Regional Growth Strategy Ruapehu Cycle Tourism Summit 23 October 2015
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1 Regional Growth Strategy Ruapehu Cycle Tourism Summit 23 October 2015
2 TODAY 1. Introduction: purpose of session 2. The state of the region: and why it is what it is 3. Our approach: how we conducted the study 4. Opportunities: what we found 5. Implementation Strategy: unlocking the opportunities how can you help?
3 WHAT IS AN OPPORTUNITY? In the report, we defined an opportunity as meeting one or more of the following criteria: Likely to unlock productivity in an existing sector. Potential to release un used or under used resources (labour, capital, land). Builds on existing regional comparative advantage. Is in a growth period, or may be about to enter one. Is attractive for Māori investors or workers. Will deliver jobs, especially in areas where employment opportunities are limited. Will contribute to increased exports. Will boost regional GDP. Is unlikely to cannibalise activity from other parts of New Zealand, so is likely to be net additional to New Zealand as a whole.
4 HOUSEHOLD INCOME AND EMPLOYMENT GROWTH Source: Regional Economic Activity Report 2014
5 WIDE DIFFERENCES IN ECONOMIC PERFORMANCE Source: Regional Economic Activity Report 2014
6 PRIME WORKING AGE POPULATION IN MANAWATŪ-WHANGANUI * Prime working age is defined by convention to be those aged between 25 and 54. Actual Projections 95,000 90,000 85,000 80,000 75,
7 EMPLOYMENT GROWTH, , COMPOUND ANNUAL GROWTH RATE NZ Manawatū Whanganui region Manawatū Palmerston North Rangitikei Whanganui Horowhenua Tararua Ruapehu 3.0% 2.0% 1.0% 0.0% 1.0% 2.0%
8 A REGION FULL OF PROMISE, BUT The Manawatū Whanganui region is full of promise, but the regional economy is stuck in a low growth rut due to global forces, structural change and specific local challenges: Measured on almost any economic criterion, MW is at the tail end of the regional development stakes in New Zealand. GDP per capita is 23% below the national average, and the region ranks 13 th out of 15 statistical regions.
9 CONTEXT: REGIONAL DEVELOPMENT POLICY
10 Overview of our process OVERVIEW OF OUR PROCESS the study Consult Review data & literature Engage with stakeholders Reality check Conclude Explain process Generate buy in Collect initial opportunities Identify datadriven opportunities Seek local views, specialists' insights Global trends? Impact? Final report First thoughts Data & literature evidence Local expertise Logic & consistency Viable, measurable opportunities 10
11 THE OPPORTUNITIES AND ENABLERS Opportunities: Tourism and visitor services Sheep and beef farming and processing Land and water use optimisation Mānuka honey Fresh vegetables Poultry meat production and grain growing / processing Affordable care and lifestyle for older people Business process outsourcing and food innovation outsourcing. Enablers: Distribution and transport Growing business Productivity of Maori land
12 RUAPEHU ROCKS THE VISITOR INDUSTRY 6.2% of District GDP (double that of national economy) 13% of employment 576 FTEs 161 business units $29 million in GDP 2,450 beds December 2014 achieved peak visitor nights 40,000 for the month and 427,000 bed nights for the year What more is achievable and how?
13 TARGET AND CHALLENGE (VISITOR SPENDING CHANGE ) 30% Domestic contribution International contribution Total 25% 20% 15% 10% 5% 0% 5% 10% 15% 20% Otago Hawke's Bay Wellington Manawatū Whanganui Taranaki Tasman Waikato Total Auckland Southland Northland Bay of Plenty Nelson Gisborne Marlborough West Coast Canterbury
14 EXPAND AND MAKE BETTER USE OF EXISTING ATTRACTIONS, ESTABLISH NEW ATTRACTIONS Add depth to Tongariro crossing experience Develop partner walks e.g. Tama Saddle Track and Park s southern gateway Package and market visitor attractions to provide a multi day tourism experience Complete and integrate mountain biking tracks and road riding opportunities Enable 365 day uplift at RAL Turoa facilities and 365 day use of accommodation, infrastructure and services New track next to Turoa Road Integrate marketing with Taupo, Rotorua and Queenstown Establish wide spread ultra fast broad band Target international visitors Target campervan and independent travelers Work in partnership with iwi
15
16 TO AN IMPLEMENTATION PROCESS NOW Implementation: Accelerate25 The implementation programme which actions: ACTION Getting people involved and investing Confirming areas of opportunity and turning them into reality Optimizing the region s people and business opportunities Building a stronger and more prosperous MW Results: Groupings of key people who generate and action a set of plans (Action Plans) to accelerate the opportunities from ideas into reality.
17 TEAM STRUCTURE OWNERS Mayors Chairs Ministers Iwi Form LEAD TEAM 2 x Mayors/chair 1 x Central government 2 x Appointed by iwi 2 xbusiness leaders Role: Define priorities Source and allocate funds Appoint Director Determine KPI s. PROGRAMME DIRECTOR Programme direction and management Connections, drive and oversight to teams Reporting. Provide drive and oversight for PROJECT TEAMS Teams lead by driver (chair) Support from Council / EDA staff Identify project objectives and milestones Carry out work plans One team for each opportunity identified in the Growth Study Populate project teams PARTICIPANTS Include: Business people Corporates Local Government Central Government Investors Iwi / Hapu / Whanau Entrepreneurs
18 HEADINGS FOR ACTION PLAN 1. Definition of the opportunity 2. Success what does it look like? Short and long term? 3. Key challenges what interruptions or interventions? 4. Key players people map 5. Next steps immediate steps required 6. Leadership continuity 7. Probability chances of success 8. Inputs required resources
19 OUTCOMES A CHANGED PERCEPTION OF THE MANAWATŪ WHANGANUI REGION: Growth more jobs, increased GDP, higher wages Action accelerate from planning to execution as quickly as possible Energise optimism and energy Momentum accelerate early wins to lead others forward Method a credible, sustainable project based method Confidence inspire belief and continue to build regional pride Cohesive relationships people working together including central government, local government, iwi and business Engagement strong understanding, engagement and backing from the community.
20 WHAT DOES THIS MEAN FOR YOU? Role modelling keeping opportunity in front of the local community, identifying opportunities, overcoming barriers, being active, involving yourselves in teams Vision leadership Asking Why not? rather than Why? Thought leadership talking, talking, talking inspiring people, getting people thinking and doing.
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