Agenda of Economic Development Committee

Economic Development Committee

20 November 2018

Part A Reports

Enterprise Dunedin July to September 2018 Activity Report

Department: Enterprise Dunedin

EXECUTIVE SUMMARY

1 The purpose of this report is to update the Economic Development Committee on a selection of Enterprise Dunedin activities during the period July to September 2018.

RECOMMENDATIONS

That the Committee:

a) Notes the Enterprise Dunedin 1 July to 30 September 2018 Activity Report.

BACKGROUND

2 Enterprise Dunedin activity is informed by the 2013-2023 Economic Development Strategy ('strategy'). The strategy is underpinned by five themes:

a) Business vitality – to improve the ease of doing business.

b) Alliances for innovation – to improve linkages between industry and research.

c) A hub for skills and talent – to increase retention of graduates, build the skills base and grow migrant numbers.

d) Linkages beyond our borders – to increase international investment and establish projects with other cities.

e) A compelling destination – to increase the value of tourism and events and improve the understanding of Dunedin’s advantage.

3 The strategy sets out two economic goals:

a) 10,000 extra jobs over 10 years (requiring growth of approximately 2% per annum).

b) An average of 10,000 of extra income for each person (requiring GDP per capita to rise about 2.5% per annum).

DISCUSSION

4 Business Vitality

a) The Otago Regional Business Partnership (RBP):

· The RBP is composed of the Otago Chamber of Commerce, Otago Southland Employers Association and Dunedin City Council. The RBP is funded to deliver business capability support, mentors and research grants by New Zealand Trade and Enterprise (NZTE) and Callaghan Innovation.

· During the period, the RBP issued 82 clients $56,374 NZTE in training grants and matched 21 mentors to businesses.

· Eight Callaghan Innovation clients were supported during the period with research and development applications, and five Callaghan Innovation student experience grants (supporting local companies employ students over the summer) were also approved.

b) Business Clinic

· Enterprise Dunedin business advisors supported 21 clients through business clinics during the period.

5 Alliances for innovation

a) Energy

· The Dunedin City Council, Ministry of Health, Southern DHB, and University of Otago are continuing negotiations to develop a memorandum of understanding (MOU) for the development of a District Energy Scheme business case.

· Currently, three of the four parties have agreed to the terms of the MOU. Final approval of the MOU is expected in early November 2018 with an estimated completion date for the business case by April 2019.

b) Film Dunedin

· Film Dunedin completed a survey of available screen crew and skills in Dunedin. This will be used in developing a skills database for producers and projects.

· Film Dunedin received 13 enquiries during the period which resulted in seven permits being issued.

6 A Compelling Destination:

a) International Trade

· Activity for this period included:

o Tourism Waitaki, on behalf of Enterprise Dunedin and the regional international marketing alliance (IMA), undertook in-market agent training roadshows promoting Otago to Australia, South East Asia and the USA.

o Enterprise Dunedin hosted a group of 11 Indonesian agents with Tourism New Zealand during the period.

o Enterprise Dunedin in partnership with Air New Zealand hosted a group of 20 Auckland based inbound operator agents on a three-day famil tour of Dunedin.

b) Business Events:

· Activity for this period included:

o Enterprise Dunedin was awarded an international bid for the World Leisure Congress 2022 with an approximate value of $1.7m for the city.

o Six conference leads between 2019-2024 are currently being developed including the Infrastructure NZ Conference which is expected to attract 800 delegates.

c) Marketing Campaign and Activity:

· Activity for this period included:

o Enterprise Dunedin appointed Australian-based PR agency Seven Communications to raise the profile of Dunedin in the Australian market (initial term November to June 2019, costing $20,000) This will be reviewed in June 2019.

o Enterprise Dunedin hosted five Tourism New Zealand International Media Programme (IMP) visits in the city during the period. The groups included influencers from the United States, Australia, Japan and the Philippines.

o Enterprise Dunedin developed a collaboration with Tourism Central Otago and Tourism Waitaki for international inbound media visits to showcase the region.

o The new Spring campaign ‘Hidden Dunedin’ between August and early November aimed to promote additional direct flights with Air New Zealand. The campaign highlighted the hidden gems in Dunedin, urban adventures and outdoor exploring. A competition promoting the Dunedin Beer Festival attracted 6,000 entrants from Auckland and was promoted through the Air New Zealand Facebook page.

o A promotion is underway with The Breeze radio station to encourage residents to engage with the Dunedin brand. The promotion includes a competition and prizes.

d) Study Dunedin:

· A Mayoral Welcome for over 250 students and staff from Dunedin high schools was held in August. The event included a Mihi Whakatau led by He Waka Kotuia and international students had an opportunity to learn about activities and services they could use in the city when not studying. The next scheduled event will be in March 2019.

