New Zealand
by Lisa Struneski
U.S. Commercial
Service, New Zealand
Originally
appearing in ExportAmerica
- with
additional linkages
supplier by Paul E. Litton
- Ypsilanti
US Export Assistance
Center
New Zealand: Facts
and Figures
Total area: 268,680
square km (roughly the
size of Colorado)
Population: 3.9
million
GDP: $64 billion (2003
forecast)
GDP growth: 2.4% (2003
forecast)
Inflation: 1.7% (2003
forecast)
GDP by sector:
services 69%, industry
23%, agriculture 8%
Main industries: food
processing, wood and
paper products,
textiles, machinery,
transportation
equipment, banking and
insurance, tourism,
mining
Currency: New Zealand
dollar
Exports: dairy
products, meat, wood
and wood products,
fish, machinery
Imports: machinery and
equipment, vehicles,
aircraft, petroleum,
electronics, textiles,
plastics
Languages: English,
Maori
Sources: CIA, EIU. |
New Zealand has recently
become known more for hobbits
and other creatures from The
Lord of the Rings, but the
reality is that New Zealand is
a two-island nation of about 4
million citizens, with a
unique international flavor
and a penchant for recognizing
commercial opportunities. As a
small country, international
trade is essential to New
Zealand, and the government
makes doing business
"down under" very
easy, with low or no import
duties. New Zealand plans to
eliminate most tariffs by
2005, with minimal tariffs
remaining on certain products.
New Zealand represents an
ideal destination for various
new-to-export companies. Like
Australia, New Zealand is a
strong and stable democracy,
and business practices are
similar to those in the United
States. The United States is
New Zealand's third-largest
export destination and
third-largest source of
imports, behind Australia and
the European Union. In 2001
New Zealand's total trade with
the United States accounted
for 15.4 percent of total
trade. New Zealand, in turn,
ranks 40th as a destination
for U.S. exports. U.S. imports
are faring better in the
marketplace with an increase
in the U.S.-New Zealand dollar
exchange rate to $1.80 after a
six-year decline that saw a
low of $2.56.
Inflation rose last year by 1
percent to 2.8 percent, which
caused the Reserve Bank to
raise interest rates to 5.75
percent. This, however, has
not slowed economic growth.
New Zealand’s economy is
very robust, and the
previously low exchange rate
aided the country’s top
export group, agricultural
products.
The building industry is also
affected by interest rates.
The country and Auckland in
particular have experienced a
steady increase in new housing
construction as well as an
increase in property prices.
This is due to cyclical trends
as well as an increase in net
migration.
Auckland, which has
approximately 1.1 million
people, is the commercial
center of New Zealand. The
capital, Wellington, has a
population of 414,000. The
other major center is
Canterbury in the South Island
with a population of 468,000.
The population of New Zealand
is predicted to grow to 4.81
million people by 2051, with
half older than 45 and one in
four over 65 years old. The
current unemployment rate
remains near its historic low
of 4.9 percent.
 New
Zealand offers opportunities
in numerous sectors. The U.S.
Commercial Service has focused
on the following areas:
- Information and
communications technology
- Franchising
- Tourism
- Environmental
technologies.
Information and
Communications Technology
New Zealand has a very
competitive information and
communications technology
market, with a range of
equipment and software
companies supplying both the
domestic market and niche
markets overseas. New
Zealanders are enthusiastic
early adopters of new
technologies. In 2002, 90
percent of New Zealand’s
businesses regularly used
computers, while 40 percent
operated a Web site. New
Zealand receives many inquires
from United States information
and communications technology
firms and has a very high
success rate in facilitating
agent and distributor
relationships. To learn
more about the ICT market in
New Zealand, please visit the
ICT Team page: http://www.emich.edu/ict_usa/NEW_ZEALAND.htm.
