Otago Polytechnic’s latest Economic Impact Report shows the institution’s Cromwell Campus contributed more than $17.5 million to the Central Otago economy in 2020.

Over half of that was driven by student spending. The remainder was derived from day-to-day Polytechnic expenditure and the impact of staff spending their wages and salaries within their local economies.

"This report demonstrates how, Otago Polytechnic contributes significantly to the economy," says Dr Megan Gibbons, Chief Executive, Otago Polytechnic.

While the Cromwell Campus directly employed 33.8 FTEs in 2020, the report estimates that the flow-on effects of expenditure by Otago Polytechnic and staff and students contributed to the overall employment of nearly 207 full-time equivalent jobs

This equates to just over 1.5% of the greater Central Otago workforce, which grew to 13,709 FTEs or 4% from April 2019 to March 2020.

If Cromwell township is ring-fenced, then this was a contribution of 3.9% of a total of 5329 FTES to March 2020. The Cromwell Basin workforce grew 7.8% to March 2020.

The total Cromwell Campus enrolments increased dramatically - from 179 in 2019 to 448 EFTS in 2020, a rise of 269 EFTs.

"We have certainly benefited from the Government’s Targeted Training and Apprenticeship Fund (TTAF), which lifted enrolments in the second half of 2020," Megan says.

This increase was mainly due to enrolments in the second semester in programmes funded under the Government’s Targeted Training and Apprenticeship Fund (TTAF), a fees-free Covid-19 policy response enabling students to study trades and primary sector programmes.

"However, our ability to collaborate with industry and community is also a big factor in our institutional health," Megan says.

In response to the report, Central Otago Mayor Tim Cadogan says, "the increased contribution to our local economy is wonderful to see.

"It is also a great reminder of the wider contribution that the Cromwell Campus makes to our district, ensuring our businesses and community have access to the training and skills that they need to innovate and grow."

Central Otago Mayor Tim Cadogan says Otago Polytechnic’s increased contribution to the local economy is a boon for Central Otago.

Central Otago District Council Economic Development Manager Nick Lanham says the institution is invaluable to the district. 

"We are very fortunate to have the Cromwell Campus and it is a fantastic example of our diversified economy that has helped our economy perform well over the last 12 months.

"Education is an important pillar in our community and we greatly value the non-financial contribution that it makes to wellbeing in our district."

Megan agrees: "Although this report looks at economics, Otago Polytechnic - or more pertinently, its people - provide other precious benefits, or tikaka.

"These include culture and knowledge transfer, human and social capital enhancement, community support, and well-being and happiness.

"There is value in education beyond fiscal bounds. Education changes people’s lives and the trajectory for them, their whanau, and communities. There is growth in learning new things and reaching new goals, contributing to society and helping others to achieve this.

"These benefits are more difficult to measure but contribute both directly and indirectly to economic, social, cultural, spiritual and environmental wellbeing."