June 2015
GROWING
RUAPEHU
ECONOMIC
DEVELOPMENT
STRATEGY
2015-2025
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 1
CONTENTS
Executive Summary3
•
Six key themes 4
•
Council’s planned actions 5
•
Targeted tangible outcomes 6 - 7
Economic Development Strategy 2015-2025 Why have an Economic Development Strategy 9
Approach 10
Target one: Growing business development 11 - 12
Target two: Growing visitor numbers 13 - 14
Growing economic diversity15 - 17
Target three: Appendices
Who we are 18
Economic and business development 19
Government Business Growth Agenda 20
Regional Growth Study 2014-2015 22
Growth opportunities 23
Business profile 2014 24
Primary sector briefing notes 25
Tourism sector briefing notes 26 - 27
Key priorities identified by the community 28 - 32
Input from submissions to Long Term Plan 32 - 33
Challenges, Strengths, Opportunities, Weaknesses 33 - 34
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 2
Executive summary
A strategy gives direction and a framework for making decisions, undertaking actions and building change that
drives economic outcomes, as well as the ability to capture opportunities within the resources and capacity of
Council and the community.
Economic development cannot be sustained without successful business and community development.
This Strategy looks forward to realising the potential by focusing on what we can achieve and accomplish by working
with the community, iwi, business, developers and providers.
For this Strategy to be successful, Council needs to be able to influence, facilitate and advocate for change.
Feedback from the community consultation process (LTP 2015/25) confirmed that this Strategy was targeting the
right areas for development. The feedback from community is in Part Three ‘Appendices’.
This Strategy addresses:
•
Key actions and priorities identified by the
community,
•
The role of Council, as well as the,
Diversity & competing pressures of the:
•
Visitor industry,
•
Commercial and,
•
Rural communities, and,
Outlines the response and action points
for the next three years.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 3
Executive summary
Easing the red tape, without losing the ability to regulate when necessary is a priority for
Council. To do so, we need to look at more effective and supportive means of delivering our
services to the community while attracting new businesses and supporting existing ones.
Business
The infrastructure must support the community. Without it, the District cannot retain, create
and attract new businesses.
Council needs to ensure that the level of roads, water, access to high speed broadband and
policies that support the needs of new businesses are in place.
Ruapehu will advance faster with increased use of and improved technology. We need to
investigate innovative solutions and include hot spots, free WiFi and faster broadband.
Technology
Utilising technology will give business the ability to compete better on the national and
international stage.
The farming sector generates high quality produce and value and is set to increase
productivity.
Agriculture
We need to support infrastructure and policy that enables economic growth while protecting
natural resources.
Council needs to encourage and work proactively with the tourism industry.
Visitors
The qualities that attract people to visit here are also the qualities that will bring them back
and encourage them to live, work and do business here.
Economic growth innovation and productivity are dependent on having the right skill set
and workforce. Education, knowledge and skill is at the very heart of development.
Education
Education and information can be powerful change agents. They generate more informed
decision making. Council and other providers need to look for opportunities to work closer
together.
6
Partnership with others adds strength to our endeavours. There may be opportunities to
support iwi initiatives and to help Māori improve unproductive land.
Partnerships
Further exploration of the potential to lower costs to the community through working with
other local authorities in offering regional services will add value to the community.
KEY
THEMES
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 4
Executive summary
Council’s planned actions
The Growing Ruapehu Economic Development Strategy forms
part of Council’s Long Term Plan (LTP) 2015-25 with a ten year
horizon.
2015
As per the LTP the first three years are in more detail with specific
objectives inline with its renewal cycle.
2018
2025
The actions targeted by Council for the
next three years (2015-18) are:
•
Produce and adopt a business friendly policy.
•
Advocate for high speed rural broadband and
improved internet connectedness though out the
District
•
Focus the economic development effort on
projects that have demonstrable outcomes for the
community.
•
Enhance partnerships with our community
representative groups working on Township
renewal.
The actions targeted by Council further
out are:
•
Facilitate development of a Regional Brand initiative
•
Advocate for new walking and cycling opportunities
•
Implement town plans in stages
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 5
Executive summary
Targeted tangible outcomes
Business development support
Timeframe
Actions
•
Council develop
friendly policy.
a
business
•
Provide up to date information
for business about the local
economy.
•
•
2015
2016
2015
2016
Establish a case management
approach to facilitate new
investment in business.
2016
2017
Council continues to be involved
in business mentoring.
2015
onwards
Tangible outcomes
•
Increase in net number of
business start-ups
•
Economic development resource
information is available on all
Council media.
•
Success of new business
Broadband enhancement
Timeframe
Actions
•
•
Advocate for improved high
speed broadband services and
performance for communities
within the District.
Facilitate services to provide free
WiFi access for visitors to our
community.
2015
onwards
2015
onwards
Tangible outcomes
•
Infrastructure to support reliable
high speed broadband is in
place across all towns within the
district.
•
Free WiFi services are available
with our communities serviced
by high speed internet.
Visitor industry support
Actions
•
RTO Trust and i-Sites are
resourced sufficiently to deliver
increased value from the sector.
Timeframe
2015
onwards
Tangible outcomes
•
Visitors to the District grow.
•
Growth in value/income of the
sector improves.
Cycling and walking track assets
Actions
•
Timeframe
Existing trails are maintained
and enhanced where there is a
supporting business case.
2015
•
Facilitate groups to develop new
trails.
