[ad_1]
Monique ford
Wellington is among the regions most economically affected by Covid-19, in large part because people work from home and spend less.
The New Zealand economy is recovering, but Wellington is countering the trend.
Economic activity in Wellington fell 1.5 percent in the September quarter, the fourth worst performance of any region in the country, according to a new report from Infometrics.
Auckland, Otago and Canterbury were the three worst performers respectively.
THINGS
Many Kiwis at the height of their game want to go home, a Kea poll shows.
Infometrics senior economist Brad Olsen attributed Wellington’s poor performance to public service employees working from home, a decline in business travelers and increased competition from other regions.
READ MORE:
* Concerns over possible ’emptying’ of Wellington’s metropolitan economy
* Has Wellington lost its cool title to Auckland?
* ‘Big news day’ for Wellington: council agrees to spend $ 179 million to fix and update library
Lawrence Gullery / Stuff
Infometrics economist Brad Olsen says Wellington is struggling against other emerging regions.
The city faces greater challenges from areas like Hawke’s Bay and Whanganui in attracting businesses and people, he said.
“The challenge is to attract talent, you have to make sure you provide good job opportunities and good life opportunities. That will present some challenges for the Wellington region, ”he said.
“Many of these problems will be difficult to reverse quickly. Much attention will have to be paid to the business appeal and marketing of Wellington not just as a place to visit, but also as a place to build on. “
However, not all bad news. The region has benefited from reliable public service employment and a strong construction industry, he said.
Chamber of Commerce Executive Director John Milford said the region performed decently economically on weekends, but was disappointed by Monday through Friday businesses as more people work from home.
Rosa Woods / Stuff
Wellington Chamber of Commerce executive director John Milford says the city’s economic woes won’t end until the Trans-Tasman bubble opens.
“The Monday through Friday challenge is potentially an ongoing challenge. If it’s the new normal, then the city’s business community will have to adapt, ”he said.
Municipalities have limited ability to stimulate consumer spending outside of tourism advertising, but could consider adjustments to parking costs or greater investments in public transportation, he said.
“That only accumulates more expenses in the city, which taxpayers have to pay.”
Wellington City Council has faced a flood of costs, including repairing Wellington’s bad pipes, the Let’s Get Wellington Moving project, and Wellington library upgrades.
Council experts confirmed this week that rate hikes of up to 23 percent could be considered for next year.
Ross Giblin / Stuff
Wellington Mayor Andy Foster said the city’s economic strategy was so outdated that it “made no sense.”
As Milford sees it, Wellington’s economic recovery hinges on one thing: the Trans-Tasman bubble.
Wellington’s tourism is heavily dependent on Australia. About 70 percent of international travelers to the region are Australian.
However, new lockdown measures in South Australia have frozen hopes of a bubble in the near future.
Wellington Mayor Andy Foster said he was working with businesses to draft a new economic development strategy. The latest version was written in 2011 and was “so out of date it doesn’t make sense.”
Foster said the bigger question was how to strengthen the central city.
ROSA WOODS / Things
Foster said the city needed to be a more pleasant place to live and work.
“We have to create an atmosphere where people say ‘I want to be in Wellington’ and not ‘I have to be in Wellington’ because it’s a great place to be.”
Foster expects to see an increase in retail spending before the holiday season.
Its policy of introducing free parking on weekends was rejected by the council earlier this year, but the council this week announced a special offer to provide the first two hours of weekend parking for free in the Clifton parking lot. , owned by Waka Kotahi.
Correction: Due to incorrect information from Infometrics, an earlier version of this story said that economic activity in Wellington was down 4.4% in the September quarter, making it the second worst performance of any region in the country. Wellington’s economic activity was actually down 1.5 percent, making it the fourth worst performer.
