ECONOMIC INDICATORS. The West Coast of NZ

ECONOMIC INDICATORS The West Coast of NZ 213

WEST COAST AT A GLANCE GDP $ 1.47billion GDP GROWTH 27-12 AVERAGE HOUSEHOLD INCOME $ 86, PER ANNUM Source: REAR 213 1.5%(NZ #2) PER ANNUM Source: BERL 213 POPULATION 32,148 BULLER DISTRICT: 1,473 GREY DISTRICT: 13,371 WESTLAND DISTRICT: 8,34 Source: NZ Census 213 BUSINESS CONFIDENCE EMPLOYMENT + 3.5pts ANNUAL CHANGE JULY 213 NZ: +4PTS Source: ANZ 213 15,56 FTE GROWTH 27-12 + 2.4% PER ANNUM Source: BERL 213

Background During 213 Development West Coast (DWC) completed its 1 year (213-223) Strategic Plan for the Region with a stated vision that, By 222 the West Coast will be a more attractive region to Live, Work, Invest and Visit. As part of this process a 3 year plan with key strategic priorities was completed and these will be DWC s focus in the immediate future. The Strategic Plan is consistent with DWC s Trust Deed to advance the West Coast community by way of promoting local employment and delivering economic benefits. The information in this report is divided into the four areas that DWC's 1 year Strategy for the Region defines and monitors; Live, Work, Invest and Visit.

Introduction The West Coast of NZ Economic Indicators Profile provides a compilation of the most up-to-date statistical information for our region. All economic indicators are important as they each capture a different aspect of a region s economy. Measuring business confidence, GDP and employment all assist in drawing specific conclusions on economic performance. However, it is often the case that no single all-encompassing measure is best for describing and evaluating the shape of an economy. The information in this report is based largely on research and analysis by BERL economics. Where applicable some information has also been gathered from a range of other agencies including Statistics NZ, the NZ Institute of Economic Research (NZIER), banking sector reports and other publically available resources. The actual monitoring period covered by the analysis in the report is determined by the availability of formal data and generally extends to the end of the 212 calendar year. Where possible more recent data from agencies that publish quarterly reports, for instance, has also been included. BERL s Regional Rankings 212, published in March 213, placed the West Coast in the top ten of NZ s regions at 6th place. 1 The key performance indicators that make up the regional rankings are: population, employment, GDP, business units and the Relative Openness Index, which provides a longer term measure of the gearing of the regional economy towards export focused sectors. The rankings reflect the ability of districts, regions and cities to operate within the national and international environment. In its 212 Regional Rankings report BERL comments, With a falling population, and issues around the mining sector, it will be interesting to see whether these growth rates are sustained. With the reliance on mining, dairy and tourism, life on the Coast has always been cyclical and coasters have built in resilience to ride those cycles. 2 Over the last year the West Coast region has begun to come to terms with the longer term impact of the Pike River Tragedy, the Christchurch Earthquakes and the review of Solid Energy s West Coast operations. Although there has been a decline in coal mining, the extractive industry as a whole remains the significant driver of the West Coast economy. 1 BERL Regional Rankings 212 2 BERL Regional Rankings 212 Pg 22

Document Prepared by: Helen Wilson Development West Coast November 213 ISSN 235-3475 (Print) ISSN 235-3483 (Online)

Contents West Coast at a Glance 3 Background 4 Introduction 5 LIVE on the West Coast 9 Population 1 Demographic Structure 1 Health Provision 11 Education Provision 11 Housing 11 Housing Rent 12 Community Facilities 12 WORK on the West Coast 13 Employment 14 Unemployment Rate 14 Sector Analysis 15 Business Units 15 Business Units Ranked by Number 16 Industry Sectors 17 Fastest Growing Industries 17 Household Income and Employment Growth 18 INVEST in the West Coast 19 Gross Domestic Product (GDP) & Regional Growth 2 West Coast GDP by sector 2 Planning and Local Government 2 Electricity 21 Road Traffic 21 Air and Sea Ports 21 Regional Government Expenditure Share 22 The West Coast Share 22 VISIT the West Coast 23 Visitor Numbers 24 Regional Overnight Visitation 24 Visitor Spend 24 Length of Stay 25 Tourism Expenditure 25 Concessions 25 National Park Visitors 26 Technical Notes for this publication 27 Sources 28

