The Taupō economy is showing plenty of resilience in the face of economic headwinds. A strong recovery in tourism has bolstered the local economy, which Infometrics provisionally estimates to have grown by 3.8% over the year to June 2023. By comparison national GDP grew by 3.1%
The return of international tourists to New Zealand has helped tourism expenditure increase by more than 20% over the year to June 2023 and guest nights by more than 40%. Strong tourism expenditure has helped overall consumer spending increase by 10.8% over the year.
Economic growth in Taupo extends beyond the tourism sector with construction and professional services also growing strongly.
Taupō’s labour market is still strong with employment growing by an impressive 3.3% over the year to June 2023. More than a quarter of new jobs were in accommodation and food services. Despite strong employment growth, the number of Job seeker support recipients ticked up in the June 2023 quarter to 1,368, up from 1,302 in the previous quarter but down from a peak of 1,467 in the September 2021 quarter. The average unemployment rate in the year to June 2023 also ticked up slightly to 3% from a low of 2.7% in the year to December 2022.
The Taupo housing market has cooled considerably with the average house value dropping to $831,000 in the June 2023 quarter from a peak of $936,000 in the June 2022 quarter. House sales were down by 24% in the year to June 2023. The silver lining to falling house prices is that housing affordability has continued to improve. After reaching its least affordable position in March 2022, housing affordability is back to a level last seen in December 2020.
Falling house values have flowed through to the residential construction sector with the quarterly number of new residential consents in the June 2023 quarter (81) falling from a peak of 110 in the December 2022 quarter. However, the non-residential construction industry will be busy with the annual value of non-residential consents sitting at more than double the ten-year average.
Gross Domestic Product
GDP in the Taupo District was provisionally up 3.8% for the year to June 2023, compared to a year earlier. Growth was higher than in New Zealand (3.1%)
Provisional GDP was $2,974 million in Taupo District for the year to June 2023 (2022 prices).
Annual GDP growth in Taupo District peaked at 8.3% in the year to June 2021.
Electronic card consumer spending in Taupo District as measured by Marketview, increased by 10.8% over the year to June 2023, compared to a year earlier. This compares with an increase of 11.8% in New Zealand.
Total tourism expenditure in the Taupo District increased by 20.5% in the year to June 2023, compared to a year earlier. This compares with an increase of 31.7% in New Zealand.
Taupo District's total dairy payout for the 2021/2022 season is estimated to have been approximately $453 million.
The dairy payout for the 2022/2023 season is expected to be approximately $401 million, $52 million lower than last season, assuming that production levels from last season are maintained.
The total dairy payout for New Zealand is estimated to have been approximately $17,369 million in the 2021/2022 season, and is expected to be $2,010 million lower in the 2022/2023 season.
You can read the full report below including Employment (place of residence), Jobseeker Support recipients, Unemployment rate, Dairy payout, Guest nights, Health enrolments, residential & non-residential consents, house values & sales.