important role to play in assisting our district achieve the aspirational vision to become Leading Edge. It contributes to each of the vision s strands: Deeply united o We are a place resounding with community spirit, there is an intangible essence that underpins what it means to be from or in Whanganui, we support each other, work in partnership and are pulling in the same direction. We know where we are heading but celebrate and champion diversity. Our roots run deep. For economic development this means Whanganui & Partners working in partnership with the whole community to achieve our targets and telling our positive Whanganui stories. Globally connected o We are outward looking, blast through parochialism and constantly look to expand and enhance our world view positioning ourselves to best advantage regionally, nationally and internationally. We are connected in the widest sense through our network infrastructure, digital capacity, expansive ideas and external relationships. We are accessible, linked in and known for it (no longer a hidden gem ). For economic development this means the creation of a Whanganui alumni group connecting their passions, connections and prosperity into Whanganui s existing businesses and start ups. Powered by creative smarts o We are innovative, entrepreneurial, go getters we actively attract industry, support start ups and are a lightning rod for ideas and creativity. There is a savviness and edge to our approach and this propels us forward. Our arts community sets us apart giving us soul and heart. We are sharp economic operators and hum with cultural personality. For economic development this means supporting and growing the digital and creative sectors and providing innovation support for start ups. Flowing with richness o We draw strength from the river and this sustains and shapes us. This theme is about the look and feel of the place a district with beautiful, integrated design, bountiful and valued natural resources and a sense of life and vitality. It feels positive here and there is a lot going on. Our wealth is abundant and we take a broad view of what this means. We play on our strengths and make our own opportunities trumpeting our unique identity through placemaking that flows from the mountain to the river to the coast. We are eco rich, showcase and safeguard our heritage and always keep an eye on the future. For 7 P age

8 economic development this means sharing our stories to attract talent, investment, and businesses to Whanganui thereby creating more jobs and increasing the prosperity of the whole community. Works for everyone o We have boundless opportunity and are truly a place of choice for all. There is a diversity to what we offer and people are able to make a conscious decision to come here or stay here. We are thriving and driving ourselves forward loaded with jobs, development and lifestyle appeal meaning that anyone can and will want to call us home. We are welcoming, empowering and enabling supporting everyone to flourish. There is no doubt that we are open for business. For economic development this means the creation of a more prosperous community that is thriving socially, environmentally and economically. Strategic analysis Our district is blessed with unique strengths such as its natural environment and close proximity to major centres and ports in the North Island. However, like many provincial communities, Whanganui also faces the effects of an aging population and lack of employment opportunities for its young people. Our strengths Our natural taonga (treasure), including our Whanganui river, wild west coast beaches, coastal environment, forests, the Mountains to Sea Cycle Trail and proximity to Mount Ruapehu. Temperate climate and good summers one of the highest quality lifestyles in New Zealand. 8 P age

9 Our diverse economy we are somewhat protected from commodity price shocks in specific sectors as our economic activity is spread across a wide range of sectors. Availability of water for irrigation and high water use industries. Whanganui is becoming a strong and preferred visitor destination, especially for domestic tourists and international Free Independent Travellers. Our Edwardian street scape and heritage architecture. A large range of recreational activities, arts and cultural depth (e.g. marae visits and marae stay), sporting facilities and event/conference facilities. World leading Museum, Sarjeant Gallery, Royal Wanganui Opera House and War Memorial Centre. A strong events portfolio during the summer season and in some parts of the shoulder seasons. Internationally renowned events such as the Masters Games and Cemetery Circuit. A superior lifestyle and affordable housing for all those who choose to call Whanganui home. Great schools and educational experiences with high academic, sporting and artistic achievement. An abundance of little known talent people who have come from all over New Zealand and the world many of whom are well travelled and successful. A more cost effective operating environment for businesses than the large urban centres. The cost of living is significantly less than costs imposed in major cities. Our weaknesses Whanganui is considered off the beaten track by some and regular and direct air service from Wellington and Auckland has reduced/changed. Many of our major events occur during the summer peak visitor season. Port and boat ramp infrastructure is inadequate and needs significant development. Whanganui has 11% of New Zealand s heritage buildings meaning higher than average expenditure requirements for earthquake strengthening is possible. Whanganui has a limited number of market ready international tourism products and currently does not have any 4/5 star hotel accommodation. Businesses feel communication from Council and Whanganui & Partners is inadequate. Nationally, just over 30% of businesses operate online or provide e commerce facilities, it is a smaller percentage in Whanganui. Tourism signage in the district is of a poor quality or non existent in key areas and gateways. Business capability, support and access to capital (including to fund succession planning) in Whanganui is limited. Whanganui s reputation/perception nationally and internationally. Our opportunities The urban and rural broadband roll out and Whanganui s Smart 21 status bringing faster internet services to the majority of the district and creating opportunities to 9 P age

10 attract digital entrepreneurs and businesses including the development of an innovation quarter. Establishment of a Regional Research Institute The close proximity to Wellington by air and land offers immense opportunity to attract more residents to Whanganui (who can telecommute globally for work) and for more visitors and non permanent residents. Improving productivity from existing land use, as well as increasing output from highly fertile class 1 and 2 soil throughout the district (hill country farming, specialist crops nuts and fruit). The growth potential in our agriculture, horticulture and food processing industry, including the further expansion of Open Country Dairy. Manuka Honey (manuka as a crop, honey processing, banking, wholesaling, exporting and producing manuka honey infused products). The promotion of existing brands (e.g. Coastal Spring Lamb) and the development of new food brand stories. The various Treaty Settlements bringing new capital to the district and opportunities for the Māori economy to grow, with local Iwi strongly committed to the Whanganui District. (The Māori economy is already a significant opportunity given its growth and importance in our country). Review and advocate change in Local and Central Government to encourage sustainable development in Whanganui, particularly with projects that change the use of town centre heritage buildings or activities that require multiple consents and/or acquisition of Council controlled land and buildings. A large non resident/expat population who can afford to own a second home in Whanganui and/or provide investment and support to Whanganui businesses. A high level of cultural, sporting and recreation infrastructure capacity to accommodate future growth. Housing shortages and traffic congestion in Auckland leading many young families, entrepreneurs, retired couples and new immigrants to leave Auckland to live in other centres. We can promote the economic opportunities of Whanganui to the different demographic groups in Auckland. In Whanganui, people can find the ultimate work life balance given the development of cloud technology. The national i SITE strategy provides clear direction and opportunity to maximise our investment in the Visitor Information Centre. Joint marketing of tourism with Ruapehu District council and iwi led tourism development and marketing. Improve events, grow existing events, and leverage our diverse environment, infrastructure and venues to develop new events (arts, culture, heritage, sport). An ageing population including providing specialist services, product innovation and promoting Whanganui as a retirement destination for, in particular, Aucklanders (freeing up capital to enjoy a stress free, financially comfortable retirement with access to quality healthcare). Partnership opportunities with Iwi to implement Māori focused capacity building/education/training programs to uplift the young Māori population of our district. 10 P age

11 Support Wanganui Holdings business interests (port joint venture with Iwi and aviation business outlined in 10 Year Plan). Refurbish Victoria Avenue buildings and allow multi purpose building use (retail, offices, residential). Promoting Whanganui as the preferred district for international students. Leverage sister city relationships based on cultural and educational exchanges into economic development (create commercial relationships, network, encourage trade and investment). Promote investment, trade, business and education opportunities to China. Whanganui National Park Our threats An ageing population placing changing requirements on infrastructure spending and pressure to reduce rates. Lack of employment opportunities for young people, forcing them to leave the district in search of work. Central Government centralising services in the main urban centres. The Whanganui retail economy is seeing the impact of global trends and is increasingly reliant on discretionary spending from tourists and visitors. This makes the district vulnerable to recession and the effects of poor summer trading due to unfavourable and prolonged weather conditions. Regional population decline. Lack of uptake and utilisation of broadband ultrafast fibre networks. Changing demographics in tourism with more short haul and Asian visitors Whanganui may not have the international tourism product to always match these changing demographics. Limited funding to market Whanganui and better tell our stories. The slow uptake of ultra fast broadband and the slow adoption of new technology to maximise faster speeds is a threat to population growth. Vulnerability of schools and hospitals if jobs leave Whanganui taking families away from our communities. The number of the upper floors in Victoria Avenue that are empty. Background and issues Whanganui & Partners represents a new model of economic development agency for New Zealand designed to strengthen community partnerships, Iwi relationships and regional cooperation. Whanganui & Partners three advisory boards (Business Whanganui; Visit Whanganui; and Education Whanganui) play a lead role in the planning of local economic growth activities for their sectors. They also have a key role to play in facilitating a range of place based regional economic development initiatives in conjunction with the governing body (Whanganui & Partners Board) and other external stakeholders. 11 P age

12 Snapshot of the economic opportunities Research to profile Whanganui s economy was undertaken for the Regional Growth Study. This identified Whanganui s core sector strengths are in the tourism; food processing; medium scale specialist manufacturing; and processing logistics sectors. Our district is also comparatively strong in terms of primary sector production and related servicing industries. The Whanganui River and National Park provides tourism opportunities. Iwi Treaty Settlements provide opportunity for Iwi investment in the area. Hill country farming Farming is a main stay of the economy. Education, succession planning, farm integration (hill country and flat country), discussion groups, new equity partnerships, innovation, courage and technology transfer are all areas where economic development initiatives can promote growth. Specialist crops, nuts and fruits Unlocking and enhancing productive land use (including Iwi settlements land) will contribute to the Government Growth Agenda target of doubling the value of agricultural exports by This does include Manuka for honey and crops from overseas that can be readily produced in Whanganui to service off season markets. Coastal Spring Lamb and food brand stories Processing of premium brand lamb occurs in Whanganui. The model applied to the development of this product has proven successful and would prove valuable if replicated elsewhere. The essential features are: the quality control of product (triple grading approach with taste and tenderness the key); traceability; provenance part of a coherent story; co branding with Food Stuffs and mutual endorsement. There is at least one group representing Māori corporate farming interests getting better margins through collective bargaining with processors, and are working towards a new international brand. Digital Whanganui 100% connected Urban Whanganui is connected to ultra fast broadband (UFB). This means that local businesses can work both nationally and globally. UFB provides a level of connectivity previously unavailable in New Zealand and Whanganui is one of the first places in New Zealand to become connected. Whanganui s digital vision is to be a leader in the digital world, with the goal of 100% connected. Whanganui has the opportunity to build a strong, inclusive knowledge workforce and to create the conditions that foster innovation. Sport recreation and fitness Whanganui has always been known as a provider of facilities suited to high performance sports. New opportunities include marketing Whanganui Collegiate as a summer school for Indian cricketers (catering for the growing Indian middle class); and 12 P age

13 convening more international events. Of similar interest is examining the potential to partner with Whanganui Iwi to grow cultural tourism experiences which connect Whanganui Marae and the Whanganui River Iwi to tourism, educational and recreational experiences. Freight logistics centre Whanganui is growing as a logistics centre for the efficient packaging and distribution of freight. To do this business leaders leverage charter train arrangements established with CentrePort and Kiwi Rail (daily freight). The area is also suited to this use because of the comparative low cost real estate ($38 m2 compared to $64 m2 in Auckland) and the 80,000 m2 of available warehouse space to hub and redistribute product. These arrangements also align with the transport of products from the Open Country Dairy Ltd processing facilities located on Head Road. Open Country Dairy (OCD) New Zealand s third largest milk processing company is expanding its presence in Whanganui. A second whole milk drier has been constructed. A third drier is a possibility. The factors contributing to the decision by OPD to grow the size of its facilities in Whanganui are seen as being relevant to other potential developments including: low cost real estate; reliable and competitive cost of labour; good supportive infrastructure; and a business friendly Council. Skills development / training Some Whanganui based companies are constrained in their growth because they are having trouble finding employees with the right skills. There is a general need to improve the quality of the skills development training and youth pathways (better guidance to students) in the district and the 100% SWEET programme is critical to achieving this. Developing a knowledge workforce is critical to the future of Whanganui. Tourism, events and conferences Whanganui & Partners are tasked with implementing the Visit Whanganui strategies to attract more visitors (domestic and international) and ensure all necessary tourism infrastructure is in place. Opportunities to increase visitor numbers include the Mountains to Sea Cycleway, leveraging existing events, establishing and/or attracting new events and conferences and maximising the utilisation of, and co operation between, all Council owned and/or funded facilities. Opportunities also exist for tourism product development for the aging population. Image / Whanganui reputation / brand A long term issue for the district is to address how Whanganui is perceived. The creation and implementation of focused programmes to market the comparative advantages of Whanganui are now underway. Whanganui has an amazing lifestyle story to tell affordable and quality housing; great education providers; awesome river and beaches; access to world heritage and 13 P age

14 national parks; an unparalled sporting, arts, and cultural environment and venues; business and employment opportunities; a Smart 21 (digitally advanced) infrastructure; and a world recognised safe community. Urban Revitalisation and Development The 10 Year Plan includes funding for research and actions to deliver revitalisation of the town centre and Castlecliff. Development contributions have been removed and this should encourage further housing and commercial developments. Development of facilities and services at the Whanganui Port The District Council, in partnership with Whanganui Iwi Tupoho are preparing a staged programme to rejuvenate and increase economic activity at the Whanganui Port. Current proposals being evaluated include: Undertake feasibility study for a progressive reclamation of 4.6 hectares. Future construction of additional sea wall and sea surge protection. Upgrade and extension of the Wharf Street slipway. Development of recreational facilities including a café and the hospitality sector. Construction of a boat trailer park and covered boat storage area and other services to meet the needs of the recreational boat owners who are known to use the area in any one year. Reconstruction of Wharf One to make it sound and suited to heavy lift crane use and able to support expanded coastal shipping operations (NB. The area is currently serviced by one Coastal trading vessel the Anatoki). Extension of the rail corridor to Wharf Street (700 metres). Expansion of the current commercial boat construction and servicing activities. Additional support for the coastal petroleum and mineral exploration industry (including Trans Tasman Resources, when and if, they are successful with their attempts to secure consent to mine iron sand resources). Cycle way access to town and to the sea. Limited adjustment to stop banks and surge / river training works. The driver behind these proposals is to: identify and secure existing and future uses and have them actively contribute to the economic, environmental and social revitalisation of Whanganui. To achieve this objective, basic works are required to improve the appearance and security of the area. 14 P age

15 A joint venture has been established to develop a business plan for the area (draft currently in development). Consultation feedback to date While reviewing the 2012 Economic Development Strategy we have received many messages and these have been woven into the areas of priority focus for Whanganui & Partners shown later in this document. Consistent themes have been: Cut the red tape and make it easy for us to do business in Whanganui Resulting Action: A Business Friendly Council project has been launched to improve the service levels, systems and processes within Wanganui District Council. Communicate what is Whanganui & Partners and what are you doing? Resulting Action: A new media policy and communication strategy has been developed to ensure regular activity updates are communicated. Regular feedback forums are also planned, giving businesses and the community at large an opportunity to share their thoughts, ideas and concerns. Get more people living here and visiting here more often = more jobs, greater visitor numbers Resulting Action: A visitor marketing strategy has been developed and implementation is underway. This is already delivering results. Further increased Sharing our stories and marketing is underway to attract talent, investment, businesses and visitors. Ensure high speed broadband and Wifi is available to encourage more online visits, commuters and IT boutique businesses operating in the cloud Resulting Action: The digital strategy is under review. Actions include improving availability of, and access to, UFB and wifi. Business cases and stories are under development to attract technology businesses and entrepreneurs to Whanganui. Focus on key anchor projects Mountains to Sea Cycle Trail, Port Development and the Sarjeant Resulting Action: All sectors of opportunity are being researched and identified. Projects are underway and resources are also ready to be allocated to implement the major projects identified by the regional growth study and agrisector strategy. 15 P age

16 Reduce compliance and rates costs Resulting Action: The Business Friendly Council project is reviewing compliance costs and Whanganui & Partners various actions are aimed at increasing the population base, thereby broadening the rating base and reducing individual rates contributions. Build strong partnerships with business associations and key private sector employers Resulting Action: Whanganui & Partners is working closely with, indeed partnering with, the Chamber of Commerce, UCOL, Iwi, major employers, schools and many other community groups. Programmes include business forums, business awards/celebrating business success and the 100% SWEET initiative (Mayors Taskforce for Jobs). Promote our district s economic opportunities Resulting Action: A branding, marketing and promotion programme is underway to better promote our economic opportunities. Current initiatives The Council has already implemented significant programmes and completed substantial projects over the last few years to support the development of our economy. Activities currently underway include: Business Whanganui Business Support: Business capability building programmes are offered with local partner organisations and access to training and Research & Development (R&D) funding is maximised through the Regional Partnership Program (NZTE, Callaghan Innovation and Vision Manawatu). New Business Attraction: Working with major employers to identify supply chain efficiency opportunities as well as Wanganui District Council, building owners and commercial real estate agents to provide turn key business attraction proposals. Cutting The Red Tape: Rolling out the red carpet a Business Friendly Council Project has been established to encourage staff to become Business Brokers to account manage new business start ups through Council's permits, licences and consents processes. 16 P age