HOW WE COMPARE TO SIMILLAR REGIONS

LIVE ON THE WEST COAST HOW WE COMPARE TO SIMILAR REGIONS HOUSEHOLDS WITH BROADBAND Source: REAR 213 52% NORTHLAND 54% BAY OF PLENTY 55% TARANAKI 56% TASMAN / NELSON 57% WAIKATO 51% HAWKE S BAY 6% WEST COAST 51% GISBORNE 47% MANAWATŪ / WANGANUI 6% SOUTHLAND

8 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Population The population of the West Coast was counted at 32,5 in the 212 NZ Census. The small population is mainly spread along the coastal stretch of what is New Zealand s largest region. Population 15 14 Grey District 13 12 11 Buller District 1 9 Westland District 8 7 6 Source: Statistics NZ 5 1995 1999 23 27 211 215 219 223 227 231 Following a period of decline that ended in 22, the population of the West Coast has increased steadily. However, it has still not recovered to its 1995 level. The region s population is forecast to continue growing until around 216, but it is likely to remain broadly unchanged after that. By contrast, New Zealand s population has grown more-orless steadily during the period in question and is expected to continue growing. 8-84 Years 75-79 Years 7-74 Years 65-69 Years 6-64 Years 55-59 Years 5-54 Years 45-49 Years 4-44 Years 35-39 Years 3-34 Years 25-29 Years 2-24 Years 15-19 Years 1-14 Years 5-9 Years -4 Years Demographic Structure The structure of the West Coast s population is changing and ageing. Between 26 and 212 the region is estimated to have gained 31 infants (-4 year olds) but to have lost 65 five-to-nineteen year olds. The 3 2 1 1 26 212 Source: Statistics NZ 2 3 number of young adults (2-29 year olds) increased by 45 but the number of 3-49 year olds decreased by 1,23. The population of people aged 5 years and over increased by 1,96. The region's population of people aged 65 years and over increased by 1,5 people, or almost 25% of its 26 level. This ageing of the population has been most evident in Westland District where the number of people aged 65 plus is estimated to have increased by 32% between 26 and 212. The equivalent increases were 25% in Buller District and 18% in Grey District.

THE WEST COAST OF NZ ECONOMIC INDICATORS 213 9 Health Provision The performance of all District Health Boards is closely watched throughout the country. The results indicate that the West Coast DHB is broadly on a par overall with other DHBs in New Zealand. Last year, the West Coast DHB outperformed other DHBs in terms of shorter stays in the Emergency Department (ED) and help for smokers to quit. Performance Percentage 12 1 8 6 4 2 Shorter stays in ED Improved access to elective surgery Shorter waits for cancer treatment Improved immunisation Source: Ministry of Health Better help for smokers to quit West Coast DHB All DHBs Better diabetes & health checks In addition to the principal hospital in Greymouth, there are fourteen primary healthcare centres on the West Coast located from Karamea in the north to Haast in the south. There are also three private GP practices. Construction of a new $6 million hospital and adjoining Integrated Family Health Centre in Greymouth and $8 million Integrated Family Health Centre in Buller has been approved and is scheduled to be completed in December 216. Number of Education Providers 14 12 1 8 6 4 2 Education Provision There are 69 educational institutions in the West Coast ranging from early childhood education providers to tertiary providers. All three districts have early childhood and school provision, and Buller and Greymouth have campuses for the West Coast s tertiary provider, Source: Ministry of Education Tai Poutini Polytechnic. ECE Primary Schools Secondary Schools Composite Schools Buller District Grey District Westland District Private Schools Tertiary Providers In addition to traditional provider models the West Coast region also offers senior students two academy options: the Mawhera Services Academy and the more recent West Coast Trades Academy, which represents a partnership between all of the secondary schools, area schools and tertiary providers. Housing Index of House Prices 4 35 3 25 2 15 1 5 The housing market on the West Coast is fairly small and consequently prices tend to be more volatile. The longer term trend is clear however. Source: REINZ 22 23 24 25 26 27 28 29 21 211 212 213 Since 22, the average West Coast house price has risen by 16%, while the average price in New Zealand as a whole has risen by 12%. However, the average West Coast house price is only around 55% of the New Zealand average.