2015
2018
•
Advocate for new walking
and cycling opportunities in
Tongariro National Park.
2015
2025
Tangible outcomes
•
Walking and Cycling
networks are growing.
•
Visitors numbers to the District
grow.
•
Growth in value/income of the
sector improves.
2025
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
trail
Page 6
Executive summary
Township revitalisation
Timeframe
Actions
•
•
Ensure all business areas within
Ruapehu have town centre
destination management plans.
2016
Implement town plans in stages
prioritised by the community
over ten years.
2018
Tangible outcomes
•
Towns are considered as liveable
places.
•
management
plans
Asset
support renewal of town centre
assets.
2018
2025
Coordination and cooperation - deriving more from what we have
Timeframe
Actions
•
engages
in
coCouncil
governance and co-management
arrangements
2015
2025
•
Council advocates for improved
productivity from under utilised
land.
2015
2025
•
The
‘Business
Investment
Prospectus’
identifies
land
utilisation opportunities.
2018
Tangible outcomes
•
Council has a place within cogovernance and co-management
structures.
•
Business Investment Prospectus
is produced.
•
Greater sense of collaboration
between business, community
and Council.
2025
Regional brand development
Actions
•
Council facilitates development
of a Regional Brand initiative in
partnerships with agricultural,
business and tourism sectors.
Timeframe
Tangible outcomes
•
2018
2019
Regional branding is developed
that
supports
economic
development
and
allows
stakeholders to derive additional
value from participation.
Achieving targeted outcomes - who needs to be involved?
Although Council is taking a leadership role in driving Ruapehu economic development success will be
dependent on all district stakeholders supporting and engaging with the process.
This includes (but is not limited to); Ruapehu communities, iwi and hapu, businesses, business associations,
sector groups, government departments, utility companies, regional and national organisations, etc.
In-fact a stakeholder is anyone who has an interest in the future well-being (economic, social, cultural,
environmental) of the Ruapehu district.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 7
GROWING
RUAPEHU
ECONOMIC
DEVELOPMENT
STRATEGY
2015-2025
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 8
Why have an economic development strategy?
The purpose of this Strategy is to identify what actions council and the
community can take over the next ten years to stimulate economic development
in Ruapehu.
Council wants to achieve the potential that the Ruapehu District has to offer: a prosperous rural community that
capitalises on the agricultural, business and tourism sectors, while maintaining our outstanding rural and alpine
environments.
Transforming Ruapehu into a District known for its business opportunities, tourism opportunities, rural attractions,
lifestyle and beauty is the goal.
This Strategy gives Council the direction and a framework for making decisions, undertaking actions, and enabling
changes that effect economic and community outcomes, as well as the ability to capture opportunities within the
resources and capacity of Council and the community.
It derives its mandate from the Ruapehu District Council Long Term Plan 2015-25* (LTP), which outlines how planning
outcomes are to be achieved.
*A copy of the LTP 2015-25 can be viewed on-line at www.ruapehudc.govt.nz or at any Council office.
Sustainability and Affordability are two key principles that underpin the LTP with the definition of sustainability
being;
“… development that meets the needs of the present without compromising the ability of future generations to meet their
own needs.”
Fostering economic and business development is a core objective of Council, as it strives to make Ruapehu an even
better place to live, work, and play.
Other Council plans with which this Strategy also aligns include the Visit Ruapehu Destination Marketing Strategy
and various Community Plans.
The Strategy needs to be “flexible and living”, with the ability to meet challenges, direct resources and produce
results. It is a roadmap for the future.
Collectively, we can become more
economically viable by working
together to create an environment
that attracts others to live, work and
play here.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 9
Approach
Council’s approach to economic and business development issues is guided by the following:
•
Potential or expected costs are weighed against the potential or expected benefits to the District within business
case approach.
•
The extent any ‘externalities’ (positive or negative) justify Council action and investment.
•
The matters to be addressed are a District issue, not a regional or national issue.
•
The role Council plays (facilitator, advocate, provider, funder).
•
That no other agencies is responsible or able to provide for development.
•
That there is a demonstrated direct relationship between funding and the area of direct benefit.
Key principles
Council will focus on six key areas that underpin a culture that understands and responds to local business and
economic needs. This includes understanding and balancing the impacts that compliance requirements have on
business with broader social and environmental outcomes.
1. Build excellent relationships and partnerships – at the heart of a business friendly Council.
2. Identify local challenges and local business needs – context matters.
3. Provide certainty and clarity for business decision-making.
4. Make every interaction count.
5. Be proactive and look for opportunities to support businesses.
6. Respond rapidly and flexibly to businesses after major emergencies.
Strategy Contents
The recent research, consultation and economic data in the appendices have shown that the broad areas for
development can be grouped under the three headings:
•
Growing Business Development.
•
Growing Visitors and Recreation.
•
Growing Economic Diversity.
The Strategy targets a number of the Council Outcomes, specifically:
Leadership and Advocacy
Council is proactive, transparent, accountable, and takes an active, consultative approach to finding
solutions.
Thriving and Prosperous
Economy and Lifestyles
Regulatory services and reliable infrastructure help the economy prosper and support a range of quality
retail, entertainment, educational, health care, businesses and services.
Vibrant and Diverse Living
Events and festivals are encouraged and supported by Council activities.
