Agenda of Economic Development Committee

Notice of Meeting:

I hereby give notice that an ordinary meeting of the Economic Development Committee will be held on:

Date: Monday 14 August 2017

Time: 2.00 pm (or at Conclusion of Infrastructure Services and Networks Committee)

Venue: Edinburgh Room, Municipal Chambers, The Octagon, Dunedin

Sue Bidrose

Chief Executive Officer

Economic Development Committee

PUBLIC AGENDA

MEMBERSHIP

Chairperson	Chris Staynes
Deputy Chairperson	Christine Garey	Andrew Whiley
Members	David Benson-Pope	Dave Cull
	Rachel Elder	Doug Hall
	Aaron Hawkins	Marie Laufiso
	Mike Lord	Damian Newell
	Jim O'Malley	Conrad Stedman
	Lee Vandervis	Kate Wilson

Senior Officer John Christie, Director Enterprise Dunedin

Governance Support Officer Jennifer Lapham

Jennifer Lapham

Governance Support Officer

Telephone: 03 477 4000

Jenny.Lapham@dcc.govt.nz

www.dunedin.govt.nz

Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.

Economic Development Committee

14 August 2017

Part A Reports

Public Relations and Communication

Department: Enterprise Dunedin

EXECUTIVE SUMMARY

1 The purpose of this report is to provide an update on the Public Relations (PR) activity undertaken by Enterprise Dunedin for the period 1 July 2016 – 30 June 2017.

RECOMMENDATIONS

That the Committee:

a) Notes the PR and Communications update.

BACKGROUND

2 Enterprise Dunedin operates a targeted media programme, hosting and assisting national and international media.

3 Enterprise Dunedin works in collaboration with key stakeholders including Tourism New Zealand (TNZ) as part of its International Media Programme (IMP) and Dunedin Airport Ltd. (DAL) and local partners over the past year to deliver some of these results.

OBJECTIVES

4 Increase the awareness of Dunedin as a ‘Compelling Destination', with key media influencers and consumers.

5 Leverage of the Dunedin Brand and city events in key markets and deliver current campaign messages into key markets and publications.

6 Increase in Audience Reach where possible in national and international (with Tourism New Zealand) across varied media channels including print, broadcast, online and social media in a variety of key markets.

DISCUSSION

Results

7 The attached results table (attachment A) is a record of media results during the period 1 July 2016 – 30 June 2017. Results included in the sheet have been published in print media, broadcast on television, online in social media and on websites where indicated.

8 A selection of four examples published from 1 July 2016 to 30 June 2017 are attached and outlined as a snapshot of some media programme activity and the results achieved (where known) in those publications and/or channels in different markets. These four examples are summarised below.

Australia Financial Review

9 The Australia Financial Review (AFR) is an Australian business and finance newspaper with audience that has a high net wealth and appreciate the finer things in life including travel. In March 2017, a fashion and travel journalist from AFR was here for iD Fashion week and approached Enterprise Dunedin to do a commissioned piece on Otago Peninsula.

10 Enterprise Dunedin hosted the writer, supplied images, up to date information and advice for the story.

11 The featured the article ‘Otago Peninsula: high teas, wild seas and Larnach Castle's tragic history’ raised the profile of the Otago Peninsula for its wonder and beauty, food wine and boutique accommodation. The article’s was timely marking the significant contribution of Larnach Castle and Otago Peninsula Trust over 50 years. See attachment B.

National Geographic Traveller China

12 National Geographic Traveller China (NGTC) is part of the US National Geographic family and covers stories encouraging travellers to explore the world with social responsibility using photos and stories about the local culture and the protection of nature. Distributed in 15 major Chinese cities, NGTC is also active in five digital platforms, including digital magazine, Weibo & Wechat and has its own official website.

13 As part of a Tourism New Zealand’s International Media Programme (IMP), Mr. Xi Zhinong, winner of BBC Wildlife Photography Awards and the founder of Wild China Film, visited in November 2016. Enterprise Dunedin worked with TNZ Public Realtions staff offering information, advice and hosting opportunities one in particular at Orokonui Ecosanctuary.

14 The 27 page article, ‘Illustration of New Zealand's Rare Animals’, is significant focusing the awareness of a target audience of independent professionals, (a reach of 700,000 on social media and 500,000 in print circulation), on our native Taonga species, our special places and on Dunedin as compelling destination. As the result of their visit to and hosting at Orokonui Eco-Sanctuary, a strong connection has now been made between Mr Xi’s snow monkey sanctuary in China and Orokonui. See attachment C.

KiaOra

15 KiaOra is Air New Zealand’s monthly inflight magazine celebrating the best of New Zealand through stunning photos and compelling stories. Air New Zealand carries approximately eight million passengers per month and the magazine has a readership of 344,000.

