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Economic
Development Committee
15 June 2020
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Part
A Reports
Startup
Ecosystem
Department:
Enterprise Dunedin
EXECUTIVE SUMMARY
1 This report seeks
Economic Development Committee (EDC) approval for a Grow Dunedin Partnership
(GDP) funding decision in line with GDP’s approvals and delegation.
2 On 28 May 2020, GDP
resolved to allocate $150,000 to the Startup Dunedin Trust (SUDT) to support
the continued development of the start-up ecosystem for the 2020/21 financial
year. This funding is from a proposed $362,600 2020/21 operating budget
for GDP activities.
3 This investment will be
supported by an additional $44,000 from Enterprise Dunedin’s 2020/2021
Operational Budget for the delivery of Audacious.
4 This funding
builds on 2019/2020 activities
and will further support the Dunedin start-up
ecosystem as part of a post COVID-19
economic response
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RECOMMENDATIONS
That
the Committee:
a) Approves $150,000
funding to the Startup Dunedin Trust (SUDT) for the 2020/21 financial year.
b) Notes this
investment will be supported:
i) $44,000 from Enterprise Dunedin for the 2020/21
delivery of Audacious;
ii) $40,000 from the University of Otago for the 2020/21
delivery of Audacious;
iii) $20,000 from the Otago Polytechnic for the 2020/21
delivery of Audacious.
c) Notes its
appreciation to Nigel Bamford, DCC representative on SUDT who stepped down in
March 2020.
d) Notes its
appreciation to Donna Hall for her contribution to the SUDT.
e) Notes further
advice will be brought back regarding the appointment of a new DCC
representative on SUDT
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BACKGROUND
5 A start-up ecosystem is
formed in a physical location by people, businesses (in their various stages of
growth) and organisations who wish to support and scale new start-up companies.
6 The ecosystem is
typically led by entrepreneurs and often includes economic development
agencies, universities, polytechnics, co-working spaces, professional services
and existing and established businesses.
7 Development of the
start-up ecosystem has been identified as a key priority by GDP and Enterprise
Dunedin given the role it plays in supporting the goals of the 2013-23 Economic
Development Strategy (EDS):
a) 10,000 extra jobs over ten
years (requiring employment growth of approximately 2% per annum);
b) an average of $10,000 extra
income for each person (requiring gross domestic product per capita to rise by
about 2.5% per annum).
8 The development of the
start-up ecosystem contributes to all themes of the EDS:
a) Business Vitality;
b) Alliances for Innovation;
c) A Hub for Skills and Talent;
d) Linkages Beyond Our Borders;
e) Compelling Destination.
9 On 21 May 2019 the EDC:
Moved (Cr Andrew Whiley/Cr Christine Garey):
That
the Committee:
a) Approves $150,000
funding to the Start-up Dunedin Trust for the 2019/20 financial year from
proposed 2019/20 Grow Dunedin Partnership operating budgets.
b) Notes this investment will
attract $25,000 of funding from Callaghan Innovation for continuation of the
Challenger Series.
Motion carried (ED/2019/001)
2019/2020 SUDT activity
10 On 28 May 2020, GDP resolved to
allocate $150,000, from a proposed 2020/21 operating budget of $362,600 to the
SUDT to support the development of the start-up ecosystem.
11 Table one summarises a selection of
activity undertaken, and outcomes achieved by the SUDT in the 2019/2020 year to
date.
12 Over the last 12 months the SUDT has
focused on three key areas:
a) Enable connections, better
collaboration and alignment of resource;
b) Improve visibility;
c) Improve performance measures.
Table One: Summary of SUDT activity 2019/2020
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Objective
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2019/2020 KPI
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Outcome (based on participation
feedback)
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Programme completion/Mentor support
and advice
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Co.Starters
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· Two cohorts
· Recommendation rate
80%
· Instrumental in validation
· Connection and
support by community
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Five held
100% rated 7+ out of 10
100% rated 7+ out of 10
80% felt connected and supported
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The Distiller Workspace
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· Five incubates per
year
· Recommendation rate
100% Instrumental in validation
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10 used the space
85% agreed, 15% neutral
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The Challenger Series
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· 40 applications from
businesses who believe they are ready for global growth
· Recommendation rate
100% instrumental in validation
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42 applications received
100% rated 7+ out of 10
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Audacious
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· 100% understand how
to found/play a role in a start-up
· 50% want careers
that involve entrepreneurship
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100% rated an improvement in understanding)
(86% want a career which develops the
skills gained via Audacious)
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Events
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· start-up events
· Host high level
investor pitch
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Average 3-4 per month
100+ attended
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13 During the period:
a) DCC’s representative
Nigel Bamford, appointed on the SUDT in 2015 resigned in March 2020;
b) Donna Hall who led and managed
the SUDT team returned to Polson Higgs in December 2020.
