Economic activity on the West Coast grew by 3.1 per centover the year to June 2023, according to economic consultancy Infometrics latest provisional estimates.
This growth pushed the region’s GDP up by $73 million, reaching a total of $2,430 million,” says Development West Coast chief executive Heath Milne.
“The resurgence in our tourism sector and strong contributions from construction and rental/real estate services have helped keep the economy in line with the national GDP growth rate of 3.1 per cent.”
Westland District led the region’s growth at 4.5 per cent, followed by 3.2 per cent in Buller, and more modest growth of 2.2 per cent in Grey.
“One year on since the borders reopened, the tourism industry has rebounded strongly,” says Heath.
Tourism expenditure across the West Coast rose by $63m from the June 2022 quarter, with Westland seeing the strongest growth in the country of 96 per cent over the year to June 2023.
Tourism spending across the region in the year to June was eight per cent higher than pre-pandemic levels (June 2019 year).
However, Heath added a caveat: “given inflation rates, this result suggests that actual consumption by tourists is in line with pre-pandemic levels”.
Meanwhile consumer spending on the West Coast grew by 18.4 per cent, above the national rate of 11.8 per cent.
On the employment front, the West Coast had a 1.3 per cent increase in jobs over the year to June 2023.
Heath attributed this growth to “accommodation and food services, coupled with the transport sector—both highly linked to the tourism sector”.
While Westland experienced 3.3 per cent growth in job levels, Buller and Grey saw stable figures at 1.0 per cent and 0.1 per cent respectively.
Despite employment growth, challenges persist for the region. “The primary sector is grappling with mounting pressures, especially after the large drop in the forecast milk payout,” Heath says.
The Farmgate milk price has been further downgraded to $7. DairyNZ is projecting the average farm to run a deeper deficit than last year.
Turning to the real estate sector, Heath says: “The West Coast’s housing market has been one of the country’s most robust”.
Defying national trends, the West Coast is the sole region in New Zealand witnessing a climb in house values. Prices have increased by 1.4 per cent since the June 2022 quarter, compared to the 11 per cent drop seen across the nation.
Despite a 21 per cent annual decline, residential consents remain around a third above the five-year average with lots of work still in the pipeline.
