Reserve Bank raises OCR to 3.0 percent

29th July 2010

Source: Reserve Bank of New Zealand

The Reserve Bank today increased the Official Cash Rate (OCR) by 25 basis points to 3.0 percent.

Reserve Bank Governor Alan Bollard said: “While the outlook for economic growth has softened somewhat, it is still appropriate to continue to reduce the extraordinary level of support implemented during the 2008/09 recession.

“The world economy continues its fragile recovery. Trading partner growth has turned out stronger than we predicted, however, future prospects for growth have deteriorated. While still at high levels, our commodity prices have moderated.

“In New Zealand, domestic demand is subdued. Households are cautious, with retail spending growing only modestly, housing turnover in decline and household credit growth weak. While this caution has been evident for some time, the recent slowing in net immigration will act to further dampen consumer spending. Business investment remains very low, with corporate lending continuing to be subdued.

“The New Zealand dollar has appreciated in recent weeks. This appreciation is inconsistent with the softening in New Zealand’s economic outlook and moderation in our export commodity prices.

“Overall, we continue to predict respectable near-term GDP growth, with manufacturing confidence remaining elevated and forestry exports continuing to expand. An eventual recovery in business investment will assist growth over the medium term.

“Annual CPI inflation has been near 2 percent for the past five quarters. As the economy grows, inflationary pressures are expected to pick up.

“Given this, some further removal of monetary policy stimulus is appropriate at this stage. Even after today’s move, the level of the OCR is still very supportive of economic activity. The pace and extent of further OCR increases is likely to be more moderate than was projected in the June Statement. Our policy assessment will be continually reviewed in light of economic and financial market developments.

“The coming increase in the rate of GST and other government-related price changes are likely to temporarily push annual CPI inflation above 3 percent. The Bank does not expect this price spike to have a lasting impact on inflation. However, the price and wage setting behaviour of firms and households will be monitored for evidence of any increase in inflation expectations.”

Mayor Tim first to put up his hand

28th July 2010

Tim Shadbolt was the first person in the Invercargill electorate to officially confirm he will seek election at the 2010 local body elections, electoral officer Graham Low said yesterday.

Nominations for the October 9 elections officially opened on Friday and close on August 20.

Mr Low said since Friday his office had given out about 50 nomination packs to people considering standing for either the city council, Bluff Community Board or Invercargill Licensing Trust.

Mr Shadbolt, the longest-serving current New Zealand mayor who is seeking a sixth term in Invercargill, and Stuart Collie, who is standing for a seat on the city council, were the only ones to so far officially declare themselves as candidates by filing the necessary paperwork.

"Tim was the first one in, he was here on Friday," Mr Low said.

Southland District Council and Environment Southland electoral officer Phil Culling said he had given out about 10 nomination packs but no-one had officially put their name forward for the elections at this stage.

Clutha District Council electoral officer Alan Dickson said just existing councillor Jeff McKenzie had so far officially declared his intention to stand in October.

Gore District Council electoral officer Susan Jones said Lee Kearon had been the first person to confirm she would be standing for a seat on its council.

Nominations received by 4.30pm yesterday at the Queenstown Lakes District Council included: Alexander Perkins as a candidate as ward councillor for Arrowtown, Joanne Dippie as a candidate as ward councillor for Wanaka and as a candidate for the Wanaka Community Board.

The Central Otago District Council electoral officer could not be contacted yesterday.

Bumper 09 season lets smaller farms make bigger profits

27th July 2010

Source: The Southland Times

Sheep and beef farmers in Southland had a bumper 2008-09 season even though their costs rose more than 25 per cent, new figures suggest.

The statistics, from client data for the year ending June 30, 2009, and collated by Invercargill accounting firm Malloch McClean, show farmers reported an average 44 per cent increase in net surplus per hectare compared with the previous year. Revenue was up about 28 per cent on the back of high global demand for protein.