14 We wish to acknowledge Mr Bamford
and Ms Hall’s leadership, commitment and work in supporting the SUDT and
ecosystem.
15 During the initial COVID-19 lockdown
the SUDT undertook an assessment of the start-up ecosystem. SUDT received 123
responses in 48 hours which indicated that:
• 38%
had been operating for less than a year;
• 30.1%
were pre-revenue and 35% less than $100,000;
• 68.6%
did not qualify for the government relief package
16 The top three areas of concern
indicated by respondents at the beginning of lockdown were:
• Ongoing
financial viability - 25.8%
• Support
to manage cash flow challenges - 20.1%
• Regular
updates and advice on market changes – 9.4%
17 The Annual Ecosystem Survey will now
be sent in September (Q3). Enterprise Dunedin has requested supplementary
questions to understand the future challenges due to COVID-19 and related
factors facing start-ups in Dunedin.
OPTIONS
Option One–Approve $150,000 investment in the
Start-up Dunedin Trust (preferred option).
18 EDC approves $150,000 from proposed
2020/2021 operating budgets to support the startup ecosystem.
Advantages
· Option one is
supported by GDP and has been developed in conjunction with the SUDT, the wider
ecosystem, local businesses and partners;
· SUDT activities,
delivery and outcomes are resourced during the 2020/2021 financial year;
· Provides a platform to
support the development of talent and start-ups to grow Dunedin’s
technology and creative sectors.
Disadvantages
· $150,000 less for
other 2020/2021 GDP activities.
Option
Two–Approve a smaller investment or no investment in the Startup Dunedin
Trust
19 EDC approves a smaller or no
investment (i.e. less than $150,000) for 2020/2021 from proposed GDP budgets to
support the SUDT and the continued development of the startup ecosystem.
Advantages
· $150,000 for other
2020/2021 GDP activities.
Disadvantages
· Fewer services and
support for the start-up ecosystem during a period of increased uncertainty,
after a period of continued momentum and growth;
· Fewer services and
support for groups that are already underrepresented in the start-up ecosystem,
which includes an increase in first-time beneficiaries/jobseekers as a result
of COVID-19;
· Uncertainly for SUDT,
staff and existing programmes.
NEXT STEPS
20 Enterprise Dunedin will update the
2020/2021 SLA with SUDT to continue to support the social, economic,
environmental and cultural wellbeing of Dunedin, by emphasising a focus on
groups that are already underrepresented in the start-up ecosystem, and an
increase in first-time beneficiaries/jobseekers as a result of COVID-19.
Outcomes will be reported back to EDC through quarterly reports.
21 Enterprise Dunedin will commence a
process to replace Nigel Bamford on the SUDT Board and will make a
recommendation to Council for approval.
Signatories
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Author:
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Chanel O'Brien - Business Development Advisor Skills and
Entrepreneurship
Fraser Liggett - Economic Development Programme Manager
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Authoriser:
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John Christie - Director Enterprise Dunedin
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Attachments
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Title
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Page
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⇩a
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Startup Dunedin Trust
(SUDT) Progress Report 2019/20
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24
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SUMMARY OF CONSIDERATIONS
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Fit with purpose of
Local Government
This
decision promotes the economic well-being of communities in the present and
for the future.
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Fit with strategic
framework
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Contributes
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Detracts
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Not
applicable
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Social
Wellbeing Strategy
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☐
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☒
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Economic
Development Strategy
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☒
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☐
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☐
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Environment
Strategy
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☐
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☐
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☒
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Arts
and Culture Strategy
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☒
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☐
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☐
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3
Waters Strategy
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☐
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☐
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☒
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Spatial
Plan
|
☐
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☐
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☒
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Integrated
Transport Strategy
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☐
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☐
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☒
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Parks
and Recreation Strategy
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☐
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☐
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☒
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Other
strategic projects/policies/plans
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☐
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☐
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☒
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The
preferred option in the report supports the goals of the Dunedin Economic
Development Strategy under the themes Alliances for Innovation and Hub for
Skills and Talent. Creative businesses are represented in the startup
ecosystem. The proposed option and measures also support the theme of
Creative Economy under the Arts and Culture Strategy.
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Māori Impact
Statement
Ngai
Tahu are represented on GDP and have an opportunity to contribute to decision
making on the 2020/2021 activities of the SUDT and the startup ecosystem.
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Sustainability
Ongoing
business development and support for the startup ecosystem has been identified
as one priority by GDP and Enterprise Dunedin to meet the economic goals in
the 2013-23 Economic Development Strategy.