· The latest Education New Zealand (ENZ) figures indicate:

o 4861 international students were enrolled in Dunedin in 2017, a 6% (533) increase on 2016.

o The Otago region grew by 7%, second only to Waikato which grew by 8%.

o Top five countries for enrolments in Dunedin were China, USA, Malaysia, India, and Germany.

o Largest sector percentage increase from the 2016 results was Otago Polytechnic (14%), closely followed by high schools (13%).

· Twelve Thai Principals and two Ministry of Education staff visited Dunedin for four days in September. The visit aimed to develop partnerships with Dunedin schools that could lead to student and staff collaboration and exchanges in the future.

e) i-SITE Visitor Centre:

· A focus for this period has been preparing for the coming ‘High’ season and ‘Cruise’ season with an estimated 120 Cruise ship visits.

· Recruitment of seasonal full-time and variable hours staff was completed to cover the high demand period. These staff include previous seasonal staff and new recruits, with staged start dates from late September to mid-October.

NEXT STEPS

8 Feedback on the activity report will be incorporated in future updates.

Signatories

Author:

Suz Jenkins - Finance and Office Manager

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	☒	☐	☐

Enterprise Dunedin is responsible for the delivery of the 2013-23 Economic Development Strategy. Enterprise Dunedin activities also contribute to other Council strategies in particular the Arts and Culture Strategy.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Enterprise Dunedin activities and the 2013-23 Economic Development Strategy are included in the 2018-28 Long Term Plan.

Financial considerations

There are no financial considerations.

Significance

This decision is considered low significance under the Significance Engagement Policy.

Engagement – external

As an update report, no internal engagement has been undertaken.

Engagement - internal

As an update report no external engagement has been undertaken.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no identified risks.

Community Boards

There are no implications for Community Boards.

Economic Development Committee

20 November 2018

Dunedin Marketing - Autumn/Winter Campaign 2018

Department: Enterprise Dunedin

EXECUTIVE SUMMARY

1 The purpose of this report is to update the Committee on the results of the 'Where the Wild Things Are' (WTWTA) autumn/winter 2018 campaign activity between February and August 2018.

2 The purpose of the campaign was to raise awareness of Dunedin as a compelling year-round destination and encourage travel in the winter and autumn periods. The primary target market focus was Brisbane and surrounding regions in Eastern Australia. The second phase of the campaign which was rolled out during June and July, included the New Zealand domestic market, targeting Auckland and the lower South Island.

3 This campaign is in its final year of a three-year marketing strategy for Australia, promoting Dunedin to the Queensland and wider Australia market as an accessible and intriguing destination. The same ‘wild’ key theme has been used for three consecutive years of the campaign for consistency and reinforcement of the ‘wild’ Dunedin message.

4 In year three there has been additional and more diverse use of marketing channels promoting compelling reasons to visit Dunedin in autumn and winter 2018.

RECOMMENDATIONS

That the Committee:

a) Notes the Dunedin Marketing Autumn/Winter Campaign 2018 report.

background

5 Australia is Dunedin’s largest international visitor market by spend. For the year ending September 2018, this was 25.2% of total international spend in Dunedin.

6 The 2018 activity is year three, of a three-year consumer marketing campaign in the Australian market.

7 The campaign promoted Dunedin as a ‘wild and unique’ destination highlighting the city’s wildlife and heritage attractions, vibrant urban culture, excellent cuisine and engaging events.

8 The campaign focused mainly on Queensland as the source of Dunedin’s only existing direct international flight.

9 Target market segments included families with school age children, professional couples without children and older couples.

