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Opportunity Roars In Auckland

Dec 16, 2013
2014 / January 2014

While it’s physically “on the other side of the world” from many countries, Auckland, New Zealand, is a major player on the global business stage. And as technology shrinks the world, Auckland grows closer and more enticing.

What’s not to like? Auckland is closer to Asia than North America and Europe are, and Australia is three hours away. The country’s largest and fastest-growing city, Auckland occupies an isthmus between the Tasman Sea and the Pacific Ocean, so its 1.5 million residents are never far from their beloved waterfront. Waitemata Harbour, which opens onto the island-studded Hauraki Gulf, is always alive with boats, giving rise to the city’s sobriquet, “City of Sails.” In 2000 and 2003, the America’s Cup races were held here, and the harbor continues to grow as a center of activity day and night.

From the Central Business District, it is minutes to outstanding museums and galleries, idyllic beaches, wine trails, snorkeling, surfing, sailing and other sea and land adventures. Award-winning restaurants and venues where world-famous artists perform surround the CBD.

“Put simply, Auckland is one of the easiest and nicest places in the world to live and work,” says Paul Cameron, CEO of Auckland-based Booktrack, creator of technology that lets anyone add soundtracks to e-books or other digital text media. “Auckland is a beautiful harbor city, not large by global measures, and safe for families and workers alike. It has limitless activities right on the doorstep and offers everything much larger cities offer — and more — but without the crowds, crime and corruption.

“From a business perspective, Auckland has the advantage of being close to the time zones of California and Asia. Where else in the world can you go for a swim at the beach at lunchtime and then jump onto a conference call with Silicon Valley or China — a regular occurrence for my Booktrack team.”

Rangitoto Island and the Hauraki Gulf © Solnechnaja | Dreamstime.com

Rangitoto Island and the Hauraki Gulf © Solnechnaja | Dreamstime.com

Ranked as the third most livable city in the world by the 2012 Mercer Quality of Living survey, Auckland is blessed with a mild year-round climate and top-notch educational and health care systems. These factors draw skilled cosmopolitan young professionals, creating an atmosphere that encourages creativity and entrepreneurship. As a result, it boasts one of the world’s most multicultural populations — more than 180 ethnic groups — and the free trade agreement with China sparked more growth from China and Southeast Asia. Auckland’s shops and restaurants offer an international mélange, coupled with New Zealand’s own Maori influence and fresh seafood, meats, produce and fine wines.

The World Bank ranks New Zealand the third-easiest country in the world (behind Singapore and Hong Kong) in which to run a business and the easiest place for startups. It is first in protecting investors, business integrity and lack of corruption. New Zealand’s high ratings are largely because of Auckland, home to nearly one-third of the country’s population. The city produces more than 35 percent of New Zealand’s gross domestic product and handles 60 percent of its exports and 30 percent of its imports.

“Auckland has a great startup business culture,” says Cameron. “Small businesses are the backbone of the economy, so there is great support for new ventures, especially export-focused businesses. The combination of available talent, government support and research and development grants has enabled Booktrack to take on the world from the ‘other side of the world.’ ”

Auckland has a built-in “easy button,” starting with a simple two-tiered government — central, which passes legislation, and local government, which regulates business through one city council. Both levels are business-friendly. Companies can be 100 percent foreign-owned, and there are no capital inflow/outflow restrictions or capital gains taxes. Compared to other cities worldwide, Auckland has low commercial rents and competitive wage rates.

Not surprisingly, more than half of New Zealand’s top companies — and about 600 foreign businesses — have offices in Auckland. Specialties range from business and financial services to wholesale and retail trading to manufacturing and communication. High-tech companies play a key role in the country’s thriving information and communication technology industry, which is third behind dairy and tourism. New Zealand has long been a leader in technology for the farming, mining and construction industries as well as health-related purposes such as management of sleep apnea, incubators and ophthalmology.