16 As part of our summer domestic campaign, the KiaOra article focused on the combination of Dunedin’s accessibility to nature, its urban culture and food. Enterprise Dunedin worked with the writer, supplying images, up to date information and advice for the story.

17 This was a great result, ‘Wild at Heart’ Dunedin, evoked the ‘Wild’ themes - ‘Wild Dunedin’, ‘Where the Wild Things Are’. The inflight article encouraged a domestic audience with an appetite for travel to consider a trip Dunedin. See attachment D.

MiNDFOOD

18 MiNDFOOD, the fastest growing magazine in New Zealand, includes an online platform- mindfood.com. Smart thinking is the core of MiNDFOOD. Its readers are highly engaged consumers, with a high disposable income and varied interests. The readership is 241,000.

19 Dunedin Airport supported by Air New Zealand funded MiNDFOOD’s visit and supported a ‘Readers Competition’ offering a weekend in Dunedin prize to the value of $2,000. Enterprise Dunedin worked with the writer, hosting while in Dunedin, supplying images, up to date information and advice for the story. The story focuses on arts and culture in Dunedin, galleries, artists and Street Art, along with places to eat and drink.

20 This 5 page result in the July edition is a stylish story on our artsy city. Loving our ‘Visual Feast - where arts and culture collide”, the journalist said, “…Dunedin is arguably NZ’s most important city as far as the arts are concerned…”. This feature along with the Readers Competition will encourage the smart thinking MiNDFOOD readers to consider visiting Dunedin. See attachment E.

ANAYLSIS

21 Enterprise Dunedin's and Tourism NZ's measurement for reporting against key 'media' performance indicators is 'Reach' for media results in all channels. This is measured where it is available.

22 'Reach' relates to audience numbers, specifically number of different people who are estimated to have viewed, read and/or engaged with the identified media result or activity within the selected media channel demographic.

23 Reach numbers include viewership of broadcasts or digital videos, readership of printed publications and organic readership of social media and online blogs, articles and sites. Reach is a common media measurement in the Public Relations and Advertising industries.

24 Approximately 96% of media reach results were generated in partnership with Tourism NZ through their International Media Programme with 4% of results generated directly by Enterprise Dunedin alone.

25 Reach for all media channels for the period 1 July 2016 – 30 June 2017 is approximately 747.5 million people in partnership with Tourism NZs International Media Programme. In addition to this the reach directly from Enterprise Dunedin activity alone is approximately 33.4 million people.

26 Total combined reach above for all media channels for the period 1 July 2016 – 30 June 2017 is approximately 780.9 million people.

27 The geographic spread of Dunedin media results in key Dunedin and Tourism NZ target markets is shown below in a % total of all Dunedin media results for the year and includes:

Target Market % of total Media (for year end June 2017)

China 33%

South America 19%

New Zealand 16%

Australia 11%

Asia & South Korea 12%

United Kingdom 6%

Germany 2%

North America 1%

28 Enterprise Dunedin’s direct activity increased reach across a variety of national and trans-Tasman and international key markets. Reach decreased slightly with Tourism NZ's International Media Programme due to some offshore media opportunities available last year not able to be duplicated this year in particular in the Japanese market.

29 The Dunedin Brand and city events were highlights in key markets with targeted current campaign messages in new and key media channels.

30 Awareness of Dunedin as a ‘Compelling Destination’ has increased as a result of this year's activity in key markets and channels. Requests from Media requests are now increasingly bring fielded for Dunedin as a destination of choice for media hosting and familiarisation.

31 This growing awareness of Dunedin though increased media coverage and its effect can at least in part be reflected by Major Regional Tourism Estimates (MRTEs) which measure the value of the tourism sector to Dunedin's economy. For the year ended June 2017 this figure has increased by 6% to $707million against the same period last year.

32 This increase in percentage growth of estimated value of tourism sector is equal with the national average figure (across 29 other regional tourism areas) and also that of Southland.

33 It is ahead of the same percentage change in estimated value growth in regions such as Auckland at 4%, Wellington 2%, Christchurch 3% and Waitaki 2%. It is 1% below the same percentage change in estimated value growth in Queenstown and Rotorua on 7%.