17 Cutting The Red Tape: Council is introducing a more proactive and flexible Development Contributions Policy and we are reviewing our District Plan to ensure it is business friendly. Visit Whanganui Event Strategy: A new Events Strategy is under development with improved event management and private sector funding sources to create more off peak events and grow, or better leverage, existing events. Local Events: We have established a clearer events funding and criteria and support programme. Tourism: We have adopted a better focus on delivering more effective and successful visitor marketing with the 2015 Destination Marketing Strategy having recently been finalised. Tourism: More funding has been invested into destination marketing and our Visitor Information Centre. Future Growth: Programme underway to attract tourism operators and develop new products to ensure visitors extend their stay and we maximise infrastructure such as the Mountains to Sea Cycle Trail and our natural environment. Digital Leaders Forum IT Cluster & Software Development: Development of a digital directory, networks and promotional programmes to highlight the digital industry sector, promote the uptake of broadband and attract new technology companies to Whanganui. Smart21: Entering global benchmarking awards programme, successfully being named a Smart21 community three years in succession (the only community in New Zealand to achieve this). Digital Strategy: The development of an internal Council Digital Strategy to maximise the ease of doing business and communicating with Council. 17 P age

18 Education Whanganui 100% SWEET Programme to support Whanganui students into training and employment. Working with UCOL and other providers to broaden the range of tertiary training opportunities in Whanganui. The establishment of INTRANZ trade training in Whanganui. Working with Education Wanganui Export Network (EWEN) to promote Whanganui as the district of choice for international students. Vision and principles Vision statement To transform Whanganui into a vibrant and economically prosperous district: a place which works for everyone in their choice of place. Goals and strategies To deliver a prosperous Whanganui our Economic Development Strategy focuses on eight strategic imperatives/priorities which will drive our action plan and work programme: Eight key priority areas: 1. Business and sector development existing business retention, growth, succession and/or capital injections. Supporting the strategic themes: Deeply united; Globally connected; Powered by creative smarts; and Works for everyone. 2. Business, talent and investment attraction research based sector specific strategies and business proposals. Includes new tourism operators. Supporting the strategic themes: Deeply united; Globally connected; Powered by creative smarts; Flowing with richness; and Works for everyone. 3. Education workforce availability and capability, attracting international students, enhancing and expanding UCOL and other providers, promoting Whanganui education at all levels from early childhood through to tertiary level leveraging Whanganui s ultra fast broadband penetration, safe community, access to the outdoor lifestyle, and range of sports, arts and cultural experiences. Supporting the strategic themes: Globally connected; Powered by creative smarts; and Works for everyone. 18 P age

19 4. Sharing our stories, communication and marketing making Whanganui the place to live, work, invest, and play. This includes the Reputation Project and Tourism Promotion. Supporting the strategic themes: Globally connected; Powered by creative smarts; and Flowing with richness. 5. Regional engagement respond to/implement regional studies (projects) and enhance co operation. Supporting the strategic themes: Deeply united; Globally connected; Powered by creative smarts; Flowing with richness; and Works for everyone. 6. Māori Economy/Iwi relationships engagement to achieve mutually beneficial social and economic outcomes. Supporting the strategic themes: Deeply united; Globally connected; Flowing with richness; and Works for everyone. 7. Infrastructure active engagement to ensure all infrastructure is in place to support economic growth. Supporting the strategic themes: Deeply united; and Globally connected. 8. Arts/Culture/Sport/Community Development social, environmental and cultural life is a key part of attracting people to an urban economy (tourists and new residents). Supporting the strategic themes: Deeply united; Powered by creative smarts; and Flowing with richness. The Whanganui & Partners team, supported by the Whanganui & Partners Board and the three advisory boards (Business Whanganui, Education Whanganui and Visit Whanganui) will lead the implementation of the strategy. Each board will monitor projects delivered under their respective MOUs with Whanganui & Partners. Appendix One details the projects under each of the above priority areas. Appendix Two highlights which board and/or advisory board is monitoring project implementation. 19 P age

20 Monitoring and evaluation 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. Linked to the Central Government s Business Growth Agenda, an average annual increase in the value of real exports of greater than 4% (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 2020 (Treasury forecast for Real GDP growth for New Zealand is 1.6%). 3. A permanent population increase of 4,500 by the end of 2025 (as measured in the next national census after that date). 4. A 5% annual increase in visitor guest nights. (from a relatively low base a 10.3% was achieved for the year ended June 2015) 5. Increase in employment in Whanganui by 5% by the end of (June 2015 baselines 15 years old and over total employed full time , part time of total population of ) 6. Increase in education as a percentage of GDP and an increase in the number of international students studying in Whanganui. Council Supporting Economic Targets The Council plays a major role in economic development through our normal business as usual operations. The Culture Change and Business Friendly projects currently underway within council are also designed to ensure the environment for economic growth is created and Wanganui District Council is perceived as the number 1 council in New Zealand to deal with. In addition, the implementation of this strategy will be tracked utilising project specific targets and measures that will clearly show our progress internally, and to the wider Whanganui community. 20 P age

21 Funding for Economic Development The Economic Development rate was reviewed as part of the 10 Year Plan to ensure the activity is being fairly funded across the residential, farming and commercial sectors. Iwi Relationships Iwi representatives sit on the Whanganui & Partners Governance Board and each of the advisory boards (Visit Whanganui, Business Whanganui and Education Whanganui). The Māori economy in New Zealand is growing at a fast rate of knots and the district s local Iwi and hapu will also be settling, or have settled and are awaiting legislation to be passed by 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 Iwi and the region as a whole. Once treaty settlements are finalised, the Council will offer to assist with the development of a specific Māori Economic Development Strategy in terms of understanding Iwi direction and objectives and development of plans to facilitate the achievement of these strategies. Other Relationships Whanganui & Partners is developing a strategic relationship with Callaghan Institute / NZTE/ Vision Manawatu. The Callaghan 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. Whanganui & Partners will ensure that businesses in the Whanganui district have good access to this service and other services delivered by the various business support agencies. Business Engagement Whanganui & Partners will 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 the quarterly business forum with strategic agendas to ensure our business sector is working together and able to identify synergies more effectively. 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. 21 P age

22 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Appendix One Action Plan After assessing all of our district s strengths weaknesses, opportunities and threats, and with a good understanding of the strategic direction of government, Council and industry, we have developed the following work programmes to ensure we can achieve our ambitious economic targets. Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme PRIORITY AREA 1: BUSINESS AND SECTOR DEVELOPMENT Support and develop our rural sector Rural strategy developed and implemented Retain and grow our processing and manufacturing industries Regular and ongoing support for manufacturing industries, and percentage contribution to GDP increases. Partner with Mainstreet on CBD business growth initiatives Mainstreet events and program successful Establish quarterly business forum with key business accounts with a focus on large employers, exporters and manufacturers Business forum established 22 P age

23 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Promote the city as an outstanding conference venue for appropriately sized and aligned conferences Increase the number of conferences held in Whanganui Maintain and increase support for iconic events that have the effect of increasing visitor flow to the district Events held with increased visitor numbers and spend Develop a digital directory listing Whanganui based ICT and digital media companies, with the purpose of making local experts easier to find and creating a cluster supporting innovation Consider implementation of a shop local programme that rewards local loyalty Whanganui & Partners to partner with the Chamber of Commerce, Māori Business Network and other key agencies to deliver solutions focused business services Digital directory developed Investigate program by December 2015 and implement by June if investigation findings positive Number of partnerships Business support services available Support links between tertiary institutions (research) and business Help build and support the district s arts community to enhance our economic edge as a centre of artistic significance Relationships in place with joint projects and activity underway Thriving and growing (GDP increase) from arts sector 23 P age

24 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Initiate regular meetings with Health and education providers and authorities to ensure retention and improvement of existing services Meetings scheduled and take place Establish an investment / venture opportunity fund Fund established by December 2015 PRIORITY AREA 2: BUSINESS, TALENT AND INVESTMENT ATTRACTION Partner with relevant regional and central government initiatives to obtain funding to drive the discovery of new opportunities (including rural) within the district Investigate the possibility of creating clusters and shared work spaces in the city including an innovation quarter Regional partnerships in place Whanganui businesses have access to regionally delivered funding and support Industry cluster(s) and innovation quarter established by December 2016 if investigations confirm need 24 P age

25 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Establish a Regional Research Institute Successfully apply for funding for the regional research initiative announced in budget 2015 Undertake a promotional campaign focused on Auckland residents (various demographic groups) Attract investment and residents from Auckland. Develop a new Whanganui business innovation and acceleration programme Promote investment, immigration, business and education opportunities to China Acceleration program in place by December 2016 Increased investment, trade and new residents from China Harness local innovation and entrepreneurship Develop and implement business hub concept 25 P age

26 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Commercialise Sister City Relationships Trade and investment taking place with sister cities Develop a business friendly culture and policy, services and online resources to guide Council s approach to customers Survey results show Wanganui Council the most business friendly council Undertake regular engagement to test Council s business friendly approach with customers to fine tune and make sure it s fit for purpose Survey results and customer feedback show Wanganui District Council the most business friendly council Initiate an attraction program to bring former Whanganui residents home Ongoing exercise in attracting Whanganui Expats Appoint in house business brokers/champions to guide customers through council processes Champions appointed 26 P age

27 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Promote the district s business opportunities and showcase our successful entrepreneurs online and via business ambassadors A minimum of 15 business opportunities profiled per annum Develop a multi media campaign to attract and connect investment and jobs Business appointed ambassadors Campaign developed and implemented by June Identify new industrial and business land (as well as other relevant requirements), create business proposals and take to market Leverage our Smart21 status to attract talent, investment, business and visitors and support the digital strategy A minimum of 15 proposals promoted per annum with a target conversion rate of 75% Smart 21 incorporated into proposals New businesses, investors and talent reference smart 21 as one of the reasons for engaging with Wanganui Undertake marketing to attract investment and start ups by innovative people and companies Marketing underway resulting in start ups Investigate and support the establishment of a dairy and food processing hub and associated downstream industries Research undertaken and hub established if viable 27 P age

28 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Establish an innovation Quarter and ecosystem/support program to promote and encourage new start ups Pursue niche manufacturing opportunities, microbusinesses, startups and points of difference Innovation program launched by December 2015 Innovation Quarter established. Start ups in named sectors underway target being 5 per annum PRIORITY AREA 3: EDUCATION Support 100% Sweet Programme Programme implemented Support the marketing of Whanganui as the preferred district for national and international students Increase in international students studying in Whanganui Support delivery of entrepreneur training (Business training program) Entrepreneur training and support available Work with all educational providers to broaden the depth and breadth of training opportunities within the Whanganui District Increase in the number of training programs/qualifications available in the Whanganui District 28 P age

29 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme PRIORITY AREA 4: SHARING OUR STORIES, COMMUNICATION & MARKETING Whanganui Visitor Strategy and Destination Marketing Strategy implemented Increase in visitor night target achieved Ensure that employment opportunities within the city and district are available on the Council website and social media pages/technologies. Facilitate an inclusive media group bringing local media and economic development representatives together for positive impact 100% of Positions promoted online Media group established and generating positive stories Promote the district s business opportunities and showcase our successful entrepreneurs online and via business ambassadors Undertake marketing to attract investment and start ups by innovative people and companies A minimum of 15 business opportunities profiled per annum Business appointed ambassadors Marketing underway resulting in start ups Deliver a national business showcase to highlight innovative approaches in Whanganui Business delivered showcase 29 P age

30 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Leverage our Smart21 status to attract talent, investment, business and visitors and support the digital strategy Smart 21 incorporated into proposals New businesses, investors and talent reference smart 21 as one of the reasons for engaging with Wanganui Develop a multi media campaign to attract and connect investment and jobs Campaign developed and implemented by June Develop a business brand for the district. Brand developed, launched and used in alignment with communications strategy and reputation project. Promote the city as an outstanding conference venue for appropriately sized and aligned conferences Increase the number of conferences held in Whanganui Maintain and increase support for iconic events that have the effect of increasing visitor flow to the district Events held with increased visitor numbers and spend 30 P age

31 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme PRIORITY AREA 5: REGIONAL ENGAGEMENT Support the actions set out in the Whanganui Destination Marketing Strategy Whanganui Marketing implemented Destination Strategy Connect with our regional partners to jointly promote activities and facilities that can be shared within the wider region (e.g. ski tourism, river experiences and Massey University). Implement strategies/projects from regional growth study and agribusiness strategy Relationships formed and projects from regional growth study (opportunities report) implemented Partner with relevant regional and central government initiatives to obtain funding to drive the discovery of new opportunities (including rural) within the district Develop proposal for Regional Research Institute Regional partnerships in place Whanganui businesses have access to regionally delivered funding and support Proposal submitted and establishment plan for institute developed. PRIORITY AREA 6: IWI RELATIONSHIPS Initiate regular meetings with Maori Business Network Te Manu Atatu Meetings taking place with partnership projects underway. 31 P age

32 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme Support Iwi led economic growth initiatives Initiatives supported Support Council and Iwi joint ventures Partner with and support Iwi led economic development Joint ventures supported (current and future) Partnerships in place, delivering benefit to all parties Support development of the port through the new Council / Iwi partnership by assisting where possible with business referrals and promotion of available facilities Joint venture underway with support received and acknowledged by Iwi and Wanganui Holdings 32 P age

33 Key: Deeply united Globally connected Powered by creative smarts Flowing with richness Works for everyone Action / activity Measure / target outcome Strategic theme PRIORITY AREA 7: INFRASTRUCTURE Make sure that our communication links are open and improved (including road, rail, air, sea and broadband) so that our businesses can get their goods and services to markets both nationally and internationally All infrastructure needs met (current and future) PRIORITY AREA 8: ARTS/CULTURE/SPORT/COMMUNITY DEVELOPMENT Help build and support the district s arts community to enhance our economic edge as a centre of artistic significance Thriving and growing (GDP increase) from arts sector Work with Sport Whanganui to ensure alignment between Sport & Recreation Strategy, Destination Marketing Strategy, Events Strategy and Economic Development Strategy Existing sporting events grow and new sporting events established. Appendices and References Manawatu Whanganui Growth Study, Opportunities Report July 2015 Parliamentary Library Whanganui Electorate Profile ANZ Bank Regional Trends Analysis W&P Project Diagram Visitor Strategy 33 P age

34 Regional Growth Study Released 31 July 2015 Included in this report is: an overview of the Manawatū-Whanganui economic and industry context an analysis of commercial opportunities, focussing on: o tourism and visitor services o sheep and beef farming and processing o intensification of land use o Mānuka honey o fresh vegetables o poultry and grain processing o affordable care and lifestyle for older people o business process outsourcing and food innovation outsourcing. an in-depth look at cross-cutting opportunities that have the potential to unlock development and growth for improved economic and social outcomes in the region. Opportunities for Whanganui To some degree all of the opportunities identified in the report are applicable to Whanganui. In particular the following opportunities were highlighted for Whanganui: 1. tourism and visitor services 2. sheep and beef farming and processing 3. manuka honey 4. affordable care and lifestyle for older people Whanganui & Partners has already been undertaking research and pursuing opportunities in all four of the above sectors the opportunity is now to build on this work, obtain region wide support and assistance and central government support. Next steps The Study identifies a number of potential opportunities that have implications for a range of stakeholders including central and local government, iwi and Māori, industry groups and businesses. Central Government agencies, led by MBIE, MPI and Te Puni Kōkiri (TPK), are working in partnership with regional stakeholders to establish and implement a Manawatū-Whanganui Regional Economic Action Plan. The Action Plan will prioritise key actions and identify who will be responsible for implementing them. TPK, MBIE and MPI will continue their engagement with the region to provide support to regional leaders as the Action Plan is developed and implemented. A structure for the action planning and project implementation has already been established. It is crucial that Whanganui & Partners Board Members, staff, council and the Whanganui business community actively participate in the structure.