1 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Median Weekly Rent $4 $35 $3 $25 $2 $15 $1 $5 Housing Rent Source: Department of Buildings and Housing Rents are also lower on the West Coast than they are in New Zealand as a whole. In the first half of 213 the average weekly rent for a typical family home (i.e. 3-bedrooms) was $28 in Buller District, and $25 in both Grey District and Westland District. During the same period, the average New Zealand weekly rent for a 3-bedroom house was $35. Buller Grey Westland New Zealand Community Facilities Reflecting the attraction of the great outdoors, the majority of council operated facilities on the West Coast are parks and reserves. There is also a range of other publically and privately owned cultural and community facilities that are modern and attractive. Number of Council Operated Facilities 5 45 4 35 3 25 2 15 1 5 In the past five years all three districts have benefited from newly built swimming, sporting and cultural facilities including two indoor aquatic centres and the refurbishment of theatre and digital movie facilities. This has been largely due to DWC s provision of funds Halls Libraries Parks and Reserves Source: Buller District Council, Grey District Council and Westland District Council Museums Swimming Pools Theatres Buller District Grey District Westland District Other since 25 to each of the three District Councils enabling them to fund various community assets. The recent investment, both public and private, into cycleway and mountain biking trails has also been an exciting addition for the West Coast. The newly opened 136km Westland Wilderness Cycle Trail is already having a positive impact on our communities.

WORK ON THE WEST COAST HOW WE COMPARE TO SIMILAR REGIONS EMPLOYMENT GROWTH 22-212 Source: REAR 213 1.3% NORTHLAND 1.6% BAY OF PLENTY 1.7% TARANAKI.5% TASMAN 2.5% WAIKATO.8% HAWKE'S BAY 2.4% WEST COAST.1% GISBORNE 1.3% 1.4% NELSON MARLBOROUGH 1.3% MANAWATŪ / WANGANUI 1% SOUTHLAND

12 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 18, 16, 14, Employment Source: BERL Regional Database Employment on the West Coast has grown and unemployment tends to be low by national standards. FTE s 12, 1, 8, 6, 4, 2, 2 21 22 23 24 25 26 27 28 29 21 211 212 West Coast Buller District Grey District Westland District West Coast employment grew from 11,225 Full-Time Equivalents (FTEs) in 2 to 15,564 FTEs in 212, an overall increase of 38%. During that time, Buller District s total employment increased by 67%, Grey District s by 29% and Westland District s by 26%. By comparison, New Zealand s FTE employment grew by 25% between 2 and 212. Unemployment % 8% 7% 6% 5% 4% 3% 2% 1% Mar 8 Unemployment Rate Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Sep 9 Dec 9 Mar 1 Jun 1 Sep 1 Total New Zealand Dec 1 Mar 11 Jun 11 Source: Statistics New Zealand Sep 11 Dec 11 Total West Coast Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 The unemployment rate on the West Coast has tended to fluctuate because the economy is fairly small, but it is generally lower than the national rate. The latest figures show that the rate on the West Coast was 3.8%, compared to 6.2% nationally. In June 213 there were 92 West Coasters receiving the unemployment benefit, the lowest number since early 29. Unemployment measures the number of people who are not in work, but who are available for and actively seeking work.