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LTP/Annual Plan /
Financial Strategy /Infrastructure Strategy
There
are no implications for the LTP, Annual Plan, Financial Strategy and
Infrastructure Strategy.
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Financial
considerations
The
total cost of the recommended option is $150,000 from proposed 2020/21 Annual
Plan budgets
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Significance
This
decision is considered low in terms of the Council’s Significance and
Engagement Policy.
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Engagement –
external
The
following organisations have been engaged regarding the recommendations in
this report, the Grow Dunedin Partnership (including: Dunedin City Council,
Otago Chamber of Commerce Incorporated, Otago Southland Employers Association,
University of Otago, Otago Polytechnic, Ngai Tahu, John Gallaher, Forsyth
Barr), the Otago Business School, Startup Dunedin Trust and wider startup
ecosystem.
|
|
Engagement -
internal
There
has been no internal engagement.
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Risks: Legal /
Health and Safety etc.
There
are no identified risks.
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Conflict of Interest
There
is no conflict of interests.
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Community Boards
There
are no implications for Community Boards.
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|
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Economic Development Committee
15 June 2020
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Enterprise Dunedin Activity Report - June 2020
Department: Enterprise Dunedin
EXECUTIVE SUMMARY
1 The
purpose of this report is to update the Economic Development Committee on
several Enterprise Dunedin activities.
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RECOMMENDATIONS
That the Committee:
a) Notes the
Enterprise Dunedin Activity Report – June 2020.
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BACKGROUND
2 Enterprise
Dunedin activity is informed by the 2013-2023 Economic Development
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 advantages.
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 2.5% per annum).
DISCUSSION
Enterprise Dunedin Activity
Outcomes and COVID19 response
March 2020 pre-COVID-19 lockdown
economic position
4 According
to the Infometrics Quarterly Economic Monitor the Dunedin economic entered the
COVID-19 pandemic from a solid starting position – see Attachment A.
5 March quarter data showed that Dunedin's economy was still
growing above the national average. Over the March 2020 year, Dunedin's economy
expanded by 2.4%, compared to 1.7% nationally.
6 Dunedin's unemployment rate in March was 4.9%, down
from 5.1% a year ago, but slightly above its December level.
7 Building activity, particularly in the commercial sector,
as well as a buoyant property market, kept activity levels high during the
March quarter.
8 Activity in the visitor space was already being held back
due to poor weather affecting cruise ship dockings and early
signs of fewer visitors due to COVID-19.
Subsequent insights during April
and May
9 The
pace and economic impacts of COVID -19 has limited the availability of
up-to-date and detailed indicators since March 2020. The following datasets
from a range of sources provide an overview, rather than an exhaustive list of
all aspects of the economy.
o Ministry
of Social Development (MSD) data shows the number of work ready recipients of
Jobseeker Support rose by 660 people to reach a total of 2,713 in April. In
percentage terms, this was a 32% increase (slightly below the 35% increase
experienced nationally).
o Weekly retail
spending in Dunedin during lockdown fell to 39% of its usually level, however
at the end of the first full week of Level 2 (24 May), spending had recovered
to 1.0% above its level from the same week last year. Some of the increase will
be due to pent-up demand, as spending concentrated on homeware and clothing,
rather than hospitality.
o Traffic
flows of light vehicles in Dunedin during the week ended 22 May were about 15%
below their level from the same week a year earlier, while heavy traffic flows
had recovered to their 2019 level.
Early
Assessments for Dunedin
10 It
is expected further job losses in Dunedin will emerge over the coming months.
This will continue to impact on specific parts of the economy and businesses.
However, given our economic position prior to COVID-19, we expect Dunedin's
economy to perform better than the rest of New Zealand, and some of the inland
parts of Otago (source Infometrics Quarterly Economic Monitor YE March 2020).
11 Planned
and publicly funded large-scale infrastructure and major construction work for
coastal Otago (worth approximately $3.3bn over the next 15 years in Dunedin)
will support significant activity for the construction sector and services
across the city.
12 As
with previous, historical economic shocks including the Global Financial
Crisis, we anticipate an increase in the city’s $576k tertiary education
sector, particularly in the areas of vocational education (source Infometrics
Dunedin City Economic Profile 2019).
13 Dunedin
has also seen significant development of the start-up and entrepreneurial
ecosystem over several years. This activity, in addition to the growth of more
high-tech and service businesses have, though the roll out of ultrafast
broadband, made it more practical for remote working during the lockdown
period.
14 The
local visitor economy relies more heavily on domestic tourism than other parts
of the country. 70% of visitor spending in Dunedin is by New Zealanders,
compared to 60% across the country. Although some New Zealanders will be
more hesitant to travel from a financial perspective, Dunedin is poised to
capture business from those that do choose to explore their own backyard.