The figures suggest an average Southland farm with 484ha, carried 4037 stock units at a rate of 11.33 per hectare, and had gross income of about $490,000 with working expenses of about $260,000 and reported a surplus of about $230,000 before debt servicing, tax, personal expenses, and capital expenditure costs.

Most of that surplus was reinvested on the farm during that period with money spent on repairs and maintenance costs, and capital expenditure increasing.

Partner Campbell Hay said the figures also showed a significant difference in profitability between smaller and larger stock unit farms.

Farms with low stock unit (su) levels (under 2500su) reported a higher surplus of $49.30 per unit compared with those with higher stock numbers (more than 10,000su), which averaged a surplus of $27.37 per su.

The ability to achieve a greater lambing percentage on smaller farms meant farmers had higher production per stock unit.

This was reflected in the overall gross income per stock unit being $109.43 for farms with less than 2500su compared with $78.37 for farms with more than 10,000su.

But larger farms could take advantage of economies of scale for costs with 17 per cent lower working expenses per stock unit – $60.13 for under 2500su compared with $51 for more than 10,000su.

Part of Slope Hill for sale

26th July 2010

Source: The Southland Times

Part of the Slope Hill Reserve at Lake Hayes will be sold after no objections to a Department of Conservation proposal to revoke its reserve status were lodged.

Conservation Minister Kate Wilkinson gave notice in June of her intention to revoke part of the reserve after a survey identified a building from a neighbouring property encroached on to the department's land.

The public was given a July 10 deadline to lodge submissions or objections.

The department's Dunedin-based community relations manager Ken Stewart yesterday said the fact no correspondence was lodged all but guaranteed the sale would proceed.

"The department will revoke the reserve, which under the Land Act, makes it Crown land," he said.

Land Information New Zealand would then make the decision on how the land could be sold, Mr Stewart said.

Reserve revocation was a common process throughout New Zealand.

"The crown has acquired reserve land over a long period of time, but it's not always in the right place, sometimes it's not required, and sometimes it's not suitable for its purpose, so it is then revoked."

There were about 10 reserve revocations in Otago per year, he said.

Agents bet on real estate recovery

23rd July 2010

Source: The Southland Times

A new player in real estate is to open home in Invercargill despite a downward cycle in house sales.

Queenstown-based hoamz will open its Invercargill branch next month having attracted some of the south's best-performing agents on board. Principal Stephen Hebbend, who is moving back to Invercargill from Queenstown, said the company might not have contemplated the move had it not been for bringing experienced agents into the fold. He admitted the move was bold, but market statistics could quickly change, he said.

The firm had brought experienced agents Carl Wilson, Anne Thomas, Ross Green and Sue Henderson under its umbrella, meaning it had not added to the pool of agents in the city. The company will open at Mr Green's former premises, Ross Green Real Estate, on August 2.

The move comes as Southland experiences a shift in the real estate market. Based on data compiled by Realestate.co.nz average property prices in Southland are down 11 per cent from this time last year, and are approaching the $165,000 low set in November 2008. In June, the average home sold for $172,000, down from $197,000 in May. In addition, overall sales in June were down 10 per cent from May, those figures are month-on-month and follow positive sales in April.

However, Mr Hebbend said hoamz had its sights set on the future. "We're looking ahead to the recovery, it's on its way, it's just a question of how long."

Previously trading as Southern Lakes Real Estate, the company rebranded as hoamz at the end of 2009, Mr Hebbend said.

As part of the rebrand, the company invested heavily in a purpose-built IT system, hoamzhub, which he believed was the leading real estate IT management and agent support system in Australasia.

Queenstown's Rugby World Cup game

23rd July 2010

Source: scene.co.nz

Former New Zealand rugby star Justin Marshall can’t wait to pull his boots back on for a Classic All Blacks game in Queenstown during the World Cup. 

He confirms the Classic All Blacks will play a team of past French internationals in the resort to coincide with next year’s tournament. 