Our Places - Natural and
Beautiful
That the promotion of our District includes our natural rivers, bush and mountains, as well as the built
heritage, agriculture and railways.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 10
“We have to provide for the current and future needs of the community with good quality local
infrastructure, local public services, and performance of regulatory functions, in a way that is cost effective
for households and businesses.” Local Government Act (10)
We need to ensure that Council is positive, helpful and
constructive and enables economic growth in the most
effective and efficient ways.
There is no one solution, but a series of small changes
that will change the direction of the future.
The challenge lies in making those changes alongside
our communities, businesses and other agencies.
Target one: Growing business development
Growing Business Development
The main business of Ruapehu is agriculture, but there is a variety of other businesses in the District, that cover
tourism, services as well as land based businesses. Dairying has increased in some areas but market gardening and
sheep and beef farming are still the main sources of economic prosperity, alongside tourism. Improvements to the
way we use the land and diversifying will encourage more investment and create more wealth in the area.
Making it easier for new business to set up, and looking at ways to incorporate short term (transient) businesses,
while ensuring that everyone pays the same for services and receives the same services where possible will add
value to the District.
Growing Ruapehu’s wealth
Nothing works in isolation and, to maximise the
potential of our District, many small changes need to
be made.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 11
High Speed Broadband
Telecommunications including ultra-fast broadband is essential infrastructure for existing and new businesses, for
the education of our young people, and social networking.
Ruapehu is proactive in seeking the best possible access as the Government funded fibre optic cable and Rural
Broadband Initiative are established within the District, alongside private sector wireless communication options.
Broadband enhancement
Actions
•
•
Advocate for improved high
speed broadband services and
performance for communities
within the District.
Facilitate services to provide free
WiFi access for visitors to our
community.
Timeframe
2015
onwards
2015
onwards
Tangible outcomes
•
Infrastructure to support reliable
high speed broadband is in
place across all towns within the
district.
•
Free WiFi services are available
with our communities serviced
by high speed internet.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 12
Target two: Growing visitor numbers
Information is key for increased tourism and local businesses. Information on the District and what we offer needs
to be easily available. It needs to be attractive and it needs to be up to date, for example, good website hubs and
portals that offer the right information is critical for this.
Increasing visitor numbers: Helps with skill building, and opportunities for people to find employment and by
increasing the visitor numbers in summer and shoulder months helps with year round employment opportunities.
Increasing the population: Whether it is holiday homeowners visiting more frequently or more permanent residents,
increasing the population will have a positive flow on effect for businesses and tourism.
We need to make it easier for people to spend weekends and longer periods
in the District and this means being able to work remotely and communicate.
Improved internet services would benefit this.
Tourism Development
New Zealand’s outlook for the tourism sector is positive. Tourism 2025 sets an annual growth target of 6% for
international tourism and 4% for domestic tourism.
These growth targets are focused on the growth in value (per person expenditure) rather than the number
of international and domestic arrivals to each region. Ruapehu is well placed to benefit from the rising tide of
international tourism that is occurring nationally.
Regional Tourism Organisations and i-SITES
The 2015 Visit Ruapehu Tourism Strategy has been devised to direct the development of this key pillar of the
Ruapehu economy. Implementation of the Strategy is primarily the responsibility of Visit Ruapehu Trust and our
i-SITES working with tourist operators and services providers, Tourism New Zealand and our inbound sectors.
Workstreams necessary for tourism to maximise its contribution to our community include facilitation of new
infrastructure, attraction of capital and skilled staff.
However, the primary role of Visit Ruapehu Trust is the promotion of Ruapehu, showcasing its specialist activities
unique to our destination. The Economic Development Strategy is intended to complement and support the Visit
Ruapehu Tourism Strategy.
Taumarunui i-SITE
Railway Station, 116 Hakiaha Street
Phone:
+64 7 895 7494
Fax:
+64 7 895 6117
Email:
[email protected]
Ohakune i-SITE
54 Clyde Street
Phone:
+64 6 385 8427
Fax:
+64 6 385 8527
Email:
[email protected]
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 13
Visitor industry support
Actions
•
RTO trust and i-SITES are
resourced sufficiently to deliver
increased value from the sector.
Timeframe
2015
2016
Tangible outcomes
•
Visitors to the District grow.
•
Growth in value/income of the
sector improves.
Cycle Trails and Walkways
Aside from benefits to individual businesses, our new cycle trails and established walking trails have provided health
and recreational benefits for local residents, have attracted more visitors to Ruapehu, increased the value of tourism
and raised the profile of Ruapehu.
This translates to a positive effect on our local community. Importantly, our new cycle trails have also attracted more
visitors to the district in the shoulder seasons between winter snow sport and summer alpine and river activities.
It is important given the many other cycle/walking trail opportunities being developed around the country that
Ruapehu capitalises on the success of the Tongariro Alpine Crossing, the Timber Trail and Mountains to Sea Cycle
Trail and continues to maintain, grow and develop new walking and cycling opportunities that generate growth in
our economy.
Cycling and walking track assets
Actions
•
Timeframe
Existing trails are maintained
and enhanced where there is a
supporting business case.
2015
•
Facilitate groups to develop new
trails.
2015
2018
•
Advocate for new walking
and cycling opportunities in
Tongariro National Park.
2018
2025
Tangible outcomes
•
Walking and Cycling
networks are growing.
•
Visitors numbers to the District
grow.
•
Growth in value/income of the
sector improves.
