RotoruaNZ research and insights manager Justin Kimberley at the launch of the second survey results. Photo / Laura Smith
RotoruaNZ research and insights manager Justin Kimberley at the launch of the second survey results. Photo / Laura Smith
Rotorua businesses are feeling more confident than they did six months ago despite operating at a turbulent time, sector survey results show.
The Rotorua Business Pulse report with 82 local businesses taking part in October, was presented yesterday and painted a “dramatically” changed operating environment when compared to April’s survey, with confidence buoyed by a new council and a return of international visitors.
Issues like inflation and staff shortages were putting pressure on businesses but the main driver of negative sentiment was the emergency housing situation in the city.
When respondents were asked what the council’s top priority should be, the answer was “resoundingly” - at 63 per cent - to sort out emergency housing and repair the city’s damaged brand. A RotoruaNZ commissioned report recently found negative reputational damage associated with emergency housing cost $92 million a year.
The survey also asked business owners to write one word which describes the current state of Rotorua. It said, “the results suggest a city that is struggling despite an optimistic cohort remaining hopeful.”
RotoruaNZ research and insights manager Justin Kimberley said businesses were certainly confident looking out to next year.
Staffing concerns remained among the top concerns and there were “quite a few comments” in the survey about wanting the council to have a longer-term vision that businesses can get behind. The survey report said the lifting of sights was needed by the council to provide the business community with a vision beyond the immediacy of challenges around Fenton St.
“While the responses show there are very clear immediate challenges to be addressed, comments from businesses suggest that this can’t be at the expense of council developing a long-term strategic vision that the Rotorua business community can get behind,” Kimberley said.
“Businesses are calling for a proactive council willing to work closely with Rotorua business leaders and provide leadership in the development of a sector strategy and a long-term infrastructure plan.”
This would also go some way to boost business confidence that Rotorua can become a city that attracts high-quality talent, an area that businesses are clearly struggling with, it said.
Alex Stuthridge, chief operations officer of Cetogenix, a cleantech start-up, contributed to the report and was encouraged Rotorua was looking to improve and, from a start-up perspective, felt there was more of a willingness to actively support and promote the start-up community.
Stuthridge began her career at Scion and she said it was great to have moved back to Rotorua.
Businesses were also asked if given $100m to spend on long-term capital projects in the city, how would they allocate it?
Core infrastructure was the top priority, with an average sum allocated of $23.8m of the total allowed $100m.
Residential land development was the second highest with $18.3m and the inner city was next at $15.6m. The Rotorua Museum and industrial land development are neck and neck at $15m.
Project-specific items such as the Aquatic Centre, Blue Baths, EEC, Lakefront and Westbrook received lower allocations.
The report writers said funding priorities back up the need for a long-term vision, coupled with the immediate need for housing.
Alexandra Stuthridge is the chief operations officer for recently launch company Cetogenix. Photo / Laura Smith
Looking at the number of respondents who allocated funds, the inner city received the highest proportion with near-universal support of 87 per cent. Core infrastructure followed with 83 per cent and residential land at 79 per cent.
The survey is part of a RotoruaNZ and Rotorua Business Chamber initiative, and responses were up from 79 in April when it conducted its first.
Rotorua Lakes Council deputy mayor Sandra Kai Fong said it was “heartened” the business community had confidence in the new council.
“The new council is committed to finding solutions to the immediate issues we face here in our city around emergency housing but also to taking a long-term view of what we need to prioritise to drive the city in the right direction.
“The work around setting new long-term priorities is something that the new council is currently progressing.
“We will continue working hard to support our beautiful city and that includes our business sector who will play a vital role in lifting Rotorua after we saw a pandemic rock our tourism industry and the proliferation of emergency housing in motels.
“We know we can’t make these types of changes overnight, and there has to be a long-term strategic vision and plan developed that has the support of business leaders and the whole community.”
