Located on New Zealand’s North Island, Auckland is an impressive harbour city with a sprawling population. Though not the capital city, business in Auckland is thriving, making it a major contributor to the overall New Zealand economy. But why exactly is Auckland the economic and financial centre of this paradisiacal country? Read on to discover our five reasons why Auckland is widely considered to be New Zealand’s economic powerhouse.
1. Geographical Convenience
Although when collectively defined as ‘Auckland urban area’ the city occupies a staggering 607 square miles, the city proper is situated on a much smaller landmass. Located on the Auckland isthmus, the city’s central business district and main suburbs are bounded by the Waitematā and Manukau Harbours. This geographical placement has always been key to the city’s success, with its fertile land and rich waters making it a settlement site of choice for Māori and colonising Europeans.
Surrounding forests and gold resources helped the city to flourish – bolstered by the ease with which trade was possible thanks to the city’s impressive port. Consequently, Auckland’s economy has benefitted from a strong cargo trade – with over 30% of New Zealand’s container trade going through Auckland’s port in 2015. Similarly, the city’s natural surroundings and strong cultural heritage continue to entice the highest number of tourists in the country – ensuring that local businesses prosper from an evergreen supply of travellers eager to sample their wares.
2. Cultural Hotspot
In addition to enticing tourists, Auckland’s immersive culture and associated high quality of life makes it an attractive prospect to investing businesses. Boasting truly cosmopolitan demographics, Auckland’s population consists of sizeable communities from Europe, Asia, South America, and Australasia – all of which find expression through the city’s diverse cultural outlets and events.
From the Maritime Museum to the Auckland Art Gallery Toi o Tāmaki, there are plentiful cultural venues and sites detailing the history of the city’s demographically diverse population. Perhaps the most impressive of Auckland’s cultural accolades is its status as a UNESCO City of Music. With so many nationalities and cultures congregating in the city, a range of gigs and concerts on any given day in Auckland is guaranteed.
As mentioned, Auckland’s surrounding natural beauty is a major contributor to its popularity with tourists and inhabitants alike. In addition to numerous nearby islands such as Waiheke Island and Motuihe Island, there are many picturesque beaches and central parks to explore. This combination of natural escapism and urban cosmopolitanism is no doubt linked to the growth of business in Auckland.
3. Food and Beverage Manufacturing
While most will not associate Auckland with food and drink production, it is in fact something of a food and beverage manufacturing capital. Indeed, 50% of the top 100 NZ food and beverage firms are located in Auckland – collectively bringing in over $4 billion to the city’s GDP.
While the city’s prominence from a logistics perspective goes some way to explaining its investment in manufacturing, there are other factors behind its success in F&B. New Zealand is a major exporter of food and beverage; in fact, F&B accounts for 46% of all goods and services exports from the country. Auckland’s surrounding farms and its ability to ship products at scale make it a natural F&B hub. Furthermore, the south of Auckland has plenty of industrial land available for large food manufacturing plants – with direct access to the excellent transportation infrastructure and export facilities the city provides.
The city also boasts three of the country’s major universities globally renowned for research in food safety and sustainability in farming, as well as Plant and Food Research which specialises in optimising food production sustainability and farming efficacy.
4. The Hollywood of New Zealand
Another lesser-known fact about Auckland is that it plays a prominent role in the New Zealand film industry. In fact, the city generates $2.4 billion from its film production and affiliated businesses – making up 74% of the national film industry revenue. The city was heavily involved in the production of the billion-dollar Lord of the Rings: The Rings of Power Amazon series, and continues to be the site of many film and television productions.
The city is also home to 40% of the country’s gaming businesses, with the sector earning over $320 million in 2020. Auckland hosts several growing game studios, including Grinding Gear Games, RocketWerkz, and Ninja Kiwi. The city’s fast internet, creative tech talent pool, and ease of doing business have been attributed to the sector’s growth in recent years.
5. A powerful CBD
Auckland’s CBD retains much of the country’s economic power – having held the title of centre for economic development for nearly 200 years. It is also the biggest employment centre in the country, with around 65,000 jobs existing in a location spanning just 455 hectares. Indeed, the centre generated $17.5 billion in 2018 – accounting for over seven percent of the county’s GDP.
With this legacy of investment, buying power, and development, Auckland’s CBD eclipses those of its rival cities, and remains at the forefront of business in Auckland and the wider New Zealand economy.
Now that you have a firm grasp of Auckland’s economic prowess, it’s time to book your serviced apartment in Auckland or view our complete portfolio of New Zealand serviced apartments to begin your business trip with SilverDoor.
