World City Guide

Business

Business Profile
The New Zealand economy, once predominantly based on exporting wool, dairy products, wood, minerals, seafood and meat, is now much more dependent with the influx of tourists. However, there is also a growing reliance on high tech industries and expertise, fashion, TV and film production, back-drop provision and special effects. Auckland is a city with more of a business and services-oriented economy. The majority of people in the city work in the service industries, while a lesser number are employed in import and export. The business directory shows familiar corporate names, such as IBM, 3M, Microsoft, Cisco, Merrill Lynch, KPMG, Citibank and Price Waterhouse. The city’s mainstays are business and financial services, manufacturing, transport, communications and the trade and hospitality industries. These last two reflect the importance of tourism to the country as a whole, and to its biggest city. Auckland also contains the country’s biggest port, handling 50% of container traffic. Although a sprawling city with no specific Central Business District, most of Auckland’s businesses are located around Queen Street, from Cook Street as far down as the waterfront.

The Auckland region contains roughly 30% of New Zealand’s population and that population, on average, is younger, more highly paid and better educated than the general population. The last major census in 1996 showed, for example, that 19% of Auckland’s residents had a university degree, exactly twice the national average, although this is due in no small part to the number of people who move to Auckland in search of jobs after they have finished tertiary education.

Tourism is New Zealand’s single biggest revenue earner, currently estimated to be worth well in excess of NZ$4.5 billion. This figure constantly increases, because of the country’s high profile in the world’s eye, as the world’s safest tourist destination, the home of Middle Earth – or more precisely, where the Lord of the Rings trilogy was filmed. This greatly benefits Auckland and raises its profile internationally, as did being the winners and subsequent hosts of the America’s Cup.

Asian visitors traditionally have accounted for almost one-fifth of New Zealand’s tourists, so the 30% drop in visitor numbers at the start of 1999 was attributed to the Asian financial crisis, though Asian visitors have once again returned on mass to ‘the land of the long white cloud’. Economic recovery, following the impact of this crisis, has naturally been welcome - arrivals at Auckland International airport have risen consistently since 1999 and the 30% increase in passenger capacity of 2003 has led to even greater numbers. This good news is accompanied by a 3.4% increase in retail spending throughout 2003, an overall current unemployment rate of 4% and a GDP of over NZ$100 billion for 2004.

Business Etiquette
Conducting business in Auckland is no different from the procedure in any other major Western city. There are no cultural pitfalls to watch out for, unless dealing directly with Maori (who will outline any protocols before any meetings), and the only noticeable difference lies with the nature of the country’s people. They are notably friendlier, more informal and more relaxed. Although ties and jackets are worn, jackets may soon be discarded and shirtsleeves rolled up. A more informal dress code also exists in most restaurants and bars, although the smartest restaurants may still prefer a jacket and tie to be worn. Business hours are generally Monday to Friday 0900-1700 and punctuality is appreciated, although no one will be offended if the visitor is a little late, especially at times when the traffic is busy.

As dinner is seen as a time for socialising and not business, meetings mainly take place over lunch. Invitations to dine out or to visit someone’s home are far more readily issued than in many other countries and are genuine, not merely as a gesture. The native host will expect to pay for a meal or a round of drinks but guests can step in and pay their turn without creating arguments or offence. Friendliness not formality is the watchword in Auckland.