2025
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
trail
Page 14
Target three: Growing economic diversity
Our growth depends on many factors, including how Council provides services, the business environment, the
natural environment, government investment and regulations alongside our community. Council needs to be
positive, helpful and constructive and enabling of economic growth in the most effective and efficient ways.
There is no one solution, but a series of small
changes that will change the direction of the
future.
The challenge lies in making those changes
alongside stakeholders.
Council needs to find methods of attracting a diversity of business into the area. To help facilitate this, ease of
doing business with Council and other providers needs to be improved. Council can provide good, timely, accurate
information and improve internal processes.
Quality of place
Regional economic growth and diversity are driven by the location choices people make. For sustainable growth
Ruapehu needs sufficient and skilled labour supply to move our businesses forward. Quality of place is a critical
factor in attracting and retaining the people who stimulate economic growth.
If we are unable to provide the type of environment that attracta and retains talented people our economic
aspirations will falter.
Township revitalisation
Actions
•
•
Timeframe
Ensure all business areas within
Ruapehu have town centre
destination management plans.
2016
Implement town plans in stages
prioritised by the community
over ten years.
2018
Tangible outcomes
•
Towns are considered as liveable
places.
•
Asset
management
plans
support renewal of town centre
assets.
2018
2025
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 15
Improved utilisation of land, skills and other assets
Significant opportunity exists for improved performance from land utilisation. Opportunity in bee keeping, product
research and development for hemp fibre, trade based training and cultural tourism are examples of potential
projects that support social benefits derived from employment.
Coordination and cooperation - deriving more from what we have
Actions
Timeframe
•
engages
in
coCouncil
governance and co-management
arrangements
2015
2025
•
Council advocates for improved
productivity from under utilised
land.
2015
2025
•
Business
Investment
The
Prospectus
identifies
land
utilisation opportunities.
2018
2025
Tangible outcomes
•
Council has a place within cogovernance and co-management
structures.
•
Business Investment Prospectus
is produced.
Reversing population decline
Reversing our population decline and growing our population is a critical success factor to our future economic
wellbeing.
Key actions
Timeframe
•
Ruapehu promotes itself as a
place for business investment
2015
2016
•
Has a work force strategy that
can be delivered by Council and
community
2017
2018
•
Delivers a bi-annual Ruapehu
Job Summit.
2017
STARTING
2018
Tangible outcomes
•
Ruapehu population decline is
slowed and stabilised.
•
Our labour supply market better
meets the needs of business.
•
Unemployment is reduced.
•
Apprenticeship and job training
opportunities increase.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 16
The Ruapehu Story
We want to achieve the potential that the Ruapehu District has to offer to achieve a prosperous rural community
that capitalises on the agricultural, business and tourism sectors, while maintaining our outstanding rural and alpine
environments.
Collectively, we can become more economically viable by working together to create a destination that attracts
others to live, work and play here.
The Ruapehu story sets our district apart from other destinations and celebrates our differences in geology and
landscapes, our cultures, our business and our way of life.
Creating a Regional Brand will position Ruapehu as a place where every day begins with a sense of purpose and
ends with sense of achievement.
Regional brand development
Actions
•
Council facilitates development
of a Regional Brand initiative in
partnerships with agricultural,
business and tourism sectors.
Timeframe
Tangible outcomes
•
2018
2019
Regional branding is developed
that
supports
economic
development
and
allows
stakeholders to derive additional
value from participation.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 17
Appendices:
supporting information used in strategy development
Who we are
Ruapehu has a slowly decreasing population but, at the same time, a rising population of ‘Holiday Home’ owners,
people who do not live full time in Ruapehu but own property here for holidays and weekends.
Ruapehu has recently seen an increase in the numbers of residents in the 50-69 year age group and, alongside this,
a decrease in the number of couples without children.
We have more people living in accommodation by themselves (reflecting the lower cost of housing) but our youth
tend to move out of the District for further education (to Waikato and Palmerston North mainly) and retirees move
to Tauranga.
Almost half our population is Mãori, with most of our other residents being European descendants. Ruapehu is
slowly becoming more culturally diverse.
We are not as well off as the national average. Our cost of living is less than average (with rents being low) and access
to secondary medical care is constrained by distance.
Our dominant areas of employment are agriculture, with food and accommodation also high. We have more
‘recreational services’ (tourism operations) than the NZ average.
This shows that the Ruapehu economy is based on farming and tourism, with farming having the highest GDP, but
tourism the greater number of employment opportunities.
The trends show where opportunities for growth can be found.
Population - key facts
•
Slowly decreasing overall
•
Increasing non-resident (holiday) home owners
•
More people living on their own
•
50/50 Maori/Pakeha
•
We earn less on average than the rest of NZ
•
Farming has the highest GDP
•
Tourism employs the most people and offers the greatest job growth potential
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 18
Economic and Business Development
Economic Development
Economic development, in its broadest terms, is about the standard of living
of our people. Economic growth is essential to the wellbeing of the community
and underpins all social and cultural aspirations.
Economic development are outcomes of policy makers, individuals and communities that promotes, and improves,
the social, health, business and other opportunities of a specific area.
For Ruapehu, this means increasing and sustainable types of employment, regional benefits and sustainable future
for the District.
1. Driven by job creation
2. Focuses on the destination
The mission is to create jobs, and facilitate economic activity.
3. Attracts new businesses and entrepreneurs
The goal is to generate economic activity by attracting businesses
to locate and to operate in our communities.
