Insights and updates from our Economic Development team

Published on 11 April 2024

Peak spend holds steady  

Spend from tourists delivered a solid summer for our district’s books, with all visitors clocking up $96 million in total at the till over December and January. $28 million was spent during February. 

87 per cent of spend this summer came from domestic visitors. Spend over December and January was $8 million higher than the year before, although that’s still down overall on pre-Gabrielle summer spend figures.  

Year-on-year January is typically the highest month for visitor spending in our district, and we can expect Autumn spend to fall to roughly half of January figures, and from there to about a quarter by Winter. 

You can check out our visual summary of the peak summer period spending activity (Dec ’23 – Jan ’24):

Squeeze still on our businesses 

When we look back across 2023, year-ending December, we see the result of reduced tourism activity and cost of living pressures reflected in declined spending, guest nights, and Gross Domestic Profit (GDP).  

Our district’s economy flattened with provisional GDP down 0.2 per cent for the year to December 2023, compared to the year prior. Nationally, GDP grew by 0.7 per cent with migration a contributing factor in national economic growth. 

Interestingly, the number of businesses in operation in the district increased by 1.4 per cent (up by 66) for the year to December 2023. This growth was higher than the rest of New Zealand.  

While this is positive, sentiment from our most recent survey suggests businesses are cautious about future growth given worsening and uncertain local and global economic conditions. We would expect aspiring businesses to share the same sentiment. 

Across New Zealand, job losses in both the public and private sectors are ongoing. In our district unemployment is higher than a year ago but the local labour market remains tighter than the regional average. Our district’s average annual unemployment rate rose to 4.1 per cent in the year ending December 2023, up from 3.1 per cent in 2022. However, our comparatively tight local labour market measure suggests there are more jobs available than there are workers willing and able to fill them. 

The local housing market continues to be cooler than the broader New Zealand market. House sales and values in the district decreased in the year to December 2023. However average current house values in the district remain high at $1,151,000, which is 14.6 times annual average household income in the district. House value to income ratio is 7:0 for New Zealand and the Waikato Region. Our older population and popularity as a holiday destination influence this metric. 

Residential and non-residential building consent numbers were also down by roughly 30 per cent in 2023, and this is reflective of New Zealand wide trends. Gradually easing interest rate pressures and continued high net migration numbers are likely to see consent numbers plateau in 2024 (rather than continuing to decline). 

You can see a full summary of economic measures for our district for the December 2023 quarter and year end here.  

There are a number of other publicly available socio-economic data sources for areas across New Zealand, which may also assist with your business context and planning: 

Visit Statistics NZ's 'Data for business' tool

Visit Infometrics data for our region

Our diverse exports: Did you know?
Our district produces $65 million in fresh kiwifruit and berry exports, which is 3.5 per cent of New Zealand’s kiwifruit and berry exports, and 24 per cent of our district’s total exports. Around 30 businesses in our district are in the kiwifruit growing industry.

Business sentiment survey shows cautious optimism 

Last quarter’s business sentiment survey results – a mixed story for revenue and growth 

Many thanks to the respondents who completed our local business sentiment survey from the last ED newsletter. We heard a mixed story in regard to business revenue, expectations, and growth. 

Half of survey respondents felt that over the past three months (Dec-Feb), their businesses had met or exceeded revenue expectations. The remainder had revenue below expectations.  

We heard that the losses from the past 18 months have made things very difficult financially (some noted spending is down by 15-20 per cent), but that the summer period has provided a real boost. Favourable weather conditions this summer have really benefited some businesses, while the closure of Cathedral Cove track access continues to impact others. 

Over half of respondents noted a positive outlook for their business/organisation over the next six months, with the return of events, visitor numbers, and forecast good weather all positively contributing to the optimism. However, businesses with both positive and negative outlooks noted the level of uncertainty around current local and global economic conditions. 

Over half of respondents have plans for moderate growth over the next 12 months. You told us that realising this growth depends on finances, roading network stability, the absence of weather events, and the successful uptake of upgrades/additions to the business offering. Businesses with negative outlooks seek to become smaller or stay the same size, noting finances and worsening economic conditions as reasons for this.  

Our Council staff continue to meet with Ministers and officials to tell our district’s post-recovery resilience story and position ourselves to attract funding and resources to our district. We know current economic conditions are difficult with more uncertainty ahead. We want to make decisions that work for our businesses and ask for the right support for your needs. Your answers to surveys like this one support this advocacy work. 

