Great Barrier Local Board Economic Overview 2016
Headlines
One
Tourism is the main source of employment on Great Barrier accounting for 1 in 5 of all
employment in a range of sectors.
Two
There are a far lower proportion of residents in the 15 to 34 age groups as many young
people leave the island for education and work.
Three
Median household incomes are the lowest in Auckland.
Population growth was
lower than the
Auckland average.
Median household
incomes were the
lowest of all local board
areas.
GDP growth was
higher than the
Auckland average.
Employment
growth was slightly
lower than the
Auckland average.
Labour force participation was much lower
than the Auckland average.
Great Barrier had a substantially lower proportion of
residents with high qualification levels and a higher
proportion of residents with no qualifications.
Great Barrier Local Board Economic Overview 2016
Great
GreatBarrier
Barrierbusinesses
businessesemploy
employ
much
muchmore
morecommunity
communityand
and
personal
personalservice
serviceworkers
workersand
and
labourers.
labourers compared to the Auckland
average.
An assessment of Great Barrier’s economic potential
Strengths
Challenges
Attractive island location popular with tourists.
Reliance on the mainland for meeting a
number of basic needs increases the costs of
doing business.
Infrastructure improvements have been made
in recent years.
Significant expenditure required to upgrade
key infrastructure that is important for keeping
the island connected to the mainland.
Growing the visitor economy sustainably while
protecting the environment.
Opportunities
Business friendly
Providing an environment in which people can do business from the
island.
Developing sustainable tourism opportunities.
Innovation and
exports
Ensuring physical and electronic connectivity supports innovation and
exports.
Skills
Providing employment and skills development opportunities for young
adults.
Vibrant and creative
city
Developing events and activities that can attract visitors throughout the
year.
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Great Barrier Local Board Economic Overview 2016
Great Barrier Local Board Economic Overview 2016
1.
Introduction .................................................................................................................................... 4
What is local economic development? ................................................................................................ 4
What is an economic development overview? .................................................................................... 4
The role of Local Boards ..................................................................................................................... 4
Auckland’s economic development ..................................................................................................... 4
2.
People & households .................................................................................................................... 5
Population ........................................................................................................................................... 5
Ethnicity ............................................................................................................................................... 6
Languages........................................................................................................................................... 6
Labour force ........................................................................................................................................ 6
Household Income .............................................................................................................................. 7
3.
Skills ............................................................................................................................................... 8
Qualifications ....................................................................................................................................... 8
Qualifications for employment ............................................................................................................. 8
4.
Local economy ............................................................................................................................ 10
Growth and employment trends ........................................................................................................ 10
Industry mix ....................................................................................................................................... 11
Internationally competitive and platform technology sectors ............................................................ 13
Knowledge-intensive industries ........................................................................................................ 13
Occupations ...................................................................................................................................... 13
Business size .................................................................................................................................... 15
5.
Development Trends ................................................................................................................... 16
6.
Gap analysis of economic development in Great Barrier ....................................................... 17
7.
Want to know more? ................................................................................................................... 18
Glossary ............................................................................................................................................... 18
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Great Barrier Local Board Economic Overview 2016
1. INTRODUCTION
Local economic development is important to
Auckland’s overall economy. A strong economy
means more jobs and opportunities. It allows for the
provision of infrastructure and services and makes
Auckland even more liveable. This in turn attracts
more skilled workers, business and investment.
What is local economic development?
Local economic development brings together a range
of players to build up the economic capacity of a local
area and improve its economic future and quality of
life for individuals, families and communities.
What is an economic development overview?
This economic development overview of the Great Barrier Local Board area looks at:




A range of indicators on Great Barrier’s economy
The drivers, trends and linkages that influence the local economy
Major private and public initiatives that will impact on the economy in Great Barrier
Opportunities and issues to growing business and jobs in Great Barrier.
The role of Local Boards
The Local Boards of Auckland Council are in a unique position to understand their local economy, work
with the local business community, facilitate growth in industries in which their area has a competitive
advantage, and advocate or catalyse activities for local economic development.
The economic development overview can be the first stage in guiding local boards as to what the key
issues are in their area and where the local board should focus its efforts.
Auckland’s economic development
Auckland’s Economic Development Strategy (EDS) aims to develop an economy that delivers
opportunity and prosperity for all Aucklanders and New Zealand. The five priorities of the EDS, seen
as vital to ensuring a thriving, competitive and highly liveable city in the future, are to:





grow a business friendly and well-functioning city
develop an innovation hub of the Asia-Pacific rim
be internationally connected and export driven
enhance investment in people to grow skills and a local workforce
develop a creative, vibrant international city.
The priorities of the EDS are supported by cross cutting themes that underpin Auckland’s economic
future. These themes, requiring us to think in new ways, are:




Creating a sustainable eco-economy where jobs and economic growth are created while reducing
costs and environmental impacts over the long term
Facilitating an iwi/Māori economic powerhouse improving Māori wellbeing and economic
development
Developing and enhancing an innovative rural and maritime economy
Supporting a diverse ethnic economy, integral to Auckland’s emergence as a significant city in the
Asia-Pacific region.
Auckland must escalate its growth rate to achieve our ambitious economic targets. The only viable
means of doing so is by rapidly increasing the economic output derived from exporting industries.
Clustering of economic activity can improve productivity by better enabling the exchange of ideas, the
building of relationships and networks and better connectivity. High growth local firms that have the
requisite products and skills to internationalise are crucial to Auckland’s future prosperity.
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Great Barrier Local Board Economic Overview 2016
2. PEOPLE & HOUSEHOLDS
Highlights


Great Barrier has a much lower proportion of 20 – 34 year olds compared to the region.
A high portion of residents own the home they reside in compared to the Auckland region
average.
Great Barrier
Population (2013)
Population growth (2006-2013)
Share of Auckland /
Auckland
939
1,415,550
5.0%
8.5%
Median age (2013)
53.9
35.1
Labour force (2013)
426
708,093
61%
67%
411
469,500
$30,300
$76,500
70%
61%
Labour force participation (2013)
Households (2013)
Median household income (2013)
Home ownership (2013)
Population
The Great Barrier Local Board area has experienced a moderate population growth in recent years.
Between the 2006 and 2013 censuses population growth was 5 per cent compared to 8.5 per cent
regionally. Medium population projections1 suggest that Great Barrier could be home to 990 residents
by 2033.
In 2013 Great Barrier had a very low share of its population under 35 compared to the region as
a whole, and also a low concentration of the working age population. A much higher proportion of the
population are aged 50 and over.
1
Source: Statistics New Zealand
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Great Barrier Local Board Economic Overview 2016
Ethnicity2
Seventeen per cent of the people residing in Great Barrier were born overseas much lower than the
regional average, 73 per cent of those have been in New Zealand for over 10 years.
The local board area
has a much higher
proportion of European
residents compared to
the Auckland average
and a higher
proportion of Māori.
Languages
The majority of Great Barrier residents (99%) can communicate in English, whilst 1% are too young to
communicate in English.
Labour force
The labour force participation rate, the
proportion of the working age population
that was employed or looking for work, was
61% in Great Barrier in 2013, much
lower than Auckland region (67%)
average.
2
Census figures for ethnicity often sum to more than 100% as people are able to select more than one ethnicity
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Great Barrier Local Board Economic Overview 2016
Household Income
In 2013, the median household income in Great Barrier was
$30,300, much lower regional median of $76,500.
Analysis of individual income levels in 2013 shows that 56 per cent
of residents earned just between $10,000 and $30,000 a year a far
higher proportion in this low income band than seen regionally
(27%). This could be a result of the seasonality of tourism, a key
sector on the island as well as a much higher rate of part time
working (34% on Great Barrier compared with 21% in the rest of
Auckland)
There was also much lower proportion of persons earning over
$50,000 per year in Great Barrier (12%) compared to the region
(29%).
In 2013, 36 per cent of households in Great Barrier derived selfemployment or business income, above the rate across all Auckland
households (26%).
In 2013, seventy per cent of Great Barrier residents owned the
dwelling they lived in, above the regional average of 61 per
cent.
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Great Barrier Local Board Economic Overview 2016
3. SKILLS
Highlights
 A quarter of residents have no qualifications compared to 17 per cent regionally.
 Fifteen per cent of residents have a degree level qualification compared with 25 per cent
regionally.
Qualifications
A skilled workforce drives a strong and resilient local economy and is critical for Auckland’s future
competitiveness.
The New Zealand Qualifications Framework (NZQF) has ten levels which are based on complexity,
with level 1 the least complex and level 10 the most complex. All qualifications on the NZQF are
assigned one of the ten levels, and fit into a qualification type: a certificate (levels 1-4), diploma (levels
(5-6) or degree (levels 7-10). Secondary school qualifications of National Certificates of Educational
Achievement (NCEA) are gained at levels 1-3.
Achieving a school level qualification significantly improves a school leavers employment
prospects. “In 2011 New Zealanders with no qualifications had an unemployment rate 48% higher
than those whose highest qualification was a school qualification” 3.
In 2013, a quarter of Great Barrier residents had no qualifications, and a much lower
proportion of residents had a bachelor’s degree or higher4.
Qualifications for employment
Employment by level of qualification and field is based on estimates of what the demand for
qualifications would be if all employees had the qualification appropriate to their role. In Great Barrier
degree level qualifications in management and commerce and education are in demand as well as
low level management and commerce and engineering qualifications. Thirty per cent of jobs require a
degree level qualification. Led by food and hospitality, there was also fast growing demand for health,
education and arts qualifications between 2010 and 2015.
3
4
OECD (2013). Education at a Glance 2013: OECD Indicators. Paris: OECD.
Highest qualification is derived for people aged 15 years and over
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Great Barrier Local Board Economic Overview 2016
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Great Barrier Local Board Economic Overview 2016
4. LOCAL ECONOMY
Highlights
 While GDP growth on Great barrier has outperformed the regional average, employment
growth has been limited.
 Tourism related industries and construction businesses are the main contributors to GDP
and employment.
Growth and employment trends
In 2015, GDP in Great Barrier experienced growth of 20
per cent, above the growth rates in Auckland (3.4%).
The growth rate in Great Barrier is very volatile and
shifts from strong growth to significant decline year
on year due to the small numbers involved.
However, in the ten years to 2015 the Great Barrier
economy grew at an average annual rate of 3.5 per
cent, higher than the 2.3 per cent in the Auckland
region.
Employment in Great Barrier increased by an
average of 1.1 per cent per annum in the ten years
from 2005-15, lower than the Auckland rate of 1.5
per cent.
Over the five years 2010-15, the fastest growing industries by GDP in Great Barrier were other services5
($1.4 million) and accommodation and food ($1.5 million) which both grew 21 per cent over those five
years. Of those industries that declined manufacturing is worth 1.3 per cent of GDP, and transport,
postal and warehousing is worth 2.5 per cent of GDP.
5
Other Services division includes a broad range of personal services; religious, civic, professional and other interest group services; selected
repair and maintenance activities; and private households employing staff.
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Great Barrier Local Board Economic Overview 2016
Industry mix
Great Barrier’s future economic performance depends on its ability to achieve higher rates of
productivity and visitor spending and to reduce its reliance on the mainland. The main sector
strengths of the economy in Great Barrier are related to the tourism industry with rental, hiring and
real estate and accommodation and food services having a greater concentration on Great Barrier.
Construction is also a significant sector represented strongly on the island.
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Great Barrier Local Board Economic Overview 2016

