The economy of the Western Bay of Plenty District is underpinned by the agriculture and horticulture industries although it is closely intertwined with that of Tauranga District, which provides most of the sub region’s manufacturing and services. Our District is three times more reliant on horticulture and agriculture for its economic output than New Zealand as a whole. This dependence presents challenges for the District, as well as opportunities.

The Western Bay of Plenty District’s environment, soils and climate are not only attractive for agricultural production but they also act as a magnet for people wishing to enjoy a relaxed outdoor lifestyle, close to the amenities of Tauranga, yet still retaining a rural or small town atmosphere. Between 1996 and 2001, the District’s population growth rate was almost three times the national population growth rate, while the population of Tauranga District grew at more than five times the national average rate. It is not difficult to attract new residents to the Western Bay - the challenge lies in ensuring employment and business opportunities grow at a similar rate, the environment is not adversely affected, and the lifestyle values that attract people to the area are not compromised.

Smart Economy

In recent years the Western Bay of Plenty has been one of fastest growing regions in New Zealand in terms of economic activity, which has included a significant emphasis on land development and residential construction, growth in the retirement sector such as retirement villages, revival of the horticulture and agriculture sectors, and major growth and expansion of the Port of Tauranga.  Concerns arising in existing business activity and the projections are an emphasis on low wage and low skill activities.

The Smart Economy strategy and implementation plan aims to address these issues together with the need to provide additional business land and have sufficient infrastructure in place (eg roading, skilled workers) to cater for the region’s rapid growth.

The Smart Economy project was commissioned by the partnership of Tauranga City Council, Western Bay of Plenty District Council and Priority One, with significant funding provided by New Zealand Trade & Enterprise.  It has also involved Environment Bay of Plenty, key industry sectors, iwi businesses and business agencies (eg Chamber of Commerce).

There is a significant relationship between the Smart Economy strategy and SmartGrowth.  While SmartGrowth deals with growth management in a comprehensive manner, Smart Economy provides a focus on the sub-regional economy, which is an integral part of successful growth management for the Western Bay of Plenty sub-region.  The two strategies go hand in hand and there are several linkages, particularly in the strategies and actions relating to lifestyle and business environment themes.

Read more about the strategy and implementation.

Development Trends 2006

Construction activity in the Western Bay of Plenty subregion has declined over the last 12 months, reflecting a continued slow down in the housing market. However, this is occurring at a lower rate than observed in 2004/2005. Building consents issued for new dwellings have reduced across the subregion, with a 2% decline in Tauranga City and a 13% decline in the Western Bay of Plenty District since the previous year.

Of Tauranga City’s urban growth areas, building activity has increased in Bethlehem, Pyes Pa, and Welcome Bay, while decreased in Ohauiti and Papamoa, refer to Table 1. These results reveal a shift in the urban growth areas (UGA’s) from the trend observed in 2004/2005 where all UGA’s with the exception of Pyes Pa recorded a decline in activity. In Papamoa housing development has continued to fall due to a shortage of new lots for building. Generally, greenfield areas remain popular and building development is progressing at approximately twice the rate of development of that occurring within existing urban areas.

Despite a decline in dwelling consents issued in the Western Bay of Plenty District over the last 12 months, the trend towards housing development in urban growth areas in favour of rural areas continues. Katikati remains the most popular urban growth area, although figures are down from 2004/2005, while there has been an increased demand for residential development in Waihi Beach, refer to Table 2, with the number of dwelling consents issued now almost reaching Katikati levels. Omokoroa urban growth area has experienced a similar demand for new dwellings in comparison with the previous year, while building activity has decreased in Te Puke and other urban areas due to the lack of available land. Construction in rural areas has declined for all areas except Kaimai/Ohauiti Ngapeke.

Subdivision development in the subregion has decreased from 2004/2005 results. There has been a 2% decrease in the total number of additional lots created in the Western Bay of Plenty District although there have been some large subdivision developments in Katikati and Omokoroa with figures significantly higher than the previous year. There has been a decline in subdivision activity in all rural areas of the Western Bay of Plenty District. Within Tauranga City, development away from the coastal strip of Papamoa has continued from 2004/2005, with Welcome Bay and Bethlehem recording increased numbers of additional lots in 2005/2006.

In the Western Bay of Plenty District, the Waihi Beach urban growth area has the largest greenfield design capacity following rezoning of 17 hectares of land to residential in October 2005. Omokoroa urban growth area has the largest remaining capacity available, although uptake is expected to increase once the proposed wastewater scheme becomes operational. Capacity in Te Puke urban growth area has almost been reached, although Plan Change 25, currently under appeal, proposes to rezone further areas of residential land.

The Papamoa urban growth area has the largest greenfield design capacity in Tauranga City, and approximately 14.2% of this capacity remains. Welcome Bay has the most limited percentage of capacity remaining, and together with Pyes Pa, these two urban growth areas have the least theoretical remaining number of years of supply. Pyes Pa West is the most recently established urban growth area and while the development of Stage 1 is currently underway subdivision has not yet reached the final approval stage under Section 224 of the Resource Management Act 1991. Wairakei-Papamoa East Part 1 and Bethlehem West urban growth areas are in the process of being rezoned to provide for additional growth capacity.

The supply of suitable industrial and commercial land available remains limited, reflected by a 15% decrease in new industrial and commercial building development within the Western Bay of Plenty District. However, there was a slight increase in new industrial building development within Tauranga City during 2005/2006.

The 2006  Development Trends Report is available here.