Bay of Plenty Business News October/November 2016

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10 BAY OF PLENTY BUSINESS NEWS October/November 2016 Rotorua’s visitor industry celebrates more records Rotorua has followed up its recent tourism award success by racking up the best August ever for visitors nights and visits to attractions and activities. Data released by Statistics New Zealand reported a record August for nights spent in commercial accommodation in Rotorua with hotels, motels, backpacker hostels and holiday parks collectively hosting 139,300 visitor nights for the month. That was up 20,900 nights or 18 percent (versus a six per cent increase nationally) on August 2015. The Rotorua Attractions and Activities Monitor also reported a record August with 180,800 visits, up 19,100 (or 12 percent) on the previous year. Both sectors had increased growth with visits to activities up 29 percent and visits to attractions up 11 percent. Rotorua Canopy Tours operations manager Alex Barr says that August has finished off what was a great winter for their business. “Not only was it a great winter, but our forward bookings are already looking strong for summer,” says Ms Barr. “We can’t wait to see what the peak season brings.” Destination Rotorua acting chief executive Andrew Wilson says 2016 is proving to be a great year for the local visitor industry. “This exceptional August has followed on from a record breaking July,” says Mr Wilson. “Rotorua’s visitor industry is the region’s largest employer and certainly looks to be in great shape after continuing to record such strong numbers through the shoulder season.” “It’s also the latest in a string of positive announcements with Rotorua Canopy Tours last month receiving New Zealand’s Supreme Tourism Award.” It was the second consecutive year a Rotorua business has won the award with Skyline Rotorua the supreme winner in 2015. Rotorua’s Canopy Tours highlighted the city’s tourism dominance by winning the 2016 Air New Zealand Supreme Tourism Award “To have a fledging business like Rotorua Canopy Tours take out New Zealand’s ultimate tourism award shows Rotorua is a great place to establish a tourism business. This continues a legacy of other successful tourism ideas being pioneered in Rotorua, a number of which have expanded to other regions and beyond.” Rotorua Canopy Tours was the star of the show winning the Visitor Experience Award, the Environmental Tourism Award and New Zealand Tourism’s top accolade, the 2016 Air New Zealand Supreme Tourism Award. Destination Rotorua won the Industry Alignment Award for the Rotorua Tourism Investment Partnership and Jared Adams from Rotorua Top 10 Holiday Park was a finalist in the emerging leaders category. “Last year Skyline Rotorua took out the 2015 Supreme Tourism Award and for the region to retain the industry’s top accolade is a major coup,” says Destination Rotorua general manager Oscar Nathan. Mr Nathan says the Rotorua visitor industry has a pool of exceptional operators, talented staff and a large number of new and exciting investment projects underway and/or in planning. “As visitor numbers, retail sales and spending all continue to increase, the future continues to look very positive for Rotorua.” Neighbouring Hobbiton Movie Set was another major winner on the night taking out the Tourism Marketing Campaign Award, the People’s Choice Award and the Business Excellence Award (annual turnover above $6m). Mr Wilson said growth in Rotorua’s visitor activity is being driven by both the domestic and international markets. “The Famously Rotorua domestic marketing campaign has helped to raise Rotorua’s profile among domestic visitors, while improved air connectivity into New Zealand continues to open up and reinvigorate Rotorua’s international markets,” says Mr Wilson. Data released by the Ministry of Business, Innovation and Employment (MBIE) illustrates how the direct flights by US airlines have impacted Rotorua, with US visitor expenditure in Rotorua for the month of August 2016 increasing 36 percent (versus a 13 percent increase nationally) during the previous year. Strong positive growth from the North American market was also reported in the APR Consultants Rotorua Attractions & Activities Monitor for the same period with visits by North Americans up 2100 visits or 43 percent to 7000 visits. New campaign has Aucklanders Rotorua-bound By RICHARD RENNIE If they ever needed it, Aucklanders are about to be given yet another compelling reason to leave home when the Destination Rotorua campaign “Love Life, Live Rotorua” campaign starts to cut across their media. As the country’s largest city continues to be beset with grindingly slow traffic, soaringly unaffordable housing and evercrowding growth, Rotorua is gearing up to offer an appealing lifestyle switch along with attractive job opportunities. Destination Rotorua consumer marketing manager Tom Worsp says following the successful “Famously Rotorua” domestic tourism campaign, the Love Life promotion represents a natural progression. The Famously Rotorua campaign is regarded as central to turning the city’s tourism fortunes around over the past four years, driving up growth that was being funnelled to other more popular spots. Total domestic tourism spend has reached a high of $400 million annually, and latest data for August indicates a record month for nights spent in commercial accommodation, up 18 percent