Rental, hiring and real estate services accounted for 20 per cent of Great Barrier’s GDP
but only 5 per cent employment. The sector provided 14 jobs locally.

Construction accounted for 15 per cent of Great Barrier’s GDP and 13 per cent employment.
The sector provided 37 jobs locally.

Professional, scientific and technical services accounted for 8 per cent of Great Barrier’s
GDP and 7 per cent employment. The sector provided 24 jobs locally.

Accommodation and food services accounted for 7 per cent of Great Barrier’s GDP and 20
per cent employment. The sector provided 57 jobs locally.
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Great Barrier Local Board Economic Overview 2016
Internationally competitive and platform technology sectors
Auckland has comparative advantage in a number of industry segments that compete internationally.
Tourism contributes a greater share of the Great Barrier economy than it does regionally and
is a very significant employer on the island.
Knowledge-intensive industries
In 2015, there were 84 jobs in Great Barrier in
knowledge-intensive industries, which are defined
based on the qualifications and occupations of
employees in these industries. Knowledge intensive
jobs comprised 29% of employment in Great
Barrier, below the Auckland average of 36% of jobs
in knowledge intensive industries. Most of those jobs
are in other interest group services (which relates to the
operation of clubs, associations and marae),
management advice, health and primary education.
Occupations6
Managers and labourers were the most common occupations for Great Barrier residents in 2013.
With a much higher proportion of residents working as labourers than seen across the region.
Compared to the region, there is a lower proportion of workers in professional occupations.
6
The 2013 Census provides details of the occupations of residents of the local board area whereas Infometrics
data provides details of occupations within businesses located in the local board area.
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Great Barrier Local Board Economic Overview 2016
Higher skilled jobs offer people an improved standard of living and are a critical component in
attracting workers to an area. For an island like Great Barrier that until recently had been
experiencing a shrinking population the ability to offer residents employment opportunities can both
attract new residents and retain existing residents.
Statistics NZ allocates occupations to skill levels based on the range and complexity of tasks
performed in a particular job. The skill level does not relate to the qualifications obtained by an
individual, but to the range and complexity of the tasks they do at work. There is a lower proportion
of highly-skilled jobs in Great Barrier (26%) and a higher proportion of low-skilled jobs (43%)
compared to the Auckland average (37% highly skilled and 38% low skilled).
Of the occupations in Great Barrier, professionals (20%), managers (19%) and clerical and
community and personal service workers are the largest occupational groups.
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Great Barrier Local Board Economic Overview 2016
Specialist managers, education professionals and hospitality workers are the main occupations on
Great Barrier.
A few occupations saw growth from 2010-15, with hospitality workers seeing the largest increase.
Business size7
In 2015 there were 149 businesses in Great Barrier employing an average of 2 employees each,
smaller than the Auckland average 4.4 employees. The number of businesses declined slightly
over the last decade compared to a growth rate of 1.7 per cent per annum for Auckland.
Property operators, administration and support services, accommodation and food and construction
are the main sectors by number of businesses.
7
Large businesses are defined as entities with 20 or more employees
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Great Barrier Local Board Economic Overview 2016
5. DEVELOPMENT TRENDS
Highlights
 Development across the Great Barrier Local Board area generally small scale with
fluctuations year on year influenced by individual developments taking place.
There were 2 new dwellings consented in Great Barrier in 2015. The number of new dwellings
consented fallen relative to the Auckland wide trend although the numbers are very small and
fluctuate year on year.
There were 670 sqm of industrial and commercial building consents issued in Great Barrier in 2015,
although the numbers are very small and fluctuate year on year and are influenced strongly by
individual developments.
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Great Barrier Local Board Economic Overview 2016