Otago
Regional Economic Development Framework
15 Enterprise
Dunedin has engaged twice weekly with other economic development agencies and
Otago Regional Council (ORC) on data sharing and response and recovery planning
since the outbreak of COVID-19. This work which has been informed by the Otago
Regional Economic Development (ORED) framework has been supported through the
two Provincial Growth Fund (PGF) supported Regional Economic Development
Advisors based in Dunedin and Central Otago.
16 The
focus has been to realign strategic priorities from economic growth to economic
recovery. This has resulted in engagement with Ministry of Business Innovation
and Employment (MBIE) and other agencies including the Ministry of Social
Development (MSD) and University of Otago.
17 The
Economic Development Advisors in conjunction with an ORC and external
economists are currently developing COVID-19 economic scenarios. This work has
included engagement with impacted businesses sectors across the city and
region. This project and modelling which should be finalised by the end of the
month is intended to provide advice and data to inform post-COVID-19 for local
and regional economic opportunities.
18 Enterprise
Dunedin, the Ministry of Social Development, Aukaha and ORED Councils have
continued to progress the Construction Skills Labour Forecasting (CSLF)
project, funded through the Provincial Growth Fund (PGF). This project is
aligned to work undertaken by the Otago Chamber of Commerce on employment and
skills opportunities arising from the Dunedin Hospital rebuild.
19 A
draft model submitted in early April is currently being re-worked by the
Building Construction Industry Training Organisation (BCITO) to take account of
COVID-19 implications on investment decisions.
20 The
updated report and model are due by the end of next month and will identify
proposed projects, skills requirements and measures to support employment
opportunities on proposed infrastructure and shovel ready projects. A separate
report will be brought back to the Economic Development Committee.
Centre of Digital Excellence
21 In its 2017 election manifesto, the Government committed to
establishing a Centre of Digital Excellence (CODE) in Dunedin. The
Government’s vision for CODE is to contribute to a video game development
sector generating $1B of output over 10 years.
22 In October 2019 the PGF confirmed $10m, supported by approximately
$2.6m funding from Enterprise Dunedin, the University of Otago and Southern
District Health Board for CODE. Since then, the Working Group and project team
led by Enterprise Dunedin has progressed (and accelerated during the Alert
Level 4 lockdown) several workstreams in order to establish CODE
23 The key areas of focus have included:
Development
of a business grants programme (ongoing)
Ongoing
development of ‘Kaupapa CODE’;
Development
of the CODE operating principles, legal entity, shareholding structures;
Ongoing
development of vocational models (drawing on international good practice) and
tertiary curriculum with the Otago Polytechnic and University of Otago;
Contracting the
appointment of an Establishment Director and identification of a physical home
for CODE (currently in process);
Progressing
opportunities with Japanese gaming company, JPGames.
24 Announcement on a number of these workstreams are expected over the
next month and further updates will be provided to the Economic Development
Committee.
Business Vitality
25 Energy
a) Biomass
i. Investigations
into a wood-fuelled Dunedin District Energy System (DES) for the CBD continue,
following the jointly commissioned DCC/University of Otago/SDHB/MoH Indicative
Business Case.
ii. The DCC is
also doing due diligence into the non-DES options available to heat the
DCC-owned Octagon area buildings and Moana Pool, as a comparative measure to
the jointly commissioned Indicative Business Case that was delivered by Stantec
late last year. Stantec is undertaking this work for the DCC.
iii. The DCC is as we
move through this investigation phase, incorporating provision for pipework
into its design work on the George Street upgrade, to ensure the opportunity of
connecting to the DES is preserved.
iv. The DCC is a member of
a joint working group progressing discussions around the DES. Through this
working group, the DCC is seeking clarity about the possibility of obtaining
clean energy through the existing Pioneer-operated DES, as an interim measure while
other energy centre(s) are established. The DCC is also seeking clarity around
proposed commercial models for the DES generally, and energy centre(s)
specifically.
v. The DCC will
shortly commission an update to wood supply chain projections.
b) Baseline
Energy
The University of Otago’s Centre for Sustainability
is again completing the Dunedin Energy Study for the DCC, however due to
Covid-19 this has been delayed. The final report is anticipated within two
weeks.
c) Electric
Vehicles
i. The DCC supported
a CODC application to the Round 8 EECA Low Emissions Vehicle Fund, for a rapid
charger in Middlemarch.
ii. The new Water Street
rapid charger, supported by Council, is now operational.
iii. The DCC is scoping an EV
charging needs assessment and charging plan for Dunedin.
d) Energy
Leaders
i. The DCC has
commenced a refresh of its internal Emissions Reduction Plan, with the plan of
developing new targets and a comprehensive action plan.
ii. Discussions
have commenced with various stakeholders regarding a possible Zero Emissions
Business Support programme.
