$55 million per annum - benefits flow from international city partnerships, says Auckland City Council

Auckland's economy receives significant financial benefits from formal international partnerships such as sister cities, according to new economic analysis.

$55 million annually is added directly to Auckland's economy by the council's formal international partnerships, according to independent economic analysts Covec (www.covec.co.nz). Covec measured and reported on the nature and economic effectiveness of the relationships, focusing on dollars that would not come Auckland's way in the absence of council's eight international partners (Brisbane, Busan, Fukuoka, Guangzhou, Hamburg, Los Angeles, Shinagawa, Tomioka).

By far the standout beneficiary of dollars generated through the relationships was the education sector. There, $53 million was generated annually on average over the past five years, mainly through international fee-paying students who originate directly from partner cities.

"It is great to see that the education sector is still quietly generating a large income for Auckland, and that Auckland City Council's strategic relationships - established in many cases years ago - continue to bear fruit," said Group Manager Economic Development, Karen Lyons. "In times when the income from the education sector is slowing, arguably the international partnerships that we have are the glue that enable us to benefit. The students that come here because of our relationship with Guangzhou, for instance, may simply not come here otherwise."

The report also pointed out that:

Auckland's economy benefited by around $1.5 million in tourism dollars annually (on average) as a direct result of international partnerships. In many cases, this came from family members and friends visiting those studying in Auckland during the year.
Some money was saved in consulting fees through international relationships. For instance, staff members involved in transport applied knowledge gained from Brisbane to develop bus lanes in Auckland.
Auckland City Council's international partnerships range from sister cities and strategic alliances (such as Brisbane, Fukuoka and Guangzhou), where there is a wide variety of city-to-city interaction. The report into the nature and economic benefits of these relationships will help the Economic Development Group of Auckland City Council focus on 'best next steps' in leveraging more dollars.

"This is the second report of its kind we have commissioned" said Ms Lyons. "The first was six years ago. This second report was commissioned to help us focus our efforts in future on stronger economic outcomes in our eight international partnerships, and in any future strategic relationships we intend to forge. It shows us what's paying off; and where other potential lies. In future, we will be looking more and more to developing partnerships with cities where direct economic benefit is likely to result. Our new alliance with Hamburg offers a key opportunity for the biotech and creative industries. For instance, NZ Bio is going to the Bio-Europe conference in November this year. Auckland City Council is arranging companies and contacts for them to meet with through our Hamburg relationship. There's a further bonus, too. Hamburg's huge waterfront development, which is the biggest urban project in Europe, has already shed light on Auckland's proposed development on our waterfront."

In another recent example, five Brisbane companies are preparing to submit tenders on Auckland's Te Wero bridge design and construction, directly because of the international relations team's invitation.

Although the report measures direct economic benefits, it does not address cultural and social benefits, even though these are also significant.

Lynfield College Principal, Steve Bovaird believes that international relationships work especially well for the education sector.

"The value of these relationships are far more than just about the dollars for us. There will be many other positive benefits that the relationships that our students have established, particularly in Guangzhou and Shinagawa will have over the long-term."

"The relationships that we have developed with schools in these cities have been enabled by the city's Sister Cities programme. Developing relationships with schools, particularly in China, requires the protocol of political backing in the form of local government support."

"There is still enormous value in the partnerships focused on cultural, sporting and social exchange" said Ms Lyons. "As we develop into a multicultural city with strong immigration ties to Asia, relationships across cultures become profoundly important. The city's Lantern Festival, which is supported by Guangzhou in various respects, is an example that is not mentioned in any economic analysis. However, it is still a superb celebration and achieves cultural understanding and interest in Chinese immigrants. How can you measure this kind of goodwill?"

The international partnerships of Auckland City Council are managed by the international relations team. Their annual budget is around $400,000 (looking back over the past five years), which includes all hosting of visits by international cities to Auckland City Council (last year for example there were 33), staff expenditure and travel, marketing, printing, events, administration and all other operational expenditure.