2 days ago
- Business
- Otago Daily Times
Uni pumps $1.3b a year into city economy
The University of Otago injects $1.3 billion a year into Dunedin's economy, a new report says.
The university's 2024 Economic Impact Report, presented at this week's university council meeting, paints a surprisingly rosy picture.
It utilises a standard economic contribution methodology to estimate the economic impact for the university for last year.
"Due to assumptions and limitations underpinning such a model, these figures should be regarded as an indicative rather than a definitive picture of economic impact."
The report estimated Otago University comprised 15% of Dunedin's gross regional product and directly and indirectly accounted for 9% of the local workforce. It added $1.3b total value and a total employment impact of 6259 fulltime equivalent jobs.
The university had 18,690 FTE students enrolled last year and is one of New Zealand's largest employers.
Staff work in Dunedin, Christchurch, Wellington, Auckland and Invercargill, although the majority of staff (85%) and students (92%) are based in Dunedin.
Due to its presence in other parts of the country, the university also injected cash into Christchurch and Wellington, mainly through the university's health sciences-focused campuses in both cities.
In Christchurch, the total value added in 2024 was estimated at $88m and total employment impact of 368 FTE jobs; in Wellington the total value added was estimated at $83m and total employment impact of 349 FTE jobs.
It also pumped money into Invercargill ($5.8m) and Auckland ($17.6m).
Infometrics economist Dr Adolf Stroombergen said the numbers were "impressive", but "the thing is that these reports never produce the counterfactual of what would happen if the university did not exist".
"That said, the university is clearly a fulcrum of Dunedin's economy. Reports such as these are a great way to remind local and national politicians exactly how important universities are".
Otago University vice-chancellor Grant Robertson said it was the first time the university's contribution to the national economy had exceeded $2b.
'We know the university makes such a valuable educational contribution to the country. It is terrific to know it also makes a valuable financial contribution.
'This contribution has a direct impact on local economic development, but the wider flow-on effects are even greater.
"The institution, our staff and students spend widely with local businesses and contribute to the social and cultural vibrancy of communities.'