The September 18 fixture will be at the Queenstown Recreation Ground because the Events Centre is hosting three World Cup training camps that month. 

Marshall suspects Queens-town’s partly been chosen to host the Classics’ first NZ game because it “very surprisingly” missed out on a pool game.“It’ll be great to bring a game here that not only promotes the World Cup but also promotes rugby,” he says. “It’s also an opportunity for people to see some stars of NZ rugby of the past, possibly the present.” 

The Classics comprise former All Blacks, many still playing overseas, who are no longer contracted to NZ rugby.
Marshall – now a Sky Sport rugby commentator – has played four games for the Classics and has also been captain. 

Line-ups haven’t been confirmed but Marshall notes All Black stars who’ve recently played for them include Jonah Lomu, Andrew Mehrtens, Anton Oliver and Carl Hayman. 

Marshall also says the French Barbarians, as they’re called, could include past stars like Eric Champ and Franck Mesnel. 

Destination Queenstown marketing boss Graham Budd expects the match to be “a huge drawcard for travelling rugby fans from all nations as well as great for locals”. 

The event’s being organised by the Sevens With Altitude committee who run the annual national sevens rugby tournament at the Recreation Ground. 

Marshall – who’s on a family holiday here this week – has fond memories of visiting the resort while living in Eastern Southland before his 81-Test career took off. 

“We used to come on day trips or night trips as well – it’s a favourite of mine.” 

Asked if he’d buy property here, Marshall, 36 – who finished his career a month ago playing for English premiership team, Saracens – quips: “I can’t afford it, I’m only on a Sky [Sport] salary.” 

“I’ve always thought it would be quite romantic to own a little holiday home in Queenstown,” he says. 

“My short-term goal is to get another boat – you can’t have a bach without a boat in this place.”

Invercargill Mayoral Elections Heat Up On TV

21st July 2010

Source: scoop.co.nz

CUE Television will host a live, televised debate among candidates seeking the Invercargill Mayoralty on Wednesday 15 September.

The debate will be held at the SIT Centrestage Theatre and broadcast across the country in what is thought to be a first for both local body elections and television in New Zealand. It will be open to all registered mayoral candidates, facing questions sent in by the public in the weeks leading up to the event.

CUE TV Managing Director Tom Conroy says the race for the southern mayoralty is garnering a lot of interest around the country.

“There’s no doubt the Invercargill, Christchurch and Auckland contests for mayor are attracting the most attention because of the personalities involved and with the national broadcasting platforms at CUE’s disposal (Freeview 23 and SKY Digital 110) it was too good an opportunity to miss.

Long term incumbent Mayor Tim Shadbolt faces several challengers in these local body elections, so CUE felt it had a role to ensure as many voters as possible got to see the faces behind the names on the voting paper, to make an informed judgment. This is why the debate is timed just prior to the papers arriving at homes across the province when voting effectively begins.

It was also important to set a date now so tickets for the event can be distributed and to ensure there’s plenty of time to canvass issues from a cross-section of the community.

This is all about the public having the chance to ask the questions not the media”.

Mr Conroy was open to approaches from the Auckland and Christchurch mayoral hopefuls wanting to take on their opponents in a similar format.

“We’ve got access to a national audience so why not? It would just be a case of working through the logistics in the time available”.

The Great Invercargill Mayoral Debate, filmed in front of a live audience, can be seen on September 15th from 8pm.

Skifields draw huge crowds

19th July 2010

Source: The Southland Times

Southern Lakes skifields have had one of their busiest school holidays on record, resort operators in Queenstown and Wanaka say.

NZSki Ltd chief executive James Coddington said school holiday visitor numbers were the "best ever" at Coronet Peak and The Remarkables.

A combination of factors, over and above New Zealand and Australian school holidays falling on the same dates this year, have contributed to the record numbers heading to the slopes above Queenstown, he said.

"There's a multitude of reasons why our numbers are peaking.

