University of Otago’s economic impacts across NZ

UNIVERSITY of Otago operations contributed $1.79 billion in total valueadded to the New Zealand economy last year, a new report has revealed.

The 2021 Economic Impact Report, presented to the university council yesterday, considers the actual expenditure of the university, and includes the estimated expenditure of its staff and students.

The university had 19,603 fulltime equivalent (FTE) students enrolled last year and is one of New Zealand’s largest employers, employing 4044 FTE staff in Dunedin, Christchurch, Wellington, Auckland and Invercargill.

University strategy, analytics and reporting director David Thomson said the greatest impact of the university was felt in Dunedin, where 92% of students were enrolled and 87% of all staff were situated.

‘‘We estimate that $1.13 billion of value was injected into the Dunedin economy by the university, its staff and students in 2021.

‘‘This equates to 17% of Dunedin’s gross regional product,’’

Mr Thomson said.

The university also accounted for an estimated 9% of the city’s workforce, with a total employment impact of 5581 FTE jobs.

‘‘In an economic sense, the relationship between the university and wider city in which we are based, is a mutually beneficial one.

‘‘Practically every sector of Dunedin’s economy is positively impacted by the presence of the university, but equally there are literally hundreds of businesses and organisations within the city that play their part in meeting the needs of the university, our staff and our students,’’ he said.

The university’s campus in Christchurch also had a particularly significant economic impact, where total value added in 2021 was $82 million, and the total employment impact was 355 FTE jobs.

The Wellington campus had a total value added of $68 million, and total employment impact of 321 FTE jobs; Auckland had a total value added of $10 million, and total employment impact of 47 FTE jobs; and Invercargill had a total value added of $5 million, and total employment impact of 20 FTE jobs.

‘‘Expenditure by the university and its staff and students has a direct influence on local economic development and the wider flowon effects are even greater with farreaching impacts across the economy,’’ Mr Thomson said.

‘‘While this report focuses on the economic impact of Otago, there are many other social and cultural benefits resulting from the presence of the university, such as knowledge transfers, human capital, and social capital enhancement.’’