THE WEST COAST OF NZ ECONOMIC INDICATORS 213 13 Sector Analysis When measured in terms of employment shares, the structure of the West Coast economy is markedly different from that of the national economy. In particular, the West Coast is much more specialised in the Primary sector than is the case nationally. Conversely, the West Coast is unspecialised in the Business Services sector. The table below highlights the relative specialisations of the three districts. Buller District s employment is highly focused on the Primary sector, Grey District s on Social Services (including education and health), and Westland District s on Retailing and Consumer Services. Buller District Grey District Westland District West Coast New Zealand Sector employment (FTE s) 212 212 212 212 212 Primary 37% 14% 16% 22% 8% Manufacturing 7% 9% 14% 1% 12% Construction 11% 14% 12% 13% 9% Wholesale and Distribution 6% 9% 5% 7% 1% Retail Trade and Services 16% 2% 28% 21% 17% Business Services 7% 8% 8% 8% 19% Arts and Recreation Services 2% 1% 5% 2% 2% Social Services 13% 25% 13% 18% 24% Source: BERL Regional Database Business Units Business Units 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Source: BERL Regional Database 2 21 22 23 24 25 26 27 28 29 21 211 212 West Coast Buller District Grey District Westland District The number of businesses on the West Coast increased from 3,464 in 2 to a peak of 3,98 in 28, before slipping back to 3,837 in 212. For the period as a whole, the growth in the number of businesses was 11%. This growth was roughly the same in each of the three districts. However, the number of New Zealand businesses grew by 24% over the same period.

14 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Business Units Ranked by Number The largest number of separate business units on the West Coast is in the Agriculture industry although the average business size is very small. For example, the 754 business units in Agriculture in 212 employed an average of just under two FTEs. Rank by business unit numbers Industry Employment (FTEs) %pa growth 22 26 211 212 22 to 212 1 Agriculture 894 85 756 754 19.7 2 Property 22 364 415 45 1.6 3 Construction Services 136 184 213 211 5.5 4 Accommodation 168 23 23 197 5.1 5 Other Store-Based Retailing 148 154 151 155 4. 6 Professional Scientific and Technical Services 16 116 154 147 3.8 7 Food and Beverage Services 142 153 141 139 3.6 8 Building Construction 74 113 14 131 3.4 9 Forestry and Logging 171 161 129 119 3.1 1 Repair and Maintenance 79 89 94 92 2.4 Source: BERL, Statistics NZ

THE WEST COAST OF NZ ECONOMIC INDICATORS 213 15 Industry Sectors Although the West Coast is known mainly for agriculture and mining, the economy is reasonably diverse. The top ten industries account for just over half of all employment and they span the range of economic activities. The amount of employment is measured in Full-Time Equivalents (FTEs) because a job might only be for an hour or two a week. FTEs are measured in units of 3 hours a week. Rank by FTE growth Industry Employment (FTEs) %pa growth 22 26 211 212 22 to 212 1 Tertiary Education 26 112 13 117 16.4 2 Medical and Other Health Care Services 91 346 391 414 16.4 3 Metal Ore Mining 9 64 172 42 16.2 4 Coal Mining 33 282 554 1,25 15.2 5 Machinery and Equipment Wholesaling 74 124 147 184 9.5 6 Construction Services 334 433 77 751 8.4 7 Heavy and Civil Engineering Construction 472 623 967 948 7.2 8 Professional Scientific and Technical Services 252 33 442 459 6.2 9 Repair and Maintenance 133 11 197 22 5.1 1 Heritage Activities 168 21 294 247 4. Source: BERL, Statistics NZ Fastest Growing Industries In terms of employment, the fastest growing industries on the West Coast in the last ten years have been Tertiary Education, Health services and Mining of both coal and metal ores. All four of these industries have enjoyed double-digit employment growth but increased employment has not been confined to just a few industries. Rank by FTE size Industry Employment (FTEs) 22 26 211 212 % of 212 total 1 Agriculture 1,62 1,253 1,393 1,464 9.4 2 Coal Mining 33 282 554 1,25 8. 3 Heavy and Civil Engineering Construction 472 623 967 948 6.1 4 Accommodation 747 882 93 853 5.5 5 Construction Services 334 433 77 751 4.8 6 Hospitals 628 612 734 721 4.6 7 Food Product Manufacturing 548 669 716 696 4.5 8 Preschool and School Education 71 65 654 682 4.4 9 Food and Beverage Services 596 668 661 678 4.4 1 Food Retailing 485 628 68 563 3.6 Source: BERL, Statistics NZ