The focus is the creation of economic activity within the geographic
destination.
This is done by promoting our unique characteristics.
The businesses sought are the ones that will create the most
economic benefits for Ruapehu and be sustainable.
5. Originates in the Public Sector
Because the beneficiaries are the people living in the District,
economic development mostly originates from public sector
organisations within the District.
6. Answers to the community
The community of people located in the District receive the
economic activity generated by economic development, and
Council is accountable to the community.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 19
Business Development
Business Development is the outcome that improves business confidence and the creation of employment.
1. Driven by profits
2. Focuses on markets
The mission of business is to create profits
The focus is identifying business opportunities in the marketplace.
The goal is for businesses to generate profits.
3. Creates new businesses
Profits are generated by creating sustainable businesses.
These businesses are located in the geographic location where the
business can generate the most profits.
5. Originates in the Private Sector
Because the beneficiaries of the business are individual owners,
business development usually originates in the private sector of the
economy.
6. Answers to investors
Investor and/or owners drive the business development process.
CENTRAL GOVERNMENT BUSINESS GROWTH AGENDA (BGA)
The Government’s Business Growth Agenda (BGA) is an ambitious programme
of work that will support New Zealand businesses to grow, in order to create
jobs and improve New Zealanders’ standard of living.
The BGA is delivering innovative initiatives and policy reforms that will help
create a more productive and competitive economy.
It focuses on six key “ingredients” businesses need to grow:
1. Export markets,
2. innovation,
3. infrastructure,
4. skilled and safe workplaces,
5. natural resources, and
6. capital.
Each of these has its own programme of work.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 20
The BGA aims to create jobs and boost incomes
The BGA aims to create jobs and boost incomes. Through the Building Export Markets stream of the programme the
Government has committed to the high-level goal of increasing the ratio of GDP to exports to 40% by 2025.
Currently New Zealand’s total exports of goods and services are around $61billion. This equates to 30% of GDP.
If exports were 40% of GDP today, that would mean they would be about $20billion larger which, to provide context,
is more than 50% larger than all of our current dairy exports ($12billion) or equal to a further 200 knowledge intensive
manufacturing or services companies each earning $100million per year.
To meet the target of 40% of GDP by 2025, the value of New Zealand’s exports needs to double in real terms. Put
another way, real export growth will need to average between 5.5% and 7.5% each year from 2016 to 2025.
To achieve this target there will need to be a shift of investment away from production of goods and services for
the domestic economy towards international markets. Investment will need to flow to opportunities in the export
sector and our people will need the ability and skills to shift in response to changing demand.
The extension of irrigation will open up exciting opportunities in the pastoral, cropping, and vegetable sectors will
create investment can be attracted to make them happen. Initiatives such as the roll-out of ultra-fast broadband will
are creating new opportunities for both existing and new businesses to generate high-value services exports which,
as a result of the expansion of global supply chains, is a sector that is increasingly important to international trade.
How Ruapehu can contribute to the achievement of the government’s Business
Growth Agenda goals is important.
While already focused on providing goods and services to consumers outside
the District, through export of primary produce and tourism, Ruapehu has the
capacity to lift its contribution to the 40% of GDP export target.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
June 2015
Page 21
Regional Growth Study 2014-15
This study is part of a series of in-depth regional growth studies being undertaken by MBIE and MPI, using
independent consultants, and working closely with local and regional stakeholders.
The purpose of the study is to identify and evaluate regional growth opportunities
that align with the BGA, increasing employment and incomes in the region.
The focus is on tangible specific opportunities which can attract investment to the region by identifying a small
number of well analysed opportunities, perhaps 4-6 opportunities. The study will help inform this Economic
Development Strategy and action plan for the future
Some opportunities might be specific to a business or cluster of businesses, others might relate to sectors more
broadly. A sector focus could involve extension of current specialisations, growth of associated sectors or new or
emerging sectors/sub-sectors. This may include the accommodation and adventure activity sector. Others might
relate to sectors more broadly, such as tourism.
The study will also look at how the regional business environment enables or constrains opportunities. There will
be an emphasis on identifying people and organisations to take opportunities forward. It will inform NZ Trade and
Enterprise’s investment attraction programme.
The Region is expected to act on the findings and recommendations of the Regional Growth Study to fully implement
the Central NZ Agribusiness Strategy, which is being developed in the region.
Opportunities will not be limited to agriculture and it is expected new opportunity will be identified in the Ruapehu
Tourism sector.
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Growth opportunities
Economic activity
Although the Regional Growth Study is only partially completed preliminary assessment has identified the following
opportunity areas within Ruapehu:
•
Expand Manuka honey production
•
Expand fresh vegetable export production
•
Expand beef, lamb and dairy production
•
Expand tourism assets and use numbers and increase visitor nights
The research and conversations undertaken as part of the Study have indicated that growth and employment
opportunities will be achieved by expanding and making better use of existing attractions, for example, adding
depth and variety to the Tongariro Crossing experience by expanding guided walks covering the many cultural,
landscape, volcanic and other educational elements of the area.