10 For further details refer to Attachment A –WTWTA 2018 - Campaign Proposal.

OBJECTIVES

11 The objectives of the campaign included:

a) increasing awareness of Dunedin as a desirable and easily reached travel destination through a diverse spread of marketing channels, referrals and partnerships;

b) encouraging shoulder/low season visitation and bookings in Dunedin between April and August;

c) achieving a 6% increase in Australian visitor spend for year-end September 2018;

d) generating additional social media and campaign engagement and grow our Queensland audience across Dunedin’s digital assets by 20% and wider Australian audience by 15% over the campaign period;

e) generating awareness of campaign partner products and special deals; and

f) generating greater awareness of Dunedin as a year-round destination with the Australian travel trade.

Discussion

12 The 2018 campaign was a seven-month multi-channel campaign across digital channels, social media, radio, consumer activations, video, media partners and trade platforms.

13 The total 2018 campaign budget was $496,720 of which Enterprise Dunedin contributed $245,893. The balance was made up of direct investment contributions and in-kind partner and supplier contributions.

Campaign Partners

14 The campaign brought together over 29 local, national and international industry, trade and media partners including Enterprise Dunedin.

15 National and trans-Tasman campaign partners were Air New Zealand and Virgin Australia supported by Dunedin Airport, together with Infinity Travel.

16 Dunedin operator investment partners from 2017 reinvested in the 2018 campaign and included: Dunedin Airport, Scenic Hotels (Southern Cross and Dunedin City), Distinction Hotel, Otago Peninsula Trust (Royal Albatross Colony and Blue Penguins Pukekura), Larnach Castle, Monarch Wildlife.

17 New investment partners for the 2018 campaign included Emersons Brewery, NZ International Science Festival, University of Otago and Olveston Historic Home.

18 Each stage of the campaign was implemented to lead potential Australian travellers through an identified travel decision pathway: 'Dream, plan, book, visit and recommend.'

Campaign Channels and Activity

19 Enterprise Dunedin supported this campaign via the following paid or in-kind activity:

a) Owned Brand/Digital/Consumer

· DunedinNZ.com including dedicated campaign hub, website banners and visit home page promotional pointers.

· Google Adwords search engine advertising.

· Facebook and Instagram sponsored posts, adverts and video.

· YouTube campaign video.

· Newsletters to consumer database.

· Exhibition stand at the Flight Centre consumer travel expo in Brisbane (Feb).

· Two-phase market research in the Brisbane market in conjunction with Dunedin Airport.

· TripAdvisor Premium Destination Partnership.

b) PR/Media

· Integrated online/offline campaign with Newscorp Queensland (APN).

· Cinema advertising with Val Morgan.

· Print and online advertising with lifestyle, travel and inflight publications.

· Outdoor billboard advertising.

· Travel journalist hosting and features.

· Promotional partnership with Experience OZ and New Zealand.

· Radio campaigns on 97.3, 4KQ, Hit 105, MoreFM and NZME

· Promotional activity with New Zealand media partners.

20 The largest component of the campaign was run in conjunction with Newscorp Australia’s Queensland platforms, targeting the Brisbane metropolitan area and surrounding population. The campaign ran across print, digital, mobile, video and social channels including advertising, competitions and interactive activities.

Results

2018 Results

21 The most robust and reliable measure of economic value and benefit for Dunedin from this and associated campaigns is Australian visitor spend in Dunedin, based on the Ministry of Business Innovation and Employment's (MBIE) Major Regional Tourism Estimates (MTREs).

Australian Visitor Spend in Dunedin

Year Ended September 2018	Dunedin		New Zealand
Australian Visitor Spend	$56.1M	7.21% (compared to year ended September 2017)	$ 2693M	5.25% (compared to year ended September 2017)
Australian Market Share of Total International Visitor Spend (New Zealand)	25.2%		22.9%

Source: MBIE Tourism Dashboard - Visitor Markets – Visitor Spend by Origin* – Dunedin RTO Region

*Major Regional Tourism Estimates - MRTEs are an estimate of total regional tourism spend including cash and online spending, and excluding Goods and Services Tax (GST).

www.tourismdashboard.mbie.govt.nz

22 Direct flights from Brisbane to Dunedin showed an average increase of 4% for the months March through August, peaking at an increase of 11% in July and August.

23 DunedinNZ’s social media channels secured 8% increase in ‘likes’ with a total of 12,319 from wider Australian and a campaign post reach of 3,500,412.