"We've had good early snow and a targeted early-season campaign to Australian markets has paid dividends," he said.

An increase in flights to Queenstown and a favourable exchange rate for Australians had also helped attract visitors wanting a skiing holiday, Mr Coddington said.

Improvements at Coronet Peak, particularly an investment in snow-making operations to enable greater coverage of the mountain, meant there was plenty of terrain and space to accommodate the surge in skifield visitor numbers, Mr Coddington said.

Visitors to NZSki's two Queenstown fields got good value for their lift pass purchases, he said.

Cardrona Alpine Resort near Wanaka has also recorded massive visitor numbers, as holidaymakers flock to its learner and intermediate-friendly slopes.

Cardrona spokeswoman Nadia Ellis said the resort had experienced "near-record" visitor numbers this school holidays, with the slopes "packed" with skiers and snowboarders.

The increased numbers had meant a wait for visitors queuing for chairlift rides and the skifield's five cafes were often full, she said.

The resort's carparks had often been full by early afternoon and the skifield's rental shop had also struggled to cope with the huge demand, Ms Ellis said.

"All these numbers prove we are on the right track with our plans for expansion," she said.

Cardrona completed the first stage of its Valley View upgrade this winter, installing a new chairlift to open up more terrain at the skifield.

Snow-making operations are to be installed this summer.

Low natural snow levels had meant the new area could not be used yet, Ms Ellis said.

Treble Cone spokesman Nigel Kerr said visitor numbers through the holiday season were "generally pretty good".

"We've had some good business, but not record numbers," he said.

Treble Cone's car parks were full "most days," and waiting times in chairlift queues were negligible, Mr Kerr said.

Holiday statistics
- Peak of 167 ski and snowboarding instructors working during one day, last week.
- A record 477 slices of pizza sold in five hours at Captains Cafe.
- Baristas made 1623 coffees in a single day last week.
- 900 litres of milk and 100kg of chips ordered every second day.
- 21 nationalities working at Cardrona's ski and snowboard school.

Why the cuts in 5 year mortgage rates won't be enough to fire up the housing market

16th July 2010

Source: Interest.co.nz

By Bernard Hickey

A bevy of banks surprised home owners and regulators in the last two weeks when they slashed their long term mortgage rates by as much as 0.75%.

But is it enough to transform the housing market in the same way that the mortgage price wars of 2004 and 2006 confounded the Reserve Bank and fired up the economy back then? The simple answer is no.

There are a few reasons why it's different this time.

Firstly, the rates action is happening in the relative boondocks of the housing market, away from the most competitive parts.

ANZ kicked off the latest long term fixed mortgage rate cuts less than a month after the Reserve Bank ended a year long freeze on interest rates by increasing the Official Cash Rate.

ANZ slashed its 5 year year mortgage rate by 75 basis points to 7.75% and cut its 2 year mortgage rate to 7%.

All the other major banks soon followed, even Kiwibank, which has been pulling its lending horns in lately because of a shortage of fresh capital and hot competition for term deposit funding from the major banks.

Back in 2004 and 2006 these cuts would have been big news.

Everyone was borrowing for periods of two years and longer to avoid being stung as the Reserve Bank tried to jack up short term rates to slow down the housing market and the economy generally. It was clearly cheaper for home buyers to borrow for fixed rates then because the headline rates were lower than for variable rates.

That's not the case anymore, which makes the choice much more complicated. Variable rates are typically around 5.9% now, which means anyone taking out a 5 year mortgage at 7.75% is making a pretty big bet that variable mortgage rates will be well above their current levels for most of the next five years.

A home buyer choosing such a rate would essentially be betting that they know better than the market and the Reserve Bank about the future of short term interest rates. That's because the longer term mortgage rates are based on longer term wholesale mortgage rates and a collection of funding costs essentially imposed on the banks by financial markets generally and regulators specifically. The big difference this time around is that banks are finding it much harder to get hold of the cheap, easy funding from 'hot' wholesale money markets overseas.

