Polytech brings in $1 billion

Otago Polytechnic has contributed almost $1 billion to the New Zealand economy and a "staggering" $535 million to the Otago region over the past five years, an economic impact report shows.

This comes after the University of Otago last year released figures showing Dunedin reaped economic benefits of $754.2 million in 2010 from the university's operations - equivalent to about 17% of the city's gross domestic product.

The report, tabled at an Otago Polytechnic council meeting yesterday, showed the overall economic impact of the institution last year - at $206 million - was the highest since the exercise began, just under $1 million higher than in 2010.

The total impact is enough to support almost 2460 fulltime equivalent jobs throughout the country.

The increase in economic impact comes despite a drop in the number of individual students enrolled at the institution, with 6815 enrolled last year compared with 8106 in 2010.

The drop in enrolments was a result of fewer short courses being offered and a shift in focus to fulltime degrees.

In the report, business analyst Michael Nol examined direct spending by polytechnic staff and students using economic multipliers to calculate the flow-on effects of that spending for businesses in Otago and elsewhere, applying the same multipliers used by the University of Otago.

It showed in the past five years the polytechnic had contributed $996.8 million to the New Zealand economy, of which $535 million remained in the Otago economy.

"Such a large contribution overwhelmingly supports the high economic importance that the Otago Polytechnic has on both the Otago and national economies," Mr Nol said in the report.

The report also separated the economic impact of the polytechnic's Cromwell campus, which contributed more than $9 million to the New Zealand economy in the past year, of which about $4.6 million was estimated to have stayed in Otago.

The polytechnic has campuses in Dunedin and Cromwell and community learning centres in South Dunedin, Mosgiel, Queenstown and at the Otago Correctional Facility.

Otago University's economic impact report for 2010 - which was released in September last year - showed the "global economic impact" generated by the university's activities in all of its campuses was about $1.6 billion - $600 million more than the combined economic impact of the polytechnic over the past five years.

A summarised financial report tabled at the polytechnic council meeting yesterday showed it had an operating surplus of more than $2.4 million, $240,000 better than budgeted.

A total of 3295. equivalent fulltime students enrolled at the polytechnic as of March 31, almost exactly the amount budgeted for.

Total revenue for the year was $20,997,000, which was $213,000 ahead of budget.

- vaughan.elder@odt.co.nz

 

Add a Comment

 

Advertisement