Signatories

Author:

Kyla Anderson - Business Analyst, Enterprise Dunedin

Authoriser:

Ryan Craig - Destination Dunedin Manager

John Christie - Director Enterprise Dunedin

Attachments

Title

Page

Appendix A Media Results 01/07/2016-30/06/2017

Appendix B Australia Financial Review

Appendix C National Geographic Traveller China

Appendix D KiaOra

Appendix E MiNDFOOD

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This report relates to providing a public service and it is considered good-quality and cost-effective.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☒	☐	☐
Economic Development Strategy	☒	☐	☐
Environment Strategy	☒	☐	☐
Arts and Culture Strategy	☒	☐	☐
3 Waters Strategy	☐	☐	☒
Spatial Plan	☐	☐	☒
Integrated Transport Strategy	☐	☐	☒
Parks and Recreation Strategy	☐	☐	☒
Other strategic projects/policies/plans	☒	☐	☐

PR and Communications contribute to Dunedin’s Economic Development Strategy theme “Compelling Destination” and links into other key themes such as “Business Vitality”, “Alliances for Innovation”, “Linkages Beyond our Borders”, and “Hub for Skills and Talent”.

Māori Impact Statement

References to Māori culture and activities are included where relevant.

Sustainability

The goal of the sustainability of Dunedin’s tourism offerings underpins all of the reported activity.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no known implications from the activity in this report.

Financial considerations

There are no financial implications; all costs are met by Enterprise Dunedin’s budget and other partner’s investments.

Significance

This is considered to be low in terms of the Council’s Significance and Engagement Policy.

Engagement – external

External engagement has been maintained with partners (e.g. Tourism NZ and Air NZ) where appropriate to assist with hosting media.

Engagement - internal

There has been no internal engagement.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There is no known conflict of interest.

Community Boards

It is noted that some of the media activities related to the OPCB and Strath Taieri Board areas.

Economic Development Committee

14 August 2017

2016/17 Project China Update

Department: Enterprise Dunedin

EXECUTIVE SUMMARY

1 The purpose of this report is to update the Economic Development Committee on 2016/17 Project China activities and proposed activities for 2017/18.

RECOMMENDATIONS

That the Committee:

a) Notes the 2016/17 Project China report and proposed 2017/18 priorities.

BACKGROUND

2 Project China is a key action under the 2013-23 Economic Development Strategy. The activity sits under the theme of 'Linkages beyond our borders' and is intended to identify two-way opportunities between Dunedin, Shanghai and other Chinese cities.

3 The activity is predominately led by the Project China Coordinator, Economic Development Programme Manager and Enterprise Dunedin Director. It also involves the Mayor and Deputy Mayor and Economic Development Strategy partners such as the Chamber of Commerce, University, Otago Polytechnic, and local businesses.

DISCUSSION

4 This report summarises Project China activities undertaken over the last 12 months as well as potential priorities and areas of focus for 2017/18.

5 The aim of Project China is to:

Identify two-way trade and investment opportunities (including for talent and education) between Dunedin and Shanghai, including assessing the extent to which political and Shanghai city ownership interests can be leveraged for the benefit of Dunedin businesses.

Dunedin's Economic Development Strategy, Linkages beyond our borders, p.33

6 The Economic Development Strategy notes the importance of sister city relationships in the context of economic development and business in China.

7 The Ministry of Foreign Affairs and Trade (MFAT) guidance "Opening Doors to China, New Zealand's 2015 Vision" guidance also recognises the importance of local government political connections i.e. sister cities and civic engagement when engaging with China:

Mayors of Chinese cities have significant political influence, so New Zealand mayors can play an important role in opening doors in China. A business delegation led by a high ranking political figure gets more traction.

Ministry of Foreign Affairs and Trade, Opening Doors to China, New Zealand's 2015 Vision, page 6

8 Project China activity can be summarised under four themes:

a) Local government credibility - critical to progress cooperation, investment and engagement either directly or indirectly (i.e. on behalf of institutions such as the University or Polytechnic or businesses such as tourism) with China institutions.

b) Local government assurance - particularly for students and parents in the field of international education.

c) Planning and identification of opportunities – through the development and agreement of bilateral agreements e.g. Memorandum of Understanding between Dunedin and China.

d) Transactional support – for Dunedin based institutions, companies and agents.

9 The approach adopted under Project China is consistent with MFAT's guidance and strategic goals:

a) Goal 1: Retain and build a strong and resilient political relationship with China

b) Goal 2: Double two-way trade goods, and trade with China to $20 billion by 2015

c) Goal 3: Grow service trade (particularly education and tourism)

d) Goal 4: Increase bilateral investment to levels that reflect the growing commercial relationship with China

e) Goal 5: Grow high quality science and technology collaboration with China to generate commercial opportunities

Ministry of Foreign Affairs and Trade, Opening Doors to China, New Zealand's 2015 Vision, page 10

10 The Economic Development Strategy and MFAT guidance have informed Enterprise Dunedin's 2016/17 priorities and activities as noted in Table One. In summary, this sets out:

a) Proposed 2016/17 priorities

b) Activities undertaken during 2016/17

c) Contribution to the goals set out in the 2013-23 Economic Development Strategy – predominately relating to GDP growth

d) Considerations and possible priorities for 2017/18.

