Waikato Asia Engagement Strategy
Prepared by Eastern Bridge Limited
for Waikato Local Authority clients.
Simon Appleton
Chief Executive
Eastern Bridge Limited� NZ
Executive Summary
The Waikato is one of New Zealand�s most populous and
prosperous regions. The area has enjoyed strong growth over the past decade.
Asia and Asian migrants, students and tourists have played an important
contribution in the Waikato�s prosperity.
There is an opportunity for the region to work
collaboratively to increase its engagement with Asia, as well as support its
Asian communities to become a welcoming region � welcoming for people to live,
work, visit and do business. The opportunity further extends to locals, who can
also benefit from being better informed and linked with Asia.
In terms of Economic Development there are four key
opportunities:
- investment
and business attraction; - international
students attraction [export education]; - export
facilitation; and, - tourism
promotion.
Not all benefits are restricted to economic growth, there are
also substantial community/social benefits:
- language
promotion; - increased
community integration; - improved
flows of information; - exchanges;
and, - cultural
preservation.
As outlined in the strategy there are several enablers to
allow the participating councils to reach this goal. These include:
A Waikato Information Portal – a multilingual (English, Chinese, Korean,
Japanese, Vietnamese and Russian) news and information resource, e-store,
student recruitment system and business directory designed for the Waikato
region and participating local authorities. The portal already been adopted
by multiple Waikato councils and is recognized as a key piece of �soft
infrastructure� by Local Government New Zealand to enable regions to prosper;
Sister Region (Province) Relationship
– taking a collaborative approach and developing a Waikato regional
relationship with province. The proposed province is Guangdong, one of China�s
most affluent areas. Guangdong Provincial Government as well as several cities
have confirmed their desire to participate. The relationship would also include
district � city connections but will be proactively driven at the regional
level. As seen with the Bay of Plenty � Jiangxi Relationship, this
collaborative approach has far greater success at supporting economic and
exchange initiatives.
Regional Promotion Centre � As with
the Bay of Plenty Center in Nanchang City, this facility would be a physical
space for the Region�s businesses, schools, councils and community
organisations to access the Chinese market. The centre will become an important
conduit between the Waikato and Guangdong facilitating trade, visitor and
student attraction and encouraging inward investment. Cultural and education
programmes will be based around the centre further raising the profile of the
Waikato Region.
Resourcing capability building across the Waikato is also
critical to the success of a regional approach to international relations, this
would include:
�
Training
� Ensuring council staff, elected officials, key stakeholders and businesses
have a satisfactory knowledge of the opportunities offered through the region�s
international relationships. Providing practical and common-sense guidance for
businesses on how to do business in Asia and point them in the right direction
to get started;
�
Market
Intelligence & Risk Management � To conduct regular analysis of the
opportunities presented through a collaborative international approach; conduct
due-diligence on businesses from Asia coming into the Waikato; run regular
surveys to ensure participating councils understand how Asian migrants,
visitors and students integrate within their districts.
International Communications �
Creating a structure and schedule around international communications will help
to keep the relationship active. Taking a regional communication approach (adhering
to a �Waikato narrative�) will add greater weight to the relationship while
also sharing the time burden.
Delegation Management � Collective
management of both the outward and inward delegations will reduce the cost on
individual councils and enable an emphasis on tangible outcomes. The Mayoral
led delegations can also play an important role supporting businesses and
schools when they are included.
�
Management:
The Waikato International Relations programme will be managed
by the Eastern Bridge International Relations Manager.� The manager will be responsible for the
delivery of the strategy and the actions identified by the Waikato local
authority participants.
The International Relations Manager is supported by the Eastern Bridge IR team.
The team brings together a wide range of skills and knowledge including in
areas of translation and communication, IT and software development, education,
investment, tourism, trade and marketing.
Time input from the individual councils will be minimal. Each
council would provide a contact person who will forward any relevant
information or documentation to the appropriate council staff or elected
official. Mayors, elected officials will be called upon for feedback on the
strategy, and on occasion attend official events or participate in a
delegation.
Cost:
�
Each participating local authority will share the cost of the
management and delivery of the strategy.�
For more information relating to cost, please contact the International
Relations Manager.
Next steps:
Initial discussions on the establishment of a Waikato
Regional approach to International Relations, and the development of a sister
province relationship were started in mid-2019. While there is strong interest
from Guangdong Province to develop such a relationship � this interest will
fade should there not be any progress made in the coming months.
