Economic survey healthy
28 February 2004
By STEVE HEPBURN

An economic survey of Central Otago paints a rosy picture.


Business and Economic Research Ltd (Berl) profiled the economic trends of the district for the period from March 1996 to March 2003. The report shows growth in the district in the past two years.

Central Otago has the third-fastest rate of job creation behind Queenstown Lakes and Gisborne.

The population increased 1 per cent last year but still remains below the 1996 figure. In 2003, the survey found there were 14,950 people in Central Otago, compared with 15,200 in 1996.

The level of growth in Central Otago in 2003 was estimated to be 8.6 per cent, double the national average.

Employment growth had been robust since 2001. This was evident in other rural areas but the upturn was not as strong as in Central Otago, the report said.

Since 2001, there had been an increase of 974 full-time jobs. From 1996 to 1999, there had been a loss of 584 full-time jobs.

There was a total of 583 new full-time jobs in 2003. The biggest increase was in the construction and distribution sector. The construction industry grew by 151 jobs in 2003.

The more traditional Central Otago industries, such as agriculture and services to agriculture, recorded an increase of 99 full-time jobs in 2003. About 2200 full-time jobs are in agriculture

Tourism continues to play an increasing role in the economy. In 2003, 1299 people were employed in tourism-related industries. The bulk of this growth was in accommodation, cafes and restaurants.

Central Otago has experienced an increase in demand for accommodation, although this has been less robust than in other parts of New Zealand.

The decline in stock numbers is also reflected in pastoral land use, which had fallen by about 17,000ha between 1995 and 2002. Land in horticulture had increased by about 500ha, mainly because of a significant expansion in plantings of grapes for wine.