26 Good
Food Dunedin
a) COVID-19
support for the local food sector
The Good Food Dunedin Coordinator has continued to provide
one-to-one support, information sharing with industry bodies to the local food
sector. While many businesses have shown their ability to pivot quickly and
thereby provide some income security, the current environment has proved
challenging for others.
b) Foodprint
Foodprint, an app-based platform for rescuing perishable
edible food, launched in Dunedin in February. 28 eateries are now using the
platform to sell ready-to-eat food that would otherwise become waste. Foodprint
acts in a complimentary way to KiwiHarvest, who rescue non-perishable food
which is distributed to our vulnerable residents.
c) Aotearoa
Food Policy Network
As a member of the Aotearoa Food Policy Network the
Dunedin City Council continues to provide a leadership role in national
conversations around food policy. It is anticipated that food resilience will
high on the agenda in the wake of COVID-19 particularly considering the impacts
on small scale growers, farmers and producers who are not part of the
mainstream supply chain, and on rates of food insecurity in NZ homes.
Alliances for Innovation
27 Film
The Covid-19 pandemic
shut down all filming activity at Level 3 and Level 4. Film permitting in
Dunedin has resumed at Level 2 however all permit requests now require project
registration with ScreenSafe and Health and Safety plans that meet standards
endorsed by Worksafe.
a) Film
Dunedin has progressed two key related activities of COVID-19 related response
as part of the lock down:
i) A
funding request to develop Council owned property at Parry St for film studio
and workshops was submitted to the Crown Infrastructure Fund ‘shovel
ready’ projects in April. The proposal has progressed to the second
round of assessment.
ii) Work
has commenced on the development of an Investment Logic Mapping (ILM) and
business case to further coordinate, strengthen and develop the Dunedin and
regional film ecosystem. This work (“strengthening the screen
eco-system”) was planned pre COVID-19 to support the Parry Street shovel
ready proposal and has brought together screen business leaders, academics,
creatives and council staff from Dunedin and Queenstown. An initial report is
expected by end of June 2020.
b) The
Dunedin and the Queenstown Film Offices are continuing to collaborate
successfully through Film Otago Southland (FOS) to deliver regional marketing,
project facilitation and industry support. Most recently FOS has produced a
‘show reel’ https://www.youtube.com/watch?v=QXumlxNsFOc
which showcases film locations across Otago.
c) In
the nine-month period ending March 2020.
i) Film
Dunedin responded to 79 screen filming enquires in Dunedin compared to 43 in
the corresponding period in 2019.
ii) There
were 42 film permits issued over the nine months to March 2020, compared to 33
in the corresponding period in 2019.
b) Film
Dunedin is currently engaged with:
i) eight
domestic feature film and six domestic television and web series in varying
levels of production. These are projects developed by Dunedin writers or set in
Dunedin. This represents a growing focus to develop local content for national
and international audiences.
ii) Film
Dunedin is currently engaged with the Producers for five Short Films set in
Dunedin and planned for production in the next six months.
A Hub for Skills and Talent
28 JobDUN
- Business Internship programme 2019/2020
a) Enterprise
Dunedin facilitates the business internship programme – JobDUN. The
objective of the JobDUN programme is to meet business needs, create high value
jobs, retain skills and talent in the city and contribute to the economic
growth of Dunedin. The programme allocates funding for 50 intern placements.
b) The
2019/20 programme is still underway with businesses and interns currently
reporting back on the season by 30 June 2020.
Responses so far show:
i. 28
businesses have participated in the programme from nine sectors, mostly from
the ICT/Tech sector, followed by other, engineering/niche manufacturing,
marketing/media, sport/recreation.
ii. Businesses
have employed 31 interns in roles such as marketing, communications, design,
software developer and engineers.
iii. 24
of these are new roles to the participating organisations.
iv. 16
interns were employed in casual/contract roles, seven in part-time equivalents
(PTE), and eight as full-time equivalents (FTE).
Graph 1. Employed roles and new positions 2018/19 and
2019/20
v. Business
satisfaction has remained high with 75% business very satisfied with the
programme and 23% satisfied.
Business satisfaction
with JobDUN 2019/20
|
|
2018/19
|
2019/20
|
|
Very satisfied
|
77%
|
75%
|
|
Satisfied
|
23%
|
23%
|
vi. JobDUN
COVID-19 response:
Enterprise Dunedin is currently undertaking a survey of the
companies who have used the JobDUN in the last two years to seek advice on
their business needs and internship opportunities in a post COVID-19
environment. Businesses may have a reduced appetite, or an increased one, for
taking on an intern, depending on their sector, situation and needs. Based on
this feedback JobDUN maybe reposition and change for the 2020/2021 year.