We also heard that engagement with Council and our Economic team is generally positive, but there are some areas for improvement so we can be more business friendly. 

Of the survey respondents who had engaged with Council recently, 60 per cent said the engagement with council helped them achieve their desired outcome, with a further 20 per cent saying the interaction partially helped them achieve their desired outcome. Those who said the engagement did not help them achieve their desired outcome noted this was because they are waiting on a decision to be made, or there were other external factors at play.  

53 per cent of respondents said their interaction with the area of council they engaged with was “Excellent”, and a further 47 per cent said their interaction was “Satisfactory”. 

When asked how Council and/or the Economic Development team could better support businesses in our community, survey respondents said: 

• Improved support for community security and safety 
• Investigate viable targeted rate or provide partial funding to support business associations 
• Facilitate regional funding for business growth, and better investment attraction 
• Have more events funding 
• Provide greater exposure for unique offerings in the district, for example, food and beverage sector contributions to the economy 
• Lower the costs of compliance, and improve related paperwork 
• Help develop better relationships between operators and council contacts 
• Provide easier access to planners 
• Ensure continuity of services 

Again, we really thank you for sharing these responses. They will inform our internal process improvements, Economic Development actions, and our ongoing efforts to attract funding and resources to our district. Keep an eye on our future ED Newsletters to see how we are addressing these issues and opportunities in our work programme. 

Note on respondents: We had 21 survey respondents. Most respondents were businesses with less than 10 staff, with their main industry of operation connected to the visitor economy.  80 per cent of respondents were a member of a business association. 

What would help your business this year? 

This quarter, Te Waka, our regional economic development agency, is seeking to understand your priorities. This is a chance to shape how Te Waka advocates for Waikato’s regional economic growth, while also supporting our Council’s advocacy work from a district perspective. 

By completing the Waikato Business Sentiment survey, your voice will become part of the insights and recommendations Te Waka provides to government and local leaders to inform investment and prioritisation decisions affecting the region.

We’d really encourage you to make sure your sector and district are represented. Please share this opportunity to have your voice heard with your colleagues, leaders, and wider business network.  

Click here to complete the survey by Friday 19 April

In the last Te Waka regional survey… 

Grow your business capability or support others this year 

Have you considered having a business mentor? 

Thanks to the generosity of the Employment Manufacturers Association (EMA) and Business Mentors NZ, we have 10 free,12-month professional business mentorships to giveaway to small businesses in our District.  

To be considered for this incredible offer, all you have to do is fill out our short form including a line or two about why a mentor could help you shift the dial for your business. 

Terms and conditions apply. Applications close 11:55pm Tuesday 30th April. 

Thanks to local Business Associations who are helping to share this incredible opportunity.  

Are you interested in being a business mentor? 

Business Mentors NZ are always looking for mentors to join their national network of mentors.  

It would be fantastic to have more mentors from our District. We know there’s a wealth of knowledge and expertise that can help strengthen our small business community. 

Find out more about becoming a business mentor here: Become a mentor (businessmentors.org.nz) 

Are you thinking about starting a business, or are you on your way and would like some guidance? 

You might wish to consider start-up coaching, delivered through Startup Aotearoa. Early stage businesses (even as early as the idea stage) can access free coaching sessions with one of Startup Aotearoa’s four startup coaches. The sessions are tailored to the needs of the founder, but typically focus on product-market fit, idea validation, pitch preparation, business planning and funding avenues.  

Interested businesses can sign up here

Thinking about capability building? 

We are looking to run business capability workshops across the district this year, with thanks to regional partners, and in collaboration with our local Business Associations.  

Let us know what topics may be of interest to you by clicking here.  

If you’d prefer one-to-one tailored capability training, you may be interested in accessing co-funding and support through the Regional Business Partner Network.

You can register for this directly via the RBPN website.  

Would you like to expand your network? 

You could join your local Business Association, who support growing a stronger business community and thriving community through a range of activities including: 

• Networking 
• Information sharing 
• Capability building 
• Advocacy work 
• Events 
• Promotion 

Business associations run 'Business After 5' networking events, typically each month. Attending these events could be a great way to see if you’d like to become a member or not. We encourage you to reach out to your local business association to see when their next event is: 

• Thames Business Association
• Coromandel-Colville Business Association
• Tairua Business Association
• Enterprise Whangamata
• Mercury Bay Business Association

Thinking about employing a young person in your business? 

