Media Release
May 13, 2009

Waikato University worth nearly one billion dollars a year to national economy

The University of Waikato is a major driver of the region’s prosperity, generating 3% of the Waikato’s total regional revenue and nearly one billion dollars for the New Zealand economy as a whole, according to a new study.

The economic impact study, commissioned by the University from independent consultant Dr Warren Hughes, analysed the University’s 2008 economic contribution to the region and the country.

The study shows that spending by the University generated $913 million dollars in the New Zealand economy overall. The figure includes the direct or first-round spending by the University and its students plus the flow-ons into supplying sectors such as retail, energy, transport, sport and recreation, and personal and community services.

Some $749 million of that was generated in the Waikato region, making up 3% of the entire region’s revenue.

For the core Waikato region -- encompassing Hamilton, Raglan, Cambridge, Te Awamutu, Huntly and Ngaruawahia – the University’s contribution is even more significant.

“In the core Waikato region, economic activity by the University accounts for 5% of overall revenue – a massive percentage for a single organisation,” says University Vice Chancellor Professor Roy Crawford.

“What that means is every dollar spent by the University in 2008 resulted in $1.21 of flow-on revenue across the core Waikato economy.”

The study also shows that every job at the University generates another job in New Zealand, with two-thirds of these flow-on jobs located in the core Waikato economy.

Core Waikato, has only 5.4% of New Zealand’s population and employment, but is home to 15.2% of the nation’s researchers and 7.7% of its tertiary education.

“Core Waikato punches very much above its weight in the New Zealand intellectual property stakes,” says Prof Roy Crawford. “And at the heart of the core is the University of Waikato.

“The report highlights the partnerships between town and gown that materially diversify a city’s industrial and business capabilities. Together with the Waikato Innovation Park, currently undergoing extension, we’re a great example of what’s been called a ‘communiversity’.”

According to the study, university towns such as Hamilton are generally regarded to be more “recession-proof” than other cities, and it is estimated that average wages tend to rise in synch with the share of the adult population with university degrees.

Key points from the University of Waikato economic impact study for 2008

In 2008, the University of Waikato was one of the Waikato region’s main drivers of economic prosperity as well as being a significant contributor to the New Zealand economy.

• University of Waikato operations together with the expenditures of its students generated $749 million – or 3% -- of the entire Waikato region’s annual revenue.

• This revenue impact rises to nearly one billion ($913 million) – or 0.4% -- for the New Zealand economy as a whole.

• The University directly and indirectly accounts for over 5,600 jobs in the Waikato region (3.3% of total Waikato employment).

• The University accounts for 5% of economic activity in the core Waikato economy (encompasses Hamilton, Raglan, Cambridge, Te Awamutu, Huntly and Ngaruawahia)

• Every dollar generated by the University resulted in $1.21 of flow-on revenue across the core Waikato economy.

• Every job at the University generates another job in New Zealand, with two-thirds of these flow-on jobs located in the core Waikato economy.

• Students spent an estimated $167 million in core Waikato.

• In Tauranga, the University’s 1,711 students spent an estimated $10 million, generating 125 jobs.

ENDS