6. GAP ANALYSIS OF ECONOMIC DEVELOPMENT IN GREAT BARRIER
The Auckland Region aim: Develop an economy that delivers opportunity and prosperity for all Aucklanders and New Zealand
The Great Barrier Local Board plan is supportive of increasing resident and visitor numbers to develop economic opportunities while ensuring the
development of the necessary infrastructure does not compromise the nature of island life.
Auckland region
Great Barrier
Where we want to be
Current situation
Local options for future exploration
1. Grow a business-friendly and wellfunctioning city
Less well served by ferry outside of the
summer holiday period.
The costs of development and doing
business on the island are higher than on the
mainland.
Improved internet and cell phone coverage to make it easier for businesses to
operate on the island while interacting with the mainland.
Develop key infrastructure to enable more economic activity to be undertaken
on the island, reducing the costs of shipping in from the mainland.
Develop business models to provide key services profitably within the context
of the island.
2. Develop an innovation hub of the AsiaPacific rim
Limited interaction between Great Barrier’s
businesses and innovators with the global
economy.
Opportunity for IT to enable people with ideas to connect with the global
economy.
3. Become internationally-connected and
export driven
Hospitality and tourism an important source
of income and employment.
Work with ATEED to support development of higher value-added tourism that
does not detract from the island’s character.
Consider ways in which local produce can be processed on the island for
export to the mainland and beyond.
4. Enhance investment in people to grow
skills and a local workforce
Difficulty in retaining young people with skills
on the island.
Explore ways in which young people can combine employment and skills
development on the island.
5. Develop a vibrant, creative international
city
Long term steady population decline and
reduction in number of young people has
weakened the local economy and made
some economic activity less sustainable.
Population recently grown.
Develop more events and tourist activities to increase year round visitor
numbers.
Promotion as an eco-education destination.
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Great Barrier Local Board Economic Overview 2016
7. WANT TO KNOW MORE?
More information about the content of this report is available:
Report cards on Auckland http://stateofauckland.aucklandcouncil.govt.nz/Localboards/great-barrier/
GLOSSARY
Australian and New Zealand
Standard Industry Classification
2006 (ANZSIC 2006)
This is the official industrial classification used by Statistics NZ.
The classification system aims to reflect the structure of Australian
and New Zealand industries and enable comparability with other
countries’ statistics.
Business areas
Business areas were defined as part of the work undertaken in
preparation of the draft unitary plan and are based on business
zoned land. In some cases the business areas cross Local Board
boundaries and where this occurs the business areas was
allocated to a Local Board based on the location of the area
centroid.
Employment
Head count of salary and wage earners sourced from taxation
data. Unless stated, does not include self-employed.
GDP
Gross Domestic Product is the total market value of goods and
services produced in the Local Board area, minus the cost of
goods and services used in the production process. GDP for each
Local Board was estimated by Infometrics Ltd using 2010 prices.
Labour force participation
The labour force is defined as all persons aged 15 years and over
who are looking for work, or are employed, either full time, part
time or casually.
Participation rate
The proportion of the total population aged over 15 years that are
in the labour force.
Population
The population for the Local Board area is the usual resident
population count from the 2013 Census of Population and
Dwellings. This figure may be lower than previously published
estimated 2012 population figures from Statistics New Zealand.
Productivity
The NZ Productivity Commission defines productivity as the
efficiency with which resources – such as labour and capital – are
converted into outputs of goods and services.
Unemployment rate
The unemployment rate is the number of people aged 15 years
and over who did not have a paid job, were available for work,
and were actively seeking work, as a percentage of the labour
force.
Note, unless otherwise stated, definitions are based on those provided by Statistics NZ.
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