29 Techweek
2019/20
a) Techweek
helps raise the innovation profile of the city by developing its reputation for
being a launch-pad for businesses moving into global markets. The Dunedin tech
sector is increasingly important to the city’s growth generating
approximately $330 million to GDP and creating approximately 2,000 jobs.
Techweek’s response to COVID-19 means Techweek 2020 scheduled for
May has been rescheduled for July 2020 with a programme of national festival of
digital events from July to 2 August 2020.
b) Techweek’s
overall purpose is to help people ‘Connect to their future’ by
enabling digital events throughout the country. The objective of Dunedin
Techweek2020 is:
i. To
build on Dunedin Techweek 2019’s success and continue its objectives to
be a national festival showcasing and celebrating New Zealand innovation.
ii. To
work with event organisers locally to shape a festival programme that reflects
the strengths and uniqueness of Dunedin’s tech sector, and in alignment
with the Dunedin Economic Development strategy and Dunedin’s Centre
of Digital Excellence (CODE).
iii. Moving
Techweek 2020 to late July gives Dunedin Techweek the opportunity to be a
channel and platform for positive regrowth, economic stimulation and
connections during the COVID-19 recovery phase.
c) While
the new format means that only digital events will be part of the Techweek2020
festival, it also means that people will not be restricted by their
geographical locations. Dunedin Techweek will support Enterprise Dunedin to
highlight the region to NZ (and internationally) and assist in lifting industry
scale and perception. Dunedin events include a ‘GameJam’ and unique
one-off online workshops/Masterclasses, with support from CODE.
Linkages Beyond Our Borders
30 Project
China
a) Chinese,
New Zealand medical experts share 1st-hand experience on COVID-19
The Chinese Consulate-General in Christchurch and Enterprise
Dunedin supported a webinar between medical experts from China and Southern
District Health Board (SDHB) on the exchange of experiences and best practice
on combating COVID-19. During the two-hour session, The Deputy Director of
Shanghai Centre for Disease Control and Prevention and Shanghai Pulmonary
Hospital answered a broad range of questions raised by frontline medical
professionals from SDHB, including tracing suspected cases, testing
asymptomatic carriers, improving diagnostic accuracy, enhancing personal
protective equipment (PPE) and evaluating cytokine storm. The SDHB noted the
exchange was valuable and illustrated the benefits brought by sister-city
relationship between Shanghai and Dunedin.
b) Communication
and contact with Foreign Affairs Offices and Friendship Cities in China
A key milestone for 2020/21 will be the renewal of the
Shanghai – Dunedin Sister City Agreement. This will be progressed with
the Shanghai Foreign Affairs Office (FAO) over the coming months and is
expected to focus on measures which can support the economic stimulus post
COVID 19.
c) Work
with main education and tourism agents in Dunedin
The Project China Coordinator has continued to work closely
and engage with the Dunedin Chinese community members and businesses during the
Alert Level 4 lock down. Amongst other things this included supporting a local
company with an online seminar to promote Dunedin as a future destination for
international students, once travel restrictions are lifted.
A Compelling Destination
31 Dunedin’s
visitor sector has been widely affected by COVID-19. The effect has varied from
business to business, but has included: closures, hibernation, staff
redundancies, cashflow issues, uncertainty about the future and mental stress.
a) Engagement
with the Dunedin Visitor Sector
i. The
Destination Marketing team contacted over 75 operators during level 4 and level
3 restrictions. Generally, the mood within the industry was low, however the
majority remained positive about their situations and were eagerly awaiting
when they could return to work.
ii. A
new Facebook Group was established called ‘Tourism Korero’ was
established to increase communication and accessibility, with more than 90
members registered.
iii. Zoom
sessions with an average of 50 attendees have been hosted with the sector; to
discuss marketing themes, ideas and opportunities about the future for Dunedin
tourism.
iv. Working
with the wider Dunedin tourism community including Dunedin Airport Ltd, Otago
Polytechnic and Otago University to encourage a shift towards a Dunedin Inc
approach to Destination Marketing and Management.
v. Tourism
New Zealand (TNZ) has formed a reference group of RTOs with the purpose of
representing RTOs view to TNZ. Enterprise Dunedin is involved in
discussions with TNZ and Ministry of Business Innovation and Employment (MBIE)
including:
· the
re-imagining tourism project,
· potential
Dunedin involvement in the Strategic Tourism Assistance Protection Programme
(for strategic businesses) and
· the
Tourism Transition Programme (business advice and support).
