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There is strong confidence among business leaders that the economic situation in Rotorua is expected to improve over the next 12 months, with data suggesting we may be at the bottom of the economic cycle, a recent survey shows.
The sixth biannual Rotorua Business Pulse Report providing these and several other insights from Rotorua’s business leaders was released today, November 14.
The Rotorua Business Pulse programme serves as a key barometer for local businesses, providing a platform for business leaders to share their perspectives on Rotorua’s economic health. The most recent survey, which ran last month, collected responses from 99 Rotorua business owners, CEOs and GMs.
The programme is run by RotoruaNZ in partnership with the Rotorua Business Chamber.
Nearly 52 per cent of respondents used “Growth” or “Recovery” in a one-word description of Rotorua, and 27 per cent saying organisational culture was what they were most positive about.
“We’re encouraged to see growing confidence among Rotorua’s business leaders, with positivity around profitability and an optimistic outlook on business growth in the coming year,” says RotoruaNZ chief executive Andrew Wilson.
“The survey results highlight that our local businesses are pushing forward despite challenges, with rising organisational morale and strategic focus leading the way.
“However, finding skilled staff and addressing barriers like housing and air connectivity remain pressing concerns. RotoruaNZ is committed to working alongside our business community to enhance our city’s reputation and address these issues to ensure Rotorua continues to be an attractive, sustainable hub for both business and talent.”
Additional key themes:
Business confidence across most indicators is positive, with confidence in achieving profitability growing very strongly in the most recent survey to reach double digits for the first time and, with inflation easing, the affordability of doing business continues to improve.
More than 25 per cent of respondents are most positive about their organisational culture, and 25 per cent about their business strategy; Nearly half the respondents commented they’re positive of a strong summer tourism season.
Measured for the first time, geopolitical instability is the second-ranked challenge after finding skilled workers, as tensions increase in the middle east and the possibility of tariffs being imposed following the U.S. elections.
Exceeding more than 50 per cent of respondents for the first time, businesses are increasingly more likely to have policies for reducing carbon emissions, and to incorporate Māori cultural elements into their business.
A perception that Rotorua has a poor reputation and lack of quality housing are key barriers in attracting talent to Rotorua. Almost half the respondents rate Rotorua schools as good, however a fifth of respondents with intermediate/high-school aged children send them to integrated/private schools outside the Rotorua District.
Airport travel issues was the most common theme of final, un-prompted comments with respondents taking the opportunity to further expand on the issues they face in using the Rotorua Airport for business travel: poor schedule times, frequent cancellations, and prohibitive costs being the typical reasons for choosing to depart from an alternate airport.
“The latest Business Pulse survey once again highlights the resilience of Rotorua businesses,” says Rotorua Business Chamber board president Paul Ingram.
“Since the March survey, a high proportion of participants have progressed business strategies, built team culture, and developed policies for carbon emissions and inclusion of Māori culture.”
For a comprehensive understanding of the current business climate in Rotorua, the full Rotorua Business Pulse Report for October 2024, as well as previous reports, is available here on the RotoruaNZ website, and a summary can be found here. Business leaders can sign up to receive future surveys here.
