| 37 ‘Pulse’ survey reflects optimism Richard Loader Rotorua Business Chamber CEO Bryce Heard says that most businesses that took part in the survey have a strong pipeline of work ahead and are committed to investing capital into their business and hiring more staff. I Rotorua Business Chamber REGIONAL DEVELOPMENT The inaugural Rotorua Business Pulse Survey indicates that Rotorua businesses are feeling optimistic about the year ahead. The survey, a joint initiative between RotoruaNZ and the Rotorua Business Chamber, aims to take the ‘pulse’ of the business community and will be conducted every six months. Rotorua Chamber CEO Bryce Heard says that most businesses that took part in the survey have a strong pipeline of work ahead and are committed to investing capital into their business and hiring more staff. It’s a marked turnaround from the past couple of years, which have been tough on the tourism-reliant region. Pre-Covid the tourism sector employed 22% of the working population and contributed 11% to its GDP. He says there appear to be a number of factors driving the turnaround. “A net +53% of businesses are expecting the volume of business activity to pick up. This is probably influenced by the return of international visitors, which businesses were most positive about in the near future,” he says. “Nearly half say they will be investing capital into the business and a similar number are looking to hire staff in the upcoming year. These are key signs that businesses are feeling confident in the future.” He says it’s a little surprising that the businesses are so confident about their own businesses but not so confident about the economy at large. This suggests that the negative economic perception is not reflective of business reality. “The lockdown threat is not there, borders are opening and there is unprecedented sickness in the community but the businesses are dealing with the staff shortages. “My own observations are that the bookings in hospitality and accommodation have been strong for several months and there are new restaurants and cafes starting up. There is quite a bit of confidence around so that’s good to see that, despite the challenges of sickness and staffing issues.” He considers that Rotorua businesses are some of New Zealand’s most innovative, collaborative and resilient businesses and points to new environmentally focused innovative creative businesses in the tourism industry that have pivoted as a result of Covid-19. “International tourism focused businesses took the biggest hit when Covid arrived. Some are reinventing themselves with different offerings to spread their risk from high exposure to the international market to include a domestic market offering as well.” “Nearly half say they will be investing capital into the business and a similar number are looking to hire staff in the upcoming year. These are key signs that businesses are feeling confident in the future.” Challenges still remain in Rotorua though, including high unemployment – close to three times the national average. Bryce says that the business community will create the jobs to get people back into productive work. “The only solution to unemployment is new jobs and there are significant flow on effects from this with money going back into the community.” As with most businesses around the country inflation and finding skilled staff are the two top concerns for Rotorua businesses. The survey indicates that the rising costs of doing business are fuelling profitability concerns in spite of the strong forward work pipeline. The survey also suggests a direct interplay between the social challenges surrounding emergency housing and the ability for Rotorua businesses to feel confident in their city resulting in an inability, perceived or real, to attract high quality staff and be proud of the destination they are selling. But Bryce points out that only around 2% of Rotorua’s housing stock is social housing compared with around 4% in comparable locations. He says Rotorua still has a shortage of housing but building consents have doubled in the past two years. The other area the report highlighted was that three quarters of those surveyed did not having any policies in place to reduce emissions. Bryce says Rotorua Chamber is active in that space running regular forums and speaker series on the topic to try and lift awareness so businesses can lead the charge on all aspects of sustainability. A positive was that the survey showed that Rotorua businesses are playing their part in the flexible working revolution and most are paying the living wage. Bryce believes that the survey results demonstrate that Rotorua will make a strong recovery from the effects of Covid helping to restore our city’s potential. “We’ve had a lot of adverse publicity about Rotorua and it’s way out of kilter with reality. The reality is it’s a great place to live, work and play. We’ve got so many wonderful attractions here; Rotorua’s got a very bright future.” Rotorua businesses are some of New Zealand’s most innovative, collaborative and resilient businesses and points to new environmentally focused innovative creative businesses in the tourism industry that have pivoted as a result of Covid-19.
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