Dunedin City Council business development adviser Sophie Barker said the seven December ceremonies provided ''a great injection of cash and vibrancy'' into the city, which was ''certainly good'' for Dunedin.
''It brings millions of dollars into our economy,'' she said.
As well as the economic benefit, the December graduations were also helping provide new ''ambassadors'' for the city, as people from elsewhere in the country spread the word about positive experiences in the South.
This month's graduations end today with about 660 people doing so in person from Otago University at two ceremonies, at 1pm and 4pm, at the Dunedin Town Hall.
And 1200 people graduated at yesterday's polytechnic ceremony - including more than 550 graduating in person - the largest numbers to graduate from the polytechnic at a single ceremony.
About 1870 students will have graduated in person from Otago University this month - down about 80 on the 1947 who graduated at record December graduations last year.
That decline was further offset by an increase of 35 people in the numbers graduating in person from the polytechnic - up from 520 last year to 555 this year.
Ms Barker said the polytechnic, under the leadership of chief executive Phil Ker, was contributing strongly to the city.
Otago University academic services director John Price noted that students who had completed their studies at the end of this year had the option to graduate this month, or in May or August next year.
It was ''always pleasing'' at this time of year to see students and their families coming to Dunedin to ''celebrate their hard-earned educational achievements''.
This also had ''obvious benefits for the Dunedin economy'' through money injected into the accommodation and hospitality industry.
Otago Polytechnic communications director Mike Waddell said the record polytechnic graduation was ''good for everybody'' and was strongly beneficial for the city and New Zealand as a whole.
The graduation also reflected rising numbers of skilled people being trained through the polytechnic, a boost given that New Zealand was ''desperately short'' of skilled people in key areas.
The rising number of polytechnic graduates not only helped strengthen Dunedin's economy by increasing the skill capacity of city businesses, but also helped address wider problems such as Christchurch rebuild needs and some key skill shortages.
The polytechnic sector had ''come of age'' and the Otago Polytechnic was clearly a ''vital part of the city'', Mr Waddell said.
