Outcome 1: Prosperous and adaptable people, sectors and regions

A strong economy is essential to New Zealand’s prosperity.

MBIE helps regions, businesses and communities to grow and diversify their opportunities. We provide core services that underpin economic activity. We work to ensure New Zealand is better placed to adapt to global shifts.

Investing in regions

MBIE provides support to regions to help accelerate regional development, lift productivity and resilience and boost local employment and skills.

We aim to improve levels of prosperity and community wellbeing by investing in regional opportunities. Across this year, MBIE’s regional economic development and investment unit, Kānoa, managed 12 funds with over 2,750 projects totalling $4.58 billion.

The sectors supported through these investments include advanced manufacturing, aquaculture, energy, construction, film, information and communications technology (ICT), infrastructure, tourism and training. The funds aim to: accelerate regional development, lift productivity and resilience, boost employment and skills, and help regions transition to more sustainable industry options. Kānoa also focuses on social procurement options.

Examples of regional investments that met significant milestones in 2023/24 include:

• Kaimanawa Alpine Adventures, which received a $596,800 grant to build a 23 kilometre long heli- mountain biking trail in Tongariro National Park. The trail opened on 26 November 2023 and local iwi and the wider regional community benefit economically from the mountain-biking operation. Specifically, 14 jobs were created throughout the construction of the trail, with 3 full-time equivalent roles created to continue in the operation of the trail. The trail enables several potential future tourism offerings.
• The Pounamu Pathway, which received $17.87 million to construct four visitor experience hubs throughout the West Coast of the South Island that connect significant locations through interactive displays and storytelling of the history of the region. The biggest of the four hubs, Māwhera Pounamu Pathway centre in Greymouth, opened to the public in December 2023 and had an official opening in February 2024. Over 50 jobs were created through the construction, management and operation of the hubs. The hubs are a cornerstone of the West Coast’s economic revitalisation to transform West Coast tourism by attracting more visitors and encouraging longer visitor stays.
• Rotorua Lakefront Development, which received a $20.9 million grant for the development of the lakefront’s infrastructure and enhanced its amenities for an improved visitor experience. The development opened on 3 March 2024 and included new lakefront boardwalks, walkways, cycleways, and an improved connection between the city and lake. This investment provided significant employment opportunities and supports Rotorua’s position as a premium tourism destination, focused on higher yield tourism from longer stays and higher tourist spending.

Some of these projects have also received additional funding from other partners and sources.

Independent impact studies conducted by Allen + Clarke focusing on earlier investment in Ōpōtiki and the aquaculture sector highlighted the positive economic impacts flowing from the investment. For example, investment in construction of the harbour, a mussel factory, irrigation systems, horticulture, IT infrastructure, and marae and community resulted in:

• direct employment of local residents (with an estimated 1,000 jobs stimulated by the mussel factory)
• educational pathways and improved outcomes for rangatahi/young people
• conversion of land to high-value horticulture innovation and securing intellectual property.

The assessments also highlighted learnings that can be factored into future projects. These included developing local-level capability to initiate projects and ensuring strong coordination across stakeholders, as well as unintended consequences such as increased competition for rental housing.

Enhancing Aotearoa New Zealand as an event destination 

Hosting major events helps grow the economy, create social connections, reflect and celebrate our culture and build national pride.

From 20 July to 20 August 2023, New Zealand co- hosted the FIFA Women’s World Cup Australia & New Zealand 2023™ with Australia. It was one of the biggest sporting events in the world, and co-hosting it provided a unique opportunity to create lasting change for the economy and New Zealand communities. The hugely successful event saw over 700,000 people attending the 29 matches hosted in New Zealand and around 170,000 visits were made to FIFA Fan Festival sites in Auckland, Hamilton, Wellington and Dunedin.

An independent economic impact evaluation report of the event also showed a positive overall economic return with a net benefit to New Zealand of $109.5 million. The event attracted almost 27,000 people to New Zealand, generating over 312,000 international visitor nights across the country, with an average stay of 11.6 nights. The government investment of $19 million to upgrade 30 sporting facilities across the country (such as pitches, lighting and changing facilities) will continue to be enjoyed by communities and sporting codes for years to come.

The knowledge and experience gained from hosting the FIFA Women’s World Cup Australia & New Zealand 2023™ has enhanced New Zealand’s major event capacity and capability. Its success will enhance New Zealand’s reputation as a safe and capable host for global events.

The evaluation report also showed the event has permanently changed New Zealand’s perception of women in sport, adding to the country’s proud history of advocating for gender equality.

It took many people, teams and agencies months of preparation to successfully deliver the world’s largest women’s sporting event in New Zealand, alongside co-hosts Australia. Various teams and functions from across MBIE supported the delivery of this event, spanning immigration, tourism, communications, intelligence and data analytics.

Other major events hosted or being prepared for include:

• the New Zealand SailGP hosted in Christchurch from 23 to 24 March 2024 and won by New Zealand. SailGP is an annual, global sports league featuring fan-centric inshore racing among national teams in iconic harbours around the globe
• the inaugural Rainbow Games hosted in Auckland from 5 to 8 April 2024. This brand-new multisport event featured 14 sports designed for the LGBTQI+ community and its allies to celebrate and compete in a safe and supportive environment
• preparations for the World Choir Games hosted in Auckland from 10 to 20 July 2024. This is the biggest choral competition and festival in the world, bringing together more than 11,000 singers from over 40 countries.

Strengthening emerging industries – screen production and gaming

The New Zealand Screen Production Rebate (NZSPR) – International attracts film, television and other format productions and the resulting production expenditure. As an internationally oriented high-value sector, screen can attract international investment and highly skilled workers. Alongside the direct economic benefits of investment, screen production activity helps New Zealand’s brand and reputation, and delivers value through innovation, technology transfer, and tourism.

In 2023/24, 24 international productions triggered a spend of around $1.34 billion on qualifying New Zealand goods and services resulting in rebate payments totalling $267 million. Twelve of these were post, digital and visual effects projects generating a spend of around $201 million and resulting in about $39 million in rebate payments.

This year, 45 international productions registered for the NZSPR – International. This was 13 more registrations than in 2022/23.

The Game Development Sector Rebate scheme is a $40 million per year scheme to support the growth of New Zealand’s game development sector. MBIE supported the scheme, which followed a constructive period of consultation with the sector. The rebate aims to strengthen the game development sector and support studios in developing New Zealand-owned intellectual property.

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