Queenstown Lakes District continues to flourish

Before COVID-19, the Queenstown Lakes District was experiencing the fastest rate of resident and visitor growth in Aotearoa New Zealand. More than 2,000 people were relocating to the district annually, growing from 15,000 residents 30 years ago to our current population of 42,000.

The local economy was strong — GDP growth was more than double the national average — with low unemployment. But such a boom came with its growing pains. Investment in infrastructure struggled to keep pace with the rate of growth, resulting in some challenges, including housing affordability and congestion.

The pandemic and closed borders added an unexpected twist to these challenges, especially impacting the district’s celebrated tourism and hospitality sectors. It also provided opportunities to refocus.

Interestingly, the prediction when COVID-19 arrived in 2020 was that it was going to hit construction and house prices. That hasn’t played out. In fact, it’s the opposite, pushing people into reassessing their lives and where they want to live. People have had the chance to work remotely, and if they can do that, then they start ask themselves, where do I want to live?

Queenstown and Wānaka still top that list for a lot of people.

The Queenstown Lakes Spatial Plan

The assumption that Queenstown Lakes will remain an attractive place to live, work and visit underpins the Queenstown Lakes Spatial Plan. The Grow Well Whaiora Partnership between QLDC, Kāi Tahu and the Government has developed this plan.

Whaiora translates to ‘in the pursuit of wellness’. The plan is a long-term framework for how and where the district can grow best to ensure our social, environmental and economic prosperity. It will support good access to facilities, jobs and public transport.

We recognise development will happen primarily around the existing urban areas of Queenstown and Wānaka. This will help preserve areas of outstanding natural beauty highly valued by the local community, Kāi Tahu and visitors. Growth could also happen around the smaller towns of Hāwea, Luggate and Kingston, which can potentially offer a wider range of house price points than Wānaka and Queenstown.

Planning a sustainable future

The Spatial Plan acknowledges that one of the most pressing issues facing Queenstown Lakes is the lack of affordable housing. Along with other proposed planning tools, such as a Housing Strategy and Inclusionary Zoning, it aims to improve housing choice and quality.

Two further priorities for the Grow Well Whaiora Partnership are the creation of a Destination Management Plan and a Diversification Plan for the district.

It’s no secret that the number of tourists before COVID-19 was putting pressure on the environment and the community. Locals have sent a clear message that when visitors return, it must be sustainable and create value in a way that ultimately makes our home a better place over time.

Hence destination management planning, based on achieving regenerative tourism by 2030 — led by Destination Queenstown, Lake Wānaka Tourism and QLDC. The aim is to build a collaborative tourism system that aligns with community values and benefits people and the natural environment.

This work is about making our district a great place for locals, guests and our environment. It aims to do the right thing for those who live here as well as visit.

Diversification for endurability

At the same time, there is widespread acknowledgement that Queenstown Lakes needs to reduce its reliance on tourism. In 2019, six out of ten workers in our district worked in tourism related jobs. We knew having this many eggs in one basket made the district vulnerable, but COVID-19 has been a stark reminder of why we need to create a more balanced economy.

So, we’re also developing a Diversification Plan which aims to reduce the district’s reliance on tourism. This is a form of economic insurance protecting us from future shocks. We’re looking at how we can support new initiatives and encourage businesses beyond hospitality and tourism.

Home for Healthier Business is one such initiative. The campaign is dedicated to attracting business leaders and talent here and promotes the advantages of our unique lifestyle and entrepreneurial community spirit. We want people to see our district as a place to do business, rather than just a nice place to come for a holiday or retire to and put your feet up.

The hope is diversification will boost the district’s economic resilience and boost incomes at the same time.

Queenstown Lakes is always going to be a place people are drawn. We will ride this wave out of the pandemic. Economic diversification will take time, and the silver lining is that we can be better in the long-term, with a more resilient economy, more affordable housing, and ultimately greater wellbeing for people who live here and come to visit.

Peter Harris

Economic Development Manager, Queenstown Lakes District Council