Thirty years ago, everyone in Queenstown seemed to be wearing polar fleece. With little economic activity other than “adventure tourism”, there were few paid jobs. If residents were to strive to live permanently in the district, they had to start businesses or have independent resources. The airport’s intimate proximity to delivering customers to an adrenaline-pumping array of one-off tourism experiences was an integral part of most local livelihoods at the time.
But times have changed, and the need for an airport within 15 minutes – rather than one hour – is no longer essential to the Queenstown economy.
Population growth was seen as a significant maturation of his community. A range of new attractions enjoy repeated, frequent use by visitors who stay longer and return regularly, including golf, wineries, sports, events, cycling, concerts and the arts. And a myriad of professional service businesses provide stable income.
Covid highlighted this change. Its economic impact on Queenstown was less than expected, despite the pain it had on businesses in the tourism sector.
The May 2020 Infometrics economic assessment commissioned by QLDC at the start of Covid painted a bright future that largely did not materialize. That report expected an economic contraction of 23.3% and employment that would shrink by 7,900, with more than a quarter of all jobs lost. However, the decline in GDP for the year ended March 2021 was 11.2%, less than half of what was expected. Employment fell by 8.5%, three times less than expected. Although significant, these reversals have undone the growth of the previous two years alone.
The number of students enrolled at the district’s schools increased, as did the number of registered businesses. Rather than losing residents, net positive internal migration caused the district’s population to grow four times faster than the New Zealand average.
The wider community and economy endured the year despite the airport’s closures.
During Covid’s second year, Queenstown Lakes District’s GDP rose 8.3% towards the end of the third quarter, still behind where it was in FY2020, but not much. Many in the hospitality industry still suffer, but the local economy and communities have proven surprisingly resilient.
This Covid experience falsely proves the long-held belief that Queenstown Airport should stay within 15 minutes of the resort’s hotels forever. It shows Queenstown’s economy will not collapse if we move airline flights to a new airport near Tarras.
On the contrary, the Covid experience has reinforced Queenstown’s excessive exposure to tourism and thus the need to reduce risk by diversifying. Businesses that promote one-time visitor experiences are the most vulnerable. These include many old classics, such as bus rides to Milford, the Earnslawand jet boat rides.
Calls for an economic recovery called for by Covid were not anti-tourism. Visitors will always be welcome and essential to the region’s economy and identity. But it is time to reconsider the priorities. Maximizing tourism’s convenience of air travel must balance against the needs of higher paying knowledge enterprises.
To prioritize first, would hold Queenstown Airport in the center of Frankton. It feeds high volume, low cost, low value, short-term visits that accelerate the expansion of tourism and one-time visitor attractions.
Prioritizing the second requires the development of a metropolitan center with the character and substance that knowledge enterprises need to thrive.
This potential is readily achievable on Frankton Flats. Frankton sits in the middle of the Wakatipu’s transport network and already has a ring road that protects its center. It has a perimeter of urban facilities and offers a blank canvas in a beautiful geographical environment to plan one of the world’s most attractive high density, mixed use, urban campuses.
It is at least a decade before airline flights can be transferred to a new regional airport near Tarras. So there is no threat to current business and enough time to adjust in the medium term.
CIAL’s proposal gives Queenstown a real chance to shape its future. Will it remain stuck in its old mindset or explore a more prosperous and sustainable future for our tamariki and mokopuna?
– John Hilhorst is a member of FlightPlan2050, a group that promotes the urbanization of Frankton made possible by the relocation of airline flights.