Our Council is part of the Mayors Taskforce for Jobs (MTFJ), a nationwide network of New Zealand’s Mayors, working together towards the vision of all young people 16-25 engaged in employment, education, training, or other positive activity in their communities. 

Find out more about Mayor's Taskforce for Jobs

We’re partnering with local organisations, Iwi and employers to grow our local workforce. Contact workforce@tcdc.govt.nz if you would like assistance gaining subsidies for new recruits or would like help sourcing work-ready candidates to interview.  

Expressions of interest for new Regional Event Promotion Fund 

A new regional event promotion fund has recently been announced by the Minister for Tourism and Hospitality. The Regional Events Promotion Fund (REPF) will support the promotion of regional events to the domestic market.  

The REPF is a contestable fund, available to Regional Tourism Organisations (Destination Hauraki Coromandel) through two annual application rounds. Event organisers are not eligible to apply directly to the fund, so if you wish to be considered, please contact Megan Nunn at Destination Hauraki Coromandel by 17 April (megan@thecoromandel.com). 

Criteria: 

Hauraki-Coromandel Business Awards 2024 

The Hauraki-Coromandel Business Awards are set to be held in October.

Nominations will be open from 1 June–31 July.

More information will be shared soon.  

Congratulations, thanks and some shout outs 

A huge thank you to those who submitted on the draft Waikato Regional Land Transport Plan 2024- 2054, as part of Waikato Regional Transport Comittees’ consultation process on the plan, and long term land transport investment for our region.  

A shout out to some of the district’s businesses this quarter: 

Congratulations to Enterprise Whangamatā on their inaugral business expo last month, held at the Whangamatā Club. The event featured a series of local business professionals who shared their expertise on IT,  finance, procurement, POS innovation, legal matters, and marketing.  

Attendees enjoyed a delicious breakfast as the panel of experts gave five-minute presentations sharing their top tips. Afterwards attendees were able to secure 25 minutes of one-to-one time with the experts of their choice. A fantastic opportunity, all for the cost of breakfast. 

Meanwhile, the Tairua Business Association is proud to announce its next BA5 Speaker is Professor Grant Schofield. Grant is the Professor of Public Health at Auckland University of Technology, Director of the University’s Human Potential Centre, former Chief Scientific Adviser to the Ministry of Education. He's also the co-author of four best-selling books and Chief Science Officer for PREKURE, an organisation focused on preventative Lifestyle Medicine and Health with education and coaching.  

Grant will share some sound advice and thinking on how simple changes in lifestyle and mental approach can enhance your performance in business, and ultimately your wellbeing. 

All are welcome to attend the event. 5pm Wednesday 17 April at the Tairua Rugby Club. Please RSVP to chairperson@tairua.biz

Coromandel Stamper Battery to get a new lease of life 

An iconic part of Coromandel-Colville’s early goldmining history is set to get a new lease of life following the transfer of the lease for Coromandel Stamper Battery to NZ Gold Mining Heritage Limited on 23 February this year.  

The old water-powered gold-processing plant and former tourist attraction sits on Council-owned land at 410A Buffalo Road and has been closed to the public for at least seven years while various upgrades have been completed.  

The lease has been acquired by NZ Gold Mining Heritage Limited (NZGMHL), a registered charity founded by Rocket Lab’s Peter Beck to support the conversation and restoration of New Zealand’s historic gold mining sites. NZGMHL falls under the broader umbrella of the Beck Foundation, created in 2023 to celebrate and protect New Zealand’s technological heritage, and support future ambitious scientific, technological, and educational initiatives that aim to make breakthroughs in significant global challenges.  

Peter is eager to see the battery reopened as an attraction soon and is currently working on opening plans with support of Thames-Coromandel District Council.  

“We’re excited to play a role in preserving and protecting New Zealand’s early goldmining sites to ensure that this heritage is not lost to future generations. Gold mining played a vital role in developing areas such as Thames and Central Otago, and we want to make sure that history lives on.”  

Media enquiries on this project can be sent to: m.bailey@rocketlabusa.com 

Contact us 

To get in touch with our Economic Development team, please contact our ED lead mitchell.king@tcdc.govt.nz.