Table 1 Economic Activity (Ruapehu)
Sum of Spend ($millions)
Product
Year Ending March
2009
2010
2011
2012
2013
Accommodation
25
23
22
22
21
Food and beverage serving services
15
14
14
14
13
Other passenger transport
2
2
1
2
2
Other tourism products
25
27
22
21
18
Retail sales - fuel and other automotive
36
37
35
35
36
Retail sales - other
12
13
14
13
13
116
116
109
107
103
Total
2014
Leveraging exisiting agricultural based
industries such as farming, horticulture
and bee keeping offer significant growth
opportunities.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
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Business profile 2014
Business Profile 2014
With 641 business units, the primary sector contained the largest number of business units (or 36% of all business
units) in 2014. The sector has experienced the largest decline over the past decade.
The decline in business units in the primary sector is in line with the general trend seen nationally. This is mainly
occurring because farming businesses are merging to gain economies of scale and lower their costs of production.
In 2014, this decline in business units may have also been a residual effect of the drought experienced during the
year which saw one of the lowest lamb crops in 60 years. Business service units on the other hand have shown some
resurgence in numbers, particularly since 2012.
Table 2 - Summary of Business Units, Ruapehu District, 2004 to 2014
Business Units (Number)
Sector
%age Change
2004
2012
2013
2014
2013
2014
2004-14
837
692
658
651
-4.9
-2.6
-2.6
44
36
36
38
0.0
5.6
-1.5
115
136
137
133
0.7
-2.9
1.5
85
85
77
74
-9.4
-3.9
-1.4
Retail Trades and Services
287
267
259
258
-3.0
-0.4
-1.1
Business Services
377
416
432
450
3.8
4.2
1.8
Primary
Manufacturing
Construction
Wholesale and Distribution
Arts and Recreation Services
Social Services
Ruapehu District
New Zealand
44
52
47
50
-9.6
6.4
1.3
137
125
120
121
-4.0
0.8
-1.2
1,926
1,809
1,766
1,765
-2.4
-0.1
-0.9
454,826
504,381
507,908
523,043
0.7
3.0
1.4
Just over 75% of all business registered in the District belonged to three
sectors: the primary sector (36%), the business services sector (25%) and the
retail trade and services sector (15%).
Over the past year, the number of business births was stable, with the same number of births in 2014 as 2013.
There were no or fewer business deaths across all eight sectors compared to 2013. This may reflect the improving
conditions for the primary sector in particular over the year, which saw higher international prices and export
volumes for dairy, meat and wool and forestry.
Most businesses in the District are small owner operated enterprises with nearly 62% of all business units indicating
that they had zero employees. The second largest group based on total employee size was the 1 to 5 group which
recorded 461 business units. At the other end of the scale, the District still had only two businesses which employed
100 or more people.
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Primary sector briefing notes
The primary sector has struggled somewhat throughout the past decade. It is worth noting that despite the falls
seen throughout the decade the primary sector has showed some more positive signs in the last few years, with
employment rising in 2013, and only a negligible fall in GDP for 2014.
Table 3 - Summary of Primary Sector, Ruapehu District, 2004 to 2014
Totals
%age Change
Primary Sector
2004
2012
2013
2014
2013
2014
2004-14
Employment (FTEs)
1,606
1,232
1,298
1,268
5.4
-2.3
-2.3
GDP (2014 $m)
137
97
95
95
-2.1
-0.2
-3.6
Business Units (Number)
738
692
658
641
-4.9
-2.6
-2.6
(Source BERL, Regional Database 2014)
The primary sector employed 1,268 full time equivalent (FTE) employees for
the year to March 2014. and remains the biggest contributor across all three
indicators in the District.
Ruapehu District Council : Economic Development Strategy - Growing Ruapehu 2015-2025.
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Tourism sector briefing notes
New Zealand’s outlook for the tourism sector is positive. Tourism 2025 sets an annual growth target of 6% for
international tourism and 4% for domestic tourism. These growth targets are focused on the growth in value (per
person expenditure) rather than the number of international and domestic arrivals to each region. Ruapehu is well
placed to benefit from the rising tide of international tourism that is occurring nationally.
Home to the North Island’s two largest and most developed ski areas, Whakapapa and Turoa, the Ruapehu District
is a prominent winter sports destination in New Zealand. With two National Parks and various hiking and mountain
biking trails, the diverse natural landscape of the District makes it a drawcard for sports and nature enthusiasts alike.
It has also played host to various film projects, most notably the Lord of the Rings and The Hobbit trilogies.
With extensive outdoor summer and winter attractions the tourism sector in Ruapehu District is heavily dependent
on the weather.
As a composite sector, tourism includes employment from within each of the 19 sectors in the local economy. If
tourism was counted as a separate sector, it would be ranked third in the District, in terms of employment with 555
FTEs.
It employs significantly more people than the education and training or retail trade industries, but fewer than half
the FTEs employed in agriculture and forestry.
Overall the Ruapehu District has been experiencing declines across
employment, GDP and the number of business units over the past decade.
However, growth in employment numbers and GDP over the past year
have bucked this trend, which may indicate a possible upturn for the next
year or two
The most significant change between 2013 and 2014 was the increase in annual guest nights, which increased
from 376,000 in 2013 to over 419,000 in 2014, up 11.4%.
This increase in guest nights is reflected in the increase in the sector’s contribution to the region’s GDP, over
$30million, up from $29.4million in 2013, a 3% increase.
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While the sector’s contribution to the national tourism is relatively small, the sector remains a key part of the
district’s economy comprising over 11% of all local employment. Tourism continues to be the third largest
employment sector within the District.
The Ruapehu District derives significantly more economic activity from tourism than nationally. Tourism directly
accounts for around 5.4% of all employment in New Zealand but, in the Ruapehu District, this figure is 11.1%.
