Sydney: a story for the world? Greg Clark April 2015
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The new mobility...not just FDI or tourism Visitors Research Film TV Production More opportunity and more risk What to promote? Who to promote? Lead? How to co-ordinate? How to retain? Marketing v Climate v Incentives? National, Local, Regional roles? Innovators Entreprene urs Institutions Increasing Mobility Investors Students Firms Events & Festivals 5
Where is the money going? Top 20 cities for commercial real estate momentum, 2015 Source: Jones Lang LaSalle 6 6
Openness 7
Waves of cities in globalization Cities (re)entering a global path 1492-1650 Antwerp, Genoa, Istanbul, Venice 1650-1780 Amsterdam, Guangzhou, London, New York 1780-1850 Berlin, Paris, Birmingham 1850-1914 1945-1973 1985-2007 2010- Bilbao, Liverpool Manchester, Rotterdam, Vienna Munich, Seoul, Singapore, Tokyo, Toronto Bangalore, Barcelona, Chicago, Sydney, Tel Aviv Colombo, Nanjing, Brisbane, Sao Paulo. 10 Traits of Globally Fluent Cities Securing Investment for Priorities Connectivity Compelling Brand Identity Leadership with a Worldview Enabling Government History of Global Orientation Opportunity and Distinct Appeal Specializations Culture of Knowledge Adaptability and to Global Innovation Dynamics
Types of Globalising Cities i. Established world cities ii. Emerging world cities iii. New World Cities iv. High Quality of life Cites v. Specialised centres vi. Port and airport cities vii. Visitor destinations viii. Knowledge hubs ix. Re-emerging capital cities x. New gateway cities What is a type? Origins Performance Aim Path Point in cycle Vote 2: Which one these most resembles Sydney? 9
Established World Cities SYDNEY
Emerging World Cities 30+ large or fast-growing cities competing for: Investment Financial and business services Air and port gateway roles Mobile talent Inter-regional relationships Top cities by GDP in 2030 Where are they improving? business climate (Taipei, Santiago) talent retention (Shanghai) infrastructure overhaul (Moscow) Strategic planning (Sao Paulo) Investment in culture (Istanbul) Organisations and institutions (Nairobi) Source: Oxford Economics 11
25 High quality of life (HQoL) cities Adelaide Amsterdam Auckland Barcelona Berlin Boston Brisbane Calgary Cape Town Copenhagen Frankfurt Melbourne Munich Perth San Diego Seattle Singapore Stockholm Sydney Tel Aviv Toronto Vancouver Vienna Zurich 12
What unites high quality of life (HQoL) cities? i. Attractive climate, scenic assets ii. Comfortable commute iii. Authentic culture with strong sense of belonging iv. High quality of amenities v. Walkable and inclusive communities - broad access to housing vi. Multiple sectors of employment vii. Liveability has become part of city identity and DNA viii.they compete on specialisation and QUALITY 13
4 Cycle City Strategy 4 th cycle 1 st Cycle Projects & Physical Renewal Promote the city Tourism Events FDI 2 nd cycle Strategic plans Infrastructure Specialist Agencies City brand New funding tools. Entrepreneurship Economic development. 3 rd cycle Growth & diversification Governance reforms Business Friendly City Investment Ready City Innovation/ Universities PPPs Metropolitan sphere Broader leadership Integrated brand Internationalisation Growth and externalities International scale Competitive benchmarking Eco-system management Business Leadership External governance reforms. 14
The Good News Sydney appears as both an established world city and as a new high quality of life city. Sydney is a winning city. There are are many assets and big opportunities. But what is the strategy for Sydney to shape and manage success and nurture it? Success exposes weaknesses, must be addressed to evolve. Are the different elements compatible? 15
Sydney metropolitan area s key economic statistics, 2014 Key economic indicators Population Greater Sydney 4.8 million Position globally 90 th GDP $223bn 47th 2009-14 GDP per capita growth p.a. 2009-14 Jobs growth p.a. 1% 1.4% The Business of Cities Ltd 2015 151st Sectoral make-up of Sydney s economy Sector Size Sydney s sector size compared to 14 peers Largest and smallest sector sizes among world cities Construction 7.4% 1 st Sydney (7.4%) Chicago (2.9%) Transportation 5.8% 2 nd Singapore (11.5%) San Francisco (2.5%) Business and Finance 39.2% 2 nd San Francisco (48.4%) Barcelona (22.9%) Commodities 0.8% 4 th Melbourne (2.9%) Chicago (0.2%) Utilities 1.9% 6 th Munich (3.5%) Toronto (1%) Public Sector Services 24.1% 9 th Berlin (34.7%) Singapore (9.9%) Singapore (23.6%) Manufacturing 8% 10 th Vancouver (6.8%) Trade and Singapore (21.3%) 12.9% 10 Tourism th 16 Berlin (9.7%)
Sydney s international performance and perception spidergram, compared to a basket of 30 peer cities (as of April 2015) 17
Sustainability Demographics and liveability Economic Clout Sydney Paris Toronto Hong Kong San Francisco Sydney Berlin San Francisco Milan Toronto Stockholm Singapore Paris Berlin Chicago Stockholm Singapore Chicago Hong Kong Milan 50 110 40 Paris Singapore Hong Kong Toronto Sydney Milan Stockholm San Francisco Berlin Chicago 50 City Gateway Ease of Doing Business Costs Paris Hong Kong Singapore Chicago San Francisco Sydney Berlin Toronto Milan Stockholm Singapore Hong Kong Toronto Stockholm Chicago San Francisco Sydney Paris Berlin Milan Berlin Chicago Toronto Stockholm San Francisco Hong Kong Singapore Milan Paris Sydney 40 160100 210 40 130 SOURCE: PwC (2014) Cities of Opportunity 18
Economic performance since 2000 among HQoL cities Source: Brookings Institution (2015) 19
