20 January 2020

Media: NZME (Rotorua Daily Post and BOP Times)

Topic: Household confidence in BOP economy

Enquiry

I am hoping to get comment from [Mayor] Steve [Chadwick] regarding Bay of Plenty being the most optimistic region in the country in terms of economic confidence.

The latest Westpac-McDermott Miller Regional Economic Confidence survey showed a net 28 per cent Bay households expected the region's economy to improve in the next year - with the region topping the charts - beating Gisborne and Hawke's Bay.

Could Steve answer the following questions please -

1 - As Rotorua Mayor, are you feeling the optimism within the city? Is there a positive vibe on the street?

2 - What do you attribute it to?

3 - Does it surprise you that Bay of Plenty is number 1?

4 - Do you believe that any Rotorua business sectors are performing particularly well?

15 January Westpac Media Release shared by reporter:

Regional economic confidence in the Bay of Plenty picks up sharply

A net 28% of Bay of Plenty households expect their region's economy to improve over the next 12 months, making them the most optimistic in the country according to the Westpac-McDermott Miller Regional Economic Confidence survey for the December 2019 quarter.1 This compares to the previous quarter where a net 9% of households said that they expected their region's economy to improve..

This sharp rise in confidence in part this reflects the impact of a highly successful kiwifruit season, said Westpac Chief Economist Dominick Stephens. Lower interest rates, rising house prices and a lift in construction activity, particularly in Tauranga, are also likely to have improved the mood.

That said, relatively weak log prices in this major forestry region will still be a cause for concern, although the impact on harvesting has been minimal, said Mr Stephens.

The survey was conducted over the period 1-10 December 2019.

View Westpac McDermott Miller Regional Economic Confidence (Dec 2019 quarter) report HERE

Response

From Rotorua Mayor Steve Chadwick:

The Westpac survey reflects a point in time and it's always good to see a lift in confidence. There is definitely ongoing activity in Rotorua but there are also challenges and our district housing plan and ongoing investment in infrastructure will be crucial to continuing to attract businesses, residents and investment that will provide district-wide benefits.

Many business people, residents and visitors I've spoken to are optimistic and say there seems to be a lot happening in Rotorua.

Our hospitality industry and tourism operators have been talking about a very busy summer and investment in our district is very visible right now - that's with the likes of the lakefront and forest developments underway, the new Pullman hotel opening, demolition starting on the Rotoma No 1 inner city development, additions to the Regal Palms complex well-progressed and the new commercial building at the lake end of Fenton Street nearing completion. These types of developments provide work while under construction and potentially create new jobs once complete.

So there is a re-shaping of our district underway but there's a balance we need to get right and that includes getting the right level of investment in infrastructure to support the district's progress.