Supporting local tourism making a difference in Coromandel region

Thames-Coromandel mayor Sandra Goudie said there was still a need for summer staff. Photo / Allison Smith

A boost of local tourism in the Coromandel region has seen a rise in economic activity, after there was concerns that the Covid-19 border closures and lockdowns would see the end of several businesses within the region.

In the region, economic activity for the district rose 4.1 per cent in the quarter, the ninth-highest rise nationally, with domestic tourism activity helping the rebound, although the Auckland level 3 restrictions did take some of the shine off the rebound.

The rebound limited the year-end economic activity downturn to -1.9 per cent per annum compared to the previous year.

With the borders closed, there was a surge in domestic tourism as Kiwis explored more of their own country.

Tourism spending over the last 12 months is down 3.5 per cent per annum in the area, while domestic spending in the area rose at three times the national pace, increasing 33 per cent in the September quarter.

Marketview data (which reflects spending habits) shows a 21 per cent yearly increase in consumer spending, enough to reverse the decline in spending from lockdown.

While there were some positives economically for the region, the annual unemployment average was up 2.6 per cent from a year earlier to 3.2 per cent.

Much like the rest of the country, the average housing price in the district rose 15.1 per cent compared to 2019, with the average house value at $811,437 compared with $734,689 from last year.

"There's definitely some optimism for our district," Mayor Sandra Goudie said.

"We're hearing from our tourism and hospitality sector that while they're preparing for a busy summer season they're still struggling to hire good staff. And this is while our unemployment rate for this quarter has increased."

"We know that some workers are still employed but working fewer hours, whereas others are out of a job, but not looking for a new role yet. So that's why we're working with other agencies and organisations to connect those who are currently unemployed into other work, particularly in the tourism and hospitality sector."