Part D: Statements of
Service Provision

3
Whanaketanga ōhanga
Economic development

We aim to support economic growth to enhance quality of life.

In this section

This section includes, for the following groups of activities, what we do; the rationale – why we do it; the service offering; key projects and programmes; how the activities are funded and how much they cost; any significant negative effects; and the level of service we expect to provide, with performance measures that demonstrate what you can expect as part of that level of service.

There is one activity grouping under this strategic area, it is:

3.1 City promotions and business support

What we do – an overview

In collaboration with the Wellington Regional Economic Development Agency (WREDA) we:

Why we do it

Alignment with our long-term city outcomes

People-centred city
A strong economy provides job and business opportunities for Wellingtonians, and enables people to have a high quality of life.

Eco city
We aim to grow the city’s knowledge-based creative industries as part of a ‘green, weightless’ economy – developing the ‘green dividend’ for Wellington.

Connected city
Wellington has a growing knowledge economy based on ideas and innovation. A knowledge economy needs to be connected to other centres of creativity to thrive and attract investment, talent and visitors.

Dynamic central city
A dynamic central city is crucial for attracting talent, investment, visitors and jobs. It is a critical part of growing the city’s economy and ensuring Wellington remains vibrant and retains its competitive edge.

Alignment with the priorities in Our 10-Year Plan

Sustainable growth
Wellington has been experiencing a period of strong growth. We now need to manage, enable and incentivise the growth in order to maintain and enhance the qualities that attract people to Wellington.

Snapshot

Our direction

Outcome indicators

We use outcome indicators to monitor progress towards our outcomes over time. This provides us with information on trends that may influence our performance, including those outside our control. As these indicators are at least partially outside of our control, we do not set targets for outcome indicators but instead we will monitor and report on trends over time.

The below is a summary of the outcomes we are monitoring over time. The full list of indicators that inform these outcomes for the economic development area are included at the end of the economic development section.

What this tells us:

How Wellington performs economically contributes to our city’s vibrancy and the quality of life it offers Wellingtonians. If we’re attracting and retaining visitors, talented new residents and business, we can be confident that Wellington is a vibrant and desirable city to live in.

3.1 Whakatairanga tāone / tautoko ā pākihi City promotions and business support

To maintain a city that is prosperous and facilitates a high quality of life for its residents, we need to stimulate and maintain a dynamic and growing economy.

To do this we fund tourism promotions and visitor attractions, support Wellington Regional Economic Development Agency (WREDA) and maintain relationships with other agencies to foster economic growth.

Activities in this group

  • 3.1.1 WREDA and venues
  • 3.1.2 Wellington Convention Centre
  • 3.1.3 Retail support
  • 3.1.4 City Growth Fund
  • 3.1.5 Major economic projects
  • 3.1.6 International relations
  • 3.1.7 Business Improvement Districts (BIDs)

Rationale

  • To attract and retain talented residents. Attracting talent, visitors and jobs is critical to growing the city’s economy and ensuring Wellington remains vibrant and retains its competitive advantage.
  • To grow tourism spend and economic returns from events. We aim to attract and support major events that bring visitors and extra spending to the city.
  • To grow inward investment and exports. Ensuring that the city has a presence internationally will be vital to attracting investment, talent, visitors and jobs.
  • To sustain city vibrancy. City promotion and events build and retain city vibrancy. It is critical that Wellington remains vibrant and internationally relevant, and that people coming here have the best possible experience.

Services we provide

Key projects/programmes

We have enjoyed strong economic growth in recent years. While our economic performance has been good, in terms of overall GDP growth, Wellington still lags behind the New Zealand average and other major cities. This means we need to do more to diversify and strengthen our economy.

Projects include:

These projects are significant in scale and are being progressed in partnership with regional partners and the private sector. They are expected to draw visitors and boost economic growth, and also raise Wellington’s profile as an arts and culture capital.

How it will be funded

This graphic illustrates the planned capital and operational expenditure for the conservation attractions group of activities. It shows that expenditure in this area is predominantly operational, with significant capital expenditure in line with the key projects identified in years 2-4 and 8-10. Detail on the expenditure can be found in the projects and programmes budget tables from page 185.

What it will cost

This graphic illustrates the planned capital and operational expenditure for the city promotions and business support group of activities. It shows that expenditure in this area is predominantly operational with significant capital expenditure in years 6-8 relating to the indoor arena. Detail on the expenditure can be found in the projects and programmes budget tables from page 185.
  The major capital expenditure in this area is the indoor arena. Capital expenditure for the Movie Museum and Convention Centre sits under ‘Cultural wellbeing’.

What you can expect from us – performance measures

We use performance measures to track how well we are delivering services against targets.