on August last year at 139,300 visitor nights. This followed a record breaking July, and winter culminated with Rotorua awarded the New Zealand Supreme Destination Rotorua consumer marketing manager Tom Worsp. Tourism Award for the second year in a row. Tom says the Love Life campaign runs to support and also be separate from the Famously Rotorua campaign. “Aucklanders want a good career, but they want to enjoy freedom and have a life as well – they want everything Rotorua has to offer, we just need to be part of the conversation and their consideration,” he says. Stage one of the campaign launched in late October, with outdoor media, case study videos, social media and on-line advertising. The message Rotorua has to push is a compelling one for any family considering escaping the Queen City. Data supplied by Destination Rotorua shows average house prices in Rotorua at $325,000 compared with Auckland’s $842,000. Yet despite the vast gap in house prices, average household incomes are close, with Rotorua averaging $81,675 a year, compared with Auckland’s $89,183. The mortgage repayment difference between the two cities is significant, with Auckland average weekly payments at $690 compared with $217 for a Rotorua household. Research by Destination Rotorua found Aucklanders are generally well disposed towards Rotorua, regarding it as a friendly, fun place to visit with an adventurous outdoor lifestyle. However many have limited knowledge of living in Rotorua, linking it more to tourism than family life. Perceptions existed around the city’s job opportunities, crime, and a perceived lack of vibrancy around cafes and nightlife. Tom says Hamilton and Tauranga are active with Aucklanders seeking a new life in those cities, and it is Rotorua’s time to be up for genuine consideration. The campaign’s survey data indicates a third of Aucklanders have considered moving away in the past two years due to house prices. Another third had not considered it, but thought it was a good idea. “The objective of phase one is to raise awareness of Rotorua as a place to live, work and learn. Phase two will then seek to convert active considerers to New boss at Rotorua Airport move to Rotorua,” Tom says. The primary target for the campaign includes families with children up to 20 years old, of mid to high socio-economic status. The campaign will be supplying support material and information to local businesses Rotorua Airport has appointed a new chief executive, Mark Gibb, who will take up the role in January, 2017. Airport chairman Peter Stubbs says Mr Gibb brings strong asset and investment management expertise to the airport, with 28 years’ experience in a range of different industries. “Mark has strong expertise in finance, governance, management and strategic planning, combined with proven leadership skills that will continue to lead the airport’s goals. “His substantial experience in New Zealand’s most internationally successful company will be invaluable over the next decade as the airport enters its next phase of development.” Mr Gibb is currently the general manager of global property and facilities at Fonterra Cooperative Group, where he is responsible for a team of 35 staff across Fonterra’s global property and facilities portfolio, comprising 980 sites across 28 countries. Mr Stubbs said the airport board was pleased with the quality of the shortlisted candidates. “The interest in the role is further proof that because of the community’s combined efforts, Rotorua is starting to be seen as a great place to relocate to, offering a fulfilling work-life balance.” Mr Stubbs said the airport board would like to acknowledge current chief executive, Nicole Brewer, who will step down at the beginning of November to embark on her new career in motherhood. “Nicole has done a great job as chief executive and leaves with our sincerest thanks and best wishes for the future. “She has put extensive efforts in developing and driving the airport strategy, and the progress the company has seen in her time as chief executive is testament to her hard work.” Fire and operations manager John Harrison keen to recruit from Auckland in an ever tightening labour market. Case studies will also play a big part in the Auckland pitch says Tom and he encourages locals to get on board with social media promoting their region and their life in it. will act as chief executive until Mr Gibb takes up his role in January. Mr Gibb said he was looking forward to the new role and would continue to build on Ms Brewer’s commitment in developing and driving the airport strategy. “It will be important to ensure that airport planning feeds into and aligns with the Rotorua growth strategy and I look forward to working with local agencies such as Destination Rotorua, Rotorua Lakes Council and the wider tourism and business communities. “I am deeply passionate about what I do, as well as Rotorua and Bay of Plenty, and am excited to be part of the community and support Rotorua as it moves forward.” Mr Gibb and his wife already have a strong attachment to the city and its community, having holidayed in Rotorua for many years, while Mr Gibb is also the president of the Ohau Anglers Club. “We are looking for inspiring people who live and breathe the essence of Rotorua, people who make the most of the outdoors and love their job.” To learn more contact Tom Worsp at Destination Rotorua – tom@rotoruanz.com or (07) 351 7100.