Before the Lehman Brothers collapse in September 2008 banks were able to get extremely cheap funding that they passed on in the form of fixed mortgages that were cheaper than variable rates. Now the funding costs for these longer term mortgages are around 150-200 basis points higher than they were, which not so surprisingly is the gap now between variable rates and 5 year mortgage rates.

The question for borrowers is whether they can be sure enough about the likely rise in the Official Cash Rate over the next few years to bet they'll be better off with the birds in the bush of a fixed rate than the one bird of lower interest rates now that they have in their hands.

Most are voting with their feet and sticking with the cheaper floating rates, which means these long term rate cuts are unlikely to provide the same boost to the housing market they did in 2004 and 2006. A poll on interest.co.nz this week found 66% would opt for the floating rate, while only 11% would opt for the just-reduced 5 year rate.

That reluctance to borrow long is flowing through into mortgage approval figures, which hit a record low this week. Attempts by the banks to reignite demand with price cuts are yet to work.

"Hendo's Hole" in Queenstown sold

16th July 2010

Selling property with tenants?

13th July 2010

Source: The Age

There are positives and negatives to putting a property on the market with tenants still in residence.

When a "For Sale" sign goes up on an empty property, there is little more vendors need to do except sit back and cross their fingers.

When it's a rental property, with a tenant still in residence, the period between the sales listing and the sale can be fraught with complication.

Even the most accommodating tenant is likely to be stretched by the extra requirements that come with living in a property listed for sale.

Legally, all tenants must allow agents to escort strangers through their residence once open for inspections begin - providing 24 hours' notice is given.

Tenants are also generally obliged to allow photos of their residence to be displayed in advertisements and they must face the fact that once their lease expires, the new owner is not obliged to renew it.

Yet, despite the imposition of a sales campaign, agents say most tenants are co-operative.

"Most of them are very helpful," says Susan Denner, of LJ Hooker.

"It's very rare that someone sabotages a sale."

Regardless, from a pure marketing perspective, Tim Fletcher, of Fletchers Real Estate, says it is better for a vendor to sell a property without tenants in place.

"When you're selling a residential property, you want to attract as many buyers as possible," Mr Fletcher says.

"If you've got a tenant there on a lease, you immediately eliminate [a potential owner-occupier] buyer."

Naturally, both Mr Fletcher and Ms Denner note, there are some tenants whose behaviour will also undermine the success of a sale, sometimes shaving tens of thousands from the price a vendor may otherwise have achieved.

"Every property's going to be different," Ms Denner says.

"There are some tenants around who have beautiful furniture and really make places look smart but if you haven't got good tenants, you're devaluing your property."

Mr Fletcher estimates that vendors "could get anything up to 10 per cent less on some places that are badly presented".

In real estate terms, "bad presentation" can translate to something as simple as breakfast dishes being left in the sink or carpet that hasn't been vacuumed recently.

Mr Fletcher also notes that while tenants must allow prospective buyers to view the property, there is nothing to say the tenant must be absent during those inspections.

"They've got to comply if you give 24 hours' notice but they can slouch around the place," Mr Fletcher says.

Despite the drawbacks of selling with tenants in place, both agents say that most vendors choose this option.

In part, this may be because vendors are obliged to give 60 days' notice to tenants if they wish them to vacate for the sale, effectively delaying the vendors' sales listing by two months.

Also, Ms Denner says, many vendors can't afford to have their property sit vacant for the duration of a sales campaign.

"It could be six weeks before the property is sold and another 90 days before the new owner takes over, which could be three to four months' rent [loss]," Ms Denner says.

"Not everybody can live with that loss of income."

Queenstown on a roll with snow business

12th July 2010

Visitor records have been broken in Queenstown with the convergence of Australian and New Zealand school holidays bringing large numbers of skiers and snowboarders to the resort.

From flight numbers, bus transport numbers and happy retailers, it appears winter records are being smashed this winter season.