24 The introduction of Google search engine advertising boosted engagement with the DunedinNZ website. The campaign landing page showed an 811% increase in unique page views and the winter deals page secured an 86% increase, as compared to the 2017 campaign period.

25 The DunedinNZ database grew by 1,484 Australian consumer contacts, offering an opportunity for remarketing.

26 A total of 70 destination packages were sold direct to consumers at the World Travel Expo in Brisbane, a 31% increase from the 2017 expo. Air New Zealand and Virgin Australia also had a Brisbane to Dunedin fare special at the show.

27 Results from the post-campaign market research included a 9% increase in awareness of Dunedin’s location, with 62% rating WTWTA campaign creatives as inspiring. At least 49% of respondents would consider visiting Dunedin in the next 12 months.

28 Media coverage reached an overall audience of 3.8 million people. Further coverage is expected to be published in the coming months with an audience reach of 2.8 million people.

29 Local visitor industry partners received a total of 4,447 referrals from DunedinNZ.com throughout the duration of the campaign.

30 Responses to video posts during the campaign period were also significant with 212,476 views on the DunedinNZ Facebook and YouTube and a further 107,187 views via Newscorp channel Unruly.

31 The campaign resulted in a significant number of Dunedin banner advertising views and ad click engagements. Total online impressions across multiple partners was 448,539 (APN), 100,452 (Experience Oz and New Zealand), 93,750 (Gourmet Traveller), 404,300 (WebJet, Virgin Australia).

32 For further detailed results refer to Attachment A –WTWTA 2018 Campaign Proposal, Attachment B - WTWTA 2018 Channel & Partner Results, and Attachment C – Brisbane Market Research.

Australian visitor spend – 2010 to 2018

33 The graph below illustrates the visitor spend from Australian visitors in Dunedin since 2010.

Source: MBIE Tourism Dashboard - Visitor Markets – Visitor Spend by Origin* – Dunedin RTO Region

*Major Regional Tourism Estimates - MRTEs are an estimate of total regional tourism spend including cash and online spending, and excluding Goods and Services Tax (GST).

www.tourismdashboard.mbie.govt.nz

ANALYSIS AND CONCLUSION

34 The increasing Australian spend in Dunedin over the last three years has been influenced by campaign activity and increasing awareness of the city as an attractive visitor destination.

35 For the size of the market, the campaign budget was utilised as effectively as possible to reach the target audience across multiple touch points. An increased budget for future campaigns would ensure further cut-through and the ability to extend the geographic target market.

36 Market research indicated the majority of Australian travellers visit Dunedin as part of a wider South Island journey, with Christchurch and Queenstown airports being the main ports of direct entry.

37 The research also indicated that television was the most influential channel driving travel inspiration. This should be considered for future campaigns, should budget allow.

38 Campaign objectives were further bolstered by the individual marketing activity of the local tourism industry including Dunedin Airport and broader initiatives such as SOUTH Marketing Alliance (Christchurch Airport, Tourism New Zealand and other South Island RTOs), the TRENZ travel trade event in Dunedin and Tourism New Zealand International Media Programme visits.

39 The performance of Facebook content and competitions were affected by a change in algorithm which resulted in a reduction in followers and organic reach. The impact of this was minimised due to the robust spread of alternative marketing channels employed during the campaign and both the DunedinNZ website and Instagram achieved above target results.

40 A summary report for the ‘Where the Wild Things Are’ autumn/winter campaign 2018 with examples of WTWTA campaign PR, media, trade, digital and social media activity, and banner advertising are in Attachment B – WTWTA 2018 Channel & Partner Results.

next steps

41 Based on identified travel patterns, visitor spend data by region and findings from market research, Enterprise Dunedin plans to adopt a year-round approach targeting the wider East Coast of Australia.

42 An Australian-based PR agency will be utilised to leverage in-market messaging and further raise awareness of Dunedin to encourage inclusion in direct visits or as part of a wider South Island journey.

43 Two concentrated consumer marketing campaigns will be rolled out in the market per year.

Signatories

Author:

Sanae Herd - Consumer and Brand Marketing Advisor

Sarah Bramhall - Public Relations and Promotions Advisor

Authoriser:

John Christie - Director Enterprise Dunedin

Attachments

	Title	Page
⇩a	WTWTA 2018 Campaign Proposal	28
⇩b	WTWTA 2018 Campaign Channel & Partner Results	31
⇩c	Brisbane Market Research	45

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This report relates to providing a public service and is considered good-quality and cost-effective use of budget to promote the Dunedin brand, marketing Dunedin collaboratively with private sector partnership and added financial contribution.

