Recovery signs are optimistic
by Glenn Peat, General Manager Ignite Wanaka, Chamber of Commerce
It is very encouraging to see the business levels year to date, with visitor numbers remaining positive. While we are certainly not out to the woods yet, figures to date this year versus 12 months ago are a positive sign. It was pleasing to see the latest business confidence results for New Zealand. The results indicate that businesses across the country are feeling optimistic about the future, which is great news for the economy.
However, it is important to note that there are still some challenges facing businesses in our region. One of the biggest issues is the ongoing accommodation situation in the Queenstown Lakes area. This is a complex issue that has been building for some time, and it is having a significant impact on local businesses.
The lack of affordable housing in the area is making it difficult for businesses to attract and retain staff and is also driving up the cost of living for those who do manage to find accommodation. This is putting pressure on wages and is creating a challenging environment for both employers and employees. While there is no easy solution to the accommodation crisis, it is important that we continue to work together to find ways to address the issue. This may involve a range of strategies, such as increasing the supply of affordable housing, encouraging more investment in the region, and exploring innovative solutions to the problem.
The accommodation situation in the Queenstown Lakes region has been a concern for many years, with limited availability and high prices making it difficult for residents to find suitable housing. This problem has been compounded by the growth in tourism over the past 12 months and the demand for short-term rentals such as Airbnb. Many property owners have chosen to convert their homes into tourist accommodations, reducing the supply of long-term rentals and driving up prices.
This has had a significant impact on the local workforce, as many employees are unable to find affordable housing in the area. This has led to a high turnover rate in some businesses, as employees are forced to leave due to the cost of living. This not only affects the businesses themselves but also the wider community, as the loss of jobs and the turnover of employees can have a negative impact on the local economy. Being part of the Mahi Queenstown Lakes Workforce Strategy Steering Group, this issue is at the forefront of our discussions. The Steering group is comprised of representatives from both regional Chambers of Commerce and both RTOs, MSD, MBIE, RSLG along with local economic experts to formulate action plans to counter our workforce challenges including the accommodation concerns at present.
The Wanaka Business Chamber is committed to addressing this issue and has been working with local authorities and businesses to find solutions that will benefit both residents and businesses in the region and is working closely with local authorities and community organisations to achieve this goal.
With the right approach, we believe that we can build a stronger, more resilient economy for the future.
