Bay of Plenty tops economic table
Region best performing in NZ despite Rotorua hit by lack of tourists
Slow growth in Rotorua’s hardhit economy has not stopped the Bay of Plenty from being ranked New Zealand’s top regional economic performer. Dairy, horticulture, wood and some of the best beaches in the country have seen the region’s economy rise three per cent compared to the same time last year. The national economy slipped back 0.3 per cent.
That’s according to the latest Infometrics Quarterly Economic Monitor showing regional economic performance over the three months to March.
A continued lack of tourism saw Rotorua’s economy continue to struggle but primary industries helped boost its growth 0.3 per cent.
Infometrics senior economist Brad Olsen said this was down to higher commodity prices, which supported economic activity in the region, with good returns for dairy, meats, horticulture and wood exports.
Tauranga and the Western Bay of Plenty were maintaining their economic strength — Tauranga was up 3.6 per cent and the Western Bay 3.1 per cent. Olsen said this was “not too bad, all things considered”.
He said the “bolstering” activity in the rest of the region, particularly the primary sector, “more than outweighed” Rotorua’s struggle. But
Whakata¯ne was the star performer, up 7.4 per cent.
Olsen said over the quarter there was “strong domestic activity, particularly coming through Whakata¯ne and the wider Eastern Bay of Plenty area.” However, he said there was still a “relatively tight” labour market in some sectors. He expected the “strong primary sector focus” in the Bay of Plenty “will certainly keep things in a much better position”.
He said there was uncertainty about how the tourism market would play out.
Rotorua Economic Development interim chief executive Andrew Wilson said higher commodity prices for dairy, meats, horticulture and wood exports had helped the city.
He said agriculture, forestry, wood processing, tourism, tertiary education, health, and manufacturing were
some of the major industries Rotorua counted on for long-term economic stability.
Rotorua was fortunate to have one of New Zealand’s most diverse economies to build on, he said, and these industries also attracted new business ventures and highly skilled residents.
He said there were still challenges ahead for businesses that depended on high visitor volume.
“While business confidence is much lower in this sector, the challenge of the last 12 months has also stimulated a lot of innovation from Rotorua businesses working hard to create interesting new products focused on the needs of New Zealanders.”
“With better global economic activity and the domestic vaccine rollout in the second half of the year,
we are optimistic about the path ahead.”
Eastern Bay of Plenty Economic Development Agency general manager Karl Gradon said there was no single factor behind the success of the Eastern Bay.
However, a low base to start from coupled with a “huge surge in confidence” following the Provisional Growth Fund announcements for the Eastern Bay, which saw more funding committed than any other area per capita.
He said the investments were supporting “catalytic” infrastructure rather than businesses which was “huge” for the area, and a thought-out move in creating jobs in the region.
“We have seen huge transitions from dairy and maize, to high-value horticulture. Most of the horticulture expansions are happening here, they’re not happening in the Western Bay where they used to.”
On top of that, the area’s beaches and sunny weather had drawn travellers unable to visit the likes of Fiji or Bali.
“People have had on their bucket lists places like the East Cape, Te Kaha, Te Urewera . . . they want to find the best beaches in the country and they’ve been getting out there.
“The best sunshine in the country is here. The best temperatures are here.
He said the growth across the region has been “incredible” — domestic tourism and kiwifruit had the best season ever, dairy had the second-best and the forestry sector was strong.
“We would agree that the peak over the last three months is a result of higher commodity prices, with good returns for dairy, meats, horticulture and wood exports.”
New Zealand Kiwifruit Growers Incorporated communications manager Mike Murphy said the 2021 season is forecast to be another recordbreaking year.
Kiwifruit production would overtake last year’s record of 157 million trays of green and gold. More than 80 per cent of the country’s kiwifruit is grown in the Bay of Plenty..
The industry contributed billion to the region last year.
$1.5