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	☒	☐	☐

This activity in this report contributed to the Economic Development theme ‘Compelling Destination’ and associated action ‘Marketing Dunedin’. It also contributed to the Arts and Culture, Events and Festivals, Parks and Recreation strategies by promoting activity under these thereby also contributing to the Social Wellbeing Strategy.

Māori Impact Statement

Ngai Tahu is one of the six partners who are responsible for governing and delivering the Economic Development Strategy.

Sustainability

The activity in this report contributed to the sustainability of air connectivity to and from Australia and the economic sustainability of the visitor industry.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications from the activity in this report.

Financial considerations

There are no financial implications.

Significance

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

Engagement – external

There has been external engagement with local, national and international industry, trade and media partners around activity within this report.

Engagement - internal

There has been engagement with DCC Events and Festivals, Marketing and Communication, Web Team and the Dunedin iSite around activity within this report.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no known implications for Community Boards.

Economic Development Committee

20 November 2018

PDF Creator

Economic Development Committee

20 November 2018

GigCity/Smart City

Department: Enterprise Dunedin

EXECUTIVE SUMMARY

1. The purpose of this report is to update the Economic Development Committee (EDC) on GigCity (Gigatown) activities between 2015 and 2018.

2. Over the past three years, Council and the Digital Community Trust (DCT) have delivered a range of activities to leverage the benefits of Ultra-Fast Broadband (UFB) and gigabit internet speed in the city.

3. With the end of the official Chorus Gigatown rollout and competition benefits period, the DCT resolved to disestablish in September 2018.

4. This report reviews activities undertaken by Council and the DCT over the last three years, as well as potential future options and direction identified by consultants MartinJenkins (Martin, Jenkins & Associates Limited).

RECOMMENDATIONS

That the Committee:

a) Notes the GigCity/Smart City report.

b) Receives MartinJenkins Direction Setting for Dunedin as a 21^st Century Smart City report.

c) Notes its appreciation to the Digital Community Trust (DCT).

BACKGROUND

5. Dunedin was announced as the winner of the Chorus, Gigatown competition in November 2014. This success was the result of a thirteen-month campaign led by the community, businesses and the Digital Office (a not-for-profit entity created to deliver the Dunedin Digital Strategy 2010 - 2013).

6. The city’s application to the Gigatown competition was informed by the ‘Plan for Success’ which aimed to maximise ultra-fast broadband (UFB) opportunities.

7. The Plan for Success included 28 potential initiatives ranging from business support, community development and innovation and was overseen by the DCT which included representatives from:

a) Dunedin City Council;

b) Forsyth Barr;

c) Deloitte;

d) Anderson Lloyd;

e) University of Otago;

f) Otago Polytechnic;

g) Southern District Health Board;

h) Ngāi Tahu;

i) Secondary school representatives.

8. Through GigCity, $2.5m has been invested in a broad range of initiatives during the 2015-2018 competition period as follows:

a) Economic: including support for start-up businesses, delivery of the ‘Co.Starters’ programme, Nokia ng-Connect programme and subsidised gigabit connections;

b) Social: including the development of the Gig Community Fund, support for the rollout of wi-fi hot spots and the GigCity Living Hub in the Dunedin Public Library.

9. GigCity contributes to all themes of the 2013-23 Economic Development Strategy:

a) Business vitality;

b) Alliances for innovation;

c) A hub for skills and talent;

d) Linkages beyond our borders;

e) A compelling destination.

Discussion

2015-18 Economic Initiatives:

10. Through the Gigatown competition win, Dunedin residents and businesses have received subsidised gig-speed internet connectivity which will continue until June 2019. Chorus estimate that this has resulted in an $8.96m saving to consumers to 30 June 2018 and will be potentially upwards of $15m by June 2019.

11. The $200,000 Gig Start Fund aimed to grow Dunedin’s local start-up companies and business ecosystem. The fund was supported by Chorus & Nokia (formerly Alcatel Lucent) and was delivered locally by the Start Up Dunedin Trust.

