The city is reaping the benefits of events such as Crankworx, the world's largest mountain bike festival, as a Westpac economic survey names the Bay of Plenty as the most positive region in New Zealand for the fifth quarter running. Photo / Clint Trahan Crankworx
The city is reaping the benefits of events such as Crankworx, the world's largest mountain bike festival, as a Westpac economic survey names the Bay of Plenty as the most positive region in New Zealand for the fifth quarter running. Photo / Clint Trahan Crankworx
Bay of Plenty has been named the most positive region in New Zealand for the fifth quarter in a row - and a local business leader thinks Rotorua could be set to benefit as Tauranga reaches its business capacity.
The June Westpac McDermott Miller Regional Economic Confidence survey has found41 per cent of households believe the region's economic fortunes will improve over the coming year, up from a net 35 per cent in March. This places the Bay ahead in the confidence stakes over any other region, with Canterbury in second at 26 per cent.
Rotorua Chamber of Commerce chief executive Darrin Walsh said the report showed the great state of the Rotorua economy - and he believed it hadn't peaked yet.
"Business-confidence wise, economic wise, house-sales wise we are taking off."
But he said the key was sustaining it.
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Mr Walsh said he believed Tauranga's economy was slowing as it was reaching capacity in a business sense, and Rotorua could take advantage with its capacity for growth.
"There is certainly room to sustain and grow. I don't think it has peaked yet."
He said a key was seeing areas opened up for commercial and economic development.
"When parcels of land come to market there will be that boom time."
Mr Walsh said infrastructure such as roading was a key to making sure Rotorua capitalised on the growth, especially the links between Rotorua and the port at Tauranga.
Mr Walsh said while there was a lot of talk about how well the tourism industry was doing, plenty of wider businesses benefited like accountants, lawyers, retail stores and engineers.
Rotorua Lakes Council deputy mayor and economic growth portfolio leader Dave Donaldson said the survey reinforced what many in the city were already experiencing.
Rotorua deputy mayor and economic growth portfolio leader Dave Donaldson.
"Rotorua, particularly in terms of major events and conferences, is looking very positive and exciting," he said.
"Next year we have the [British and Irish] Lions versus the Maori All Blacks here which is already gaining interest and several other events yet to be announced.
"It's going to be a big, big year for Rotorua tourism."
Economic experts suggested there were several factors including horticulture that helped buoy the Bay position.
"The horticulture side of it is clearly concentrated in the Western Bay of Plenty but that would be mirrored, if not matched or exceeded by the strength in tourism right now. Our visitor economy is powering along towards our goal of being a $1b industry by 2030," said Mr Donaldson.
Westpac chief economist Dominick Stephens said the survey results were another excellent result for the Bay.
"Going by a number of economic indicators, it is not surprising that the region has been the most optimistic for five consecutive quarters. House prices are growing, creating a sense of wealth, unemployment rates are low, and horticulture is enjoying a purple patch."
The regional breakdown of the separate Westpac McDermott Miller Consumer Confidence Index showed that the Bay of Plenty was one of only three regions in which confidence strengthened in June.
Regional consumer confidence reached 110.0, up from 108.7 in March, and above the national average of 106.0.
"We would expect consumers in the Bay of Plenty to be feeling confident given their current economic situation.
"It is worth noting that the region is one of just two in which respondents expect things to get better over both the one-year and five-year horizons," Mr Stephens said.
