Businesses of all sizes need to be practical, but aim higher, says Economic Development Minister Steven Joyce.
In Rotorua yesterday to officially open Rainbow Springs' The Big Splash water ride, Joyce told The Daily Post it was great to see this type of investment and he would like to see more businesses innovating and aiming higher to capitalise on opportunities such as the growing demand for food, specialist goods, timber and holiday destinations in the Asian markets.
"Tourism is a big opportunity for Rotorua with the growth in tourism out of Asia. It is important we invest in tourism products that will work for that market.
"This region is reasonably well positioned to do do that, with the investment in the airport and the infrastructure that is already here."
He said it was important to keep looking for future investment in unique attractions that would add value to the natural offerings of the region.
But Joyce also sees potential from Asia in other sectors, including education and productive industries such as forestry, as the growing middle class results in an increase in demand for dairy, specialist foods and unique travel experiences.
"There is talk that the Chinese market is looking more to processed timber than logs because of their own concerns about energy and climate change."
He said New Zealand, and particularly the central North Island, was well placed to do that processing using renewable energy sources such as geothermal and hydro power.
Joyce is also responsible for the tertiary education and science and innovation portfolios and he is keen to bring both these sectors into economic development: "We want to encourage innovation across sectors, working together to get the best results we can."
But he said innovation was not just about new technologies - new ideas to improve efficiency, intellectual property and new processes also created opportunities for New Zealand.
Joyce plans to return in the next quarter to talk with a range of sectors about how the Government and the region can achieve growth in the local economy. This will include collaboration between public and private sectors - including Waiariki Institute of Technology and Scion.
"It will be good to see what local opportunities there are to work with what the private sector is doing."
Innovation is one of six key elements the Government is working on to help businesses help the economy to grow - infrastructure, innovation, capital markets, skills, access to resources and export markets.
Joyce said the regulatory situation was key to helping smaller businesses, which make up nearly 90 per cent of New Zealand firms.
He acknowledged it was difficult to grow when the business was small, but said this regulatory change took some of the risk out of taking on new staff.
"It is still probably a bit of a grind for people at the moment - that's down to the global financial crisis. But if you can look past the next few years, you can be well-placed, if you take the steps you need to to take advantage of the opportunities out there.
"The challenge is to lift your sights a bit and focus on that."