12. Through the Gig Start Fund, 11 local start-up companies received funding for projects that used gigabit technology, as shown in Table 1:

Table 1: Gig Start Fund recipients

Organisation	Description	Grant Awarded
Bison Group	Logistic sector cloud-based data management system.	$20,000.00
Photo Toolbox Ltd	Professional photography sector cloud based digital assets management system.	$20,000.00
Blue Twist	Cloud based system for the medical sector.	$20,000.00
Adventure Media Works	Online service simplifying administration for professional photographers.	$20,000.00
Learning with a Difference	Animated learning programme to help children with dyslexia.	$15,000.00
Responsibility	App and support programme to manage onsite health & safety and hazard identification.	$12,000.00
Petri Dish	Shared office space for tech and creative media start-ups, small business and individuals.	$20,000.00
Such Crowd	Crowd sourcing platform allowing event demand testing for event planners.	$20,000.00
Codelingo	Automated, project specific code review.	$20,000.00
Swiftlet	Cloud platform for IOT sensor.	$20,000.00
CoDrivr	Virtual reality driving simulator.	$20,000.00
TOTAL		$207,000.00

13. The Start-Up Dunedin Trust also delivered ‘Co.Starters’ (a business support programme based out of Chattanooga, USA) which supported 82 early stage start-up businesses between 2015-2018. In October 2017 Dunedin hosted the Co.Starters Summit which attracted 20 grass-roots programme facilitators from Australia and New Zealand.

14. Dunedin business, Tussock Innovation, was supported through Nokia’s ng Connect programme which aims to connect innovative companies globally. As a result, Tussock Innovation showcased their sensor technology at the World Mobile Congress in Barcelona and the San Francisco Mobile World Congress Americas in 2017.

2015-18 Social Initiatives:

15. Through the Gig Community Fund, $500,086 was provided to 23 organisations to support education, digital enablement and youth engagement. As shown in table 2, the projects covered a variety of organisations using technology as a creative and innovative tool taking digital experiences beyond consumer entertainment:

Table 2: Gig City Community Fund Recipients

Organisation	Description	Grant Awarded
Home of St Barnabas Trust	Drive Time Project- Meals on Wheels Management App	$20,000.00
Letting Space (Wellington Independent Arts Trust)	Urban Dream Brokerage – digital creative commissions	$6,000.00
Gasworks NZ	Gasworks NZ – Digital citizenship education	$20,000.00
Malcam Charitable Trust	Mozilla Hive – Digital Citizenship education	$22,000.00
Logan Park High School & Frederic Dichtel, Dr Romain Garby and Dr Alice Harang	Te Kaiwhakamāori – English to Te Reo Translation website	$20,000.00
NZ Python User Group Incorporated	Mine-edin (Minecraft) Pycon Conference coding workshops	$9,020.00
Otago Polytechnic	Digitally Savvy Dunedin – identification of digital training needs for the workforce	$20,000.00
Methodist Mission Southern	Virtual Reality Education – programmes for high needs learners	$25,576.00
Malcam Charitable Trust	Hive Dunedin – Digital citizenship education	$20,000.00
Letting Space (Wellington Independent Arts Trust)	Urban Dream Brokerage – digital creative commissions	$20,000.00
Landscape Connections Trust	Halo Project – Digitally enhanced pest management plan	$20,000.00
Circulation Community Incorporated Society	Digital Dunedin Fab Lab – 3D printing and design	$20,190.00
Otago University	Future Convergence – He Kohinga Pao – Digitally accessible Maori music culture	$25,300.00
Fortune Theatre Trust	Fortune Theatre – Back Page Pass – behind the scenes glimpse of theatre production	$20,000.00
Hills Radio Trust/Otago Access Radio (OARFM)	OARFM Digital Content Platform for Mobile Devices	$20,000.00
Football South	FIFA 17 e-Sports Tournament	$20,000.00
Anglian Family Care Centre	Primary Community Data Project – linking vaccination programmes and the needy	$22,000.00
Valley Community Workspace Inc.	Business Skill Programme Funding	$3,000.000
ChatBus Trust	Fundraising Website and Mobile Counselling Platform	$12,000.00
Connected Education Trust	Hive Dunedin – A connected education platform for schools	$90,000.00
Ahi Pepe MothNet – Whakamahara	Ahi Pepe MothNet – Led by Landcare Research. Moth identification and education.	$20,000.00
Presbyterian Support Otago	The Elders Gateway – information platform for older residents of Dunedin	$13,000.00
NZ Marine Studies Centre	Fishy Webcam – bringing the underwater world of Dunedin Harbour to a screen near you.	$32,000.00
TOTAL		$500,086.00