Please note the following when reading these measures.

3.1 City promotions and business support
Performance measure Previous year target (2017/18) Target 2018-28
Business Improvement Districts    
Total voluntary rates collected (from Business Improvement Districts) and distributed New $289,000
Wellington Regional Economic Development Agency (WREDA)    
WREDA – Positively Wellington Tourism partnership funding Maintain the Council’s funding at less than 50% of total income Maintain the Council’s funding at less than 50% of total income
Value of business events ($m) No previous target $25m
Total number of events held in Wellington No previous target 44022
Wellington’s share of the multi-day conferences No previous target 19%
Net permanent and long-term arrivals No previous target 3,650
Total visitor spend ($b) No previous target $2.64b
Return on investment via out-of-Wellington spend No previous target 20:1
Total event attendance No previous target 700,00023
Lightning Lab participant investment raised New Trend
Non-council revenue ($) No previous target Trend 
WCC operating grants ($) No previous target Trend 
GWRC grants ($) No previous target Trend 
Total revenue ($) No previous target Trend 
Operating costs ($) No previous target Trend 
Net surplus /loss ($) No previous target Trend 
Number of actively supported businesses through regional business partner programme New 445
Wellington Regional Stadium Trust    
Total number of events No previous target 45-50
Attendance No previous target Trend 
Customer satisfaction No previous target Trend 
Total revenue (000) No previous target Trend 
Event revenue (000) No previous target Trend 
Net surplus (000) No previous target Trend 
Trend target – Where the target is set as ‘trend’, this is an indicator that we will monitor over time but have not set a target.

Key challenges and negative effects

Council activities are carried out in order to maintain or improve the wellbeing of Wellingtonians and visitors to Wellington. Some of these activities may have negative effects that need to be managed or mitigated.

Activity Key challenges and/or negative effects Mitigation
3.1 City promotions and business support

The activities in this area facilitate and encourage growth in tourism and business, both of which result in more people in our city.

Tourism, and the influx of additional people into the city, can bring many economic and social benefits. However, these are also associated with negative effects.

More people in the city places additional pressure on our infrastructure networks (water and wastewater, for example) and more people travelling into and out of our city results in increased carbon emissions.

We are building on our skilled knowledge base, creative industries and services sector to capitalise on a world economy that is becoming increasingly ‘weightless’ – with a focus on generating high-value, low-carbon products and services. Our focus in these industries mitigates some of the negative effects associated with a growing economy.

We support a range of initiatives to reduce the emission profile of the city and are working with partners on making the transport system more sustainable.

We also dispose of waste in sustainable ways; we capture gas at the landfill and have funding in the out years of the long-term plan to reduce sewage sludge.

Outcome indicators – Economic development

We use outcome indicators to monitor progress towards our outcomes over time. This provides us with information on trends that may influence our performance, including those outside our control. As these indicators are at least partially outside of our control, we do not set targets for outcome indicators but instead we will monitor and report on trends over time.

Outcome measures Desired trend
Visitor and talent attraction:  
Number of domestic and international visitors (guest nights) and average length of stay – international and domestic Increasing
Domestic and international airline passengers entering Wellington International Airport Increasing
Secondary (international) and tertiary (international and domestic) students enrolled Increasing
International air destinations Increasing
Business support, attraction and retention  
Number of companies that are in New Zealand's top 200 companies based in Wellington Increasing
Business enterprises – births and growths (net growth in business) Increasing
City vibrancy and economic performance  
Pedestrian counts – average of various Golden Mile sites Increasing
Commercial building vacancy rates (80% code +) ​ Decreasing
Economic performance  
Labour force participation – this indicator measures the proportion of the working-age population that is in the labour force. The labour force includes all people who are either employed, or unemployed and looking for work. Increasing
Economic diversity – indicator to be determined Increasing
Proportion of jobs in smart, knowledge-intensive industries Increasing
Unemployment rate – Wellington and New Zealand Decreasing
Access to, and uptake of, fibre broadband Increasing
GDP per capita Increasing
Deprivation index – city residents and New Zealand average (most deprived deciles) Decreasing
Income (average annual earnings) – income ($) per annum and percent growth Increasing
Youth NEET (not in education, employment or training) – as a proportion of 15 to 24-year-olds Decreasing
What this tells us:
How Wellington performs economically contributes to our city’s vibrancy and the quality of life it offers Wellingtonians. If we’re attracting and retaining visitors, talented new residents and business we can be confident that Wellington is a vibrant and desirable city to live in.

22The targets for this measure are 440 in 2018/19, 570 in 2019/20, and 650 in 2020/21
23The targets for this measure are 700,000 in 2018/19, and 750,000 in 2019/20 and following years