Spending by visitors in the growing Mangawhai retail sector is critical to its survival.
Spending in Mangawhai by people who are not permanent residents accounted for more than 40%, or $37 million, of the $91 million in sales made by Mangawhai stores in the March 2023 year.
According to research conducted as part of the Sustainable Mangawhai Project (see box) spending by those who are not permanent residents accounts for 42% of all sales made by Mangawhai stores, supporting a level and diversity of retailing and retail jobs that otherwise would not have been sustained by a population of approximately 7,000.
The Sustainable Mangawhai Project is being undertaken under the auspices of local resident and ratepayer group, Mangawhai Matters Society Inc. In this study visitors are defined as those who are not full-time permanent residents of Mangawhai.
One small part of the long-term study is to examine the economic factors impacting Mangawhai, and therefore how any change to the harbour and distal spit might impact the community at large.
The current research on retail spending has concluded that without the $37m visitors spent in the area in the year ending March 2023, it is unlikely that the new Bunnings and New World stores would have located here. Nor would locals have the choice of cafes, eateries, and others which they enjoy.
This is evidenced by spending patterns captured by the company MarketView and sourced from debit and credit card transactions over five years ending in March 2023. That period had considerable volatility as the result of two years of Covid disruption and unusually poor weather due to an extended La Nina weather pattern through 2022 and in the first half of 2023.
Key Results
Some key results and observation resulting from the MarketView information are:
· Total retail sales in the March 2023 year were $91 million, a spectacular 65% ahead of 2019-year sales of $55 million.
· Even though visitor spending accounted for $37 million in 2023, visitor spending grew less than resident spending.
· Spending by the local community grew more than 90% on the back of a more than 32% population growth over the five years.
· The importance of visitor spending is seen by the seasonal nature of sales, with the summer months accounting for 30% of the annual total.
· Visitor spending was particularly important in hospitality (59% of sales over 5 years) and in “Other Retail” (50%), the latter covering gifts shops, pharmacies and sports equipment.
· Over the 5 years to March 2023 visitors made 45% of retail purchases in Mangawhai. However, the annual share fell from 50% in 2019 to 42% in 2023. This is not only consistent with rapid population growth, but also confirms a large increase in spending per resident household.
Retailing Major Employer
Retailing is the major employer in Mangawhai, accounting for 225 jobs in February 2022 or 20% of total local employment.
The numbers doubled over five years, even before the arrival of Bunnings and New World, which will have jointly added a another 60 or so jobs.
Construction employment also doubled in the period to 180 jobs. Hospitality accounted for 13% of jobs, although the sector was hit hard by Covid and poor weather after having been the main employer through to February 2020.
One Conclusion
The study concludes as follows:
“Because of Mangawhai’s retailers and service businesses rely on visitor spending to remain viable, any reduction in the aesthetic and recreational opportunities the harbour and coast provides is also a threat to local businesses and residents. Deterioration in the quality of the harbour or degradation of the spit protecting it would pose a serious threat to the wellbeing of the local community.
The risk of any decline, or loss of momentum, in demand from visitors may be offset somewhat ---and in the long term---by residential expansion and the conversion of holiday homes to permanent residences. However, the conditions that might undermine Mangawhai’s appeal as a holiday destination, including the loss of recreational and aesthetic values or degradation of the coastline or harbour, are also likely to undermine its appeal as a destination for permanent residents.”
Protecting our Environment, Sustaining our Community
The Sustainable Mangawhai Project aims to assess the physical risks to the integrity of the harbour and distal spit and the consequences for the environment and community of any damage to them. The objective is to provide a comprehensive information base so that the agencies responsible can cooperate in the preparation and implementation of harbour management guidelines.
The harbour and its protective spit support biodiversity, recreation, economic activity, and cultural, community, and personal well-being. When considering how we might best manage the harbour, all the services it provides need to be considered.
A series of reports will cover both the threats to the physical environment and the implications of any deterioration to the community.
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