“What’s exciting for Auckland is that several councils merged, so it is now the largest territorial [local] authority in the Southern Hemisphere,” says Brett O’Riley, CEO, Auckland Tourism, Events and Economic Development. “The City Council is taking a strategic view of the city and has created a 30-year plan. It also has a 20-year economic development strategy, with the goal of positioning Auckland as an innovation hub for the Asia Pacific region.

“We’re now focused on technology related to mobile devices and wireless power,” he adds. “Our government is committed to funding broadband, which means we’re as connected as anywhere else in the world. We’re also using digital technology to lift the achievement standards in our schools and integrating a young entrepreneur program to encourage students and give them opportunities.”

About 70 percent of the immigrants to New Zealand settle in Auckland, creating an ample and flexible labor market. Immigration New Zealand tries to attract skilled workers with a high level of education, work experience and English language skills. As a result, more than a third of working adults hold bachelor’s degrees or higher. Tertiary education is encouraged, and nearly half of the 140,000 university students in Auckland are international. Companies and entrepreneurs with investment capital are fast-tracked, with business migration visas making it easy to buy existing companies or create new ones.

One of the strongest industries in Auckland is hospitality. The most popular destination in the country, the city tallies 2.8 million international guest nights and 3.5 million domestic guest nights annually. Chalk it up to the city’s bountiful and varied offerings and lodging ranging from bed-and-breakfasts to global chain hotels.

“New Zealand and Auckland have had a number of awards recently, and we are delighted,” says O’Riley. “We feel we’ve only just begun, so it’s nice to get early recognition.”

Things to do in Auckland

Wherever you are in Auckland, you can’t miss seeing the Sky Tower. At 1,076 feet, it is the tallest edifice in the Southern Hemisphere. Take an elevator to the top for a drink in the rotating restaurant and enjoy the 50-mile view.

The contents of the Auckland War Memorial Museum are much broader in scope than the name implies. This is the place to learn about New Zealand’s history, geography and Maori culture. Continue your quest of history and art at the Auckland Art Gallery, which houses more than 15,000 works, many dating back to colonial times.

New Zealand is home to some strange critters, and you can experience them firsthand at the zoo, New Zealand’s largest collection of native and exotic animals. Beaches? Take your pick of calm, white-sand beaches on the Pacific and wild, black-sand stretches on the Tasman Coast.

So many islands, so little time! Go to Rangitoto to climb the 600-year-old volcanic cone, explore the lava caves and check out the shipwrecks. Visit Tiritiri Matangi to walk among endangered species and marvel at an incredible restoration project. Once stripped of native flora by farming, the island has been replanted, pests have been removed and indigenous species such as the rare, flightless takahē and the prehistoric tuatara have been repatriated.

Auckland Ferry Terminal © Lucidwaters | Dreamstime.com

Auckland Ferry Terminal © Lucidwaters | Dreamstime.com

Waiheke Island is a 35-minute ferry ride from Auckland. Book a tour by scooter, car or small van so you can visit some of the 100 beaches, browse artists’ studios and galleries, sample wines at some of the 30 vineyards, and pig out on incredible pizzas at Stefano’s Italian family restaurant. The ferry ride also gives you a chance to enjoy the Hauraki Gulf and see the City of Sails from the water.

Auckland: Just the Facts

Time Zone: GMT +13
Phone Code: Country code: 64 City code: 9
Currency: New Zealand dollar
Entry/Exit Requirements: U.S. citizens must have a passport and return or ongoing plane ticket. Visas are not required for tourist stays of up to 90 days. Customs regulations are strict; bringing in forbidden items can result in a $100,000 fine and five years in jail.
Official Language: English, Maori and New Zealand Sign Language
Key Industries: Exporting, information and communication technology, tourism, screen and digital content production, food and beverage, specialized manufacturing, life sciences (foods, human therapeutics and medical devices) and marine products

Auckland Info to Go

Serving 14 million passengers annually, Auckland Airport (AKL) is the gateway to New Zealand, with 70 percent of visitors entering or leaving here. The airport is about 40 minutes from the Central Business District. The Airbus Express costs NZD16 (about $13) and provides regular bus service to and from downtown. Shuttles are NZD33 ($27) and taxis are NZD75–90 ($61–73). Roads throughout the city are being expanded and upgraded, with a new tunnel cutting time from the airport to the city. The passenger rail system has undergone a $1.6 billion renovation, and islands and coastal communities are served by a good ferry system.