35 Whanganui Published by the Parliamentary Library June 2015

36 Table of contents Whanganui: Electoral Profile 3 General notes 3 Election results General election results electorate candidate votes General election results electorate candidate votes General election results electorate candidate votes 4 General election results party vote Voter enrolment and turnout 2011 and Whanganui: People 7 Population summary 7 Age groups of the usually resident population 8 Figure 1. Age groups of the usually resident population 8 Ethnic groups of the usually resident population 9 Figure 2. Ethnic groups of the usually resident population 9 Birthplace of usually resident population 10 Birthplace and years since arrival in New Zealand, for overseas born 10 Languages spoken 11 Highest qualifications of the population aged 15 years and over 12 Figure 3. Highest qualifications of the population aged 15 years and over 12 Ethnic group of school pupils July Iwi affiliations 14 Religious affiliations 15 Cigarette smoking behaviour of the population aged 15 years and over 16 Whanganui: Households 17 Family type of families in private dwellings 17 Family income 18 Figure 4. Family income 18 Social marital status 19 Household composition of private dwellings 19 Access to telecommunications 19 Motor vehicles 20 Tenure of dwellings 20 Weekly rent paid 21 Fuel type used to heat dwellings 21 Socio-economic status decile of schools in the electorate, July Index of socioeconomic deprivation for areas within the electorate 23 Index of socioeconomic deprivation for areas within the electorate (continued) 24 Index of deprivation map 25 Whanganui: Work 26 Personal income of the population aged 15 years and over 26 Figure 5. Personal income of the population aged 15 years and over 26 Income support received by those aged 15 years and over 27 Labour force and employment status of the population aged 15 years and over 27 Occupations of the employed population aged 15 years and over 28 Business locations by industry at February Business locations by industry at February 2014 (continued) 30 Industries of the employed population aged 15 years and over 31 Unpaid activities of the population aged 15 years and over 32 Travel to work for the population aged 15 years and over 32 Glossary 33 Whang a n u i : Electorate Profile 2

37 Whanganui: Electoral Profile General notes The Whanganui electorate comprises the communities of Whanganui, Patea, Manaia, Eltham, and Hawera. The western boundary is marked by a line from Opunake on the coast to the middle of Mt Taranaki. The Commission has extended the boundary of the Whanganui electorate to north of Stratford, as the electoral population was projected to significantly decline relative to quota. Following population loss (-2%) between 2001 and 2006, the Whanganui electorate experienced a further population loss of -0.4% between Census 2006 and Census Almost half of those employed were working in one of four industries: manufacturing (16.6%); agriculture, forestry, and fishing (13.2%); health care and social assistance (10.8%); retail trade (9.2%). The share of those working in the manufacturing industry (16.6%) was the highest share among general electorates in Over one-quarter (27.0%) of those aged over 15 stated they had no qualifications in 2013, the highest share in New Zealand and almost one and a half times the national average (18.6%). In 2013, Whanganui had the second-highest share among general electorates of: those on an invalid's benefit (3.7%); and those who travelled to work by motorbike (2.6%). Election results The winning candidate in the 2014 election, Chester Burrows (National Party), captured a majority (53.7%) of the 34,735 valid electorate votes cast for candidates in the Whanganui electorate. The seat was previously won in 2011 by Chester Burrows (National Party) with a margin of 5,046. The National Party also captured a plurality (47.3%) of the party votes in Whanganui, down 0.3 percentage points on its party vote share in Turnout (total votes cast as a proportion of enrolled electors) in 2014 was 77.2%. Whang a n u i : Electorate Profile 3

38 2014 General election results electorate candidate votes Candidate Valid Votes Share (%) BORROWS, Chester (NAT) 18, McDOUALL, Hamish (LAB) 14, MacINTYRE, Kim (CNSP) TUAINE, Nancy (MAOR) DAVIDSON, Alan (ACT) SMITH, Heather Marion (NZDSC) Total Valid Votes 34, Total Votes Cast 35, Winning Candidate: BORROWS, Chester - margin 4505 For interpretation of abbreviations, see Glossary General election results electorate candidate votes Candidate Valid Votes Share (%) BORROWS, Chester (NAT) 16, McDOUALL, Hamish (LAB) 11, MILNES, John (GP) 1, BROUGHAM, Ian (NZF) 1, DAVIDSON, Alan Daniel (ACT) SMITH, Heather Marion (NZDSC) Total Valid Votes 31, Total Votes Cast 32, For interpretation of abbreviations, see Glossary General election results electorate candidate votes Candidate Valid Votes Share (%) BORROWS, Chester (NAT) 19, McDOUALL, Hamish (LAB) 12, MILNES, John (GP) 1, DAVIDSON, Alan (ACT) SMITH, Heather Marion (NZDSC) Total Valid Votes 33, Total Votes Cast 34, For interpretation of abbreviations, see Glossary. Whang a n u i : Electorate Profile 4

39 General election results party vote Party Valid Votes Share (%) Valid Votes Share (%) Valid Votes Share (%) National Party 15, , , Labour Party 12, , , New Zealand First Party 1, , , Green Party 1, , , Conservative 1, , Internet MANA Māori Party Aotearoa Legalise Cannabis Party ACT New Zealand 1, United Future Democrats for Social Credit Ban The Civilian Party Focus New Zealand NZ Independent Coalition Mana Alliance Libertarianz Jim Anderton's Progressive The Bill and Ben Party Kiwi Party Family Party Workers Party New Zealand Pacific Party The Republic of New Zealand Party RAM - Residents Action Movement Total Valid Votes 34, , , Total Votes Cast 34, , , Whang a n u i : Electorate Profile 5

40 Voter enrolment and turnout 2011 and 2014 Whanganui NZ Whanganui NZ Voting Age Population (VAP)* 51,800 3,275,500 54,740 3,391,100 Electors on General Roll (EGR) 43,673 2,837,747 46,210 2,900,476 Electors on Māori Roll 6, ,100 6, ,941 Total Enrolled** 49,797 3,070,847 52,383 3,140,417 Total Votes Cast by EGR (TVC) 32,259 2,143,255 35,691 2,290,150 % VAP Enrolled Turnout (TVC as % EGR) *Estimated population statistics as at: June 2011; June ** Electoral Enrolment Centre statistics as at November 2011; and Electoral Commission enrolment statistics as at September Whang a n u i : Electorate Profile 6

41 Whanganui: People Population summary Numbers and Percent Change Usually Resident Population 2013 Census 72,243 Usually Resident Population 2006 Census 72,498 Increase Percent Increase Percent Increase , New Zealand 5 Whang a n u i : Electorate Profile 7

42 Age groups of the usually resident population Whanganui New Zealand Number % Rank * % Age 0-4 Years 5, Age 5-14 Years 10, Age Years 4, Age Years 7, Age Years 17, Age Years 14, Age 65 Years And Over 12, Total 72, Median Age (Years) Total 18 Years And Over 53, Total Males 35, Total Females 37, The median age for New Zealand as a whole is 37 years. Figure 1. Age groups of the usually resident population Whang a n u i : Electorate Profile 8

43 Ethnic groups of the usually resident population New Zealand Number % Rank * % European 56, Māori 15, Pacific Peoples 1, Asian 1, Middle Eastern/Latin American/African Other (Incl New Zealander) 1, Total Specified 68, Not Elsewhere Included 4,116 Whanganui People reporting themselves in more than one category have been counted in each, so the sum of responses in the table may be greater than the number of people responding. Figure 2. Ethnic groups of the usually resident population Whang a n u i : Electorate Profile 9

44 Birthplace of usually resident population Whanganui New Zealand Number % Rank * % New Zealand 60, Overseas 6, Not Elsewhere Included 4, Total 72, Birthplace and years since arrival in New Zealand, for overseas born Whanganui New Zealand Number % Rank * % UK and Ireland Under 5 Yrs Yrs Yrs Yrs and over 1, Total UK and Ireland 2, Pacific Islands Under 5 Yrs Yrs Yrs Yrs and over Total Pacific islands North East Asia (¹) Under 5 Yrs Yrs Yrs Yrs and over Total North East Asia Overseas Born Under 5 Yrs 1, Yrs 1, Yrs 1, Yrs and over 3, Total Overseas Born 6, (¹)North East Asia includes China, Korea,Taiwan, Hong Kong, Japan Whang a n u i : Electorate Profile 10

45 Languages spoken Whanganui New Zealand Number % Rank * % English 65, Māori 3, NZ Sign Samoan Other 3, None Total People 72, People reporting themselves in more than one category have been counted in each, so the sum of responses in the table may be greater than the number of people responding. Whang a n u i : Electorate Profile 11

46 Highest qualifications of the p opulation aged 15 years and over Whanganui New Zealand Number % Rank * % No Qualification 15, Level 1 Certificate Gained at School 8, Level 2 Certificate Gained at School 5, Level 3 or 4 Certificate Gained at School 2, Overseas Secondary School Qualification 1, Level 1, 2 or 3 Certificate Gained Postschool 1, Level 4 Certificate Gained Post-school 5, Level 5 or 6 Diploma 3, Bachelor Degree and Level 7 3, Qualifications Post-Graduate and Honours Degree Masters Degree Doctorate Degree Not Specified 7, Total 56, Figure 3. Highest qualifications of the p opulation aged 15 years and over Whang a n u i : Electorate Profile 12

47 Ethnic group of school pupils July 2014 Whanganui New Zealand Number % Rank * % European 7, Māori 4, Pacific Peoples Asian Middle Eastern/Latin American/African International Students Other Total Roll 12, Prepared from Ministry of Education data. Whang a n u i : Electorate Profile 13

48 Iwi affiliations Iwi Number Te Ati Haunui-a-Pāpārangi 3051 Ngāti Ruanui 1479 Ngā Rauru 1362 Ngāpuhi 1326 Ngā Ruahine 1245 Ngāti Tūwharetoa 1173 Ngāti Porou 915 Te Atiawa (Taranaki) 828 Ngāti Apa (Rangitīkei) 792 Ngāi Tahu / Kāi Tahu 720 Ngāti Maniapoto 720 Taranaki 525 Ngāti Raukawa (Horowhenua/Manawatū) 492 Waikato 387 Tūhoe 351 Ngāti Kahungunu ki Te Wairoa 330 Ngāti Kahungunu, region unspecified 300 Te Whānau-a-Apanui 198 Ngāti Kahungunu ki Wairarapa 183 Ngāti Kahungunu ki Heretaunga 174 Te Arawa 171 Ngāti Whātua 168 Ngāti Hauiti 162 Ngāti Toarangatira (Te Whanganui-a- 141 Tara/Wellington) Whakatōhea 141 Ngāti Raukawa (Waikato) 138 Pakakohi 117 Ngaiterangi 108 Ngāti Mutunga (Taranaki) 105 Tainui 105 These are the top 30 Iwi for the Whanganui electorate. People reporting themselves in more than one iwi have been counted in each, so the sum of responses in the table may be greater than the number of people. Whang a n u i : Electorate Profile 14

49 Religious affiliations Whanganui New Zealand Number % Rank * % Buddhist Christian 33, Anglican 8, Baptist Brethren Catholic 10, Christian (not further defined) 3, Congregational/Reformed Jehovah's Witnesses Latter Day Saints Methodist 1, Pentecostal Presbyterian 5, Salvation Army Seventh Day Adventist Hindu Islam/Muslim Judaism/Jewish Māori Christian 1, Rātana 1, Ringatū Spiritualism and New Age Religions Other Religions Residual Categories 10, No Religion 27, Total Specified 65, People reporting themselves in more than one category have been counted in each, so the sum of responses in the table may be greater than the number of people responding. Whang a n u i : Electorate Profile 15

50 Cigarette smoking behaviour of the population aged 15 years and over Whanganui New Zealand Number % Rank * % Regular Smoker 10, Ex-Smoker 13, Never Smoked 27, Not Elsewhere Included 5, Total 56, *Rank 1 (high) to 64 (low) among general electorates. Ranks are of % in each group. Some totals may differ due to rounding. All tables prepared from Statistics New Zealand 2013 Census data, unless otherwise noted. Whang a n u i : Electorate Profile 16

51 Whanganui: Households Family type of families in private dwellings Whanganui New Zealand Number % Rank * % Couple Only 8, Two Parent Family 6, One Parent Family 4, Total 19, Whang a n u i : Electorate Profile 17

52 Family income Whanganui New Zealand Number % Rank * % Nil or Loss $1-$5, $5,001-$10, $10,001-$15, $15,001-$20, $20,001-$25, $25,001-$30,000 1, $30,001-$35,000 1, $35,001-$40, $40,001-$50,000 1, $50,001-$60,000 1, $60,001-$70,000 1, $70,001-$100,000 3, $100,001+ 3, Not Specified 2, Total 19, Median ($) 60, The Median family income for New Zealand as a whole is $72,700. Figure 4. Family income Whang a n u i : Electorate Profile 18

53 Social marital status Whanganui New Zealand Number % Rank * % Married 22, Other Partnership 8, Total Partnership 30, Non-Partnered 21, Not Stated 4, Total 56, Household composition of private dwellings Whanganui New Zealand Number % Rank * % One Family 18, Two Families Three or More Families Non-Family Household 1, One Person Household 8, Not Available Total Households 29, Access to telecommunications Whanganui New Zealand Number % Rank * % No Access Cellphone 22, Telephone 22, Fax 3, Internet 18, Total Households 29, Households reporting more than one means of access to telecommunications have been counted in each stated category. Thus the sum of responses in the table may be greater than the number of households. Whang a n u i : Electorate Profile 19

54 Motor vehicles Whanganui New Zealand Number % Rank * % None 2, One 11, Two 9, Three Plus 3, Not Elsewhere Included 1, Total 29, Tenure of dwellings Whanganui New Zealand Number % Rank * % Owned 13, mortgage 7, no mortgage 6, mortgage not specified Not owned 9, paying rent 7, no rent 1, rent not specified Held in Family Trust 4, mortgage 1, no mortgage 2, mortgage not specified Tenure not specified 2, Total Households 29, Whang a n u i : Electorate Profile 20

55 Weekly rent paid Whanganui New Zealand Number % Rank * % Under $100 1, $100 - $149 1, $150 - $199 1, $200 - $249 1, $250 - $ $300 - $ $350 And Over Not Elsewhere Included Total 7, Fuel type used to heat dwellings Whanganui New Zealand Number % Rank * % None Electricity 17, Mains Gas 9, Bottled Gas 4, Wood 11, Coal Solar Power Other Fuels Total 29, Occupied private dwellings using more than one fuel type for heating were counted in each stated category. Therefore the total responses in the table will be more than the total number of private occupied dwellings. Whang a n u i : Electorate Profile 21

56 Socio-economic status decile of schools in the e lectorate, July 2014 Decile Number of % Number of % % of Schools % of Pupils Schools Pupils One Two , Three , Four , Five , Six , Seven Eight Nine Ten Not Allocated Total , Decile Ten is the highest socio-economic status. Prepared from Ministry of Education data. Whanganui New Zealand Whang a n u i : Electorate Profile 22

57 Index of socioeconomic deprivation for areas within the electorate Area Unit Index of Deprivation 2013 (¹) Otamatea 1 Hawera West 2 Bastia Hill 3 St Johns Hill 3 Tawhiti 3 Blueskin 4 Marybank-Gordon Park 4 Maxwell 4 Ohangai 4 Pembroke 4 Toko 4 Waingongoro 4 Kahui 5 Kapuni 5 Mangatoki-Moeroa 5 Springvale East 5 Durie Hill 6 Makakaho 6 Normanby 6 Ohawe Beach 6 Okaiawa 6 Springvale West 6 Whenuakura 6 Fordell-Kakatahi 7 Gonville South 8 Hawera North 8 Hawera South 8 Putiki 8 Spriggens Park 8 Stratford East 8 Stratford West 8 Tawhero 8 Upper Aramoho 8 Waitotara 8 Wanganui Collegiate 8 Whang a n u i : Electorate Profile 23

58 Index of socioeconomic deprivation for areas within the electorate (continued) Area Unit Index of Deprivation 2013 (¹) Cooks Gardens 9 Eltham 9 Kaponga 9 Kowhai Park 9 Manaia 9 Waverley 9 Williams Domain 9 Balgownie 10 Castlecliff North 10 Castlecliff South 10 Gonville East 10 Gonville West 10 Laird Park 10 Lower Aramoho 10 Mosston 10 Patea 10 Wanganui Central 10 Wembley Park 10 (¹)The higher the index of Deprivation (1-10), the more socioeconomically deprived an area is considered (see Glossary). Area Units do not correspond directly to Electorates, therefore only Area Units that are primarily within each Electorate are included. Prepared from data published by the University of Otago, Wellington. * Rank 1 (high) to 64 (low) among general electorates. Ranks are of % in each group. Some totals may differ due to rounding. All tables prepared from Statistics New Zealand 2013 Census data, unless otherwise noted. Whang a n u i : Electorate Profile 24