NZSki chief executive officer James Coddington yesterday confirmed more than 2200 passengers used the free bus service to The Remarkables ski area on Friday and Saturday, signalling the company's multimillion-dollar transport investment was paying off after only two years.

The company invested in nine buses in 2008 to make the Coronet Peak and Remarkables fields more streamlined and profitable.

The transport service started last year.

"Because the transport is free we have to underwrite the cost, and we're comfortable to do that because it's an enabler of getting people up our mountains."

The annual convergence of both school holidays in New Zealand and Australia has had an impact on the record numbers of people heading to the mountains but also on the cash registers of Queenstown businesses.

Macpac store manager Clare Atkinson yesterday said the outdoor goods store which opened this year in Queenstown had just experienced its busiest week of winter.

"We're a lot busier than we were during Winter Fest week, which was a bit of a surprise, and have sold lots of warm gear to loads of freezing Aussies," Ms Atkinson said.

Remarkable Sweet Shop store supervisor Nina Senadhira also said she had had a record-breaking two weeks and had broken previous daily sales records three times.

Queenstown Chamber of Commerce chairman Alistair Porter yesterday said the volumes of travellers coming through the Queenstown Airport had been helped by solid marketing campaigns by Destination Queenstown, NZSki and Queenstown Airport Corporation.

"The marketing strategies have really paid off for Queenstown retailers and accommodation providers and that can be witnessed by the sheer numbers of people around town and on the slopes," he said.

Queenstown Airport Corporation chief executive Steve Sanderson yesterday said the airport also had its own freshly emerging record-breaking figures to reveal.

"Next weekend we will break the record for the amount of scheduled flights leaving Queenstown Airport, and new figures from the end of June show that we recorded our largest amount of passengers in the past financial year, which is great news for the airport, and the Queenstown region," he said.

Forty-six outbound flights were scheduled to leave the airport next Saturday, beating the previous high of 43 recorded on Saturday, Mr Sanderson said.

For the 2009-10 financial year more than 812,000 passengers used Queenstown Airport, Mr Sanderson said.

The previous high was recorded in June 2008, when 734,000 passengers used the airport.

Auckland Airport buys up quarter of Queenstown Airport

9th July 2010

Source: NZ Herald

Auckland International Airport has this morning spent $27.7m buying a stake in Queenstown Airport.

Auckland Airport now owns a 24.99 per cent share in the Queenstown airport company which is issuing new shares as part of the deal.

This means no cash is being paid to the Queenstown Lakes District Council, which is 100 per cent owner of the airport.

Both companies are pitching the deal as a "strategic alliance", with Queenstown Airport saying it expects to achieve an additional 176,000 annual passenger movements within five years, over and above existing strong growth forecasts.

These additional visitors could mean an extra $150 million annually to the local Queenstown economy.

Queenstown Airport, following approval from the Queenstown Lakes Council, may also exercise an option for Auckland Airport to increase its shareholding to 30-35 per cent at any time up to June 30 next year.

"Through this strategic alliance, the country's number one travel gateway and our premier tourist destination will work closer together to grow New Zealand tourism, said Auckland Airport chairman Tony Frankham.

He said the alliance would "leverage Auckland Airport's resources in a co-ordinated effort working with airlines and the travel industry".

Queenstown Airport's chairman, Mark Taylor, said the deal "made perfect sense" as 70 per cent of New Zealand's international tourists entered the country through Auckland International Airport.

The new share capital from Auckland Airport would allow Queenstown Airport to fund growth of the airport's operating capacity without increasing financial risk through borrowing more extensively.

"A stronger capital structure would also allow, for the first time, the company to pay regular dividends back to the community via the Queenstown Lakes District Council shareholding," said Taylor.

In the same news release issued this morning, Queenstown Lakes District Mayor Clive Geddes said the partnership would help secure the economic prosperity of the local economy which is strongly reliant on tourism.