16 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Household Income and Employment Growth The figure below shows a correlation between incomes and growth in job numbers. Jobs growth has been fastest in higher income areas like the West Coast, Waikato, Taranaki and Auckland and slowest in lower income regions like Gisborne and Manawatū-Wanganui. Regions that have been doing relatively well offer both job opportunities and good incomes to those who will move there. 2.5% Annual Average Growth in Filled Jobs, 22 212 2.% 1.5% 1.% LOW INCOME, HIGH GROWTH NORTHLAND BAY OF PLENTY OTAGO NELSON/TASMAN CANTERBURY MARLBOROUGH HAWKE S BAY NEW ZEALAND AVERAGE SOUTHLAND WEST COAST TARANAKI WAIKATO HIGH INCOME, HIGH GROWTH AUCKLAND WELLINGTON.5% Source: REAR 213 MANAWATŪ-WANGANUI LOW INCOME, LOW GROWTH GISBORNE HIGH INCOME, LOW GROWTH.% 5 55 6 65 7 75 8 85 9 95 Average Annual Household Income ($), 212

INVEST IN THE WEST COAST HOW WE COMPARE TO SIMILAR REGIONS AVERAGE HOUSEHOLD INCOME ( S) Source: REAR 213 6 NORTHLAND 72.7 BAY OF PLENTY 81.8 TARANAKI 54 TASMAN 81.6 WAIKATO 72.2 HAWKE'S BAY 86 WEST COAST 63.5 GISBORNE 9.6 73.5 NELSON MARLBOROUGH 66 MANAWATŪ / WANGANUI The West Coast makes up less than 1% of New Zealand s Population and Workforce. It spans the greatest distance in New Zealand and nearly two million hectares, or 87%, of the West Coast is protected conservation land and subject to concessional agreement with the Department of Conservation. Despite this, over the last decade the average household income for the region is now amongst the highest in New Zealand. 76.5 SOUTHLAND

18 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 GDP ($m) 16 14 12 1 8 6 4 Gross Domestic Product (GDP) & Regional Growth 2 Source: BERL Regional Database 2 21 22 23 24 25 26 27 28 29 21 211 212 West Coast Buller District Grey District Westland District The West Coast s GDP increased every year between 2 and 212, even though the increase was marginal in several years. For the period as a whole, the increase in GDP was 27%. By comparison, New Zealand s GDP actually fell in both 29 and 21 but its total growth between 2 and 212 was 33%. Within the West Coast over the same period, Buller District experienced a total of 38% GDP growth, Grey District 23% growth and Westland District 19% growth. West Coast GDP share by sector Buller District Grey District Westland District West Coast New Zealand Sector GDP 212 212 212 212 212 Primary 3% 14% 18% 2% 7% Manufacturing 11% 13% 18% 14% 14% Construction 7% 9% 7% 8% 5% Wholesale and Distribution 9% 12% 7% 1% 12% Retail Trade & Services 9% 11% 14% 11% 9% Business Services 1% 9% 9% 9% 25% Arts and Recreation Services 1% 1% 3% 2% 1% Social Services 9% 19% 9% 13% 15% Owner-Occupied Dwellings 13% 13% 16% 14% 13% Source: BERL, Statistics NZ Number of Non-Residential Building Consents 25 2 15 1 5 Planning and Local Government Source: Statistics New Zealand 2 21 22 23 24 25 26 27 28 29 21 211 212 Buller District Grey District Westland District Investor activity can be measured partly by the number of planning applications made to district councils. The number of non-residential building consents on the West Coast declined after 28, but has shown good signs of recovery since then. The decline after 28 is a reflection of the negative effect of the Global Financial Crisis on business confidence.

