December 2007

Visitor Economy is Auckland’s $12 billion opportunity

Auckland has the opportunity to increase visitor expenditure in the region by $12 billion and deliver a host of additional benefits to its residents over the next decade, with the right investments in tourism.

That’s the finding of Bringing the World to Auckland, a newly released report by AucklandPlus and endorsed by the Auckland Regional Economic Development Forum this week.

Bringing the World to Auckland outlines the case for investment in Auckland’s visitor economy, and outlines the critical investments and actions needed to reap the rewards for the region. The document is part of the implementation of Auckland’s Metro Project Action Plan.

David McConnell of McConnell International, who chaired the steering group which oversaw the development of the report, says a fundamental change is needed if Auckland is to capitalise on the potential of its visitor economy.

"Auckland must transform itself from a gateway into a world-class destination. It is doable and if we get it right the rewards will be enhanced well-being for Aucklanders and big dollars into the regional economy," Mr McConnell says.

The financial modelling in the report shows that visitors to Auckland currently increase the region’s base population by 5.5% (2006 figure) but if that were to grow to 7.8% by 2018, the corresponding rise in direct visitor expenditure over that period (above forecast natural growth) would be $12b.

"But the dollars are only a small part of the story," Mr McConnell says. "The reason that the visitor economy is a fundamental driver for step change is that the visitor economy underwrites Auckland’s amenity level. It can help to improve quality and range of goods and services that Aucklanders use regularly, provide activities that residents wouldn’t otherwise have the opportunity to take part in and deliver a spirited city-region.

"This in turn leads to attraction and retention of talent, greater wealth and employment, improved labour productivity and regional pride. It creates a spiralling positive climate for continued investment, growth and success for Auckland and New Zealand’s economy."

AucklandPlus Chair Michael Barnett says the investment proposition outlined in Bringing the World to Auckland is realistic.

It recommends a regional investment of $5m per year for the establishment of a regional tourism agency backed up by a $1.5b central government investment in infrastructure and attractors.

"The payoff over 10 years would be an additional $1.8b in government tax take and an additional $7.21b in regional GDP for Auckland. That’s a great return by anybody’s standards.

Mr Barnett says the establishment of a regional visitor agency is the critical first investment needed to start the ball rolling.

"We need a regional visitor agency to lead destination marketing and destination management for the region. The agency would also include a convention bureau and an associated regional major events office," Mr Barnett says. "It’s a realistic short term goal and it’s a ‘must have’ for Auckland."

Other critical investments highlighted in Bringing the World to Auckland would include a national convention centre, signature attractions on strategic waterfront sites, harbour and gulf island access and cruise ship infrastructure.

"If we do these things we will create an incentive for the private sector to invest in Auckland’s visitor economy," Mr Barnett says.

Follow this link for more information on Bringing the World to Auckland.

Private sector plaudits for Bringing the World to Auckland

Tourism Holdings Limited’s Sean Murray was a member of the steering group which guided the development of Bringing the World to Auckland. At a recent preview event he gave a private sector perspective on the resulting document. Here's why he thinks Bringing the World to Auckland could represent a breakthrough for Auckland.

New Zealand is one of the world’s small but leading destinations that performs way above its weight in the international travel scene.

In my view from a tourism industry perspective Auckland has very very credible and high performing marketing agency in the form of Tourism Auckland. However the reality remains that no matter how clever, wise and hard working the strategies and effort of Tourism Auckland, Auckland has yet to gain "must visit" status.

Campaigns and logos are merely tools that must be backed up by the raw materials…our landscape, our water, our people, our personality, our actions and most importantly the man-made environment, including services and facilities, we have designed around us that are uniquely ours.

The Wallpaper City Guide to Auckland, only just released, talks about Auckland as being…

"young and isolated"...
"with no iconic civic buildings"…
"simple hotels", "badly decorated", "lacking design icons",

But…and I stress but, it talks of Auckland as… "A city with huge potential".

Auckland’s challenge is to say that’s it not enough that we have "huge potential" and be mediocre in our efforts to achieve that potential.

It’s not enough to be just the gateway to New Zealand. It’s not enough that we get the lion’s share of international visitor nights by virtue of our gateway and largest city status. And it’s not right that the bulk of New Zealand’s tourism industry positions its investment outside of Auckland.

My own company’s investment in major visitor attractions within New Zealand is testimony to that. We should have more than Kelly Tarlton’s within our Auckland portfolio. But simply the lack of demand and support facilities to cater to the increased level of demand we would need to see makes additional investment challenging.

The investigation and thinking that has gone into Bringing the World to Auckland has finally broken the mould.

It has gone past the usual glib standard words about marketing concepts as they apply to the visitor industry and has not fallen into trap of leaping straight into notions of brand and logo and campaign.

It has clearly focussed on what truly makes a destination like Auckland compelling…

A great place to visit and play.
A great place to learn and invest.
A great place to work and live.

The plan recognises that a positive visitor experience is much more that looking at the scenery, the meal on the boat or the comfort of the bed. It’s about the things you see around you that define your impressions of a place; the differences; buildings; recreation zones; the people you meet; the ease with which you can get around; and so on.

It is also important to emphasise that planning and investment with the visitor industry is mutually beneficial to those people who live here.

The plan will prosper or fail on notions of partnership. I would like to think that this plan opens the door for the meeting of minds, a whole of central and local government attitude towards the visitor industry for this region and some demonstrable action spurred on by some great "kick start" events and initiatives in the pipeline.

This is everyone’s chance to build on my vision and hopefully yours, that Alex Brown in Buckinghamshire says;

"I have got to go to Auckland".