He said it would ensure Queenstown Airport kept on a strong, sustainable growth path while ensuring control of the airport remained in local hands through the Council's majority shareholding.

"As shareholder, the Council has always supported the growth of Queenstown Airport, recognising its vital economic importance as a key gateway to the Queenstown Lakes District and surrounding areas."

Auckland Airport's chief executive, Simon Moutter, said the "strategic alliance" was consistent with Auckland Airport's strategy to add to shareholder value by shifting some resources into areas that will drive earnings faster than the company's organic growth rate.

"We can accelerate growth in international passenger volumes - which represent our biggest value driver - by forming deeper partnerships with selected and like-minded airports that share our growth focus on particular airlines and travel markets (especially out of Asia), he said.

The deal:
• Auckland and Queenstown Airports say they will work together "for at least five years as part of the new strategic alliance".

• Effective today, Auckland Airport has bought an initial 24.99 per cent shareholding of the increased capital in Queenstown Airport by subscribing for approximately 4 million new shares at a price of $6.91 per share, for a total consideration of $27.7 million.

• Queenstown Airport may exercise an option for Auckland Airport to increase its shareholding to 30-35 per cent at any time up to 30 June 2011. The price for the additional shares will be $7.47 per share, plus a lump sum consideration of $2.2 million, reflecting the additional value of a shareholding over 25 per cent.

• Auckland Airport is funding the share purchase from its current cash holdings.

• Before deciding whether to exercise the second tranche option, Queenstown Airport will seek approval from the majority shareholder, Queenstown Lakes District Council, which will decide whether community consultation is required.

• If the option is exercised, Auckland Airport would enter into a binding shareholders' agreement with Queenstown Lakes District Council that would formalise arrangements between the shareholders.

• Auckland Airport has already received the necessary regulatory approvals to acquire a minority shareholding in Queenstown Airport

India "luvs" Queenstown

7th July 2010

Source: Mountain Scene

A Bollywood film shot in Queenstown has become an instant box office hit. 

I Hate Luv Storys, starring Bollywood beauty Sonam Kapoor and heart-throb Imran Khan (right), premiered around the world last Friday. In India it became the 12th best-grossing movie on opening day as movie theatres experienced between 80 to 100 per cent capacity. 

Queenstown is plugged as a destination in its own right rather than just being an uncredited backdrop as it normally is when Bollywood comes shooting. 

The movie’s potential audience is 150 million people. 

A week before the premiere, more than 20 million viewers got an indepth look at Queenstown in TV documentaries shot during filming in the resort at the start of the year. Other media coverage included an 18-page photo shoot on Kapoor in Indian fashion magazine L’Officiel. 

Destination Queenstown boss Tony Everitt is excited about the resort’s exposure to a global powerhouse. 

“The Indian market is extremely valuably to Queenstown because our low season coincides with their high season,” he says. 

Tourism NZ played a major role in luring the production to New Zealand.

Expect Queenstown to be overrun

7th July 2010

Source: The Southland Times

The 2011 Rugby World Cup boss is holding his breath Dunedin's Forsyth Barr stadium will be completed on time, but says there will be no fallout for Queenstown's team-hosting role if the project is not completed on time.

Rugby World Cup 2011 chief executive Martin Snedden yesterday met Queenstown Lakes District Council members and will today meet council representatives and regional tourism bodies from throughout Southland and Otago.

"We're keeping a close eye on the stadium in Dunedin, and we can't afford anything to go wrong," he said.

The stadium was due to be finished in early August 2011 and he would know by October if there were any major issues with the roof being fully closed in, Mr Snedden said.

Even though Dunedin matches are listed as being played at Carisbrook on the official Rugby World Cup website, games would be played at the new stadium if all went to plan, Mr Snedden said.

England and Ireland will train for their Dunedin games in Queenstown.

Mr Snedden said he was confident the resort would be "a major stopping point for a huge amount of international visitors" during the tournament and many would return several times.

