Most feel economic future bright

Rotorua businesses expect profits to rise, more staff to be employed and more investment to be made as they bask in high levels of economic confidence in the city.

Both businesses and residents are positive about Rotorua's economic future, according to an independent survey that revealed improved confidence across most economic measures.

The 2014 Business and Public Confidence Survey, carried out in December and January by APR Consultants for the Rotorua Lakes Council, showed local businesses recording high confidence in six out of seven economic indicators - general business conditions, unemployment, economic activity, purchasing, residential construction and commercial construction - while confidence was steady for increased promotional activity.

The general public also had strong confidence in two of the three indicators they were surveyed on - business conditions and economic activity - with confidence remaining steady for reducing unemployment.

While, in some cases, they were slightly less positive than the same time last year, most still expected things to improve over the next 12 months.

Businesses anticipated increased volumes of residential and commercial construction, a reduction in unemployment and export levels to go up in the coming year.

However, businesses were less positive about prices and interest rates, expecting both to rise in the next 12 months.

Businesses also had concerns around the ability to attract skilled labour, with 51 per cent saying the availability of skilled labour in Rotorua was poor or very poor.

Rotorua Lakes Council Economic Growth Portfolio lead, councillor Dave Donaldson, said the survey showed conditions were generally aligning well for Rotorua.

"The survey suggests both the general public and the business community have growing confidence that our local economy has turned the corner and is on the way up. That's really encouraging news, as it's critical for building a positive and sustainable investment environment for our district."

He said the results appeared to be backed up with other indicators like an increase in the value of building consents, higher retail sales, strong tourism activity and attracting major events to Rotorua.

Mr Donaldson said growing the local economy remained one of the council's key priorities and was an important goal of the Rotorua 2030 vision.

Rotorua Chamber of Commerce chief executive, Darrin Walsh, said the survey mirrored what he had been seeing in regards to an increased confidence around town.

"With another two to three months of things going the way they are unemployment will reduce and property values will go up."

He said town had been humming over summer and retailers were happy.

Mr Walsh said Rotorua was "completely different" to when he arrived here four years ago.

"When I first got here it was like walking through a ghost town that was looking and feeling depressed. What I'm seeing and feeling now is a completely different picture."