​A new era, a new economic strategy for Central Otago...

A new 10-year economic strategy that will reflect the region’s potential for both business and community is being developed by the Central Otago District Council (CODC).

To help inform the new strategy, a recently commissioned economic development report has given key insights into Central Otago's social and economic performance in comparison with national averages.

The report, prepared by Arrowtown-based economist Benje Patterson, helps set the scene for the refresh of Central Otago's economic development strategy, as the existing strategy is due to expire at the end of 2024.

The independent report highlights economic and social changes in the community at district and ward levels over the past five years since the current economic strategy was commissioned. It also includes global mega-trends that are slowly changing the broader environment for our economy and will need to be considered in the development of the new strategy.

CODC Group Manager Community Vision Dylan Rushbrook said there were many things to celebrate about Central Otago and the way the region has performed post-global pandemic.

“An obvious example of this is the spending by visitors which has increased 37% above its pre-COVID levels to $282 million in 2023. However, growth and ever-increasing demand brings its own unique challenges for the short to medium future, as the report confirmed.”

Points of interest from the report include:

• Central Otago’s population increased from 22,000 in 2018 to 26,000 in 2023.
• Central Otago’s proportion of working age population is expected to decrease from 61% in 2024 to 54% by 2048.
• Average household income in Central Otago increased from $84,336 in 2018 to $102,008 in 2023 but is still below the national average of $125,424.
• Central Otago’s unemployment rate decreased from 2% in 2018 to 1.5% in 2023 remaining less than half that of the national average.
• Housing affordability has declined with the average house costing 7.7 times the average household income in 2023 compared to 5.9 times in 2018.
• Central Otago’s two biggest industries (construction and agriculture) accounted for over 36% of employment.
• Central Otago’s visitor economy is also a key source of employment, with estimates that 12% of all jobs in Central Otago were attributable to tourism in 2023, compared to a 6.9% share nationally.
• In 2023 22.9% of our workforce was self-employed compared to the national average of 15.9%.

“The new economic development strategy work will kick off in the next few months with a series of workshops with the community,” Mr Rushbrook said.

“The intent is to develop a 10-year strategy that identifies how the Central Otago District Council continues to enable economic development, while acknowledging council’s role is often as a conduit to action rather than directing activity.

“We really want to unleash the potential of this region and see greater outcomes for our economy and ultimately our communities.

“Economic development for CODC has never been about businesses making more money; it is about creating an environment where our businesses can thrive and maximise their potential, which in turn generates more overall income for the region and an improved quality of life for all.

“But let’s also be realistic; that’s utopia. We’ve got to put building blocks in place to support our businesses to achieve their potential, whether that is through the development and attraction of workforce, increasing productivity by having greater access to childcare and healthcare services, or opening up opportunities for greater collaboration across boundaries.

“There is much outside our direct control. However, a well-articulated plan will enable us to map a pathway forward and identify the key partners we need to work alongside to move towards a common goal.”

CODC Economic Development Manager Nick Lanham reflected on some of the successes that have come from the previous strategy.

“An obvious standout was the fruit loss project that was a partnership between the private sector and council, to look at how valued products could be made from fruit that in the past would have been considered waste. This piece of work endures, and some tangible results are coming to life that sees improved economic outcomes for the region.

“Another was how the business community came together during COVID and provided knowledge and expertise to help lobby central government for targeted assistance, while also launching the Spare Room, Spare Time campaign that has now evolved into the Central Mahi program.

“All these examples and many more have only come about because of the willingness of the various sectors to work together and support one another. It is a real strength of Central Otago being small and well connected, and it is a challenge we will face as growth continues to keep those connections and that collaborative approach in everything we do.”

UPDATE - 1 August 2024

At the Council meeting on Thursday 31 July 2024, a report to provide an overview of the development of a district Economic Development Strategy 2024-2034 was presented.

The Council agreed to an update of the strategy to reflect new findings and to extend the duration of the existing 2019-2024 Economic Development Strategy until the new strategy is adopted.

Two liaison members were also appointed, Crs Tamah Alley and Tracy Paterson, to work with the steering group.

The Economic Development Strategy report is available on Infocouncil: Agenda of Council meeting - Wednesday, 31 July 2024 (infocouncil.biz)

For Economist Benje Patterson's report, click HERE.