11 Table one: Summary of 2016/17 activity

Specific 2016/17 Highlights

12 The sister city agreement with Shanghai was renewed until 2018. New friendship city agreements were signed with Qingdao and Qingyuan in March and May 2017, further opening opportunities for education and businesses during 2017/18.

13 Three new agreements were signed between Enterprise Dunedin, the Shanghai Media Group (SMG), Shanghai Art Film Federation (SAFF) and Shanghai Science and Technology Commission (SSTC).

14 The first two agreements provided a catalyst for the China Film Festival held in Dunedin during March 2017. While the film festival achieved modest ticket sales, the event provided significant exposure for film related businesses in the city including Natural History New Zealand (NHNZ) and Animation Research Limited (ARL), to SAFF, SMG and the New Zealand Film Commission.

15 The SSTC agreement has resulted in direct benefits to the City, including support and financial contribution of 500,000 RMB to the New Zealand Non-Communicable Disease (NCD) Research Centre at the University of Otago.

16 A key cultural outcome during 2016/17 was the "Anything Could Happen" exhibition at the Yu Gardens (Huangpu District), Shanghai. The exhibition was brokered and facilitated through the New Zealand Ministry of Foreign Affairs and Trade and Dunedin's strong connections with the Shanghai Consulate General.

17 The exhibition (delivered in conjunction with the Otago Polytechnic), was the first of its kind for the city and provided an opportunity to show case the strengths of Dunedin's creative sector and artists during May and June 2017. The exhibition was a major project which coincided with the civic delegation to Shanghai, Qingyuan and Ghangzhou in May and Shanghai Staff exchange between April and June.

18 Anything Could Happen was supported by ten Otago Polytechnic students and three Otago Polytechnic staff. It included 74 pieces by 33 local artists and designers and provided an educational experience. It attracted over 40,000 visitors and was recognised by both Mayors Shanghai and Huangpu and senior officials. The Director General of the Huangpu Foreign Affairs Office (FAO) commented:

”We had the privilege of attending this event… Yu Garden and Lan Garden has been sister gardens for 7 years and we believe the friendship between Huangpu District and Dunedin has been further developed through the successful completion of the staff exchange programme."

19 Education remains a key focus for Project China activities. Based on assumptions prepared by Infometrics (March 2017) Chinese international secondary and tertiary students currently contribute over $20 million per annum through fees and living costs alone.

20 While activities through Project China and relationships with structures such as the Shanghai Education Commission and institutions in Qingyuan and Qingdao have helped enable this, other specific activities have resulted in $700,000 spend in Dunedin during 2016/17.

OPTIONS21 Not applicable

NEXT STEPS

22 Over the next few months the 2017/18 Project China priority areas will continue to be progressed as part of a wider economic development work programme. During this time the following offshore activities are proposed:

a) October 2017 Enterprise Dunedin, Otago Polytechnic and University delegation

b) October 2017 Civic delegation to Qingdao and Shanghai

c) December 2017 International Cooperation Management Programme (ICMP)

Shanghai

23 Enterprise Dunedin also intends to develop tools to better quantify the economic contribution of Project China activities to the city during 2017/18.

Signatories

Author:	Fraser Liggett - Economic Development Programme Manager
Authoriser:	John Christie - Director Enterprise Dunedin

Attachments

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This report relates to providing a public service and it is considered good-quality and cost-effective.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☐	☐	☒
Economic Development Strategy	☒	☐	☐
Environment Strategy	☐	☐	☒
Arts and Culture Strategy	☒	☐	☐
3 Waters Strategy	☐	☐	☒
Spatial Plan	☐	☐	☒
Integrated Transport Strategy	☐	☐	☒
Parks and Recreation Strategy	☐	☐	☒
Other strategic projects/policies/plans	☐	☐	☐

Māori Impact Statement

No known impacts for tangata whenua

Sustainability

This programme potentially contributes to long term economic benefits for the city by enhancing economic growth.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Project China is a Grow Dunedin Partner funded activity

Financial considerations

No financial implications

Significance

This decision is considered low in terms of the Council's Significance and Engagement Policy

Engagement – external

The University of Otago and a range of Dunedin businesses who have participated in Project China were engaged as part of this report

Engagement - internal

No internal engagement was undertaken

Risks: Legal / Health and Safety etc.

No risks have been identified

Conflict of Interest

There are no conflicts of interests

Community Boards

There are no implications for Community Boards