Taupō’s economy is hitting choppy waters. Infometrics provisionally estimates that Taupō’s GDP declined by 0.4% over the year to June 2024, slightly sharper than the national decline of 0.2%pa.
The recovery of Taupō’s tourism sector has slowed as the return of international tourists is countered by the slowdown in the much larger domestic tourist market. The number of international guest nights increased 14% over the year to June 2024 while domestic guest nights were up by just 0.8%. Tourism expenditure increased by a very modest 0.5%, well below national price inflation of 3.3%. Total spending growth of 1.8%, which includes spending by both visitors and residents, was also well below inflation.
Despite the slowing recovery of tourism, the sector continues to generate employment opportunities and contribute to the local labour market's resilience. Employment growth in accommodation and food services has led to a 2.3% increase in the number of employed Taupō residents by June 2024. However, the pace of job creation is decelerating, with only a 0.6% increase in the June 2024 quarter. As a result, the unemployment rate has risen to 3.9% over the year to June 2024, up from a recent low of 2.7%. The number of individuals receiving Jobseeker Support has risen to 1,560 in the June 2024 quarter, compared to 1,368 in the same quarter of the previous year.
The NEET rate has also jumped to 13.8%, up from a recent low of 11.3%. On the positive side school attendance rates have been tracking upwards after reaching a low point in December 2022.
House sales continue their upward trajectory, up 15% over the year to June 2024, boosted by a 13% rise in new listings, although sales remain well below the 10-year average. House values have risen marginally for the second successive quarter, up 4.1%pa in the June 2024 quarter. With household income growth only just matching house value growth, housing affordability has remained stable. Residential rents were up a massive 14% over the year to June 2024, meaning that rent affordability has deteriorated and is at an elevated level. On the positive side the number of households in emergency housing continues to track downwards, from 70 households in the year to June 2023 to 12 in the year to June 2024.
Gross Domestic Product
In the year leading up to June 2024, GDP in Taupo District decreased by 0.4% compared to the previous year, a larger decline than that of New Zealand at -0.2%. The provisional GDP for Taupo District was $3,016 million for the year ending June 2024, based on 2023 prices. The highest annual GDP growth in Taupo District was recorded at 7.8% in the year ending June 2021.
Consumer Spending
Electronic card consumer spending in Taupo District as measured by Marketview, increased by 1.8% over the year to June 2024, compared to a year earlier. This compares with an increase of 1.9% in New Zealand.
Tourism Expenditure
Total tourism expenditure in Taupo District increased by 0.5% in the year to June 2024, compared to a year earlier. This compares with an increase of 1.8% in New Zealand. Total tourism expenditure was approximately $776 million in Taupo District during the year to June 2024, which was up from $772 million a year ago.
Guest Nights
Total guest nights in Taupo District increased by 3.2% in the year to June 2024, compared to a year earlier. This compares with an increase of 5.3% in New Zealand. Visitors stayed a total of 1,473,300 nights in Taupo District during the year to June 2024, which was up from 1,427,000 a year ago.
Employment
Employment for residents living in Taupo District was up 2.3% for the year to June 2024, compared to a year earlier. Growth was higher than in New Zealand (2.1%).
An average of 18,013 people living in Taupo District were employed in the year to June 2024. Annual employment growth for Taupo District residents peaked at 4% in the year to March 2018.
You can read the full report below including dairy payout, unemployment rate, residential & non-residential consents, house values & sales and vehicle registrations.
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