59 Index of deprivation map Whang a n u i : Electorate Profile 25

60 Whanganui: Work Personal income of the population aged 15 years and over Whanganui New Zealand Number % Rank * % Nil or Loss 3, $1-$5,000 2, $5,001-$10,000 2, $10,001-$15,000 5, $15,001-$20,000 6, $20,001-$25,000 4, $25,001-$30,000 3, $30,001-$35,000 3, $35,001-$40,000 3, $40,001-$50,000 4, $50,001-$60,000 3, $60,001-$70,000 2, $70,001-$100,000 3, $100,001+ 1, Not Specified 6, Total 56, Median ($) 25, The median personal income for New Zealand as a whole is $28,500. Figure 5. Personal income of the population aged 15 years and over Whang a n u i : Electorate Profile 26

61 Income support received by those age d 15 years and over Whanganui New Zealand Number % Rank * % NZ Superannuation or Veterans Pension 11, Unemployment Benefit 2, Sickness Benefit 1, Domestic Purposes Benefit 1, Invalids Benefit 2, Student Allowance Other government benefits 2, No government benefit 47, Not Specified 4, Total aged 15 and over 56, People reporting themselves in more than one category have been counted in each, so the sum of responses in the table may be greater than the number of people responding. Labour force and employment status of the population aged 15 years and over Whanganui New Zealand Number % Rank * % Full-time Employed 23, Part-time Employed 7, Unemployed 2, Total Labour Force 34, Not in Labour Force 19, Labour Force Status Not Specified 2, Total Aged 15 Years and over 56, Employed - Paid Employee 24, Employer 2, Self Employed, Not Employing 3, Unpaid Worker in Family Business Employment Status Not Specified Total Employed 31, Whang a n u i : Electorate Profile 27

62 Occupations of the employed population aged 15 years and over Whanganui New Zealand Number % Rank * % Managers 5, Professionals 4, Technicians And Trades Workers 3, Community And Personal Service 2, Workers Clerical And Administrative Workers 2, Sales Workers 2, Machinery Operators and Drivers 1, Labourers 5, Not Specified 2, Total 31, Whang a n u i : Electorate Profile 28

63 Business locations by industry at February 2014 Business locations People employed Agriculture Forestry and Logging Fishing Hunting and Trapping 6 6 Agriculture Forestry and Fishing Support Services Oil and Gas Extraction 5 30 Other Mining 2 0 Services to Mining 8 0 Food Product Manufacturing Food Beverage and Tobacco 3 0 Textile Clothing Footwear and Leather Mfg Wood and Paper Product Manufacturing Printing Publishing and Recorded Media Petroleum Coal Chemical etc Manufacturing Non-Metallic Mineral Product Manufacturing Metal Product Manufacturing 7 6 Machinery and Equipment Manufacturing Other Manufacturing Electricity and Gas Supply Water Supply Sewerage and Drainage Services General Construction Construction Trade Services Basic Material Wholesaling Machinery and Motor Vehicle Wholesaling Personal and Household Good Wholesaling Motor Vehicle Retailing and Services Food Retailing Personal and Household Good Retailing Accommodation and Cafes and Restaurants Road Transport Rail Transport 2 30 Water Transport 1 0 Air and Space Transport 7 6 Other Transport 7 15 Postal Services and Services to Transport Storage Motion Picture Radio and Television Services 9 43 Finance Insurance 8 25 Services to Finance and Insurance Scientific, Technical and Communication Services Whang a n u i : Electorate Profile 29

64 Business locations by industry at February 2014 (continued) Business locations People employed Property Services Government Administration Defence and Public Safety Services Education Health Services Community Services Libraries Museums and the Arts Sport and Recreation Other Services Personal Services Total All Industry These data are for the approximate electorate,to the nearest area unit. Included: enterprises having annual GST sales of $30,000+ or other indicator of economic significance. Prepared from Stats NZ Business Demographic data. Whang a n u i : Electorate Profile 30

65 Industries of the employed population aged 15 years and over Whanganui New Zealand Number % Rank * % Agriculture, forestry and fishing 4, Mining Manufacturing 5, Electricity, gas, water and waste services Construction 2, Wholesale trade Retail trade 2, Accommodation 1, Transport, postal and warehousing Information media and telecommunications Financial and insurance services Rental, hiring and real estate services Professional, scientific and technical 1, services Administrative and support services Public administration and safety 1, Education and training 2, Health care and social assistance 3, Arts and recreation services Other Services 1, Not Elsewhere Included 1, Total 31, Whang a n u i : Electorate Profile 31

66 Unpaid activities of the population aged 15 years and over Whanganui New Zealand Number % Rank * % Household Work for Own Household 42, Looking After Child from Own Household 15, Looking After Disabled/Ill Household 4, Member Looking After Child not from Own 8, Household Helping Disabled/Ill non-household 5, Member Other Helping or Voluntary Work 8, No Unpaid Activities 6, Total 56, Total Stated 49, Not Elsewhere Included 7, People reporting themselves in more than one category have been counted in each, so the responses in the table may be greater than the number of people responding. A person s unpaid activities cover unpaid activities performed in the four weeks ending 5 March Travel to work for the population aged 15 years and over Whanganui New Zealand Number % Rank * % Worked at Home 3, Did Not Go To Work Today 3, Drove a Private Car, Truck or Van 15, Drove a Company Car, Truck or Van 3, Passenger in a Car, Truck, Van or 1, Company Bus Public Bus Train Motor Cycle or Power Cycle Bicycle Walked or Jogged 1, Other Not Elsewhere Included 1, Total 31, *Rank 1 (high) to 64 (low) among general electorates. Ranks are of % in each group. Some totals may differ due to rounding. All tables prepared from Statistics New Zealand 2013 Census data, unless otherwise noted. Whang a n u i : Electorate Profile 32

67 Glossary Term Abbreviations Area Units Boundaries By-election Candidate Census usually resident population Employment General Electorates Income Index of Socioeconomic Deprivation Meaning The party abbreviations for 2014 are: ACT New Zealand (ACT), Alliance (ALL), Aotearoa Legalise Cannabis Party (ALCP), Ban1080 (BAN), Climate Party (CLI), Communist League (CL), Conservative (CNSP), Democrats for Social Credit (NZDSC), The Expats (EXP), Focus New Zealand (FNZ), Green Party (GP), Human Rights Party (HR), Independent (IND), Internet Party (IP), Labour Party (LAB), Mana Movement (MANA), Māori Party (MAOR), Money Free Party (MFP), National Party (NAT), New Zealand First Party (NZF), NZ Economic Euthenics (NZEE), NZ Independent Coalition (NZIC), Patriotic Revolutionary Front (PRF), United Future (UFNZ) The party abbreviations for 2011 are: ACT New Zealand (ACT), Alliance (ALL), Aotearoa Legalise Cannabis Party (ALCP), Aotearoa NZ Youth Party (ANYP), Communist League (CL), Conservative Party (CNSP), Democrats for Social Credit (NZDSC), Green Party (GP), Human Rights Party (HR), Independent (IND), Labour Party (LAB), Libertarianz (LIB), Mana (MANA), Maori Party (MAOR), National Party (NAT), New Economics Party (NEP) Nga Iwi Morehu Movement (NI), NZ Economic Euthenics (NZEE), New Zealand First Party (NZF), New Zealand Sovereignty Party (NZSP), Pirate Party of New Zealand (PIR), Restore All Things in Christ (RATC), United Future (UFNZ). The party abbreviations for 2008 are: Aotearoa NZ Youth Party (ANYIPP), ACT New Zealand (ACT), Alliance (ALL), Aotearoa Legalise Cannabis Party (ALCP), Communist League (CL), Democrats for Social Credit (NZDSC), Direct Democracy Party (DDP), Family Party (FAM), Green Party (GP), Hapu Party (HP), Human Rights Party (HR), Independent (IND), Jim Anderton's Progressive (JAP), Kiwi Party (KIWI), Labour Party (LAB), Libertarianz (LIB), McGillicuddy Serious Party (McG), Māori Party (MAOR), National Party (NAT), New Zealand First Party (NZF), New Zealand Pacific Party (NZPP), New Zealand Representative Party (NZRP), No Commercial Airport at Whenuapai Airbase (NCAWAP), NZ Economic Euthenics (NZEE), RAM Residents Action Movement (RAM), Restore All Things in Christ (RATC), The Bill and Ben Party (BB), The Republic of NZ Party (RONZP), United Future (UFNZ), Workers Party (WP). Area units are aggregations of meshblocks. They are non-administrative geographic areas that are in between meshblocks and territorial authorities in size. Area units must either define, or aggregate to define, regional councils, territorial authorities, and urban areas. Area units within urban areas normally contain a population of 3,000 5,000 people. (Statistics New Zealand). The physical boundaries of an electorate determined by the Representation Commission according to criteria specified in the Electoral Act An election in an electorate seat to fill a vacancy that arises between general elections. There are no party votes cast in a by-election. A person who is a New Zealand citizen who is enrolled as an elector and who has been nominated with his or her consent for election to Parliament as a dual candidate, an electorate candidate, or a list candidate. Population as calculated on census night, the latest census figures being as at March The census usually resident population count is all people counted in New Zealand on census night excluding overseas visitors and New Zealand residents temporarily overseas. Full-time employment is equal to people working 30 or more hours per week. Part-time employment is equal to people working 1-29 hours per week. One of 64 geographic areas (periodically defined and named by the Representation Commission) which can be contested by candidates of any ethnicity, and who are enrolled on either the General or Māori Roll. Voters, who have to be on the General Roll, elect one electorate MP who must gain a plurality of the electorate votes cast in that electorate. Includes income from all sources, including not only wages and salaries, but also other sources such as benefits, interest payments etc. Income figures given are for before tax (gross) income. The Index of Deprivation (a number from 1 to 10) is high for an area with a high degree of socioeconomic "deprivation", and is low for an affluent or less needy area. In New Zealand as a whole, small areas are evenly divided among the ten deciles. The index is calculated Whang a n u i : Electorate Profile 33

68 Māori Electorate Margin Median Meshblock Quotas Plurality from such factors as proportions of people dependent on benefits, unemployed, and living in a single-parent family, and proportions of households with income below a ce rtain threshold, with no access to a telephone, and with no access to a car. For more information, see the NZDep2013 Index of Deprivation Research Report ( One of seven geographic areas (periodically defined and named by the Representation Commission) which can be contested by candidates of any ethnicity, and who are enrolled on either the General or Māori Roll. Voters, who have to be on the Māori Roll, elect one electorate MP who must gain a plurality of the electorate votes cast in that electorate. The margin is the difference between the number of electorate votes received by the winning candidate and those received by the candidate with the second -highest number of electorate votes. Median is the "middle value" of a list. The smallest number such that at least half the numbers in the list are no greater than it. If the list has an odd number of entries, the median is the middle entry in the list after sorting the list into increasing order. If the list has an even number of entries, the median is equal to the sum of the two middle after sorting) numbers divided by two. A meshblock is the smallest geographic unit for which Statistics New Zealand collects statistical data. Meshblocks vary in size, from part of a city block to large areas of rural land. Each meshblock borders on another to cover all of New Zealand, extending out to the mile economic zone (approximately 320 kilometres). Meshblocks are aggregated to build larger geographic areas, such as area units, territorial authorities, and regional councils. At the time of the 2013 Census, there were 46,637 meshblocks in New Zealand The Electoral Act 1993 provides that the South Island has 16 General electoral districts. The General electoral population of the South Island is divided by 16 to give the South Island quota. The North Island General electoral population is then divided by the South Island quota to give the number of North Island General electoral districts. The North Island General electoral population is divided by the number of North Island General electorates to give the North Island quota. For the 2014 electorate boundaries, the South Island quota is 59,679 and the North Island quota is 59,731. In a similar way, the Māori electoral population is divided by the South Island quota and rounded to give the number of Māori electoral districts. The Māori electoral quota is the Māori electoral population divided by the number of Māori electoral districts. For the 2014 electorate boundaries, the Māori quota is 60,141. For both General and Māori electoral districts the Commission may allow the electoral population to vary from quota by up to plus or minus 5%. A plurality occurs when a candidate receives less than half the votes but who receives the most votes (at least one more vote than any other candidate). There is no requirement in New Zealand that electorate candidates must win a majority (50% of the votes plus one) of the valid electorate votes. Rank The ranks shown in the tables for each general electorate (1-64), or each Māori electorate (1-7), reflect the relative position of each electorate in terms of the proportion of the electorate s stated or total population for each measure. Electorates are ranked from the highest percent figure (ranked 1) to the lowest percent figure (ranked 64 or 7). Using a different total for the denominator may alter the rankings. Where no information is available the electorate is not ranked. Rounding Suppression Total responses Total Votes Cast Turnout Voting Age Population Census data have been randomly rounded to multiples of three to protect confidentiality. Individual figures may not add up to totals, and values for the same data may vary in different tables. Census data have been suppressed in areas containing less than six individuals. This affects data in the Household Composition, Labour Force and Employment Status, and Industries of the Employed tables. Several census variables allow people to provide more than one response to the question. When a person has reported more than one response they will be counted in each group they reported. This means that the total population will be greater than the usual subject population for that variable, as individuals may be counted more than once. The total number of votes cast by enrolled electors, including valid votes, informal votes, and disallowed special votes. Expressed as a percentage turnout is the total number of votes cast (including valid votes, disallowed votes, and informal votes) as a proportion of the number of electors enrolled on Election Day. The estimated population eligible to vote that includes enrolled and non-enrolled voters. The figures are supplied by the Electoral Commission and are as at 30 June 2014 using 2013 census data. Whang a n u i : Electorate Profile 34

69 Copyright - NZ Parliamentar y Library This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. You are free to copy, distribute and adapt the work, as long as you attribute the work to the Parliamentary Library and abide by the other licence terms. This work includes customised Statistics New Zealand s data and content produced by the Electoral Commission all of which is licenced for re-use under the Creative Commons Attribution 3.0 New Zealand licence. Whang a n u i : Electorate Profile 35

70 ANZ RESEARCH ANZ REGIONAL TRENDS A BAKER S DOZEN MAY 2015 INSIDE Latest Quarter at a Glance 1 Regional Benchmarks 2 Northland 3 Auckland 4 Waikato 5 Bay of Plenty 6 Gisborne 7 Hawke s Bay 8 Taranaki 9 Manawatu-Whanganui 10 Wellington 11 Nelson-Marlborough 12 West Coast 13 Canterbury 14 Otago 15 Southland 16 CONTACT Cameron Bagrie Chief Economist Telephone: Cameron.Bagrie@anz.com Peter Gardiner Economist Telephone: peter.gardiner2@anz.com We use 23 series to calculate the composite indices of regional economic activity, including: business confidence; consumer confidence; retail sales; new motor vehicle registrations; regional exports; building permits approved; real estate turnover; household labour force data; job ads; accommodation survey; and Paymark data. All quarterly rates of change are calculated on seasonally and inflation-adjusted data. MAIN POINTS The nationwide measure of composite economic activity increased 1.1% q/q (3.5% y/y), with the North Island economy expanding 1.2% in the quarter and the South Island growing 1.0% q/q. Thirteen of fourteen regions recorded an increase in economic activity in the March quarter. That s a broad-based economic expansion in operation. Nelson-Marlborough and the West Coast led the charge this quarter, though both under-performed in terms of year-on-year growth. Taranaki contracted and growth was weak in Canterbury and Wellington in the March quarter. Regional New Zealand grew at a faster pace than the three main urban centres in the March quarter, though regions underperformed over the year. LATEST QUARTER AT A GLANCE Retail interest rates fell at both short and long-term maturities. The NZD exchange rate depreciated against major trading partners, with the exception of the Japanese yen. Export commodity prices lifted in the first three months of Business confidence remains elevated and is generally higher in urban centres. Southland recorded the highest level of sentiment. Consumer confidence continues to be buoyant. Eleven of the fourteen regions recorded increases, led by increases in Northland and Southland. Consumer confidence was the highest in Canterbury. Retail sales rose strongly, with the largest quarterly increases seen in Manawatu-Whanganui, Waikato and Auckland. House sales volumes lifted in 8 of 14 regions. Northland, Hawke s Bay and Manawatu-Whanganui recorded the largest increases. Dwelling consents slipped nationally, despite strong increases in Auckland, Nelson-Marlborough and Southland. Commercial building permits also declined. Taranaki and Waikato led the falls, while Gisborne recorded the strongest rise. Employment was down in 10 of 14 regions. The largest decline was recorded in Canterbury. FIGURE 1. REGIONAL ECONOMIC ACTIVITY Annual average % change, March 2015 Auckland 4.3% Waikato 3.3% Taranaki 1.2% The unemployment rate remained steady at 5.8%. Canterbury and Otago reported the lowest unemployment rates, with Northland s the highest. Manawatu-Whanganui 2.9% Northland 3.4% Bay of Plenty 4.8% Gisborne 3.5% Hawke's Bay 2.4% Wellington 2.0% West Coast 1.3% Nelson-Marlborough 2.1% 7.0% 6.5% 6.0% 5.5% Canterbury 4.4% 5.0% 4.5% 4.0% 3.5% 3.0% Otago 3.3% 2.5% 2.0% Southland 4.0% 1.5% 1.0%