Major events and regional identity critical for visitor economy

Bringing the World to Auckland is the first of three key deliverables in the Metro Project Action Plan objective to "Transform Auckland into a world-class destination."

AucklandPlus strategic projects manager Tracy Moyes says the other two components, the development of a regional major events strategy and a regional brand identity are not far away.

The response to the call for a regional major events strategy will take a similar approach to Bringing the World to Auckland and will be entitled Positioning Auckland as a Major Events Destination. It is scheduled for release in early 2008.

"The recent loss of the Ellerslie Flower Show has put the spotlight on Auckland as a major events destination so it is timely to be releasing a blueprint for the way forward," Tracy says.

The development of a regional brand identity has recently passed a number of critical milestones. The heart of the identity is the brand strategy, which includes positioning, brand values, a brand story and single organising idea. These have all been completed.

"The strategy and all its components are the core of the regional identity and that is where we have put the most effort.

"The visual expression of the brand is well underway but we want to get it right so we won’t be rushing to get it out."

The regional identity is scheduled to be launched in early-mid 2008.

Auckland features prominently in Government ET Agenda update

Newly appointed Minister of Economic Development Pete Hodgson unveiled the Government’s update of its Economic Transformation Agenda at an AucklandPlus function earlier this month.

Not surprisingly, Auckland featured prominently in Mr Hodgson’s Advancing Economic Transformation speech which outlined six future economic development priorities for central government.

The six priorities are:

• Improving access to quality, fast, reliable broadband services;
• Positioning New Zealand as a world-leading exponent of smart and innovative responses to environmental issues;
• Developing workplace skills, with an emphasis on basic literacy and numeracy;
• Supporting New Zealand businesses to go global and extract full value from the global supply chain;
• Focussing government investment in six proposed areas that reflect and extend New Zealand’s strengths; and
• Making Auckland a world-class hub of innovation and internationalisation.

"The priorities reflect objectives from Auckland’s Metro Project Action Plan which was launched in late 2006," AucklandPlus Chair Michael Barnett says.

"In particular we are working closely with the Government in the areas of broadband, workplace skills and innovation, which have come into sharper focus nationally through today’s announcement."

Mr Barnett says innovation came through loud and clear as the key to Auckland’s future in the Minister’s speech and cabinet papers also released this month.

"A focus on innovation in Auckland reflects where we have been going with the Metro Project Action Plan over the past two years," Mr Barnett says. "It is critical if we are to boost our export strength."

He particularly welcomed the Government’s signal that is was moving to towards an expanded role in getting an Auckland Innovation Centre at the University of Auckland’s Tamaki campus off the ground.

"Establishing an Auckland Innovation Centre at Tamaki would show that Auckland is serious about research, development and innovation," Mr Barnett says. "It would not only help our goal of boosting Auckland’s innovation and export strength but would also send a signal to international markets and potentially attract greater foreign investment in Auckland,"

Mr Barnett says the close alignment of regional and national priorities reflects Central Government’s more co-ordinated presence in Auckland through the Government Urban and Economic Development Office and a close day to day working relationship with Auckland’s key agencies and business leaders.

"Clearly the Government cannot deliver on these future priorities alone and we look forward to working with them to build on the successes so far and make more headway for Auckland and New Zealand in 2008."

Economic Development Forum begins new term

The Auckland Regional Economic Development Forum began a new term this week by welcoming two new members.

Waitakere Enterprise CEO and Auckland Region Economic Development Association (AREDA) Chair John Wadsworth joined the forum to replace outgoing AREDA Chair Sandi Morrison.

Meanwhile newly elected ARC councillor Christine Rankin (pictured) takes over from Wyn Hoadley as the second ARC representative (together with forum chair Michael Barnett) on the group.

Among the first items of business for the new term were the endorsement of Bringing the World to Auckland and the development of a regional bid for central government’s new Enterprising Auckland Fund. The Forum will endorse the final regional bid of up to five projects delivering on national and regional priorities, at its next meeting in February.

Auckland Business and Economy Update

Landcare Research's Dr Richard Gordon puts the spotlight on carbon neutrality in The Auckland Region Business and Economy Update released this week.

The update follows is a follow up to the annual Auckland Region Business and Economy publication which was released in June 2007. It outlines Auckland's recent recent key economic statistics and trends.

Auckland Business and Economy 2007 update.pdf

Next Stop Auckland 2011

There’s much more to Auckland’s preparation for Rugby World Cup 2011 than the painful public sparring over who should stump up the cash for the Eden Park redevelopment.

While the media revels in the budget bickering, the key players in the Auckland region are quietly getting on with making things happen for 2011.

The Regional Steering Group set up to lead Auckland’s preparations for the cup is working closely with Rugby New Zealand 2011 Ltd to ensure Auckland is on track to play its part.

Chair Rachael Dacy says Auckland is working together to prepare a regional bid as part of Rugby New Zealand 2011 Ltd’s match and team allocation process.

"There is a huge amount of work going on behind the scenes to take advantage of this unprecedented opportunity to showcase the Auckland region to the rest of the world," she says.

The Regional Steering Group has released a fact sheet to bring stakeholders up to speed on developments to date and key actions to come.

The Next Stop Auckland 2011 fact sheet looks at

• Auckland’s vision for RWC 2011
• What we know so far
• What’s still to be confirmed
• What success looks like
• How we’re progressing
• How matches and teams will be allocated
• Government’s plans to leverage off RWC 2011.

• Next Stop Auckland 2011.pdf (509.8 KB PDF )