BAY OF PLENTY BUSINESS NEWS October/November 2016 11 Port makes step to big ships Port of Tauranga had another page written into New Zealand’s shipping history with the arrival of the largest container ship ever to visit New Zealand. The Aotea Maersk berthed at Port of Tauranga. By RICHARD RENNIE The Aotea Maersk’s arrival was celebrated in a high profile ceremony with dozens of invited exporters, freight operators and industry executives witnessing the massive 348m long vessel rounding Mount Maunganui and berthing at the Sulphur Point container facility. Maersk managing director Gerard Morrison acknowledged he felt a lot happier seeing the huge vessel safely berthed after being spun 180 degrees by Port of Tauranga tugs and nudged into its wharf facility. “It has taken a lot of hard work, including willing and understanding business partners to get here, and looking at it tied up does make me smile,” he said. The ship had been especially renamed the Aotea Maersk to honour the significance of its arrival in New Zealand. “While unlike the Maori canoe it is named after, it is not the first boat to call in to New Zealand, but it does mark a new era for shipping in this country.” He noted it was only 20 years ago Maersk celebrated the arrival of another specially named ship, the Maersk Taupo, which had an 1100 20ft container (TEU) capacity and provided a fortnightly service to Singapore. In contrast the Aotea and her 10 sister ships have a 9500TEU capacity, and will be calling every Tuesday, offering direct delivery to Taiwan and on to other significant Chinese and northern Asian ports. The ships form part of Maersk’s revamped Triple Star service that incorporates stopovers in South America before berthing in Tauranga. Importantly the large ship schedule has been developed to accommodate arrivals from Australia, putting Port of Tauranga in a useful trans-shipment port role for Australian exporters also seeking rapid delivery into Asia. Port of Tauranga chief executive Mark Cairns said the increased capacity of the ships promised to push the port’s annual container handling volume to more than one million a year, putting it five times ahead of any other port in the country for export volume. “From having bigger ships visiting here there is expected to be $350 million worth of benefits flowing from Asian trade alone,” he said. The arrival is also backed by significant infrastructural investment that stretches from the port’s land-based facilities all the way back to freight operators in Auckland and the upper North Island. The port has invested about a third of a billion dollars in dredging and facility expansion, including an additional two Super Post Panamax cranes capable of unloading the larger ships. The dredging programme has resulted in a main and outer channel 1.5m deeper to handle the larger ships’ draft. In South Auckland freight logistics company Coda, formed between Port of Tauranga and Kotahi, cut the ribbon earlier this year on a critical rail link between its Savill Drive freight hub and the main rail line to facilitate greater train freight movement into and out of the facility from Key strategic Pdecisions P lead to PPS Industries’ success Kotahi chief executive David Ross, Transport Minister Simon Bridges, chief executive Port of Tauranga Mark Cairns and Maersk managing director Gerard Morrison. P.P.S. around the North Island. Developed partly in anticipation of the larger freight volumes such ships will generate, the rail link up P P P S P P.P.S. P.P.S. Industri Industries Limited METAL FINISHING SPEC Industries S METAL FINISHING Limited SPECIALISTS ABRASIVES-POLISHING-PLATING-ENGINEERING SUPPLIES METAL FINISHING SPECIALISTS ABRASIVES-POLISHING-PLATING PPS Industries a proud to be associated with Stainless Kitchens. ABRASIVES-POLISHING-PLATING-ENGINEERING FREEPHONE 0800 657 894 FREEFAXSUPPLIES 0800 454 445 AUCKLAND - HAMILTON - TAURANGA - HASTINGS - PALMERSTON NORTH - NELSON - CHRISTCHURCH - DUNEDIN PPS Industries a proud to be associated wi FREEPHONE 0800 657 894 FREEFA PPS Industries “When a proud you are up there to as be associated with Stainless Kitchens. an industry leader somebody is always biting at your heels FREEPHONE to 0800 take your position. 