71 ANZ Regional Trends / May 2015 / 2 of 18 REGIONAL BENCHMARKS QUARTERLY PERCENTAGE CHANGE Thirteen of fourteen regions recorded a lift in economic activity in the March quarter. After flat activity in the December quarter, growth in Nelson- Marlborough surged, while the West Coast rebounded from a decline in activity in December. Taranaki recorded the only quarterly decline in activity it appears to be feeling the impact of the fall in global energy-related commodity prices. FIGURE 2. REGIONAL ECONOMIC ACTIVITY Quarterly % change, March 2015 Nelson-Marlb West Coast Manaw-Whang Otago Auckland 1.8% 1.7% 1.7% 2.8% 2.7% The nationwide composite measure of economic activity increased 1.1% q/q, with the North Island expanding 1.2% in the quarter and the South Island 1.0% q/q. Regional New Zealand expanded by 1.2% and urban New Zealand (the three largest city centres) by 1.1%. Southland Gisborne Bay of Plenty Waikato Hawke's Bay Northland 1.1% 1.0% 0.9% 1.3% 1.3% 1.3% Nelson-Marlborough recorded the largest quarterly increase in activity (+2.8% q/q). The region recorded strong increases tourism sector indicators, while employment and house sector activity improved. The March 2015 quarter was the third quarterly consecutive expansion in 10 regions. Canterbury marked 16 consecutive quarters of growth, with 10 quarters of continuous growth for Auckland and Gisborne. Quarterly growth across regions can be volatile but those sorts of strings are consistent with an economy being well advanced in an economic expansion. YEAR-ON-YEAR GROWTH Bay of Plenty s economy recorded the strongest annual rate of economic growth in March, expanding 4.8% from a year earlier. Canterbury (4.4%) regained second spot from Auckland (4.3%), with annual growth of 4% in Southland. At the other end of the growth ladder, Taranaki recorded just 1.2% growth in the year to March, with the sharp contraction in the quarter seeing annual growth nearly halve versus that seen in the 2014 calendar year. West Coast annual growth was little better. It is not coincidence that these are the two regions most exposed to falling global energy commodity prices. Nationally, annual growth slowed to 3.5%, a 21- month low. Growth in the South Island (+3.7% y/y) continued to outstrip that in the North Island (+3.5% y/y). The Bay of Plenty recorded its fourth consecutive quarter of 4%+ growth, with Auckland and Gisborne the only other regions to experience a lift in year-onyear growth. Annual average growth in Taranaki dipped below 2.0% for the first time in three years. -1.4% Wellington Canterbury 0.2% Taranaki 0.4% NZ Avg -1.5% -0.5% 0.5% 1.5% 2.5% Note: The width of each bar indicates the relative size of the regional economy. Source: ANZ FIGURE 3. REGIONAL ECONOMIC ACTIVITY Annual average % change, March 2015 Bay of Plenty Canterbury Auckland Southland Gisborne Northland Otago Waikato Manaw-Whang Hawke's Bay Nelson-Marlb Wellington West Coast Taranaki 1.3% 1.2% 2.9% 2.4% 2.1% 2.0% 3.5% 4.0% 3.4% 3.3% 3.3% 4.4% 4.3% NZ Avg 4.8% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Note: The width of each bar indicates the relative size of the regional economy. Source: ANZ

72 ANZ Regional Trends / May 2015 / 3 of 18 REGIONAL SUMMARY: NORTHLAND The Northland region expanded 0.9% in the March quarter and 3.4% in the March 2015 year. The region has enjoyed a year of outperformance and a degree of catch-up after underperforming over most of the nation s five-year expansion. Northland posted strong increases in both house and farm sales in the March quarter. Higher commercial activity, tourism and export growth also contributed. House sales rose 19% during the last three months and the median house price rose 3.7%. There was strong interest in both farms and sections, with sales growth of 24.9% q/q and 8.7% q/q respectively. Northland s productive sector is lifting. ANZ s Truckometer rose 2.0% in the March quarter. Northland s exports were up 2.6% q/q and 20.5% on a year ago. Sentiment among Northland s households lifted strongly in March and is at its highest level in 12 months. This lift in household confidence didn t translate into consumer spending though, with retail sales in the Northland region down 4.1% in the March quarter. FIGURE 4. COMPOSITE INDEX OF ECONOMIC ACTIVITY: NORTHLAND 8% 6% 4% 2% 0% -2% -4% -6% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 5. HOUSE SALES, NORTHLAND VS NZ Employment indicators weakened in March. Employment fell 0.9% q/q and the unemployment rate rose to 9.7%, the highest of all regions we measure. Job ads fell 6.2% q/q, although they were 12.8% higher than 12 months ago. Northland Date Region Source: ANZ, REINZ 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % -5.5% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % +0.5% 12, % +0.6% Employment (s.a., Number, 000) Mar % +4.4% 2, % +3.2% Unemployment Rate (s.a., %)L Mar15 9.7% +1.6pts +1.8pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 1, % +12.8% 99, % +5.7% House Sales (s.a., Number) T Apr % +30.7% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % -2.0% % +5.6% Days to Sell a House (s.a., Number) A Apr days +3days 35-1days unch Section Sales (s.a., Number) T Apr % +27.0% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % +17.9% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 1, % +10.6% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % -15.8% 12, % -1.5% Commercial Bldg Permits (s.a.value, $M) T Mar % +9.9% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +9.5% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +1.1% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -14.9pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -5.2pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

73 ANZ Regional Trends / May 2015 / 4 of 18 REGIONAL SUMMARY: AUCKLAND Auckland s economic activity rose for the 10 th consecutive quarter in March, increasing 1.7% q/q. Growth rose to 4.3% for the March 2015 year, the third highest of the regions. Growth in Auckland over the past year has been building in momentum, reflecting an economy that is performing solidly across a number of sectors. The residential property market surged again during the March quarter, although not as strongly as in previous quarters. Median house prices rose a further 5.3% in the last three months and are up 14.9% on a year ago, while house sales have risen 18.7% in the past 12 months. Houses are selling slightly faster, while section sales and the value of commercial building permits picked up. Dwelling approvals eased slightly on the December quarter, but remain well above levels 12 months ago. Activity across the household sector lifted during the March quarter. Auckland households are now the third most optimistic of all regions after a lift in confidence. This added confidence was reflected in stronger spending. Retail activity rose 2.2% in the March quarter and is 7.2% ahead of where it was 12 months ago. New car registrations also rose. Employment growth was strong at 2.6% in Q1, to be up 6.6% on a year ago. Jobs growth remains strong with regional internet job ads up 9.9% on 12 months earlier. The unemployment rate ticked down to 6.4%, though this remains above the national average of 5.8%. FIGURE 6. COMPOSITE INDEX OF ECONOMIC ACTIVITY: AUCKLAND 6% 4% 2% 0% -2% -4% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 7. RETAIL SALES, AUCKLAND VS NZ Auckland Date Region Source: ANZ, Statistics NZ 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar15 7, % +7.3% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr15 4, % +0.9% 12, % +0.6% Employment (s.a., Number, 000) Mar % +6.6% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 6.4% +0.4pts -0.3pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 46, % +9.9% 99, % +5.7% House Sales (s.a., Number) T Apr15 8, % +18.7% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +15.0% % +5.6% Days to Sell a House (s.a., Number) A Apr days -1days 35-1days unch Section Sales (s.a., Number) T Apr % +17.6% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % +24.9% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 28, % +13.1% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar15 3, % +16.0% 12, % -1.5% Commercial Bldg Permits (s.a. value,$m) T Mar % +3.4% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar15 1, % +3.4% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +7.0% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -4.3pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -6.9pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

74 ANZ Regional Trends / May 2015 / 5 of 18 REGIONAL SUMMARY: WAIKATO Waikato s economic activity was solid in Q1, but serious question marks hang over the outlook, given growing prospects of two consecutive years of a low dairy payout. Waikato recorded quarterly growth of 1.1% in the March quarter, while annual growth eased to 3.3%. This is the first time since March 2013 that Waikato s growth has been below the national average. Consumer confidence in Waikato is holding up, and households continued to spend. Retail spending rose 2.7% in the March quarter, to be 7.2% higher than in March Business confidence remained unchanged from the December quarter. Activity in the residential property market continued to pick up. House sales lifted 11.5% in the three months ended April, and were up 56.3% on 12 months ago. Median house prices fell 3.5% during the quarter. Both the volume and value of dwelling approvals increased strongly in the March quarter. Section sales, which surged in the December quarter, corrected in March, but are still up a substantial 75.8% on a year earlier. FIGURE 8. COMPOSITE INDEX OF ECONOMIC ACTIVITY: WAIKATO 6% 4% 2% 0% -2% -4% -6% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 9. HOUSE SALES, WAIKATO VS NZ Waikato recorded a strong lift in employment in the March quarter, the third-strongest increase recorded across all regions. This saw the region s unemployment rate drop to 5.9% from 6.2% in December. However, job ads were flat in the March quarter, suggesting the strongest regional employment growth may be now behind us. Waikato Date Region Source: ANZ, REINZ 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar15 1, % +7.2% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % +0.1% 12, % +0.6% Employment (s.a., Number, 000) Mar % +8.8% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 5.9% -0.3pts -0.7pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 5, % +0.5% 99, % +5.7% House Sales (s.a., Number) T Apr15 2, % +56.3% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % -4.1% % +5.6% Days to Sell a House (s.a., Number) A Apr days -3days 35-1days unch Section Sales (s.a., Number) T Apr % +21.6% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % +11.6% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 4, % +11.2% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar15 1, % -3.8% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % -22.2% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +6.7% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +5.1% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr unch -21.9pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -13.1pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

75 ANZ Regional Trends / May 2015 / 6 of 18 REGIONAL SUMMARY: BAY OF PLENTY The Bay of Plenty held onto the strong gains in regional activity it saw in the December quarter, with the region posting a solid 1.3% increase in growth in the March 2015 quarter. Annual growth of 4.8% remains well above the national average of 3.5%, which sees the region take the top place as the New Zealand s strongest-growing region over the past 12 months. Underpinning Q1 growth was a strong household sector that benefited from a pick-up in employment and confidence. Employment lifted 4.8% in the March quarter and was 12.8% higher than a year ago. This comes on the back of double-digit employment growth in the December quarter, so a downward adjustment might be around the corner. The region s unemployment rate rose from 5.3% in December quarter to 7.2% in March quarter, but we caution that regional numbers are volatile quarter-to-quarter. Consumer confidence also rallied, and Bay of Plenty households have overtaken Wellingtonians as the most optimistic in the country. Retail activity lifted 0.9% in the March quarter, and is up 2.1% on a year ago. FIGURE 10. COMPOSITE INDEX OF ECONOMIC ACTIVITY: BAY OF PLENTY 6% 4% 2% 0% -2% -4% -6% Quarterly Change Year-on-Year Growth National Growth Source: ANZ FIGURE 11. UNEMPLOYMENT RATE, BOP VS NZ The housing market remained buoyant and still seems to be benefitting from a spill-over from Auckland into the region. House sales and prices, and the value and volume of dwelling approvals, were are all up in the last three months. The regional ANZ Truckometer ticked up in the March quarter, and is 6.4% above its March 2014 quarter reading, while business confidence remained steady. Regional exports are a modest 2.7% higher compared to the previous 12 months. Source: ANZ, Statistics NZ Bay of Plenty Date Region 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar15 1, % +2.1% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % +0.3% 12, % +0.6% Employment (s.a., Number, 000) Mar % +12.8% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 7.2% +1.9pts +0.6pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 3, % +19.0% 99, % +5.7% House Sales (s.a., Number) T Apr15 1, % +28.6% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +3.5% % +5.6% Days to Sell a House (s.a., Number) A Apr days -6days 35-1days unch Section Sales (s.a., Number) T Apr % +18.6% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % +6.7% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 2, % +12.5% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % -5.5% 12, % -1.5% Commercial Bldg Permits (s.a., Value,$M) T Mar % +34.2% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar15 1, % +3.8% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +6.4% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -11.4pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts +10.0pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

76 ANZ Regional Trends / May 2015 / 7 of 18 REGIONAL SUMMARY: GISBORNE Gisborne s economic activity rose by 1.3% in the March quarter to lift annual growth to 3.5%, the same as the national average. The housing market led much of Gisborne s economic activity in the last three months. House and farm sales, commercial permit numbers and the value of dwelling consents all rose strongly in the last three months. The ANZ Truckometer also posted solid growth, recording a lift of 2.6% in the March quarter, the second highest of all regions. FIGURE 12. COMPOSITE INDEX OF ECONOMIC ACTIVITY: GISBORNE 6% 4% 2% 0% There were mixed readings on the region s labour market. Gisborne s unemployment rate fell to 5.5%, and now sits just below the national average (5.8%). However, employment growth eased 0.9% in the quarter and internet job ads declined. -2% -4% Retail spending fell 4.3% in the March quarter. This comes after a large rise in retail sales during the December quarter. This was the second-largest quarterly fall recorded across all the regions in Q1. New car registrations also retreated following a large December quarter lift. Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 13. FARM SALES, GISBORNE VS NZ Consumers remain upbeat, with confidence lifting during the March quarter. On the other hand, businesses are now pessimistic about future prospects. This was largely due to a large fall in business confidence during the month of March. Business confidence showed signs of recovery in April, with a net 6% of surveyed businesses being optimistic about future economic activity. Gisborne Date Region Source: ANZ, REINZ 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % -2.8% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % -0.8% 12, % +0.6% Employment (s.a., Number, 000) Mar % -0.9% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 5.5% -0.7pts -0.8pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr % +4.8% 99, % +5.7% House Sales (s.a., Number) T Apr % +31.7% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % -1.8% % +5.6% Days to Sell a House (s.a., Number) A Apr days +2days 35-1days unch Section Sales (s.a., Number) T Apr % 0.0% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % +28.0% 2, % +2.5% New Car Registrations (s.a., Number) T Apr % -20.4% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % -26.3% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % +70.4% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % -0.3% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +4.5% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -15.3pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -1.2pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

77 ANZ Regional Trends / May 2015 / 8 of 18 REGIONAL SUMMARY: HAWKE S BAY Hawke s Bay recorded a solid 1.0% increase in activity in the March quarter. Despite this being the third consecutive lift in quarterly activity, annual average growth in the region, at 2.4%, still lags nationwide growth, continuing a trend evident since Buoyed by improving consumer confidence, which rose for the second consecutive quarter during the first three months of the year, retail spending lifted 1.2% in Q1, and was 6.8% ahead of spending 12 months ago. Regional exports also lifted in Q1 (+1.3%, q/q) and are up 16% on a year ago. Business confidence declined in the region in Q1. A net 25.5 percent of firms were optimistic about general prospects in the March quarter, down from in Q4. Despite the large decline in confidence, optimism amongst Hawke s Bay firms is in line with the national average of +26. Hawke s Bay firms rank the 6 th most optimistic across the regions. FIGURE 14. COMPOSITE INDEX OF ECONOMIC ACTIVITY: HAWKE S BAY 6% 4% 2% 0% -2% -4% Quarterly Change Year-on-Year Growth National Growth Source: ANZ FIGURE 15. INTERNET JOB ADS, HAWKE S BAY VS NZ Internet job ads lifted 10.7% in the last three months the highest increase recorded in any region and are up 18.5% on a year ago. This is consistent with a decline in the regional unemployment rate, which fell to 7.2% from 8.2% in the December 2014 quarter. Employment slipped 1.1% in the quarter, and the number of people employed in the region (78,000) was unchanged on a year ago. Hawke's Bay Date Region Source: ANZ, Trade Me & Seek 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % +6.8% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % 0.0% 12, % +0.6% Employment (s.a., Number, 000) Mar % -0.8% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 7.2% -1.0pts -1.0pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 1, % +18.5% 99, % +5.7% House Sales (s.a., Number) T Apr % +24.1% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +0.4% % +5.6% Days to Sell a House (s.a., Number) A Apr15 53 unch -2days 35-1days unch Section Sales (s.a., Number) T Apr % -11.8% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -2.5% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 1, % +10.6% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % -28.6% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % -2.7% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +8.3% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +4.8% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -13.3pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -1.2pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

