‘Bronze medal’ on ASB scoreboard as region's cyclone recovery continues

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Economic activity in Tairāwhiti is picking up in the wake of the cyclone clean-up operation, a new report shows.

ASB’s Regional Scoreboard, which ranks all 16 regions, shows Gisborne has shot up 13 spots from last place after the first quarter of the year to third at the end of June — just behind Otago (first) and Canterbury (second).

“That’s a bronze medal,” ASB senior economist Kim Mundy said.

“The jump in activity no doubt reflects the recovery efforts post-Cyclone Gabrielle earlier in the year. And we can only hope things are starting to get a little easier for the East Coasters as a result.

“Consent issuance in Gisborne was well above the national average this quarter, sitting at 21.9 percent annual growth (in value — worth $36m).

“This was primarily powered by residential consents which had the highest growth, driven by rebuild for cyclone-damaged homes.

“House sales were down 10 percent on a year ago, possibly reflecting an inventory impact due to cyclone damage.”

New passenger/car registrations (325) growth was the second highest in the country, sitting at 50.5 percent year-on-year, possibly driven by replacement activity after cars were damaged in the cyclone.

“Retail sales growth was also well above the national level at 9.2 percent year-on-year, with some replacement activity likely influencing the numbers here, too.

“Rebuilding a region doesn’t happen overnight so we would expect to see Gisborne remaining in the top half of the scoreboard over coming quarters.

“The challenge will come further down the line when the initial economic boost starts to wane, given the scoreboard measures annual changes in activity.”

The region’s economic development agency welcomed the results but cautioned not all industries were in the same boat.

Trust Tairāwhiti acting chief executive Richard Searle said while it was positive to see parts of the economy bouncing back, the recovery could be slower for some key industries.

“These results indicate investment in roads, infrastructure and housing following the cyclone, along with economic stimulus from the cyclone business grants.

“The construction momentum relates to previously consented projects that are being completed now such as the Kiwa Pools and Midway Surf Life Saving Club.

“We anticipate that softening commodity prices will continue to impact our primary sector into 2024.”

Regional tourism manager Holly Hatzilamprou said the cruise season should provide a welcome boost to visitor spending.

“The first cruise ship of the season, the National Geographic Orion, will arrive on November 13, with another 25 visits scheduled before the end of March next year.

“The largest ship on the itinerary, the Noordam, carries approximately 1972 passengers and will visit Gisborne four times during the season.

“Next week we are hosting New Zealand Cruise Association chief executive Jacqui Lloyd in the region to meet with operators and learn more about Gisborne as a cruise destination.

“We continue working with lead agencies Eastland Port and Gisborne District Council to ensure a successful 23/24 season and a great visitor experience.”