Sydney s peers Most similar global services firms concentrations: Chicago, Dubai, Milan Sydney has risen from 13 th to 9 th since 2000 for global firm linkages (GaWC) Much improved investment profile now in top 10 for FDI flows. Most similar economic profile: Vancouver, Amsterdam, Tel Aviv Highly professionalised economy Diversified and well-balanced Most similar post-crisis performance since 2008: Berlin, Tel Aviv, Hamburg GDP ($US bns), 2014 GDP per Capita Cap ($US) Chicago 563 59,000 Singapore 365 67,000 San Francisco 331 72,000 Amsterdam 320 45,000 Toronto 276 46,000 Sydney 223 46,000 Munich 219 56,000 Melbourne 178 40,000 Barcelona 171 36,000 Berlin 158 36,000 Stockholm 142 56,000 Vancouver 109 44,000 Source: Brookings Global Metro Monitor 2015
Performance in Z/Yen Global Financial Centres Index 2007-14 21
Knowledge and talent A premier student city Strong entrepreneurial culture But others have stronger innovation systems, local educational attainment AT Kearney Global Cities Index, 'Human Capital' EIU/Citigrou p Hotspots, 'Human Capital' QS Best Student Cities AON People Risk Index 1 Boston 7 11 6 10 2 Toronto 8 23 9 3 3 Chicago 4 18 18 10 4 Montreal 19 25 8 4 5 Melbourne 12 38 2 21 6 Sydney 9 39 4 27 7 Singapore 10 36 15 2 8 Vancouver 49 22 12 10 9 Berlin 44 34 16 40 10 Barcelona 39 29 19 49 22
Business brand: catching up Business brand is 13 th globally, versus 2 nd strongest liveability brand and 5 th strongest entertainment brand (IPSOS-MORI, 2013) But not a leader for FDI promotion - Melbourne, Brisbane, Auckland do better (fdi Magazine) Strong commercial reputation in UK, Italy, Japan and Korea Weak in USA, Spain, Argentina (Anholt) Attractive conference economy: 3 rd regionally, 20 th globally (ICCA) % 12 10 8 6 4 2 IPSOS-MORI Best places to work, 2013 0 Zurich Berlin Singapore Sydney Toronto Amsterdam Stockholm Boston Oslo Auckland Copenhagen Cape Town 23 Tel Aviv
Main areas of competitive weakness Entertainment and Tourism brand much stronger than business brand. Political influence and engagement (42 nd globally AT Kearney) Innovation system Not world-class for R&D, start-ups, software/multimedia and commercialised knowledge MORI MF, 2thinknow, PwC, Startup Genome Half the high-tech employment of Toronto, Stockholm, London, Seattle (TBOT) Regional infrastructure and built environment Very low mass transit coverage by world city standards (PwC) High car-dependency for a world city (70% +) (TBOT) Very low density, lack of agglomeration, except in core city Affordability High rental, business and consumer costs 24
Overall Sydney has some features of Established World Cities and some of High Quality of life Cities but also unusual problems, and it appears to lack a strategy for addressing them: Sydney has 'world city' economic/investment profile, but a '2nd tier city' infrastructure profile. Density is 40% of London, 20% of New York and Singapore. The same density Los Angeles! (2,000 per km2) = planning and growth problems, reduces productivity and innovation. Integrating underused parts of metropolitan area is key to achieve scale, agglomeration, and density. But this needs a strong regional coalition, plan, infrastructure improvement, and intensification function. Sydney needs a metropolitan strategy. Software good, hardware weak. 25
What should Sydney do? i. Define its path to success. ii. Have a plan for scale, infrastructure, and density iii. Organise the metro region to shape its own development and destiny (a guiding mind) iv. Plan for population growth and affordability v. Build the business and innovation brand and story vi. Develop clear economic strategy for whole metro vii. Talent attraction and retention, improve education outcomes viii. Tell world why it is relevant with one clear story 26
City Identity, Reputation, Story Telling and Brand
what are brands? 3.50 2.20 Brands are simply stories that drive demand 28
what are brands? They signpost what makes you different 29
Identity, Vision, and City Brand Visitor Brand Innovator / Leader Brand Identity Integration Investor Business Brand Citizen Resident Brand 30
City branding means Intentional communication with defined audiences Purpose, Identity, Reputation, Opportunity Integrated brand or balanced brand Internal audiences and External audiences Systematic management of the experience to reflect the brand Constant improvement and updating Not logo, slogan, sales campaigns. Story telling..shared stories? Build a brand alliance. 31
Brand Alliances London
Brand Alliances New York Hong Kong Singapore 33
Brand toolkit: The narrative matrix Whatever experience you want, London offers it. Where ideas are shown and grown. Interest for every interest. Enjoy the richness of diversity. Heritage and here and now. At the leading edge of business creativity. Industrial revolution Knowledge economy Achieve potential test against the best Global centre for networks Experience and innovation. The generation of new thinking for a changing world. Experience, enlightenment and inspiration. Realise your creative potential. Magnet for arts and artists. Treasure house and greenhouse. Inventors, developers and supporters of every kind of sport. History resonates and spurs on to higher levels. Follow your passion. See the world s greatest perform. Metropolitan settings, open spaces. Where the world s finest minds have developed ideas. Knowledge and London never stand still. Fulfil your true learning potential. Access the world s knowledge here. Academic tradition and new learning.