78 ANZ Regional Trends / May 2015 / 9 of 18 REGIONAL SUMMARY: TARANAKI Taranaki was the only region to see a fall in economic activity in the March quarter. The level of activity contracted 1.4%, with annual average growth (+1.2%) at its lowest point since December The culprits seem clear; the region is an airplane taking on glider characteristics, with its traditional economic engines of oil and dairying not firing. Employment fell by 3.5% in the March quarter, and the region s unemployment rate ticked up to 5.5% from 5.0% in December. Internet job ads were down 19.4% on a year ago. Weaker activity was notable in retailing, which fell by 7.9% in the March quarter, the largest fall across all regions. Retail sales have fallen 6.1% over the past year. Paymark transactions were also subdued, as were car registrations, which fell 4.3% over the last three months. Regional exports fell 8.8% in the March quarter, to be 18.0% lower than 12 months ago. Households and firms remained optimistic, nonetheless. Business confidence lifted to a net percent of firms being optimistic about general prospects, up from +20 in the December quarter. Consumer confidence lifted in the March quarter, and is very close to the national average. FIGURE 16. COMPOSITE INDEX OF ECONOMIC ACTIVITY: TARANAKI 8% 6% 4% 2% 0% -2% -4% -6% Quarterly Change Year-on-Year Growth National Growth Source: ANZ FIGURE 17. BUSINESS CONFIDENCE, TARANAKI VZ NZ Taranaki s real estate market provided some positive signs. House sale rose 2.4% compared to the past three months. The number of dwelling consents and section sales also lifted the latter strongly but these sales numbers can be volatile from quarter to quarter. Taranaki Date Region Source: ANZ 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % -6.1% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % -1.8% 12, % +0.6% Employment (s.a., Number, 000) Mar % -2.3% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 5.5% +0.5pts -0.5pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 1, % -19.4% 99, % +5.7% House Sales (s.a., Number) T Apr % +4.5% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +2.0% % +5.6% Days to Sell a House (s.a., Number) A Apr days -3days 35-1days unch Section Sales (s.a., Number) T Apr % -5.9% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -21.0% 2, % +2.5% New Car Registrations (s.a., Number) T Apr % +4.1% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % +11.6% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % -28.7% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +0.4% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % -1.8% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -12.8pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts +2.7pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

79 ANZ Regional Trends / May 2015 / 10 of 18 REGIONAL SUMMARY: MANAWATU-WHANGANUI The Manawatu-Whanganui region posted a 1.8% quarterly rise in activity in Q1, the third-highest increase in the regions. The March increase followed a December fall in activity, with annual average growth easing to 2.9%. The real estate market lifted in the March quarter. House sales rose 12.5% and both the volume and value of new dwelling approvals lifted strongly in the last three months. House prices were relatively stable, lifting 0.4% in the last three months. The number of commercial building permits rose 6.7% in the March quarter, and in value terms were up 57.7%. Section and farm sales eased. Retail spending values increased 3.0% q/q the largest increase of any region in the March quarter, with values up 5.2% in the last 12 months. Quarterly exports rose 3.8% in March to be up 21.0% in the last 12 months. Business and consumer confidence firmed in the March quarter and now sit above the national average. FIGURE 18. COMPOSITE INDEX OF ECONOMIC ACTIVITY: MANAWATU-WHANGANUI 6% 4% 2% 0% -2% -4% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 19. HOUSE SALES, MANAWATU-WHANGANUI The labour market showed signs of improvement. Internet job ads were up 4.0% in the last three months, and are 8.9% higher than a year ago. Regional job ads have been lifting over the past several months, contrary to the national trend. The unemployment rate dropped to 7.2% down from 9.4% in the previous quarter, despite employment in the region dropping 0.3% in the March quarter. Manawatu-Whanganui Date Region Source: ANZ, REINZ 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % +5.2% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % -1.1% 12, % +0.6% Employment (s.a., Number, 000) Mar % -1.7% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 7.2% -2.2pts -0.3pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 2, % +8.9% 99, % +5.7% House Sales (s.a., Number) T Apr % +22.5% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % 0.0% % +5.6% Days to Sell a House (s.a., Number) A Apr days +4days 35-1days unch Section Sales (s.a., Number) T Apr % -43.8% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -2.0% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 1, % +10.0% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % +1.1% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % % 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +2.4% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +3.1% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -1.3pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts +2.7pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

80 ANZ Regional Trends / May 2015 / 11 of 18 REGIONAL SUMMARY: WELLINGTON It s steady-as-she-goes in Wellington, with growth of 0.4% in the March quarter taking annual growth to a relatively subdued 2.0%. Annual average growth in Wellington (+2%) has been below the national average since mid-2011 as a tight rein on fiscal spending has proven a strong headwind. The latest outturn ranks the Wellington region 12 th of 14 regions in the annual average growth rate stakes. The subdued nature of Wellington s growth this quarter was evident across a number of sectors. Retail spending, labour and real estate market activity were all weaker in March quarter compared to the December quarter. Fewer Wellingtonians are optimistic about the future of the economy compared to the December quarter, and this translated into only a modest lift in household spending. Retail spending lifted 0.7% in the March quarter and is up just 0.9% on a year ago. House sales activity dipped 3.6% over the last three months after lifting 19.1% in the December quarter, while house prices were flat on both a quarterly and annual basis. Rural property sale volumes increased 5.3% q/q over the same period, but section sales fell 8.0%. FIGURE 20. COMPOSITE INDEX OF ECONOMIC ACTIVITY: WELLINGTON 6% 4% 2% 0% -2% -4% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 21. RETAIL SALES, WELLINGTON VS NZ March quarter employment in the Wellington region fell by 2.3%. Annual employment growth fell by 3.3%. This is consistent with an annual decline in internet job ads, which have fallen by 5.7% in the last 12 months. The region s unemployment rate rose to 6.0% in Q1, and sits slightly above the national average of 5.8%. Source: ANZ, Statistics NZ Wellington Date Region 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar15 1, % +0.9% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr15 1, % +0.1% 12, % +0.6% Employment (s.a., Number, 000) Mar % -3.3% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 6.0% +0.7pts +0.5pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 13, % -5.7% 99, % +5.7% House Sales (s.a., Number) T Apr15 2, % +16.4% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % -0.6% % +5.6% Days to Sell a House (s.a., Number) A Apr days +6days 35-1days unch Section Sales (s.a., Number) T Apr % -13.8% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % +1.0% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 4, % +10.8% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar15 1, % +4.1% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % -51.6% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +5.3% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +1.8% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -0.4pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -0.9pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

81 ANZ Regional Trends / May 2015 / 12 of 18 REGIONAL SUMMARY: NELSON-MARLBOROUGH Quarterly activity surged by 2.8% in the Nelson- Marlborough region in the March 2015 quarter, the highest recorded of any region. Despite this, annual average growth was a more subdued 2.1%, ranking Nelson-Marlborough s growth the 4 th lowest of the regions. The bounce-back in March is welcome but the region has experienced lumpy and stop-start growth over the year. The commercial and real estate sectors provided much of the momentum for growth in the March quarter, while retail spending eased. FIGURE 22. COMPOSITE INDEX OF ECONOMIC ACTIVITY: NELSON-MARLBOROUGH 6% 4% 2% 0% The region s guest nights and occupancy rates lifted 4.1% and 1.6% respectively in the March quarter. These were the highest increases recorded across all regions in Q1. The ANZ Truckometer also increased (up 2.0%) in the March quarter, as did regional exports, although by a more modest 0.2%. -2% -4% Quarterly Change Year-on-Year Growth National Growth Nelson-Marlborough s real estate market showed some strength in the March quarter. House prices rose 4.0% on the back of lower house sales volumes (down 7.5% q/q). Section and farm sales both lifted in the last three months, the former by 20.9%. Both the volume and value of dwelling consents rose strongly in Q1. Source: ANZ FIGURE 23. GUEST NIGHTS, NELSON-MARLBOROUGH VS NZ Retail sales fell 0.6% q/q in March, with the volume of electronic transactions data falling by 3.7%. In spite of the quarterly fall, retail sales were 7.9% ahead of where they were last year. The region s unemployment rate fell 1.5 percentage points to 4.1% in the March quarter, well below the national average of 5.8%. This is the fourth-lowest recorded unemployment rate of any region this quarter. However, employment fell 0.8% in the March quarter. Source: ANZ, MBIE Nelson-Marlborough Date Region 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % +7.9% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % +2.5% 12, % +0.6% Employment (s.a., Number, 000) Mar % -2.2% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 4.1% -1.5pts -0.3pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 1, % +8.1% 99, % +5.7% House Sales (s.a., Number) T Apr % +11.6% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +4.7% % +5.6% Days to Sell a House (s.a., Number) A Apr days +2days 35-1days unch Section Sales (s.a., Number) T Apr % -6.9% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -10.2% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 1, % +5.2% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % +12.5% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % +78.4% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +4.4% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +4.7% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -5.9pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -14.4pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

82 ANZ Regional Trends / May 2015 / 13 of 18 REGIONAL SUMMARY: WEST COAST Our composite measure of economic activity for the West Coast lifted 2.7% in March, following a decline in the December quarter. This quarter s increase was the second highest of the regions. Annual growth eased to 1.3%. The West Coast is another region that experiences big swings in momentum from quarter to quarter, which in part can be put down to statistical noise but also to the region s small size. Looking at the broad trend shows the region has underperformed the national average for an extended period, and ructions in the coal industry mean this is unlikely to change any time soon. The increase in general activity across the West Coast in the March quarter was largely due to a pick-up in commercial activity, which is also reflected in a rise in business confidence. A net 19.7% of West Coast firms are upbeat about general prospects, up from a net +4.6% of firms in the December quarter. Regional exports led the way for the West Coast this quarter, lifting 8.0% to be 27.9% stronger than they were 12 months ago. Guest nights picked up 3.0% in the quarter and are 12.0% stronger than March Weaker retail sales in the March quarter (down 0.7%) may reflect a cautious household sector. Employment fell 0.6% during the March quarter, and was 1.8% lower than 12 months ago, while internet job ads have declined 21.0% y/y. The unemployment rate nonetheless fell to 3.8% in Q1, lower than the national average (5.8%). This is consistent with the pick-up in activity this quarter, but we suspect the decline may partly reverse, as regional labour market data can be quite volatile. FIGURE 24. COMPOSITE INDEX OF ECONOMIC ACTIVITY: WEST COAST 6% 4% 2% 0% -2% -4% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 25. BUSINESS CONFIDENCE, WEST COAST VS NZ Source: ANZ West Coast Date Region 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % -32.9% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % +1.3% 12, % +0.6% Employment (s.a., Number, 000) Mar % -1.8% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 3.8% -1.8pts -0.9pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr % -21.0% 99, % +5.7% House Sales (s.a., Number) T Apr % -1.8% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % -15.1% % +5.6% Days to Sell a House (s.a., Number) A Apr days +62days 35-1days unch Section Sales (s.a., Number) T Apr % +6.3% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -20.0% 2, % +2.5% New Car Registrations (s.a., Number) T Apr % +20.4% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % -16.2% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % -4.6% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +12.0% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % -0.3% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -0.3pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -14.4pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

83 ANZ Regional Trends / May 2015 / 14 of 18 REGIONAL SUMMARY: CANTERBURY The Canterbury region remains one of the nation s top performers, but momentum appears to slowing as the incremental impetus from the rebuild fades. It s an ongoing source of stimulus, just of a lesser magnitude. Quarterly growth (+0.2% q/q) was the second lowest recorded of any region and well below the national average (1.1%). That said, this was the 16 th consecutive quarter of growth in the Canterbury region. It was household spending that provided much of Canterbury s growth this quarter. With higher consumer confidence (+121 compared to a national average 117.4), total retail sales increased 1.5% in the March quarter to be 10.8% higher than a year earlier. New car registrations also lifted, up 6.0% in the latest three months, and are 12.3% above their March 2014 quarter levels. Canterbury retained the lowest unemployment rate in the country, at just 3.2%. This is slightly lower than the 3.5% recorded in the December quarter, and well below the national average of 5.8%. But employment numbers fell for the second consecutive quarter in March, and employment is now 7.5% lower than the same time last year. FIGURE 26. COMPOSITE INDEX OF ECONOMIC ACTIVITY: CANTERBURY 8% 6% 4% 2% 0% -2% -4% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 27. NEW CAR REGISTRATIONS, CANTERBURY VS NZ The region s occupancy rate crept up to 43.0%; this is the fourth highest behind Auckland, Wellington and Otago. Guest nights increased 3.9% q/q. Canterbury s housing market showed signs of easing. House sales slipped 0.4% in the last 3 months, while house prices lifted 2.4% q/q. Overall the median house price is 4.6% higher than 12 months ago. Section and farm sales fell over the last three months, while the volume and value of new dwelling approvals also declined. Source: ANZ, NZTA Canterbury Date Region 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar15 2, % +10.8% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr15 1, % +0.6% 12, % +0.6% Employment (s.a., Number, 000) Mar % -7.5% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 3.2% -0.3pts -0.1pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 17, % +2.7% 99, % +5.7% House Sales (s.a., Number) T Apr15 2, % +5.5% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +4.6% % +5.6% Days to Sell a House (s.a., Number) A Apr days +3days 35-1days unch Section Sales (s.a., Number) T Apr % -12.2% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -9.6% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 9, % +12.3% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar15 2, % -15.1% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % +67.6% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar15 1, % +7.6% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +3.3% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -16.3pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -4.2pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

84 ANZ Regional Trends / May 2015 / 15 of 18 REGIONAL SUMMARY: OTAGO Business sentiment across Otago remains higher than almost all other regions, and overall economic activity posted a solid gain in the March quarter (+1.7% q/q) after increasing 0.5% in the December quarter. Otago s year-on-year economic growth (+3.3% y/y) slipped to the 7th highest across the regions after consistently being in the top four regions during Otago recorded the strongest increase in house prices of any region in the last three months. House prices rose 8.2%, which goes along with a 2.1% increase in house sales volumes. Other parts of Otago s real estate sector were more restrained: farm sales increased 2.4%, while section sales declined 12.1% over the same period. The number of dwelling consents also fell, down 6.0% in the March quarter. Regional exports lifted 7.1% and the ANZ Truckometer recorded a 2.0% increase in the March quarter. Regional exports are 13.2% higher than a year ago. Otago s unemployment fell 0.9 percentage points to 3.6%, the second lowest across the regions. However, employment in the region fell 7.5% in the March quarter and is 4.1% lower than a year ago. Internet job ads showed no change in the last three months. FIGURE 28. COMPOSITE INDEX OF ECONOMIC ACTIVITY: OTAGO 6% 4% 2% 0% -2% -4% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 29. ANZ TRUCKOMETER, OTAGO VS NZ Retailing declined 0.5% in the March quarter. This follows a large increase in retail sales in the December quarter. The level of retail sales remains elevated compared to 12 months ago. Source: ANZ, Statistics NZ Otago Date Region 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % +0.7% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % +2.8% 12, % +0.6% Employment (s.a., Number, 000) Mar % -4.1% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 3.6% -0.9pts -0.8pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 3, % +13.4% 99, % +5.7% House Sales (s.a., Number) T Apr15 1, % +18.5% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +8.0% % +5.6% Days to Sell a House (s.a., Number) A Apr days -4days 35-1days unch Section Sales (s.a., Number) T Apr % -1.8% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -19.7% 2, % +2.5% New Car Registrations (s.a., Number) T Apr15 1, % +12.1% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % -1.5% 12, % -1.5% Commercial Bldg Permits (s.a., Value,$M) T Mar % +91.5% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar15 1, % +4.5% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +6.7% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts -10.0pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -4.6pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

