Yet local businesses face challenges
Auckland’s central business district (CBD) has emerged as an economic powerhouse, surpassing New Zealand's overall economic growth for two consecutive years, according to the latest Infometrics Economic Profile.
The report, released by the city council, indicated that the CBD’s economic growth soared to 9.2%, reaching a valuation of $30.4 billion up to March 2023.
The surge was supported by a 7.3% annual increase in employment, in stark contrast to the national average of 2.5%, positioning the CBD as the country’s largest employment hub with 157,500 jobs, RNZ reported.
Struggling to attract foot traffic
However, the bustling economic figures mask the underlying struggles faced by businesses and retailers, particularly along Queen Street. Business owners and shoppers alike voiced concerns over the need to revitalise the CBD and attract more people back to the area.
Roger Marbeck, owner of Marbecks Records, highlighted the ongoing hardships for small businesses, citing a lack of clients and the presence of empty storefronts as persistent issues.
“I think the bottom-end retail, the ‘little league’ dealers, are still struggling,” Marbeck said. “You’ll find empty stores around the place, vacant stores that have never been filled, so it’s very hard for them.”
He noted that despite various efforts, the population in the city centre has not yet returned to the levels seen before the COVID-19 pandemic.
“I always remember many years ago, in the peak times, I think we had about 170,000 workers in the city, which is very high,” Marbeck said. “We're probably about three-quarters of what we were pre-COVID, so we’re not quite up to where we were before.”
The sentiment is echoed by residents and visitors who avoid the CBD due to traffic congestion, construction, and a perceived decline in the area's appeal.
Calls for improvement and renewal
Despite its economic successes, with Auckland’s CBD growth rate significantly surpassing the national average, which was only 2.8% during the same period, Gary Blick, Auckland Council's chief economist, said there’s room for further growth and recovery.
“History count data has made a good recovery, but it’s still not quite at pre-pandemic levels,” Blick said. “I think there has been some recovery, but it is still not quite back to where it was.”
He said that overall, the city centre is moving in the right direction.
“The city centre is the primary commercial centre of the New Zealand economy, so it’s good news for the whole country that growth in this highly productive location has been bouncing back after the challenges of the pandemic and its after-effects,” Blick told RNZ.
Efforts are underway, with urban renewal projects aimed at enhancing the city centre’s livability and attractiveness. Jenny Larking, head of city centre programs, outlines initiatives focused on infrastructure, beautification, and cultural integration to ensure the CBD's continued prosperity.
“We’re making sure surrounding streets and spaces will be ready, underground infrastructure will have new capacity and greater resilience, businesses and residents will have a beautiful new backyard, and the area will be reflective of Tāmaki Makaurau with expressions of te ao Māori and references to the area’s history throughout our landscaping and design,” Larking said.
Hope amid hardship
Viv Beck from Heart of the City said that despite the positive GDP news, many businesses continue to face significant challenges.
“The thing to remember about the GDP is that the accommodation, food, retail, arts and recreational services represent a small percentage of the overall economic growth,” Beck said. “They’re the ones that were badly hit by COVID and many of them are still finding that difficult because they are reliant on foot traffic.
“It’s been largely the professional service type organisations that have continued to flourish and that's continued as we've got things back open again.”
She highlighted the area’s resilience, noting that completing projects such as the city rail link would provide hope for ongoing recovery.
“I think we've still got a challenge particularly around that midtown area where there's a lot of construction, so when that is done people will definitely find it easier to get around,” Beck told RNZ.
“We need to do everything that we can to just keep people coming back.”
Click here to read the RNZ report.
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