Franchising
The latest Franchising
Association of New Zealand
survey of franchising shows
16-percent growth annually of
franchise start-ups in New
Zealand, with 768 new units
opening in the 12 months prior
to the survey. Overall
respondents reported an
impressive 20-percent increase
in comparison with figures
listed in last year’s
survey. There are an estimated
300 systems operating in New
Zealand, putting total revenue
at around $10 billion and the
number of people working in
the franchising sector at
about 70,000, based on revenue
and staffing averages.
Auckland is the franchising
capital, with 33 percent of
the franchise units in the
survey based there.
Christchurch has 13 percent
and Wellington 11 percent.
Tourism
Tourism in New Zealand has
been spurred by the massive
international publicity
generated by The Lord of
the Rings trilogy of
movies, which were all shot in
New Zealand, as well as the
worldwide interest in the
America's Cup (see below). New
Zealand has 15,134 kilometers
of picturesque coastline as an
added bonus when traveling to
world-class skiing, hiking,
sailing, extreme sports,
freshwater and saltwater
fishing, and other adventure
activities.
Tourism numbers continue to
increase and, along with them,
the demand for premium
accommodations. In 2002, 6.8
million visitors graced the
shores of New Zealand, and
this number is expected to
increase. This jump in tourism
will, in turn, increase the
need for high-quality hotels
and hospitality services.
Several of the new boutique
luxury hotels are U.S.-owned.
The America’s Cup
February 2003 marked the 31st
defense of the oldest prize in
yachting, the America's Cup.
The event drew eight
international syndicates to
earn the right to challenge
the defending champions, Team
New Zealand. To capitalize on
this international event, the
U.S. Commercial Service in New
Zealand hosted a U.S. marine
catalog event and fashion show
and luncheon. The participants
were well received by those
attending the event. The
fashion show resulted in
additional sales for
participating companies.
Despite the loss of the
America's Cup to the Swiss,
the international community
has had the opportunity to see
first-hand the numerous
benefits of this market. New
Zealand is emerging as an
industry leader in super yacht
design and construction. There
is quality workmanship in all
sectors available in New
Zealand at a fraction of the
cost of other locations.
Environmental
Technology
With the signing by New
Zealand of the Kyoto Protocol
in December 2002, the
environmental sector has moved
to the forefront of issues in
New Zealand. The Environment
2010 Strategy prepared by the
Ministry for the Environment
identified nine key
environmental areas on which
New Zealand must focus to
justify its claim as a
"clean green"
country. They are
biodiversity, ozone,
pests/weeds/diseases, climate
change, pollution/wastes and
hazardous substances, energy,
land, fisheries and water.
Inquiries from this sector
have been steadily increasing.
For more information about
doing business with New
Zealand, see the latest Country
Commercial Guide at http://www.buyusa.gov/newzealand/en/,
or e-mail auckland.office.box@mail.doc.gov.
So What Can We Do to
Help You?
Time and distance need not be
deterrents to doing business
in these friendly markets. The
U.S. Commercial Service in
Australia and New Zealand is
ready and willing to help
facilitate business
cultivation and transactions
in Australasia. When planning
a trip "down under,"
Commercial Service staff can
do the groundwork so that
meetings are more effective
through the Gold Key Service.
Failing a trip to Australasia,
basic market research can be
provided in 24 hours or less
through the Express Service,
free of charge. Meetings can
also take place via video
market briefs or by
videoconference. Other
programs that are offered are
available at www.buyusa.gov/australia
or www.buyusa.gov/newzealand.
In addition, under the new
regional Paradise program, the
Commercial Service staffs of
Australia and New Zealand have
teamed up with their
counterparts in Singapore to
ensure that one stop in the
region is suitable for the
three countries. These three
countries have many
similarities, such as
transparency in the
marketplace and government
procurement, widespread use of
the English language, and
legal and business practices
similar to those in the United
States. In short, these three
countries are excellent
options for an initial entry
for many small and
medium-sized companies into
the Asian region.
For additional information
about New Zealand, please see
our WebGuide.
Date Updated: March 27, 2007
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