85 ANZ Regional Trends / May 2015 / 16 of 18 REGIONAL SUMMARY: SOUTHLAND Southland s economy continues to expand, with evidence of broad-based growth this quarter. Regional activity lifted 1.3%, the third consecutive increase in quarterly growth. Annual average growth in March 2015 was 4.0%, above the national average of 3.5%, with the region still playing catch-up from something of a 2013 growth hole. The region s economic activity in Q1 was underpinned by a stronger labour market, lifting retail sales and improving commercial activity. Southland s real estate market slipped, but there were some positive signs. The labour market remains in good shape. Employment was up 1.3% q/q and is 7.1% higher than a year ago. Southland s unemployment rate rose 1.3 percentage points to 4.4%, but remains well below the national average (5.8%). Southland recorded the 5 th -lowest unemployment rate across the regions in the March quarter. Internet job ads lifted 10.3% in the last three months (+16.7% y/y). FIGURE 30. COMPOSITE INDEX OF ECONOMIC ACTIVITY: SOUTHLAND 6% 4% 2% 0% -2% -4% Source: ANZ Quarterly Change Year-on-Year Growth National Growth FIGURE 31. EMPLOYMENT, SOUTHLAND VS NZ The level of consumer confidence lifted in Q1, and retail activity picked up 0.7% to be up 2.5% y/y. Southland s exports rose 6.0% in the March quarter to be up 26.8% in the last 12 months. ANZ s Truckometer also increased in the last three months, up 2.4% q/q. House sales volumes and house prices fell in Southland over the past three months, although both remain higher than they were a year ago. Farm sales also slipped in the last three months. Forward indicators of residential activity including section sales were up, and the value and volume dwelling consents rose strongly. Source: ANZ, Statistics NZ Southland Date Region 3 Month Change Annual Change New Zealand 3 Month Change Annual Change Retail Sales (s.a., $M) Mar % +2.5% 19, % +7.6% Paymark Transactions (s.a., $M) T Apr % -1.8% 12, % +0.6% Employment (s.a., Number, 000) Mar % +7.1% 2, % +3.5% Unemployment Rate (s.a., %)L Mar15 4.4% +1.3pts -0.6pts 5.8% 0.0pts -0.2pts Internet Job Ads (s.a., Number) T Apr15 1, % +16.7% 99, % +5.7% House Sales (s.a., Number) T Apr % +11.8% 21, % +20.0% House Price (s.a., Median, $000s) A Apr % +1.8% % +5.6% Days to Sell a House (s.a., Number) A Apr days -1days 35-1days unch Section Sales (s.a., Number) T Apr % -18.2% 1, % +4.8% Rural Real Estate Sales (s.a., Number) T Mar % -33.7% 2, % +2.5% New Car Registrations (s.a., Number) T Apr % -2.5% 58, % +11.7% Dwelling Approvals (s.a., Number) T Mar % +18.1% 12, % -1.5% Commercial Bldg Permits (s.a., Value, $M) T Mar % -5.2% 1, % +15.6% Guest Nights (s.a., Number, 000s) T Mar % +9.8% 9, % +5.4% ANZ Truckometer (s.a., Index 2004=100) Mar % +3.8% % +4.8% Business Confidence (Wgtd, 3Mth Net Bal) A Apr pts +9.9pts pts -7.8pts Consumer Confidence (s.a., Index) Mar pts -7.2pts pts -4.3pts Source: ANZ, Statistics NZ, Westpac McDermott-Miller, Trade Me, LTSA, Paymark, SEEK, REINZ, NZTA. T =3 mth total, A =3 mth average

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88 Reputation Project Partner Relationships Digital Leaders Forum Regional Growth Study Implementation Whanganui & Partners Business Whanganui Whanganui in a Box Business Growth + Attraction + Start up Innovation Quarter Capital Market Regional Research Institute Events/Venues/Trusts review Visit Whanganui Education Whanganui Visitor Strategy (RTO) I-site Events & Conferences Cycle Trail Venue Marketing + Operations UCOL Partnership 100% Sweet Intranz International Students Increasing range of education available

89 Date: August 2013 Whanganui Visitor Strategy

90 Title: Wanganui Visitor Strategy Originator: Contact person for queries: Endorsed by: Approved by: Date adopted: Date by which a review should be carried out: Hubble ID: TRC Charlotte Almond, Strategy and Development Manager Visit Whanganui; Whanganui and Partners Wanganui District Council 2 September 2013 September Date: August 2013 Whanganui Visitor Strategy

91 Whanganui Visitor Strategy Executive Summary This visitor strategy was prepared by TRC for the Wanganui District Council, Visit Whanganui, Whanganui and Partners and wider community. It builds on the 2008 Visitor Strategy and links positively with the Wanganui 10 Year Plan, Family Friendly Strategy and Economic Development Strategy. The overriding goal of the Visitor Strategy is to acknowledge and increase the contribution that tourism makes to the local economy, lifestyle and wellbeing of Whanganui. Whanganui s destination marketing effort requires a number of inputs. The Marketing Plan will be informed by this Visitor Strategy, and a Marketing Strategy, which is in progress. These are underpinned by a suite of strategic documents. The list of actions in this document is a high level look at the most obvious first steps. It will be further developed in the work that flows from it. Date: August Page

92 Vision: Whanganui is a place where people want to live, want to work and want to visit. In achieving this vision, the strategy recognises that Whanganui has strengths and potential in four main areas (i) Mountains to the Sea Experiences, (ii) Arts, Culture and Heritage, (iii) Sports and Cultural Events and (iv) Weekend Escapes. The strategy includes the following goals and actions that will advance the performance of Whanganui in these four areas. 1. Leadership Outcome: Lead in a way that unites the industry GOAL 1: The Visitor Industry is a recognised body, Visit Whanganui GOAL 2: Whanganui and Partners engages Visit Whanganui to act on its behalf in tourism matters as Whanganui and Tourism Partners GOAL 3: Fully committed and engaged partnership with Council Actions guidelines: Complete the establishment of Visit Whanganui RTO as the representative body for tourism in the District. Complete associated strategies and plans. Confirm Whanganui s brand. Generate a positive public image for Whanganui. Initiate a Regional Tourism Summit. Maintain regular industry communications. Date: August Page

93 2. Compelling Experiences Outcome: Give visitors a strong reason for coming to Whanganui, to return and to refer onto others GOAL 1: Strong connections between the City and the River GOAL 2: A famous river journey GOAL 3: Events that raise profile and pride in Whanganui GOAL 4: Thriving arts, culture and heritage activities Action guidelines: Fully participate in and support regional opportunities. Connect Upokongaro to the city section of the M2C cycle trail. Recognise opportunities from the Whanganui River Valley. Identify events to be supported. Grow the conference market. Recognise and initiate plans for other iconic experiences. 3. Marketing and Information Marketing is the third critical success factor and Whanganui needs a lot more profile in nearby regions and internationally. Outcome: Collaborative marketing initiatives with an effective online presence. GOAL 1: An effective marketing plan GOAL 2: Smart partnerships with neighbouring regions GOAL 3: High performance i SITE GOAL 4: Informed decisions Date: August Page

94 Action guidelines: Prepare a marketing strategy and marketing plan. Develop a client database of specific market segments for building relationships and direct marketing activities. Maximise online and social media potential. Gather market intelligence. Pursue regional marketing opportunities. Integrate the i Site into RTO marketing and promotion activities. Date: August Page

95 Contents 1 Introduction 8 Who is it for? 8 How was it prepared? 8 Status of this document 8 Why do we need this? 8 Links with other plans and community goals 9 How will it be implemented? 9 2 Whanganui Visitor Industry Scorecard 10 A call to action 10 By the numbers 12 Whanganui has potential to grow the economic contribution from its tourism industry 13 A stronger coordinated focus on main markets can produce results 16 3 Long term Vision 17 4 The Strategy LEADERSHIP COMPELLING EXPERIENCES SMART MARKETING AND INFORMATION 23 5 Implementation Plan 25 Date: August Page

96 Introduction This is the Whanganui Visitor Strategy covering the period 2013 to It is an opportunity to coordinate and collaborate with industry leadership, form smart marketing partnerships, invest in the arts and events and create visitor experiences that connect the Whanganui River with the city and which make the Whanganui River Road more of a mustdo journey for visitors and residents. Who is it for? This strategy is for all those involved with the tourism sector including Wanganui District Council, Iwi, tourism operators, event organisers, the arts and heritage sectors, visitor attractions, and associated agencies such as Department of Conservation (DOC). Each has a role to play. Areas covered by the strategy include the Wanganui District boundary together with neighbouring regions Taranaki, Ruapehu, Rangitikei and Manawatu and major source markets such as Palmerston North and Wellington. How was it prepared? Preparation of this strategy took place between February and June Council engaged TRC Tourism Ltd to do this. Three industry workshops were held in Whanganui and at Koriniti along with one on one meetings and telephone interviews with Iwi, Council and Visit Whanganui, Whanganui and Partners, DOC, neighbouring Regional Tourism Organisations and tourism operators. Feedback was also provided online via Quick Topic. Status of this document This is a non statutory document that will be used to inform future updates to the 10 Year Plan, Annual Plan, Family Friendly Strategy and Economic Development Strategy. It will be used by the visitor industry and Council to make decisions on investment in the tourism sector. It is not a complete one stop shop of all the information needed to make decisions over the next 10 years. This is ever changing and up to date data needs to be used as and when decisions are required. The information on the tourism sector in this document is limited to the major indicators that show how the sector has been and is performing within the wider economy. Why do we need this? The visitor industry has and continues to play an important part in the Whanganui economy. It links with and adds value to other sectors including the arts, sport and cultural events, retail, education, conservation and heritage, also providing a rationale for investing in community recreation, leisure and other district amenities. Although a relatively small sector, the strategy can provide leadership, clear direction and focused investment from the public and private sectors. Success of the industry relies heavily on coordinated actions between the wider business community, tourism specific businesses, Council, and other agencies such as the Department of Conservation (DOC), Iwi Māori and sector organisations active in heritage, the arts, sports, events and attractions. Date: August Page

97 Links with other plans and community goals The Visitor Strategy adds value to and supports the core economic and community goals for Whanganui. These include: Family Friendly Strategy 2011 The visitor industry is a driver that supports the Family Friendly themes of Economic Prosperity, Community Partnerships, A Safe and Healthy Community, Active and Culturally Rich Community and Environmental Sustainability What's good for the community is also good for visitors WDC 10 Year Plan Council priorities are to reduce debt while continuing to enhance civic amenities with a balanced approach Potential earthquake strengthening work will be a major priority with serious implications for built heritage Tourism is a driver for heritage restoration and use Tourism is also a driver in some cases a key driver for the other civic amenity projects outlined in the 10 Year Plan Wanganui Economic Development Strategy 2012 The visitor industry is an important form of economic development for any community The Visitor Strategy links to Goal 2: 'Wanganui is a preferred location for businesses and visitors' The visitor industry has a part to play in encouraging visitors to come back, invest and live in Whanganui How will it be implemented? Implementation of the strategy will be under the leadership of Visit Whanganui, acting on behalf of Whanganui and Partners and in partnership with Wanganui District Council. Date: August Page

98 Whanganui Visitor Industry Scorecard A call to action There is a firm belief that Whanganui has plenty of potential to grow as a destination. Stakeholders agree that the tourism sector has and can continue to make the district a better place to live, work and play. This shows that the visitor industry fits perfectly with the Family Friendly Strategy, 10 Year Plan and Economic Development Strategy. Everyone spoken to supports a call to action. A simple SWOT analysis summarises the current situation and what lies ahead in terms of the challenges and opportunities. Strengths Cultural and built infrastructure in a laid back setting compares well to Eugene, Oregon, USA Rowing clubs on the river Whanganui River and Mountains to Sea experiences (river, road and coast) Arts and heritage especially glass art Successful quiet achievers in the business sector Mild climate, intriguing landscapes Boutique experiences Enchantment, cultural legacy, welcoming community Queens Park, Sarjeant Gallery, Whanganui Regional Museum, other historic heritage Castlecliff Beach to Kai Iwi coastline Active Mainstreet Group 2.5 hrs to Wellington, close to Palmerston North, Ruapehu and Taranaki, direct flights to Auckland Positive relationships with other Regional Tourism Organisations A reliable visitor stream of friends and family Collaborative relationships with Iwi and a unique river story that's unfolding as we speak Enthusiastic advocates, especially among new residents Opportunities Weaknesses Threats Lack of a distinctive "voice" for the district Limited sector leadership and collaboration at a District level (OK at a business to business level) Regional marketing and product development activity struggling to keep up with neighbouring regions Public image of Whanganui adversely affected by recent events Lack of action on the 2008 Whanganui Visitor Strategy Under utilised potential of the District s natural and cultural treasures Geographically difficult for people driving a direct north south route Lack of direct flights to every large metropolitan area in New Zealand Lack of profile nationally and internationally Integrating and highlighting Māori cultural dimensions across a wide range of visitor experiences Providing distinctive visitor experiences linking the River with the city Lack of self belief, focus or leadership Council industry relationships falter Investment in the tourism sector reduces Domestic and global economy Date: August Page

99 Making the Whanganui River Road one of the best river drive journeys in New Zealand Growing the profile and impact of the arts, heritage and events Becoming Wellington s new playground for culture, adventure, events and weekend escapes Castlecliff/coast events and activities, beach holidaying Riverside activities Retro rowing regatta and other quirky heritage feel events Waka on the river, coinciding with dragon boat season Mountains to Sea Western North Island partnership with Taranaki East west partnerships with Napier Sport Whanganui North Island school groups Partnering with the Chamber of Commerce Waste water treatment plant and other potential impacts on visitor experience (temporary) Recent initiatives have started to tackle the challenges and take up on the opportunities. A new industry council partnership (Visit Whanganui) has been established to lead marketing activity and industry collaboration, and will take the lead in the implementation of this strategy. Another key driver for the future will be Iwi Crown settlements regarding the Whanganui River. This will see Iwi Māori playing an important role in tourism and other sectors. The relevance, value and opportunity that this presents will be a game changer for the district. Date: August Page

100 By the numbers Nationally, the tourism sector is turbulent with mixed performance spread unevenly across the sector. Visitor arrivals to New Zealand from Australia are up just 1%, the UK, US and Europe arrivals are flat or declining. China is up over 35% and now our fourth largest market (Tourism New Zealand, 2013). Domestic tourism is relatively weak although the 2012/2013 summer, showed record numbers of kiwis camping and at the beach. 1 These trends are having a knock on effect on Whanganui, as seen in the headline statistics: Component Employment GDP contribution or share of total economic output Performance Between 5% and 7% compared with 9% to 10% nationally. Low average growth in employment in the last 10 years in Wanganui (0.2% per year) compared with nationally (2.6% per year). 2 Various estimates between 3.8% and 10% 3. Total visitor expenditure in 2009: $82 million with International visitors accounting for $16 million (19.1%) and domestic visitors the remaining $66 million (80.9%). By 2016 total visitor expenditure in Wanganui RTO is forecast to increase by $10 million (12.4%) to $92million, with international expenditure up $5 million (32.1%) to $21 million and domestic expenditure up $5 million (7.8%) to $71 million. 4 Visitor nights Total 167,767 guest nights for YE April 2013, down 5% on YE April 2012 (up 2% on April 2012). Domestic market = 79% of total visitor nights. 5 Total capacity est. 1,500 beds including motels (46%), hotels (21%), holiday parks (15%), B&B/other (14%), and backpacker (4%). Approximately 15 are Qualmark accredited. 6 Visitor arrivals Occupancy Total 835,000 arrivals forecast for 2016 increases expected from international markets, a decrease is expected from domestic markets these forecasts no longer available. Annual average estimated to be between 40% and 50% (some properties doing better). 7 Comparison with other nearby or comparable regions overleaf shows that Whanganui is experiencing a similar decrease in the annual volume of commercial guest nights. 1 Anecdotal feedback from holiday park tourism operators 2 Wanganui Visitor Strategy, 2008; BERL, 2008; Wheeler Group For the latest discussion on this refer to Wheeler Group s analysis in The Value of Built Heritage Assets in Wanganui, 2013 pp New Zealand Regional Tourism Forecasts , Wanganui RTO (August 2010) 5 Commercial Accommodation Monitor, Wanganui Visitor Strategy (little change since then) 7 Anecdotal reports from accommodation owners Date: August Page

