29 May 2017

Rotorua economy continues to perform well

This year looks set to be another good year for the Rotorua district, according to the latest Infometrics quarterly economic report.

The just released report for the March 2017 quarter says the Rotorua economy has continued to perform well.

Mayor Steve Chadwick says it reinforces the need for ongoing investment in the district’s infrastructure and the future planning currently underway.

“Rotorua is changing, growing and progressing and that has brought new challenges, increasing pressure on infrastructure like roading networks, public amenities, public facilities and housing,” Mayor Chadwick says.

“Our population has passed 70,000, reversing a pre-2014 decade of decline, and we’ve seen considerable tourism growth.

“Future planning is needed to ensure the district can continue to be successful and we’re doing that through the refresh of our 2030 vision and development of a spatial plan that takes a long-term view and will provide a blueprint for strategic, sustainable development.

“We also need to future-proof our infrastructure with long-term solutions now. That will require assistance from central Government and we continue to lobby for ongoing investment in our district.”

The Infometrics Quarterly Economic Monitor for Rotorua for the March 2017 quarter says the district’s economy has continued to perform well recently with strength in a range of economic indicators contributing to a provisional GDP growth estimate of 3.1% in the year to March 2017. Rotorua’s GDP growth compares to 3.4% growth for the Bay of Plenty Region (including Rotorua) and is slightly higher than the national estimated growth of 2.9%.

“All up, 2017 looks likely to be another good year for the district,” the report says.

Accommodation and food services sectors are expected to benefit from an ongoing influx of tourists with a particular boost likely next month when the British & Irish Lions play the Maori All Blacks in Rotorua.

“Confidence about the prospects for tourism is certainly illustrated by the current refurbishment of the former Zen Centre into a five-star hotel to be run by Accor,” the report says. “A positive outlook for forestry and associated wood product processing also bodes well for the district.”

From the Infometrics report

• Traffic flows in the district have risen by 4.8% in the past year

• Tourism activity has been “solid” with guest nights increasing 5.5% during the past 12 months, ahead of the national average of 3.2%

• Rotorua’s buoyant housing market saw house prices rise 26% in the last year

• Residential building consents in the district are up by 4.7% year on year

• Non-residential construction is also on a rising trend in the district

• Retail spending has increased 5.3% in Rotorua during the past year

• The annual average unemployment rate in the district was 6.6% in March 2017, down from 6.7% a year earlier, compared to a national average rate of 5%

• Job seekers on benefits down 0.2%

• Car registrations are up 9.5%

• Commercial vehicle registrations hit 853 in the year to March, the highest level for at least a decade

Follow THIS LINK to view the full Infometrics report for the March quarter.

Want to know more about the spatial plan and how to have your say on shaping the district’s future?

The spatial plan will be a blueprint for how we want the district to look in the future, where development should occur, what kind of development and how much.

There are several ways you can have your say and we encourage all ages to take part. Get the whole family involved. Get your local community organisation and your clubs involved.

Tell us what you want in your neighbourhood and elsewhere in the district. Where should more housing go? What about commercial development? Where should parks and other recreational areas go? What do you want to see protected?

For more information and to find out how you can get involved go to the Rotorua Lakes Council online hub Let’s Talk – Kōrero Mai

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