THE WEST COAST OF NZ ECONOMIC INDICATORS 213 19 ICP Connections Electricity 18, Source: Westpower Ltd and Buller Electricity Ltd 17,5 17, 16,5 16 155 4 35 3 25 2 15 1 5 Electricity Supplied (gigawatt hours) In line with population and economic growth, the number of electricity connections on the West Coast has increased each year since 26. However the total amount of electricity consumed was about the same in 212 as it was in 21. 15 21 22 23 24 25 26 27 28 29 21 211 212 Total Consumers West Coast Electricity Supply Traffic Volume Road Traffic 1,4 Source: Transit New Zealand 1,2 1, 8 6 Daily traffic flows on the West Coast vary from year to year and there is no obvious trend. However, the flows are very light by national standards and this is one of the factors that make the West Coast attractive. 4 2 29 21 211 212 Inangahua - north of township Lewis Pass - west of regional boundary Haast - just south of Haast River Otira - just south of Otira River Air and Sea Ports Air New Zealand flies twice a day on week days to and from Westport to Wellington. It also flies up to four times a day on week days to and from Hokitika to Christchurch. The West Coast also has two commercial sea ports, the larger of which is at Westport. The main cargos are cement, coal and timber. The volume of shipping has declined since about 25. 4, 25 1, Number of Passengers 3,5 3, 2,5 2, 1,5 1, 5 2 15 1 5 Number of flights Tonnes (thousands) 8 6 4 2 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 2 21 22 23 24 25 26 27 28 29 21 211 212 Total Flights- Hokitika Total Flights - Westport Total Pax - Hokitika Total Pax - Westport Buller Port Services (Westport) Port of Greymouth

2 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Regional Government Expenditure Share The Ministry of Business, Innovation and Employment (MBIE) and Treasury commissioned NZIER to produce the Regional Government Expenditure Report which gives an overview of the Government s current expenditure in New Zealand s regions. This report provides estimates of core Crown capital and operating expenditure by region in New Zealand to the fiscal year ended 3 June 212, unless otherwise stated. Regional expenditure broadly reflects the size of the population in each region. For example, the West Coast region accounts for.7% of New Zealand s population, the smallest and sparsest region population wise with.8% of government spending. In all regions, most government spending is on social welfare, health and education. On average, this accounts for about 67% of per capita expenditure in each region (West Coast - 69%). Average per capita government expenditure in New Zealand is estimated at $17,826 per person ranging from $21,364 per capita in Gisborne to $16,555 per capita in Tasman (West Coast - $19,824). Variations in government spending across regions reflect their different demography, needs and local economies. To access all the reports and view regional comparisons please refer to the Ministry of Business, Innovation and Employment s website http://www.mbie.govt.nz/ The West Coast Share.7% of NZ population, the smallest and sparsest region population wise, 1.4 people per km2 vs. 16 for NZ overall. The population age profile is similar to the NZ average with 65% of the population at working age compared to 66% across NZ. Population is forecast to grow only very slightly to 231,.1% p.a. vs..8% for NZ and.5% for NZ outside Auckland. Employment rates among the working age population are slightly higher than for NZ overall 66% vs. 63%. A very significant conservation estate (85% of land is legally protected conservation land) influences Heritage spending, and sparse, small population influences Transport and Health spending. Operating Expenditure (for June year 212) Capital Expenditure (for June year 212) Share of government spending Level Share $ per capita Level Level Share $ per capita Level $m % Region NZ Share of government spending $m % Region NZ Social Welfare 189.8 5,755 5,318 Social Welfare 5.3 142 396 Health 147 1. 4,455 3,233 Health 1.4 38 64 Education 78.6 2,379 2,736 Education 2.4 6 119 Core Services 16.4 48 924 Core Services 2.4 61 12 Law & Order 14.4 425 867 Law & Order 1.3 26 58 Transport 37 1.5 1,13 543 Transport 6.4 188 379 Defence 1.3 18 477 Defence - - - 126 Economic 12.6 359 435 Economic 4.7 113 119 Heritage 52 2.5 1,567 467 Heritage 6 7.4 192 19 Primary 3.5 12 156 Primary.1.7 4 4 Housing 1.4 37 72 Housing 1.7 45 47 Energy 6 2.3 176 58 Energy.2.6.5 1 Net Total: 584.8 17,758 16,168 Net Total: 29.4 868 1434 Total Operating and Capital Expenditure: 613 1.2 18,626 178,62 Shaded rows depict categories of expenditure where spending is above the national per capita level (in some cases it may only be fractionally above).