vi. A
Project Manager has been appointed to coordinate a marketing and destination management
joint venture of the eight southern Regional Tourism Organisations under a
working alliance called 45°South.
vii. Collaboration
with Central Otago and Queenstown continues around the Central Otago Touring
Route which will eventually be absorbed into 45° South joint venture.
b) Research
and Data
A new Accommodation Data Programme (ADP) commences in June
with the first report due in July; the ADP replaces Statistics New
Zealand’s Commercial Accommodation Monitor (CAM) which monitored trends
in New Zealand’s commercial accommodation sector) which was discontinued
last year.
c) Business
Events (Conferences)
In partnership with Dunedin Venues Management Limited,
Dunedin Business Events has commenced a strategic review which will result in a
closer collaboration to help grow domestic business events.
d) Consumer
Marketing – New Zealand and Australia
i. In
early March in response to the international COVID 19 situation the domestic
campaign ‘Dunedin, was developed to encourage domestic visitors to
Dunedin. This was shared with operators in mid-March. However, due to lockdown
this was postponed and will now align with the Tourism New Zealand domestic
campaign launch in mid-June. The campaign will target the ‘drive’
market (residents in a 4.5-hour drive distance from Dunedin including
Christchurch) and the ‘fly’ market Wellington and Auckland using
digital and print channels. The campaign has been presented to Tourism New
Zealand, VISIT Dunedin, Air New Zealand, Dunedin Airport, Dunedin Tourism Korero
plus other visit stakeholders.
ii. Council
was approached by Firebrand to support an online platform to encourage buy
local during COVID19. Enterprise Dunedin provided marketing funding to market
and promote the site.
iii. Based
on feedback from the Dunedin visitor industry on how tourism operators can
attract Dunedin locals during the COVID-19 economic recovery phase. Enterprise
Dunedin have created a new digital campaign, with the aim of getting locals out
and enjoying the city’s unique attractions and tours. ‘Explore
Dunedin’ will be a bespoke “button” within the My Little
Local app, which already has an audience of 43,000, is easy to navigate and
will give Enterprise Dunedin some robust insights. There is no charge for operators
to take part with the initiative will be supported by a targeted marketing
campaign utilising local print and online media, push notifications, radio and
social media.
iv. In
collaboration with Dunedin Airport a welcome back to students’ message
was activated on the digital billboard above the baggage carousel on 18 March,
when the first direct scheduled service from Auckland resumed.
32 Study
Dunedin - COVID-19 Impact on International Education
International education has been significantly impacted on
and off shore by COVID-19 and New Zealand Government lockdown of borders.
Study Dunedin has worked during this period to support institutions, students
and agents in several ways.
a) Two
large repatriation missions were launched during lockdown by the German and
Thai governments. Study Dunedin chartered a bus for both repatriation
efforts so that 13 students could safely travel to Christchurch for
international flights or further domestic flights to Auckland to connect with
international flights. This was a complex operation involving up to six
high schools, the University of Otago Language Centre, Education New
Zealand and Embassy staff from both countries. Fit to Fly certificates for Thai
students were also required from GP’s and all students under 18 (a
majority) were legally required to have guardianship support when staying
overnight in airport hotels.
b) Four
Thai high school students who had been studying at Dunedin high schools as part
of an agreement with Study Dunedin were part of the group needing repatriation
as they had been unable to return home at the end of their study. Study
Dunedin supported this group with one-week Homestay payments.
c) The
Study Dunedin Advisory Group (SDAG) continued to meet during lockdown,
increasing their regularity to two-weekly to ensure a steady flow of
information and support. Communication continues to be the most important work
with a message of support sent to all our Auckland based education agents early
in the lockdown, followed by a Postcard to our international student cohort from
Mayor Hawkins acknowledging that they were far from family and friends at this
challenging time. A Study Dunedin Storyboard has also been developed to
keep Dunedin as a preferred destination at the top of student’s minds.
This was launched on several media platforms the week beginning 18 May.
d) Study
Dunedin is continuing to work with Education New Zealand (ENZ) regarding a post
COVID-19 international education future. ENZ believes the industry will
take some time to re-build with a three-phase focus on Stabilise –
Transform - Grow. Early indications were that 2021 would be a very
quiet year for international education however recent publicly reported
comments from both the Minister of Education and Minister of Finance regarding
international students being exempted to enter New Zealand under strict
quarantine rules before the border is open, have given the industry a sense of
purpose. Discussions will be progressed at the next SDAG meeting on how
we can develop a strong quarantine plan for the Dunedin and wider Otago region,
possibly in collaboration with Christchurch – with indications that it
will become an international entry point for the South Island.