Checking in with Brett O’Riley

CEO, Auckland Tourism, Events and Economic Development

WHAT’S NEW ON AUCKLAND’S FAMOUS WATERFRONT?
The Viaduct area was transformed when we hosted the America’s Cup in 2000 and 2003. More recently, the historic buildings in the Britomart district have been repurposed as lively bars and restaurants and space for early-stage companies. The regeneration project at Wynyard Quarter, a former industrial site, includes an “innovation precinct” of office space designed to attract ICT and digital media firms, mixed-use apartments and townhouses, a 5-star hotel, pocket parks and a network of walkways. There is debate about the repurposing of a former tank farm in the Quarter — whether it should have an iconic structure like Sydney’s Opera House, or a university or open space.

WHAT CHANGES ARE TAKING PLACE IN THE HEART OF THE CITY?
There are plans for SKYCITY to start construction in 2014 on the New Zealand International Convention Centre, capable of hosting 3,500 delegates. To enhance this precinct, a block of Federal Street will be converted into a pedestrianized lane, with the City Council’s new headquarters on it, along with hotels, restaurants and shops.

WHAT’S THE STRONGEST EMERGING MARKET FOR AUCKLAND?
The free trade agreement with China has led to an influx of business interests from China and Southeast Asia. On a visit to San Francisco for the 2013 America’s Cup, we outlined the market springboard opportunity of Auckland with some of the technology firms in Silicon Valley. They could set up subsidiaries in Auckland for the emerging Chinese market so that a 35-minute commute from San Mateo to Palo Alto is replaced by a 35-minute commute from Waiheke Island to Auckland.

WE HEAR ABOUT WELLINGTON AND THE MOVIE INDUSTRY. WHAT’S AUCKLAND’S ROLE IN THIS BUSINESS?
Sir Peter Jackson’s WETA Productions in Wellington has been very successful in the motion picture industry, but Auckland actually produces more than 70 percent of the country’s income from screen and digital production, including gaming, digital media and software development. Auckland is very strong in television — especially international commercials — because it has a variety of amazing locations for filming, ranging from natural settings to cityscapes, and our seasons are the reverse of those in the Northern Hemisphere.

Where to Stay in Auckland

Delamore Lodge Inspired by the Mediterranean and Maori art, Delamore Lodge on Waiheke Island (35 minutes from Auckland) has luxury suites overlooking Owhanake Bay. 83 Delamore Drive, Waiheke Island $$$–$$$$

Mollies Luxury Boutique Hotel Located in a tony suburb minutes from the Central Business District, Mollies has seven suites with fireplaces, marble baths and balconies or terraces. 6 Tweed St., St. Mary’s Bay $$$–$$$$

SKYCITY Grand Hotel New Zealand’s leading business hotel (2013 World Travel Awards) is located in the heart of the Central Business District near major attractions and eateries. 90 Federal St. $$$–$$$$

Restaurants in Auckland

The French Kitchen Adjacent to their award-winning French Café, owners/chefs Creghan and Simon Wright prepare fine New Zealand dishes in their new, intimate kitchen setting. 210 Symonds St. $$$

The Grove Restaurant An encyclopedic wine collection complements classic dishes prepared in the French style at The Grove, a highly acclaimed restaurant since 2004. St. Patricks Square, Wyndham Street $$$$

The Sugar Club Chef Peter Gordon’s new restaurant on the Sky Tower’s 53rd floor is known for its fusion cuisine and a décor that evokes 1930s Art Deco Italy. Corner of Federal and Victoria streets $$$$

Read more about Auckland’s Sky Tower.

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