16. In addition, 15 Wi-Fi hotspots were constructed across the following locations to enable internet access to residents, visitors, and students:

· The Octagon	· Toitu Early Settlers Museum	· Dunedin Public Library
· The Exchange	· Dunedin Public Art Gallery	· Mosgiel Public Library
· Chinese Gardens	· St Clair	· Port Chalmers Public Library
· The Railway Station	· Museum Reserve	· South Dunedin Hub
· Botanic Garden	· Macandrew Bay	· Wall Street Mall

17. The Wi-Fi hotspots provided the infrastructure for Eduroam, a free secure global wireless network for participating tertiary institutions, launched in late 2017.

18. The GigCity Living Hub (The Hub) was launched in the Dunedin Public Library at the end of 2016. Several events have been hosted at The Hub since its launch including:

a) Techweek 2017 – Centre for Space Science public talk;

b) Govt Hack 2017;

c) Electric Vehicle Week 2017 Series;

d) Otago Polytechnic multiscreen art installation;

e) Otago Polytechnic Film Students Short Film launch;

f) 2018 New Zealand Music Week activities;

g) Dunedin Waterfront development video.

Image One: GigCity Living Hub Usage: Ev Week 2017 & General Use

19. As part of the competition, the DCT oversaw a dedicated communications and marketing plan to:

a) Maintain and increase awareness of Gig City community initiatives, local business ‘hero stories’ and outcomes;

b) Promote Dunedin as a digital leader, showcasing and promoting economic development opportunities.

20. Because of this marketing and promotion, 170 news items were generated between April 2015 and August 2018, generating an estimated $1.3m earned media value (EVA).

21. A notable highlight was the Australian Broadcasting Corporation (ABC) 4 Corners Story in October 2017, which compared Dunedin and New Zealand’s UFB programme with Australia’s National Broadband Network (NBN). The ABC programme resulted in visits to Dunedin from:

a) The Mayor, Councillor and Chief Executive from the City of Greater Bendigo;

b) Tasmanian telecommunication company Launtel (Launceston Telecommunication).

THE MARTINJENKINS REPORT

22. In August 2017, the DCT appointed MartinJenkins consultants to undertake a high-level review of the activities delivered under GigCity and to provide direction for future activity. The MartinJenkins report noted:

a) There were significant benefits in winning the Gigatown competition in and of itself, with the publicity around the competition, the rallying effect on the city, and the signals it sent;

i. That Dunedin is a good place to do business in, and that business can be done between Dunedin and anywhere in the world;

ii. The infrastructure itself is viewed as being of high standard with a lot of opportunities to leverage, and is also perceived to have had a very positive effect around the Vogel St area;

b. In some cases, there was a perception by stakeholders, that more could have been done to take advantage of opportunities set out in the plan;

c. There was a general view by stakeholders that while progress was slower than expected, expectations were probably too high to start with.

23. MartinJenkins also considered options to build on the outcomes achieved through GigCity and opportunities to continue progress towards the concept of a ‘Smart City’, defined as:

A city which uses technology to inform, engage and connect with people, and to manage the city’s assets in the most efficient way possible, with the aim of providing better experiences for the city’s residents, visitors and businesses.

24. The MartinJenkins report recognised Council’s progress and investment in Smart City systems - e.g. LED lights - and recommended:

a) The adoption of a Council-led approach based on real needs and priorities;

b) Embedding smart technology across Council strategies;

c) Adopting an incremental approach which builds confidence through the application of mature and stable technologies;

d) Establishing a senior function to lead Smart City across Council.

Taking the Lessons Forward

MartinJenkins Report

25. The DCT received the MartinJenkins report and recommendations in March 2018. Since this time Smart City thinking has been considered by the DCC leadership forum.

26. On 16 May 2018, Council resolved to set aside $100,000 for the development of Smart City activities as part of the 2018-28 Ten Year Plan deliberations:

That the Council:

a) Provides an additional $100,000 in the operational Economic Development budget in 2018/19 for new work around the future of Dunedin as a Smart City.