e) Dunedin
City Council (DCC) partnered with Otago Polytechnic to bid for the New Zealand
Institute of Skills & Technology (NZIST) Headquarters in a two-stage
process which was completed just before Lockdown with a Panel visit to the
city. On 15 May 2020 it was announced that Hamilton had won the bid to
host the Headquarters. We will be seeking feedback from the Panel to
support future bids for other functions still to be rolled out as part of the
Reform of Vocational Education (RoVE).
f) COVID-19
has created the necessity for fast-tracking RoVE processes and various aspects
of the Reform will now be established as ‘interim’ functions,
including the Regional Skills Leadership Groups (iRSLG’s) and the
Workforce Development Councils (iWDCs). These are being worked on at a
regional level using the Otago Regional Economic Development (ORED) group as a cohesive
forum to contribute to this work and benefit the region in its re-set and
recovery.
33 Dunedin
i-SITE Visitor Centre
a) The
i-SITE Visitor Centre remained open remotely throughout Level 3 and 4 assisting
visitors and locals who were forced to cancel travel and holiday plans. Staff
were available to handle phone calls, answer emails and process bookings as
required. During Level 3 inquiries were about future visits and travel with
people using their time to plan.
b) Staff
not required to cover i-SITE inquiries were re-deployed assisting the Welfare
Call Back team and one of the team with foreign language skills was transferred
to the Queenstown team to assist with helping their large numbers of foreign
nationals.
c) On
Monday 25 May the i-SITE re-opened its doors, starting on shorter trading
hours, while still answering inquiries remotely from 8.30am to 5pm daily. During
Level 2 the i-SITE have been operating two teams as a safety measure should
there be the need to isolate.
d) Several
initiatives have been put in place or are being investigated to best support
our operators.
i. Providing
the operators’, a six-month brochure payment holiday, while enabling them
to keep their brochures on display. This maximises the chances of uncommitted
visitors to the i-SITE seeing operators’ product on offer and making a
booking or decision to visit.
ii. To
assist operators with cashflow, working with Finance to set up a process to pay
operator’s commission on sales, fortnightly instead than monthly.
e) In
response to closed borders and the impact of COVID-19 on travel within New
Zealand, the i-SITE have signalled significant cost savings, including staff
savings and not filling a vacancy to offset the reduction in income for the
2020/21 financial year.
f) The
current focus will be to ensure our domestic visitors continue to receive a
quality experience, as we answer inquires and book ahead for internationals
planning to travel when the boarders open and be ready to step up to look after
the cruise market when it does return whatever form that may take.
NEXT STEPS
34 Feedback
on Enterprise Dunedin activity will be incorporated into future updates.
Signatories
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Author:
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Fraser Liggett - Economic Development Programme Manager
Malcolm Anderson - City Marketing Manager
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Authoriser:
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John Christie - Director Enterprise Dunedin
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Attachments
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Title
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Page
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⇩a
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Infometrics Quarterly
Economic Monitor - Dunedin City March 2020 Report
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59
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SUMMARY OF CONSIDERATIONS
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Fit with purpose
of Local Government
This report promotes the economic
well-being of communities in the present and for the future.
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Fit with strategic
framework
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Contributes
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Detracts
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Not applicable
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Social Wellbeing Strategy
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☐
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☐
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☒
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Economic Development Strategy
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☒
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☐
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☐
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Environment Strategy
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☐
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☐
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☒
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Arts and Culture Strategy
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☒
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☐
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☐
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3 Waters Strategy
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☐
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☐
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☒
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Spatial Plan
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☐
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☐
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☒
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Integrated Transport Strategy
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☐
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☐
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☒
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Parks and Recreation Strategy
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☐
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☐
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☒
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Other strategic projects/policies/plans
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☒
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☐
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☐
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Enterprise Dunedin is responsible for the delivery of the
2013-2023 Economic Development Strategy.
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Māori Impact
Statement
There are no known impacts for tangata whenua.
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Sustainability
There are no known impacts for sustainability.
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LTP/Annual Plan /
Financial Strategy /Infrastructure Strategy
Enterprise Dunedin activities and the 2013-2023 Economic
Development Strategy are included in the 2018-28 Long Term Plan.
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Financial
considerations
There are no financial considerations.
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Significance
This decision is considered low significance under the
Significance Engagement Policy.
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Engagement –
external
As an update report, no external engagement has been
undertaken.
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Engagement -
internal
As an update report, no internal engagement has been
undertaken.
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Risks: Legal /
Health and Safety etc.
There are no identified risks.
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Conflict of
Interest
There are no known conflicts of interest.
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Community Boards
There are no known implications for Community Boards.
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