VISIT THE WEST COAST MOST POPULAR PLACES STAYED OVERNIGHT 12% BAY OF ISLANDS 69% AUCKLAND 37% ROTORUA 13% TAUPO 23% WELLINGTON 9% KAIKOURA 26% WEST COAST 38% CHRISTCHURCH 17% 42% FIORDLAND QUEENSTOWN 15% DUNEDIN BERL estimates that 9.1% of GDP on the West Coast is generated by tourism and closely related activities. Growth in spending from Chinese visitors to the region which increased by 114% in the 12 months up to March 213. Source: REAR 213

22 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Thousands of Visitors 1,6 1,5 1,4 1,3 1,2 1,1 1, Visitor Numbers Source: Ministry of Business, Innovation and Employment 26 27 28 29 21 211 International Visitors Domestic Visitors The number of international visitors to the West Coast was fairly steady between 26 and 21 but fell in 211. Conversely, the number of domestic visitors increased in 211 continuing what appears to be an upward trend that started in 28. The top three origins of international visitors are Australia, mainland Europe and the UK. By far the greatest proportion of domestic visitors comes from Canterbury. Percentage of Tourists 8% 7% 6% 5% 4% 3% 2% 1% Regional Overnight Visitation This graph separates overnight visitation of international tourists by NZ s Regional Tourism Organisations (RTO s). Over the year ended June 213 the West Coast was the fifth most visited place by international holiday tourists. Auckland RTO Queenstown RTO Canterbury RTO Rotorua RTO West Coast RTO Wellington RTO Mackenzie RTO Fiordland RTO Lake Taupo RTO Lake Wanaka RTO Nelson RTO Dunedin RTO Northland RTO Waikato RTO Coromandel RTO Marlborough RTO Hawke s Bay RTO Bay of Plenty RTO Waitaki RTO Southland RTO Ruapehu RTO Central South Island RTO Hurunui RTO Taranaki RTO Manawatu RTO Clutha Wanganui RTO Eastland RTO Central Otago RTO Wairarapa RTO Kapiti-Horowhenua RTO Kawerau-Whakatane Other Average Spend per Visit $11 $15 $1 $95 $9 $85 Visitor Spend Source: Ministry of Business, Innovation and Employment The average spend by international visitors fell sharply in 21, although this is not readily explained in terms of exchange rate movements given that most international visitors to the West Coast come from Australia. By contrast the average spend by domestic visitors has held up fairly well. $8 26 27 28 29 21 211 Domestic International Total

THE WEST COAST OF NZ ECONOMIC INDICATORS 213 23 Average Number of Days Length of Stay 2.5 2 1.5 1.5 Source: Ministry of Business, Innovation and Employment 26 27 28 29 21 211 Domestic International The average length of stay by both international and domestic visitors has been fairly stable during the past few years, although the average length of stay by international visitors increased a little in 211. Average number of days 2.5 2 1.5 1.5 Tourism Expenditure Source: Ministry of Business, Innovation and Employment For the year ended March 213 domestic and international visitors to the West Coast contributed $288m in total to the local economy through EFTPOS and Credit Card transactions. Accommodation Food and beverage serving services Other passenger transport Other tourism products 21 211 212 213 Retail Sales - fuel and other automotive Retail Sales - other Total Number of DOC Concessions 8 7 6 5 4 3 2 1 Concessions Source: Department of Conservation 2 21 22 23 24 25 26 27 28 29 21 211 212 Recreation & Tourism Non-Tourism DOC issues concessions (or licences) for a range of activities on the West Coast, including grazing, logging and telecommunications. The number of recreation and tourism-related concessions peaked at nearly 2 in 26 but has fallen to well under 1 in the last few years. The total value of these concessions to DOC has been around $2.5 million in the last three years.