101 RTO Nights 2011 Nights 2012 Nights 2013 Growth Rate Growth Rate Wanganui 172, , ,767 2% 5% Taranaki 547, , ,310 4% 2% Manawatu 468, , ,720 1% 5% Wairarapa 193, , ,130 6% 5% Gisborne 328, , ,967 0% 4% Source: Commercial Accommodation Monitor, YE April 2013 The most comprehensive overview of the visitation and expenditure data for Wanganui is available in two reports the Commercial Accommodation Monitor April 2013 for Wanganui (Statistics New Zealand) and the New Zealand Regional Tourism Forecasts , Wanganui RTO (August 2010). These should be read in association with this strategy. The error margins associated with the data in those reports are clearly stated, hence the actual figures should be used with a degree of caution. A call to action could greatly improve on these indicators. It is very encouraging to note that despite the statistics, there has been investment in new accommodation (two new 4 Star motels), cafes and restaurants, tours and activities in the district in the last 5 to 8 years. Whanganui has potential to grow the economic contribution from its tourism industry Whanganui could grow the economic contribution from its tourism sector through concerted investment in events, the arts, heritage attractions, supporting infrastructure for the Whanganui River Road and in building more activities that link the city with the River. Broadly speaking Whanganui has strengths in four main areas: Mountains to the Sea Experiences Arts and Heritage Sports and Cultural Events Weekend Escapes Date: August Page

102 Mountains to the Sea Experiences The Whanganui River lies at the heart of the district, offering a pathway and connection between the city, its communities and neighbouring regions. It is steeped in Māori and European history with intriguing stories to tell. Visitor experiences in Whanganui River National Park could be a lot more appealing with further public and private sector investment. A cluster of accommodation, café, kayaking, marae stay, jet boat businesses and other attractions (day and overnight walks, historic sites such as Kawana Flour Mill and villages such as Jerusalem) currently connect visitors with the River and there is room to grow this further, particularly between Pipiriki and the city and between the city and Upokongaro. The Mountains to Sea Cycleway is gaining popularity further up the River and the traditional rafting and kayaking journeys down the upper River to Pipiriki remain as popular as ever. Now is the time to add value, package activities and generally enhance visitor experiences along other stretches of the river. 8 For instance, a walking and biking trail linking Upokongaro with the city would enable a boat trip up and ride / walk / kayak back. That might stimulate more businesses to be based in Whanganui or an existing one to expand. An annual event could be held on this to grow its profile. Arts, Culture and Heritage The current estimate of the full value of heritage assets to the city s economy is approximately $40 million annually. 9 Standout heritage attractions include Queens Park, Whanganui Regional Museum, Sarjeant Gallery, Durie Hill elevator and tower and the Whanganui Riverboat Centre historic buildings. The No. 12 Tram and Tram Shed and Ward Observatory are also distinctive yet lesser known attractions. Wandering around the old part of town provides visitors with a delightful collection of historic buildings many used as offices, boutique shops and cafes. Whanganui has a reputation for being one of if not the leading destination in glass art and manufacture. The only glass school in New Zealand is located here. In addition to formal courses in glass art, fashion and design, the school also runs the highly regarded Summer School of Art in January. There are over 30 active glass artists in Whanganui, some with international reputations. The Chronicle Glass Studio in the old town is a must see. 8 Operators such as the Wairua, Whanganui Scenic Experience Jet Tours and Baldwin s Adventures are active on the lower sections of the River and are keen to explore further opportunities 9 Wheeler Group, 2013 Date: August Page

103 Sports and Cultural Events There are at least 30 events held annually having district, regional or national significance. It is estimated that these events draw well in excess of 65,000 people, of which more than 30,000 people are estimated to come from outside of Wanganui. 10 The Festival of Glass (September) attracts over 2,000 followers and organisers believe there is strong support for it to become a stronger national event. The Cricket Festival attracts about 3,000 visitors for three nights. The same applies for Artists Open Studios (60 studios open together over March / April each year) that could easily double its patronage given 50% of its participants are repeat visitors from out of town. Other key events include: Weekend River Traders Whanganui Market Cemetery Circuit (December) Celebrating Opera Week (January) Masters Games (every two years in February) Artists Open Studios (March) Pūanga Whanganui Matariki Festival (June) Glass Festival (September) Hoop Nation (October) Jet Sprint Championships (December) Billy Webb Regatta (December) Whanganui is recognised nationally for sporting strengths in cycling and rowing. In terms of the future, events will play an increasingly important role in building positive profile for Whanganui. Funding priorities should focus on those events that showcase the district s strengths in rich Maori and European culture, the River, arts and heritage. Weekend Escapes Whanganui is not really thought of as a weekend escape destination for nearby regions, especially the larger populations of Wellington and Palmerston North. Yet, there is plenty of Visitor Strategy Date: August Page

104 potential to attract couples and families and small groups of friends. More family friendly and boutique accommodation experiences would help, although it is recognised that current occupancy levels for most operators are lower than many other parts of the country. Whanganui could perhaps look to the Wairarapa in terms of how it has grown as a Wellington weekend escape largely based on historic buildings, quaint and quirky shops open on weekends (Greytown, Martinborough, parts of Carterton), events such as the Martinborough Wine, Food and Music Festival, other good food and wine with a drive time that is not much less than it is to Whanganui. In this regard, the look and feel of Whanganui is very important. This is true for residents and visitors who are either passing through to Taranaki, Ruapehu or staying for a weekend escape. Playing a crucial role in this is Mainstreet the rate funded organisation that looks after main street appearance, streetscape and amenities associated with Victoria Avenue. One of its challenges is convincing enough main street businesses to remain open during major events and long weekends. There are enough quirky and speciality stores in Whanganui that collectively could drive interest in weekend shopping from surrounding regions, much in the same way that Palmerston North has achieved over many years. The new i SITE situated beside a revamped river precinct demonstrates what could be achieved with further investment in amenities, businesses and services that connect the River with the city. The Whanganui i SITE has a key role to play in orientating visitors to the city and in enabling them to easily book and undertake activities. A stronger coordinated focus on main markets can produce results Whanganui has lost market share to other regions. The first priority is to gear Whanganui events, attractions and activities towards specific market segments in neighbouring regions, especially Taranaki, Palmerston North and Wellington. The next priority is with international visitors. Getting famous online will be the most effective way to provide visitor information and help drive conversion to visit Whanganui for domestic and international visitors. Mobile compatible information and campaign publicity will be essential. If the skills are not in house, then the best marketing investment will be to buy it and form a long term working relationship with the right supplier. Date: August Page

105 Primary domestic markets are: 1. Visiting Friends and Relatives (VFR) make up 46% of total domestic visitor nights and contribute towards 40% of total domestic visitor expenditure Weekenders from Manawatu, Wellington and Taranaki interested in soft adventure on or beside the River, arts and culture, markets and festivals, supported by quality boutique shopping and dining. 3. Nearby day trippers. They currently make up 45% of domestic visits to the district. 4. Event visitors from outside the district. 5. Conferences and conventions with up to 350 delegates. The primary international markets are: 1. Australia make up approximately 50% of regional spend from international markets. 2. UK, Germany, USA. 3. VFR market (especially from Australia and the UK). 4. Culturally interested/aware travellers. 5. International visitors to Ruapehu, Taranaki and Wellington (feeder regions). Long term Vision The long term mission is that tourism becomes a more important contributor to the Whanganui economy. That would mean moving from around 4% 5% of regional GDP towards 8% or 10%. That would see tourism as a more effective vehicle for strengthening Whanganui as an attractive place for people to visit and families to live. The Family Friendly Strategy vision is that Whanganui is the best place to live in New Zealand. The visitor industry can play a very useful role in achieving that vision. For tourism to play a bigger role, the industry and Council will need to continue and ideally increase its investment in Mountains to the Sea Experiences, Arts and Heritage, Sports and Cultural Events and Weekend Escapes. There are constraints around available funding, but a lot can be achieved by concerted and coordinated action by the key players Visitor Strategy Date: August Page

106 From a visitor industry view, the long term vision (2025 and beyond) is that: Whanganui is a place where people want to live, want to work and want to visit. Progress towards achieving this vision will be assessed by using the following indicators: Indicator Verification Interim Targets Contribution to regional GDP Economic survey Between 5% 7% by 2017 Employment Economic survey To be determined once baseline employment confirmed Visitor nights and expenditure Visitor satisfaction, propensity to return or refer onto others New or expanded events Public and private sector investment in accommodation, attractions, activities Community and public perception CAM and Regional Expenditure Reports, MBIE New annual visitor surveys Event calendar and event impact reports Annual Plans, building consents, resource consents, industry survey Annual perception surveys To be determined by Visit Whanganui as a minimum to return to positive annual growth To be determined by Visit Whanganui To be determined by Visit Whanganui To be determined by Visit Whanganui To be determined by Visit Whanganui, Council and Whanganui and Partners Date: August Page

107 Three development horizons are expected to fill the gap between now and the 2025 vision. These horizons tend to merge and overlap, where work on the longer term horizons needs to occur concurrently with the shorter term priorities. The first horizon involves achieving some quick wins. This involves fixing immediate sector issues between 2013 and 2015 in marketing effectiveness, public perceptions of Whanganui and industry collaboration. As much investment should be leveraged between 2015 and 2025 (accepting the constraints on funding) to strengthen the appeal of the destination and create compelling reasons to visit Whanganui. This will involve obtaining funding from a wide variety of sources simply relying on Council budgets will not be enough to take full advantage of the opportunities. Assuming these investments are made, 2025 onwards could signal a period of consolidation and ongoing enhancements to the investment period. Destination Development Horizons for Wanganui Solve immediate sector issues Leverage investment Consolidate growth Establish Visit Whanganui partnership with council Define markets Establish success measures Interpret & translate strategy to implementation/work programme Marketing Plan Leverage associations RTONZ, i SITE NZ Identify investors locally and further afield Involvement by Iwi in tourism increases River Road journey City River connections Arts, culture, heritage and events expansion Whanganui famous online River Road journey rated highly Thriving arts and events Plenty of City River experiences on offer Potential of cultural institutions fulfilled The Strategy LEADERSHIP Lead in a way that unites the industry Rationale Most regions and cities in New Zealand have clearly defined organisations responsible for marketing the destination. In these places, leadership for the tourism sector stems from councils (infrastructure, event funding, attractions, venues and access) and from their Regional Tourism Organisations (for marketing and sector communications). Whanganui is in the process of establishing sector leadership in a partnership arrangement between the industry (Visit Whanganui through Whanganui and Partners) and Council. Council and Visit Whanganui are looking at the full range of options ranging from a Regional Tourism Organisation (RTO) function being embedded within Council (such as Rotorua) to Date: August Page

108 stand alone RTO models such as Tourism Dunedin and Positively Wellington Tourism. Nationally, the trend for small to mid sized councils is to combine economic and destination marketing functions either within council or within a stand alone economic development agency (such as Venture Taranaki). Visit Whanganui would provide the operational management, influence and networks into the wider community and business world. The EDU team would provide the administration. Best practice for RTO boards and advisory groups is to appoint members with strong governance and business skills, even if these are outside the tourism sector. Outcomes 1. The strategy is owned and driven to effect operational outcomes. 2. Whanganui marketing activities and campaigns are being implemented effectively. 3. Marketing and product development partnerships are being formed with neighbouring regions. 4. Whanganui is an effective leader in partnership with regional tourism representatives. GOAL 1: The Visitor Industry is a recognised body, Visit Whanganui Action: This industry body will represent Whanganui and Partners on tourism matters and, through them, will form a partnership with the Economic Development Unit (EDU) of Wanganui District Council. GOAL 2: Whanganui and Partners engages Visit Whanganui to act on its behalf in tourism matters as Whanganui and Tourism Partners Actions: Complete the establishment of the RTO as the representative body for tourism in the District. Prepare and implement a three year marketing strategy and associated marketing plan. Complete the brand review project for Whanganui. Visit Whanganui supports Council and other community leaders in generating a positive public image for Whanganui. GOAL 3: Fully committed and engaged partnership with Council Actions: Initiate a regional tourism summit so the industry, Iwi, Council and others can Date: August Page

109 generate ideas, hear about progress with the destination as a whole, discuss and solve issues and network. Maintain regular industry communication. COMPELLING EXPERIENCES Give visitors a strong reason for coming to Whanganui, to return and to refer onto others Rationale The Whanganui region has some excellent market ready experiences and some of the infrastructure that has been developed recently on the riverfront in the city adds to this. The focus for going forward should be on strengthening existing and adding new activities for Mountains to the Sea Experiences, Arts and Heritage, Sports and Cultural Events and Weekend Escapes. The River Road is an exceptional resource that has potential to be developed into a great journey both on and off the water. The arts and events sectors are growing and can be easy wins for building on the current foundation and better leveraging the opportunities associated with them. Whanganui Iwi should also, post settlement, have resources to engage more fully in tourism. The focus for product development has been simplified and centres on Whanganui s core attributes, points of difference or easily scalable initiatives/products. The goals below reflect the four areas and subsequent actions to achieve them. Outcomes Whanganui is recognised as an appealing boutique destination within the North Island that has a range of experiences focused around arts, culture and the environment. Iwi play a more active role in the development of tourism in the region. The River Road is acknowledged as one of the best scenic drives in the country where visitors can immerse themselves in Māori and European culture, history, nature and discovery in a semi remote and mystical setting. Opportunities with the River are capitalised on to strengthen the connection between the River and the city. Whanganui s arts scene is nationally recognised, as is its events calendar. The lower North Island discovers Whanganui as a great place for short breaks, weekend escapes, and events. Air transport links with Wellington, Christchurch and Date: August Page

110 Dunedin are improved. Occupancy rates increase (or other measures as identified). GOAL 1: Strong connections between the City and the River Actions: Fully participate in and support regional opportunities e.g. Mountains to the Sea (M2C) cycle trail and Whanganui River Journey. Connect the Upokongaro to city section of the M2C cycle trail. Further develop combined river land activities between Pipiriki and Wanganui. GOAL 2: A famous river journey Actions: Identify and develop a range of roadside stopping places and appropriate infrastructure and amenities needed to support tourism. Develop the concept of a River Road Scenic Drive and create stories and interpretation to enrich the journey. Work with Journeys on the Whanganui to create and expand experiences along the River Road that complement the stories and interpretation themes. GOAL 3: Events that raise profile and pride in Whanganui Actions: Leverage off key events to promote Whanganui. Support the redevelopment of the Mountains to Sea Adventure Race. Strengthen and coordinate promotion of events. Re establish a conference bureau function so that Whanganui can better attract small to medium sized conferences. Assess the potential of existing or new events that will support the Whanganui brand. Date: August Page

111 GOAL 4: Thriving arts, culture and heritage activities Actions: Leverage off the existing offers of Whanganui's heritage and cultural institutions in promoting the city's overall experience. Identify key events to be supported. SMART MARKETING AND INFORMATION Collaborative marketing initiatives with an effective online presence Rationale Smaller and less accessible regions in New Zealand are looking at new and innovative ways to make their marketing dollars go further. Two of the main areas they are doing this are online and through partnerships with industry and, especially for long haul markets, partnerships with neighbouring regions. Some regions collaborate to market into Australia although most go it alone. Whanganui as a destination has been underperforming in this area. Under Journeys on the Whanganui the industry has managed to keep some aspects of promotion ticking over with international markets, but a more focused and coordinated effort is needed to build greater awareness of what Whanganui has to offer to its core markets. The effectiveness of the Te Kāhui Tupua marketing and product development alliance should be reviewed or refreshed. Getting famous online is now essential. This means having rich content, easy booking functions, an events calendar that is linked to social media and other campaigns so that specific market segments can be targeted with packages and other deals (for instance, for arts and glass festivals using a client database approach). As a starting point, a 3 year marketing plan should be prepared by Visit Whanganui and updated annually working in tandem with Council and other key partners. Outcomes Whanganui catches the eye of neighbouring regions with a clear and coherent brand, especially the Wellington market, evidenced by increasing bednights, day visits and participation at events. Increase in international visitor nights. Greater levels of industry contribution to marketing campaigns and activities. GOAL 1: An effective marketing plan Actions: Prepare a 3 year marketing plan that is updated annually. Maximise online and social media potential. Date: August Page

112 Develop a client database of specific market segments for building relationships and direct marketing activities. GOAL 2: Smart partnerships with neighbouring regions Actions: Pursue regional marketing opportunities. Formalise agreements with Visit Ruapehu for jointly marketing the Mountains to the Sea Great Ride. Increase cooperative activity and communications with neighbouring regions. Target visitor traffic moving between Wellington and Taranaki as well as Wellington and the Central North Island. GOAL 3: High performance i SITE Actions: Undertake 3 yearly reviews of the i SITE operations and overall business performance. Invest in training, product familiarisation technology and booking systems so that the i SITE plays a relevant and effective role in the visitor experience. Manage the i SITE so it is an integral part of marketing, communications and promotion activities. GOAL 4: Informed decisions Actions: Gather, monitor and report market intelligence. Date: August Page