Possible ‘negative growth’ for Hamilton in first half of 2024
Hamilton was the country’s fastest growing city in the 12 months to June last year but it’s feared there could be some shortterm pain around the corner.
“Our outlook for the coming year is for economic growth to be sluggish with the possibility of negative growth in GDP in the first half of 2024,” a city council report due to be discussed at today’s economic development committee meeting says.
But the report, from economic development programme manager Mike Bennett, said: “Growth is expected to resume in the latter half of the year but will be slower than we have seen in recent years.”
House prices were expected to be relatively flat for most of 2024, increasing from September onwards, and the forecast for residential consenting suggested “we will continue to see a fall in activity for the remainder of the year”.
In a separate chairperson’s report, councillor Ewan Wilson said with “challenging” economic conditions nationally “there are early indications that several of Hamilton’s businesses are facing a slowdown for both services and products”.
This came at a time of “significant cost hikes” for business on various fronts.
Wilson’s report also again highlights what he called “very low dividends” from Waikato Regional Airport Limited, which the council has a 50% share in.
It indicates board director Margaret Devlin and finance and commercial general manager Scott Kendall could face another grilling over this at the hui.
Wilson’s report to councillors said: “I draw your attention to the opportunity to question senior managers at the Hamilton Airport about the airport’s future and the very low dividends announced again this year.”
In an interview yesterday, Wilson said annual total dividends remained flat at $500,000. He was disappointed and queried why the airport company didn’t borrow more to provide for higher dividends.
Wilson was also concerned about the company’s draft statement of intent for 2024-25.
“I don’t believe it reflects council’s clear expectation that dividends be increased.”
Another issue was the draft statement of intent “doesn’t clearly say they’re actively pursuing international flights”.
However, a report from airport chief executive Mark Morgan does highlight what Morgan calls “the first credible engagement with international airlines in a decade”.
He said there had been genuine inquiries into the possibility of scheduled trans-Tasman services to and from the city. Drivers behind this were Hamilton’s proximity to Auckland and as a destination in its own right.
Meanwhile, Bennett’s report said the new Made development in Hamilton East recorded about 75,000 visitors in the first two weeks of operations after first opening in November last year.
It had averaged around 40,000 visitors a week, the report said. That’s roughly equivalent to a city the size of Whanganui or Gisborne.
Made developer Matt Stark of Stark Property, said yesterday that initial numbers were higher than expected.
But they’d since levelled off to about 32,000 a week after Made’s “novelty” period, with most foot traffic coming at weekends..
Overall, he said: “It’s meeting expectations - that’s the feedback we’re getting from tenants.”