Tourism directly contributes 6.4% of the District’s GDP, through 9.1% of its businesses.
Over the last ten years, the tourism sector has experienced steady per annum growth in both Ruapehu District
and New Zealand. Employment in the District has been outpaced by that of the nation. GDP growth contracted
slightly over the ten year period. However, this was relatively minor at -0.4%. At the same time, the District
strongly outpaced the nation in terms of business unit growth.
This indicates that the tourism sector over the last decade has been experiencing a change in composition with
its tourism industries, with more businesses now operating in Ruapehu District, employing more FTEs but, at the
same time, generating less GDP for the District.
This implies lower productivity within the tourism sector. Productivity also fell across New Zealand, although
this drop was lower than what has been seen in Ruapehu District.
Given the strong growth in annual guest nights, the District could
potentially see further growth in tourism employment and GDP over
the coming year. This, however, could be tempered by adverse weather
conditions given the weather dependency of many of the District’s tourism
attractions.
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Key priorities identified by the community
A number of Key Priorities have been identified though Census data, economic data, the studies and reports
previously discussed and Councils involvement in the community and recent tour of the District.
1.
Population Decline
The 2013 Census data identified a further small reduction
of usual resident population within the District.
Reducing this decline in our population is key to our future
economic wellbeing. Groups the Economic Strategy
should target include:
•
People with businesses or jobs that are free to locate
anywhere, who might be attracted to live in Ruapehu
for our lifestyle,
•
Active retirees, people (including those with young
families) who could help address the skill shortages
in the region and young people – provided education
and training opportunities can be offered that will
encourage them to stay in the District .
2.
Infrastructure Resilience
Council’s financial policies will support debt as an important tool for managing intergenerational investment in
infrastructure.
This provides certainty for business people looking to invest in Ruapehu and ensures that Council is able to deliver
its core function by providing infrastructure supporting a destination in which to live, work, play and invest.
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3.
Connectedness - (Transport (Rail, Road, etc), Broadband)
Telecommunications, including ultra-fast broadband, is essential infrastructure for existing and new businesses, for
the education of our young people and social networks. Council is proactively in seeking the best possible access as
the Government-funded fibre optic cable and Rural Broadband Initiative are established within the District, alongside
private sector wireless communication options.
As tourists and business visitors increasingly expect free
WiFi access, we should aim for this to be available in our
town centres as an encouragement to visitors.
Ruapehu should continue to advocate for improved
public transport access for both road and long distance
rail passengers.
Ensuring that Ruapehu retains all its current railway
stations will be crucial for the future of passenger rail,
along with advocacy for improved bus terminals in key
locations throughout the District.
4.Education
Better opportunities for (higher) education
was a key theme on the Mayor’s Economic
Development Familiarisation tour undertaken
in 2014.
Ultra-fast broadband will make it possible for a
wider range of courses to be offered.
Investigating existing and potentially new
business skills requirements needs to be
considered, as do education options that will
be of interest to diverse age groups in our
community.
Specialist courses structured around our key
activities will be explored and opportunities
promoted.
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5.
Waiouru Military Base
This is the soul of the New Zealand Defence Force and a home of military
history. Waiouru Military Marae is the Turangawaiwai for the tribe Ngāti
Tūmatauenga under the god of war.
The future of the military training facility is best described as a resizing
exercise in the context of the Ministry of Defence real-estate review and
reorganisation. Traditionally the camp delivered foundation training for
military personnel and officer cadet training. These two functions will be
relocated to another military base under the current proposals over the
next five years.
The camp will remain as a key military training facility for New Zealand
and many overseas soldiers and Defence Forces. It will remain as New
Zealand’s premier land based training ground. It will need to cater for up
to 500 trainees in a turnkey operation and remain fully supported by both
military and civilian teams with approximately 100 staff in employment.
A growing function of the Military Training Facility is the support training
provided to cadets and placements by other social agencies who utilise
the other beds during the year and slot around the training programme.
Also the airstrip is currently closed to heavy airtraffic and any upgrade will be pivotal.
6. Encouraging Expertise and Imagination in Businesses
Talented, highly educated individuals will be attracted to communities that
offer a richness of employment opportunity, a high quality of life, a critical
mass of cultural activity and social diversity.
Ruapehu demographic reports from the 2013 census data suggest Ruapehu is
a staging ground for home-grown creative and educated youth who migrate
out of the District to further their careers.
It also means that attracting and retaining talent is a significant challenge.
Council proposes that regional economic growth is driven by the location
choices and that we can have a sufficiently skilled labour supply to move our
businesses forward.
Ruapehu needs to make or enhance quality of place characteristics that attract
and retain the talented people that stimulate economic growth.
7.Employment
Jobs for young people and upskilling the work force is crucial.
Recruitment of skilled workforce remains a challenge.
Larger hospitality and tourism activity operators, primary
processing businesses and the military do provide formal training
opportunities for progression of employees.
Good community infrastructure and well-presented streetscapes,
open spaces, libraries and swimming pools are required to support
people living in Ruapehu and to encourage new residents.
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8.Investment
Increasing private investment will be necessary if the creation of possible new businesses in Ruapehu is to become
a reality. Preparation of a portfolio of projects that could be offered to prospective investors is a project the Council
should consider facilitating.