24 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Thousands of Visitors National Park Visitors 7 Source: Department of Conservation 6 5 4 3 Measured by the number of visitors to the various DOC centres, the most popular locations are Punakaiki, Franz Josef and Haast. 2 1 26 27 28 29 21 211 212 Karamea Westport Reefton Punakaiki Hokitika Franz Josef Haast

THE WEST COAST OF NZ ECONOMIC INDICATORS 213 25 Technical Notes for this Publication Business Unit A business unit is a separate operating unit engaged in New Zealand in one, or predominantly one, kind of economic activity from a single physical location or base. FTE Employment Measured as the number of employed persons but in terms of full-time equivalents (FTEs), such that two part-time employed persons is counted as one full-time person. GDP Gross Domestic Product measures the total value contributed by the activities of all businesses and organisations in the region. In theory it is equal to the value of the output of business (i.e. sales or turnover) less purchases from other businesses of goods and services used in production. In practice, GDP is akin to the sum of wages, salaries, profits and operating surplus arising from all economic activity in the industry and/or region. House Price Index The Stratified Median House Price Index is a sophisticated measure of house price changes that takes into account differences between suburbs and locations. It was developed in conjunction with the Reserve Bank to better capture market trends. If in a month there were a larger number of sales in a higher value or lower value suburb than normal, the plain median is likely to be skewed to some degree. The Stratified Median House Price Index adjusts for any unusual change in sales mix to reveal underlying price trends. To use the Stratified Median House Price Index to best advantage, take the percentage change between one period and another (month/quarter/ year) rather than the level of the Index itself. ICP An ICP is an Installation Control Point at which a retailer is deemed to supply electricity to its customer. Each ICP has a unique number that identifies it as an individual power connection. PAX PAX is an abbreviation for passengers or for occupants of a hotel or a resort accommodation. This term was originally in the airline industry but is now used widely in the Tourism sector to denote paying passengers of a service. Resident population Population living in a particular area. Areas are based on Statistics New Zealand Census Area Unit Boundaries. RTO Regional Tourism Organisation. Sector A sector is an area of economic activity in which businesses or other organisations (e.g. government or voluntary organisations) share a similar market or produce a similar product or service. Unemployment Rate In New Zealand, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.

26 THE WEST COAST OF NZ ECONOMIC INDICATORS 213 Sources ANZ Regional Trends Available quarterly online at www.anz.co.nz/ commercial-institutional/economic-marketsresearch/regional-trends/ BERL Regional Rankings 212 Available from: www.berl.co.nz Minerals West Coast www.mineralswestcoast.co.nz NZ Tourism Quarterly Insights Available from MBIE s (Ministry of Business, Innovation and Employment) Economic Development Information website http://www.med.govt.nz/ Regional Government Expenditure Report REAR - The Regional Economic Activities Report, 213 The Regional Economic Activity Report presents available official economic data on New Zealand s 16 regions. The report, which will be annual, provides regional economic information sourced from a number of government agencies. Available from the Ministry of Business Innovation and Employment. http://www.mbie.govt.nz/what-we-do/businessgrowth-agenda/regions NZIER report to MBIE and Treasury, April 213. Available at: http://www.med.govt.nz/sectorsindustries/regions-cities/research/regionalgovernment-expenditure-report Statistics NZ www.stats.govt.nz West Coast Region Economic Indicators Final Report: October 213 Written by BERL, Commissioned by Development West Coast.

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