Moved (Cr Andrew Whiley/Cr Christine Garey)

27. The intention of the 2018/19 funding is to build on the MartinJenkins recommendations by identifying a pilot project(s) which can be used to demonstrate how a Smart City ‘proof of concept’ and thinking could be championed and appropriately embedded through the DCC Senior Leadership Team (SLT) and Council strategies.

28. Development of the pilot is being progressed by Enterprise Dunedin, Business Information Services and a subset of SLT activity managers.

Investment in the start-up ecosystem

29. Over the last 18 months the Grow Dunedin Partners (GDP), Start Up Dunedin and private sector have considered options to support the start-up business ecosystem. The DCT has also been engaged during this period, which subsequently resulted in EDC investing $150,000 into the start-up ecosystem on 11 September 2018.

30. This investment will continue to build on the aims, objectives and outcomes of the GigStart Fund by:

a) Continuing delivery of measures to support, connect and resource start-up businesses through programmes such as Co.Starters;

b) Promoting Dunedin's start-up ecosystem - e.g. showcasing successful start-up businesses;

c) Improving measurements around the start-up ecosystem’s performance in the city.

Centre of Digital Excellence (CODE)

31. The development of the Centre of Digital Excellence (CODE) in Dunedin, through which the Government aims to create a $1bn computer gaming sector over ten years, has also provided an opportunity to progress GigCity economic and social outcomes. Building on the Plan for Success, GigStart and Gig Community Fund, CODE provides the opportunity to:

a) Support development of computer gaming and ‘gamification’ sector in the city. Gamification is the application of computer gaming technology in areas such as health and education;

b) Support work being undertaken in the entrepreneurial start-up and creative businesses;

c) Promote Dunedin’s credentials as a global tech-savvy and smart city.

OPTIONS

32. There are no options as this is a report for noting.

NEXT STEPS

33. Enterprise Dunedin will work with the SLT regarding implementation of the findings from the MartinJenkins report. This activity will involve identification, investment and delivery of Smart City pilot projects with SLT during 2018/19.

34. Further regular updates will be provided to the EDC on the development of the start-up ecosystem, CODE and 2018/19 proof of concept pilots.

Signatories

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

Attachments

	Title	Page
⇩a	MartinJenkins Report March 2018; Direction Setting for Dunedin as a 21st Century Smart City	141

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	☒	☐	☐

The recommendations in the MartinJenkins smart city report contribute to all strategies within Council’s strategic framework.

Māori Impact Statement

No known impact for tangata whenua

Sustainability

Smart City development potentially contributes to Social Wellbeing, Infrastructure and Economic benefits for the city through delivering of information for better decision making and driving effective cost efficiency in Council activities.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

On 16 May 2018 Council resolved to provide $100,000 for 2018/19 for smart city activity in the LTP.

Financial considerations

On 16 May 2018 Council resolved to provide $100,000 for 2018/19 or Smart City activity in the LTP.

Significance

This decision is considered medium in terms of the Council’s Significance and Engagement Policy.

Engagement – external

The Digital Community Trust including Dunedin City Councillors, Forsyth Barr, Deloitte, Anderson Lloyd, University of Otago, Otago Polytechnic, Southern District Health Board, Ngāi Tahu and secondary school representatives were engaged and supportive of the recommendations in the MartinJenkins report and proposed direction post GigCIty.

Engagement – internal

ELT and business innovation services have been engaged on the MartinJenkins report. In addition, initial thinking and Smart City opportunities were discussed with the DCC leadership forum in March 2018. Discussions have been undertaken with the Chief Information Officer and SLT activity managers regarding the development of a smart city pilot during 2018/19.

Risks: Legal / Health and Safety etc.

No Risks have been identified.

Conflict of Interest

There are no conflict of interest.

Community Boards

There are no implications for Community Boards.

Chairperson	Cr Chris Staynes

Deputy Chairperson	Cr Christine Garey	Cr Andrew Whiley

Members	Cr David Benson-Pope	Mayor Dave Cull
	Cr Rachel Elder	Cr Doug Hall
	Cr Aaron Hawkins	Cr Marie Laufiso
	Cr Mike Lord	Cr Damian Newell
	Cr Jim O'Malley	Cr Conrad Stedman
	Cr Lee Vandervis	Cr Kate Wilson