9. Building a positive image
Creating a regional identity will lift the presence of Ruapehu in the
national and international, social and economic market place. Its about
telling a story within which locals can anchor themselves to the land and
businesses can align to, in order to leverage value.
It is the Ruapehu story that sets Ruapehu apart from other destinations
and celebrates our differences in geology and landscapes, our cultures, our
business and our way of life.
10.
Partnering with iwi and hapu
Significant opportunity exists for improved performance
from iwi and hapu land utilisation, as post settlement
partnerships with iwi and hapu begin to emerge.
Opportunities exist in bee keeping, product research and
development for hemp fibre, trade based training and
cultural tourism.
Meaningful employment brings social change within
the home. Council will invest in maintaining meaningful
partnerships with iwi including co-governance and
management arrangements.
The primary goal of improving Iwi land utilisation, product
research and development and delivering meaningful
employment is to bring social benefit to our people.
Signing of Memorandum of Understanding with Te Kaunihera
Maori a Rohe o Ruapehu (Maori Council) February 2013
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11. Mining
The Crown Minerals Amendment Act 2013 encourages investment in
petroleum and minerals exploration and development.
As industry activity increases, small businesses will have more
opportunities to either conduct mining and exploration activities
themselves or to provide the types of support services that are
typically contracted out to small firms.
The Ruapehu context includes potential for mining coal in the Ohura
area, along with mining for precious metals in the Retaruke Basin.
Input from submissions to LTP 2015-2025
Under the Local Government Act 2002 councils are required to
produce a Long Term Plan (LTP) which as part of its core function is
to provide a forum whereby local communities can take part in local
decision making. Submissions to the LTP influence Council’s decision
making on the final work programme.
There was a high level of engagement with the draft strategy during
the 2015/16 Long Term Plan submission process, and a number of
general themes emerged. These are summarised below.
Business Friendly
One of the most common recurring themes to come through was the need for Council to be more ‘Business Friendly’.
This would make it easier for businesses to become established and expand. Suggestions along this theme included
the employment of a ‘Business Manager’, introducing business polices, establishing a ‘Business Network’ and
Council‘s support of business incubation.
A number of submitters asked that Council review its business approach and administration methods within
Council so that processes could be simplified. Submitters expressed the need to reduce the cost of consents and
development contributions.
Accessibility
Many submitters commented on the need for access to the rest of the world via good internet services.
Physical accessibility was also brought up a number of times; both bus and rail service (or lack thereof ) was noted.
The lack of internal services (Taumarunui – National Park – Ohakune) as well as externally to other towns was also
mentioned.
Rural roads and other infrastructure were also discussed, in terms of supporting the rural economic strength of the
District. This is also important for tourism.
Town Renewal
There were some innovative suggestions on improving and enhancing town centres, like attracting art students via
competitions to do street art/murals and offering cheap places to live.
Tourism
A number of submissions were tourist focused and saw this as the fundamental way to grow the District. There were
a number of suggestions to improve visitor’s experiences, including more promotion of existing natural attractions,
better signage and support and development of events.
Cycling was seen by many as the main growth area. To take advantage of this the cycleways need to be linked up
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and finished and the infrastructure needs to be in place to support them. More cycleways could be developed based
around the District’s unique features (eg. the mountains) to distinguish Ruapehu from other cycling regions.
Ideas
A number of submitters had good ideas, for example, the need for new enterprises both in tourism and agriculture.
A number of the suggestions were around education, including an international language school which would
encourage international students into the district and local education hubs with links to tertiary institutions.
An out-door education/Unitec type facility and supporting a tertiary education facility to encourage young people
into the district was also suggested.
General Comments
Building and working with the Community was also mentioned with the importance of improving homes and living
conditions, for example the ‘Warm Homes’ initiative.
Some submitters noted that Council needs to invest resources into creating jobs and supporting local businesses
and promoting local industry i.e. farming and timber by-products.
Partnerships
Some submissions noted that there needs to be more emphasis on iwi partnerships and working with others already
implementing strategies, e.g. Ruapehu Whanau Transformation Project.
Opportunities and challenges
Challenges
•
Distance.
•
Communications/Broadband.
•
Access by road/rail.
•
Shortage of industry.
•
Small population.
•
Council seen as obstructive.
•
Skill shortage.
•
Rates burden.
•
Lack of upmarket accommodation.
•
Water provisions and allocation.
•
Iwi values.
•
Town vistas
•
Amalgamations of farm units and transitions into forests.
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Strengths - what we have to offer
•
Our natural environment.
•
Summer and winter destination.
•
Wide range of winter and summer sports.
•
Strong rural economy.
•
Diverse landscapes.
•
Laid back life style.
•
Lower cost of living.
•
Lower house prices.
•
Wide open spaces.
•
Small friendly communities.
•
Location.
•
Iwi assets – growing the economic base
Opportunities
•
Outstanding and accessible natural habitat/mountain river/cycle trails, walks.
•
Land – lifestyle-holiday homes.
•
Cultural/heritage.
•
Location.
•
Iwi involvement.
•
Farm tourism.
•
Sector investment.
•
Regional Growth Strategy.
•
Signage.
•
Upmarket accommodation.
Weaknesses
•
Business friendly environment.
•
Better opportunities for (higher) education.
•
Jobs for young people/upskilling the workforce.
•
More private investment.
•
Encouraging expertise and imagination in businesses.
•
Build a positive image.
•
Improve Council processes.
•
Connectedness (rail/road/broadband).
•
Partnering with iwi.
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