657 A key 894 Experts FREEFAX in the Metal 0800 Finishing 454 Industry 445 strength we have is in the for more than 40 years. PPS Industries’ success and growth in a competitive and demanding market can be attributed to a few crucial factors, according to company general manager, John Davidson. John has been with the company for more than 20 years, a longevity he shares with several other staff and this is one of the reasons, he says the company has developed into the market leader it is today. “We have been very lucky with our staff,” said John. “We have some who have been with the company for well over 20 years and even though in the last 8 – 10 years we have seen a lot of the younger ones go to Australia, the average term of our staff is about 10 ½ years. This is a real strength,” he said. “And with the company’s strategic decision, when it was founded in 1974, to diversify over the years from its core business of servicing the electroplating industry it has meant that PPS Industries has been in a good position to cope with the evolutions the company has embraced.In the early days there was something like 119 electroplating businesses, now there are only 20. “While we still support the electroplating industry, we’ve diversified to embrace ser- S vicing the general engineering industry and this side has really grown,” said John. PPS Industries Ltd manufactures a range of chemicals and products for the metal finishing industry. It also imports and distributes abrasive products, polishing buffs, compounds, chemicals, welding consumables, power tools and finishing products. In 1997 PPS Industries moved from its scattered situation, spread over five buildings in Auckland to a new purpose-built factory in Hugo Johnston Drive, Penrose. John says the move into one base, where the company’s specialties, like its chemistry facilities and testing labs, could all work side-by-side was a turning point, setting it up to grow from strength-tostrength ever since. As general manager, John says he most enjoys getting his head around new products and up-skilling his 14 strong sales team about them. “We have really strong relationships with our suppliers overseas,” he said. “We source our products only from world industry leaders in their area and our reputation stands on the quality of product and service we provide.” As for the stainless steel fabrication industry, John ranks his company as New Zealand’s No.1 supplier. To maintain this position requires vigilance and an interest in the constant stream of new products emerging on the market. He makes annual trips to Europe and the States meeting suppliers, seeing and talking about their new materials and products. AUCKLAND - HAMILTON - TAURANGA PALMERSTON NORTH - NELSON - CHRISTC amount of stock we carry. A AUCKLAND lot of companies - HAMILTON just don’t - TAURANGA - HASTINGS - have the financial capacity to PALMERSTON NORTH - NELSON - CHRISTCHURCH - DUNEDIN do so. "We’ve probably got, at any one time, about $3.5 million of stock at arm’s-length.” John says a real threat to the industry is the proliferation of companies supplying cheap products without the depth of science behind them. Companies that don’t have the overheads his company does; working on slim margins. “I think it’s got worse in the last three or four years. It’s become ridiculous and it is not uncommon for customers to return to us, having tried these cheaper substandard products,” he said. PPS Industries 09 579 1001 www.pps-industries.com 10333 will also reduce the number of truck journeys required through the Auckland-Bay of Plenty-lower North Island region by 8000 a year. Coda chief executive Scott Brownlee said the pieces of the logistical jigsaw were now in place to ensure a rapid, efficient flow of product through the region. Mark Cairns took the opportunity of the Aotea’s arrival to again challenge the abundance of ports in New Zealand, and question whether it was time for a hierarchy to develop that matched the facilities and locations of different ports, backed up by greater coastal shipping deliveries to larger hub ports. “New Zealand is a funny country from a port perspective. It is the same size as Victoria, Australia which only has three ports.” He lamented the low level of return some ports in New Zealand are generating, including one unnamed port returning only one percent on capital. Transport minister Simon Bridges agreed with Mark Cairns’ views on port status, and said there would be even more infrastructure development to follow on from that already completed in coming years. “The efficiency from these ships will fundamentally help New Zealand as we sell more to the world and lift our standard of living,” he said. FREEPHONE 0800 657 894 FREEFax 0800 454 445 AUCKLAND - HAMILTON - TAURANGA - HASTINGS - PALMERSTON NORTH - NELSON - CHRISTCHURCH - DUNEDIN
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