City Branding Tools Alliance Ambassadors Narrative matrices Shared back office Data Photo bank Media watch Campaigns Bids Competitions and celebrations Strategies and Policies Celebrations Catalysts
Return on Investment in City and Metro Brands? Winning potential customers, visitors, jobs and investors? Yes but usually medium term and not a sales drive. More tax revenues? Yes, but long term and depends upon fiscal system and other things. More coherent city / metro? Yes, but needs more than branding. Better citizen support for city government? Yes, but can be slow and will not always produce votes. Better recognition of city in rankings and indexes? Yes, but other cities also trying this so it is a continuous game. More media coverage? Yes, but media looks for bad news. More support from other cities? No, more competition. More help from national government? Probably not!
Return on Investment in Regional Brands? Yes. Clarity Choice Catalysts Co-ordination Co-operation Confidence Continuity Customers
San Francisco Visitor brand Silicon Valley Business and innovation brand sights and scenery. events, people, history conventions, meetings, leisure travel. Metropolitan collaboration for Expo Bid Largest Destination Marketing Organisation Worldwide - 1,500 partners, $31m budget 38
Miami Markets as gateway to the Americas : 30+ Latin American headquarters Key logistics hub: trade worth $124bn Trade economy Target industries creative design, IT, aviation, life sciences Internationalisation policies: International Council to position as a global trade city Advocacy to host headquarters of the Free Trade Area of the Americas (FTAA) Miami: Where Worlds Meet - destination for MICE
Miami Promoting international trade Beacon Council s FDI initiatives = world-class international business promotion, despite being decentralised and diffused with informal mechanisms County-level agency with 10-15 full time staff, 2013 budget of $5 million. Example projects: Leads trade missions to numerous cities based on clear selection criteria Germany, South Korea, Japan in 2014. Sponsors of international trade and culture events, highly visible on global circuit Attracted over $500 million in investments Demonstrates that public-private cooperation and coordination can be highly effective Shows benefits of a narrowly-focused trade agency that avoids overlap and duplication. Successful alternative to heavily coordinated trade promotion capability
Amsterdam Metropolitan Area Amsterdam Economic Board (est. 2011) Encourages cross sector collaboration; provides information and support on business, finance and housing Focuses on 8 regional clusters: Creative industry; logistics; financial and business services; flowers and food; ICT/ e-science; Tourism and Conventions; Life Sciences and Health; High Tech Materials Members = CEOs, scientists, academics and public sector representatives Funded by government, industry and knowledge institutions Goal To be in top 5 European metro regions, secure a position as a global hub of commerce, people and information Results #1 place in Europe for tech start-ups #1 EIU Hotspots Physical Capital #6 Worldwide for Liveability (Global Power City Index) 41
Cape Town and Western Cape Regionally-oriented business brand Regional Economic Development Partnership convenes partners Regional promotion and investment agency WESGRO City-oriented visitor brand Focus on liveability assets, e.g. Wellness = clean air, healthy food, natural scenery Role of design, quality. Support regional goals of OneCape2040 42
Stockholm Business Region Stockholm City plus 49 surrounding municipalities 3.6 million inhabitants 43
Stockholm Business Region Stockholm - The Capital of Scandinavia Shared brand name for the Stockholm region Communication of scale Stockholm Business Region Development Official investment promotion agency for region Responsible for marketing and provision of information, advice and assistance to investors and companies Goals to become the leading sustainable growth region in Europe to become the world s most innovation driven economy by 2025 Results Region receives 43% of foreign investment in Sweden Stockholm ranked No 1 in European Investment Region of the Future 44
Barcelona Membership size: 200 Staff: Key initiative(s): 1 manager co-ordinates daily work. Board of 30 50 elected members. Working groups drawn from Board have responsibility for specific projects. Barcelona Open Talent Brand Barcelona School and Business Postcard to Business Card 45
What role for business groups in the city development system? Negotiate Advocate with Gov Attract & retention Reg collab Bus know how Comms & media CSR Int best practice Pay for activities X Party collab Wider particip 46
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