Gondola, public-private health care and a special economic zone on Central Lakes hit list

Friday, 21 February 2025

Queenstown supporters are uniting behind an Otago Central Lakes proposal for a Regional Deal with central government. Pictured (from left to right) Southland MP Joseph Mooney, economist Benje Patterson, Queenstown Chamber of Commerce chair Angela Spackman and Queenstown Lakes District Mayor Glyn Lewers.

An ambitious infrastructure plan will enable the “economic powerhouse” of the Queenstown Lakes and Central Otago districts to thrive and benefit all of New Zealand, local leaders say.

The councils representing both regions and the Otago Regional Council have developed a draft proposal for central government under the Regional Deals framework.

It included plans for a public mass-transit gondola in Queenstown, private-public health services, a special economic zone and a visitor levy.

Queenstown Lakes Mayor Glyn Lewers told Queenstown Chamber of Commerce members it was a huge opportunity to change the trajectory of where the area — an “economic powerhouse” — was heading.

“We could continue down the path of getting by, or we can put a mark in the sand, have a mature relationship with government and work to drive economic growth and a better quality of life for everyone in these two districts,” he said.

Lewers said the “battle list” included a pitch for a special economic zone, where changes to visas and tax deductions would make it easier to leverage the interest of foreign visitors and global companies to invest.

“It is extremely embarrassing when high-net worth people want to invest here and there’s not [an] actual pathway to do it.”

Many became swamped with bureaucracy at the Overseas Investment Office and gave up, he said.

Woosh is a gondola-like transport mode which is being considered as a possible public transport solution for Queenstown.

“The window is wide and huge, we just haven’t taken it … and it benefits New Zealand.”

A key to transforming the transport system was allowing the private sector to invest in public mass transit systems, such as a Queenstown gondola.

However, legislation needed to change to enable such a system to utilise government public transport subsidies.

“This is a pretty exciting one and we could get it off the ground pretty quick,” Lewers said.

More electricity infrastructure is needed between Central Otago and Queenstown. (File photo)

More electricity infrastructure was needed, including a change in regulation to include the spur line between Central Otago and Queenstown as part of the national grid.

A scheme to assist with rooftop solar and battery installation would benefit the entire country, he said.

There was “extreme interest” from overseas investors and operators to be involved in private investment in public health facilities in the area, including providers of cancer treatments not available in New Zealand.

The draft proposal suggests different ways to achieve affordable housing, such as the Tewa Banks development, under way in Arrowtown.

“Medical tourism will be a thing, which will be able to add significant growth opportunities into New Zealand.”

The proposal included the controversial visitor levy, which the Queenstown Lakes District Council had previously lobbied for.

So far there had been a positive response from two of the three coalition Government partners on the visitor levy, Lewers said.

Queenstown, Wānaka and Cromwell form a golden triangle of opportunity, economist Benje Patterson says. (File photo)

The draft plan sought a new Special Housing Act to enable councils to negotiate with developers for upfront contributions and contribute more to community housing providers.

Other possibilities for “capturing value” included incentives for developers to build on land where services were already in place, ensuring the accommodation supplement kept up with growth, and enabling more data from short term lets.

With a large scale gold mine at Tarras included in the Government’s fast track legislation, the councils also wanted to access mining royalties.

“If it does happen … we need some of that money to upgrade transport systems,” Lewers said.

Economist Benje Patterson said, Queenstown, Wānaka and Cromwell were a golden triangle of opportunity that could provide the nationwide growth the Government wanted.

Within 15 years, if current trends continued, the Otago Central Lakes area would have a bigger population than Dunedin, he said.

New Zealand was in a worse recession than the global financial crisis and last year Otago was one of only two provinces that showed growth in GDP, at 0.9%.

That was primarily driven by Queenstown Lakes at 3.2%, alongside Central Otago at 0.2%.

While the region’s GDP was currently $6.1 billion per annum, it was largely fuelled by low productivity growth, he said.

That could change with government partnership accelerating the region’s GDP contribution from an anticipated $11 billion in 10 years, to $15 billion.

With one-third of international travellers passing through the area, the region would act as a shopfront for all New Zealand products and investment opportunities.

Partnering with the region would also benefit the Government as it was an opportunity to test new regional models in a less risk-averse area.

“The Government is going for growth, and it needs optimistic go-forward places like Queenstown,” Patterson said.

Lewers said he was determined to be the first area to strike a regional deal with the Government and called on the people of the area to show unified support.

The three councils would consider the proposal next week. If it was supported, it would be submitted to the Department of Internal Affairs by February 28.

“We’ve got a nut ready to crack. All we’ve got to collectively do is reach out and crack it together.”