Queenstown could expect to be overrun by English and Irish supporters, Mr Snedden said.

"These two teams have already had great package sales, and will have huge support bases travelling with them."

Trains travelling between Dunedin and Invercargill for games were a great idea, and he expected to hear updates on the possibilities of dedicated services running between the cities today, Mr Snedden said.

Sales to games in Dunedin and Invercargill were "moderate" so far, but that was completely expected, Mr Snedden said.

"People traditionally wait, and we know that. If ticket sales keep ticking over we'll be happy, because we know it'll come in a rush if it has to."

He said he was happy the media centre for Invercargill's Rugby Park had been funded, and expected no delays in its con-struction in time for the tournament.

GAME TIME: Southern Rugby World Cup matches: Scotland v pool winner, September 10, Rugby Park, Invercargill Scotland v Georgia, September 14, Dunedin Argentina v pool winner, September 17, Rugby Park, Invercargill England v pool winner, September 24, Dunedin Ireland v Italy, October 2, Dunedin

More mortgage rate drops

5th July 2010

Kiwibank has lowered its three, four and five-year fixed mortgage rates, keeping them to around the same level as those of the major banks, but the lower rates are not necessarily seen as giving a boost to the faltering housing market.

Last Thursday Kiwibank led the other banks in reducing its two-year rate, cutting it to 6.99 percent from 7.3 percent.

Within hours, sister banks ANZ and National announced cuts to their two-year rates, and also to their three to five-year rates.

Today Kiwibank said it was dropping its three-year rate from 7.7 percent to 7.25 percent, its four-year rate from 8.2 percent to 7.55 percent, and five-year from 8.5 percent to 7.75 percent.

In its Market Focus note today, ANZ said global interest rates edged lower last week, led by the US two-year Treasury bond, whose yield fell to a record low.

Global long term interest rates were also moving lower, placing downward pressure on New Zealand interest rates, ANZ said.

During the past week fixed mortgage rates from all the major banks had fallen, and ordinarily that would be expected to kick start the housing market .

"But with the variable rate currently hovering at around 6 percent, a larger portion of mortgage debt at shorter maturities and earnings growth within the economy near cyclical lows, it may not necessarily signal a return to business as usual nor should it really change borrowing behaviour," ANZ said.

A key area to monitor would be deposit rates. If offshore funding costs continued to rise, financial institutions would have even more incentive to grab local deposits.

That "pie" was not large and deposit rates would have to go up, ANZ said.

"This could result in higher borrowing rates in future, but the fall we have seen in wholesale markets last week seems to be dominating for now."

Resort gets more pedal power

2nd July 2010

Souce: Mountain Scene

Queenstown could be in for a major tourism windfall from the Government pumping $4 million into a new cycleway. 

The Ministry of Tourism will hand over the grant next Wednesday to the Southland District Council to build a 174km Around the Mountains trail from Walter Peak Station to Kingston, via Von Valley, Mossburn and Garston. 

Predictions are that business will grow from 4000 cyclists in the first year to 15,000 in year five, Queenstown-based project consultant Mike Barnett says. 

The grant – which Southland District councillors approved yesterday – is about $4m to $5m short of the project’s capital cost. 

Barnett says the SDC needs to find the balance from community funding agencies and other sources.
But he estimates Queenstown will reap more than 40 per cent of the four-day cycleway’s economic benefit from before and after-ride bed nights. 

“Because most people will come into Queenstown, [the resort] will get two nights out of virtually everybody.”
The cycleway will also be a boon for Earnslaw operator Real Journeys, as most riders will use the vintage steamer to get from Queenstown to Walter Peak. 

Barnett expects the majority of the track to be built by November 1 next year – stage one is from Walter Peak to Mossburn. 

Around the Mountain is one of seven “quick-start” cycle trails announced by the Government a year ago and will be the second to receive funding. 

The concept is modelled on the multi-day Otago Central Rail Trail which attracted about 20,000 riders last year.