Individual Waikato councils interested in participating
should inform the International Relations manager at Eastern Bridge in writing
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Priority |
Action |
Responsibility |
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HIGH |
To |
� |
|
HIGH |
To |
� |
|
HIGH |
To |
� � |
|
MEDIUM / |
To |
� � |
|
MEDIUM / |
To |
� |
|
MEDIUM |
To present |
|
|
MEDIUM |
To formally agree to the work plan |
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How do Councils benefit from their investment?
|
The Strategy |
The council will be included in the work done as part of |
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International Relations Manager |
The council�s contribution will fund the International |
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Translation |
Chinese (simplified and traditional), Korean, Japanese, |
|
Training |
Regional training will be provided as part of the strategy |
|
Due-diligence and market intelligence |
Due-diligence and market intelligence � including the annual |
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Hongi Portal |
A multilingual news and information |
|
Hongi News |
Promoting positive news stories about New Zealand and the |
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Hongi for Councils |
A site which sits within the Hongi Portal for the client |
|
Hongi Business |
Businesses within the client�s district can have a free |
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Hongi Education� |
An automated system for local schools to enroll and manage |
|
Hongi Marketing |
Social media marketing and influences in Asia to drive |
TABLE
OF CONTENTS
1.���������� ABOUT
THE STRATEGY
�This strategy, developed by Eastern Bridge
Limited, an International Relations Management company specialising in
assisting New Zealand local governments, presents a framework for the Waikato
Councils to successfully engage with Asia and the Asian community based in New
Zealand.
This document provides a
high-level overview of opportunities for the Waikato , as well as actions for
this to be achieved. More in-depth information, reports and a range of
supporting resources are available to Eastern Bridge�s local government clients
via the website: www.easternbridge.co.nz
2.�������� OBJECTIVES
The key objectives of this
strategy are:
�
To provide a high-level overview of the steps
needed to enhance the Mighty Waikato�s international� aspirations for developing mutually beneficial relationships
with Asia and Asian communities – both internationally and domestically. As well as
to identify key stakeholders, a budget and management structure;
�
To identify opportunities for the Region by
maximising the advantages already offered by existing domestic and
international links and expanding them;
�
To examine the current state of the Waikato�s
connectedness with Asia;
�
�
To highlight the benefits which will accrue to the
Region�s local authorities when they cooperate to engage with partner cities
and regions in Asia;
�
To provide a framework for measuring success
through identifying performance indicators.
3.�������� WHY BE INTERNATIONALLY ENGAGED?
Few local authorities in New Zealand are proactive in the field of
international relationships, with only four maintaining their own internal
foreign affairs department. There has been a great deal of debate within local
government about its role in international relations. This is not the case
internationally, where increasingly district, city and regional governments are
engaging in foreign diplomacy with the objective of increasing trade and
cultural links. In some cases, governments have established overseas offices.
For many New Zealand local authorities, the cost of maintaining an
international office can be prohibitive. There are, however, a number of cost
efficient ways for district councils to develop meaningful international
linkages without a large investment. The question is do the costs outweigh the
benefits?
While New Zealand Central Government and its internationally-focused
organisations, such as Tourism New Zealand, Education New Zealand, New Zealand
Trade and Enterprise, and the Ministry of Foreign Affairs and Trade, promote
New Zealand Inc, it isn�t their role to micromanage aspects of individual
councils (this may happen coincidently on occasion). Within New Zealand, it is
local authorities that are tasked with knowing their own communities, their
strengths and opportunities, in a way which Central Government is unable to.
In most Asian countries local governments are
influential in a range of aspects including commerce, education, environment
and international relations. Having a Mayor involved with or endorsing a
business, event, or promotion will add enormous credibility to the venture. The
office of a New Zealand Mayor can initiate approaches for local businesses to
explore new markets by maintaining a close working relationship with their
local government counterparts in Asia. New Zealand councils can help to build a
platform from which new ventures may be launched.
This strategy will cover in detail many of the opportunities which
engagement with Asia has to offer.� These
may be categorised in two ways: economic development and non-economic, or
social benefits. Both are key components of a meaningful and sustainable
relationship.
The economic development opportunities include:
- export education
- tourism
- investment
attraction - business attraction
- attracting skilled
migrants - and facilitating
trade
Non-economic, or social benefits include:
- demonstrating that
the local community is welcoming to new ideas and to migrants - facilitate links for
young people to explore global opportunities - grow opportunities
for students to learn about new cultures and languages - support community
organisations to develop international links - and support schools
to grow international links
Councils can pull together the many organisations and businesses within
its area which have already developed international links, to assist them to
act cooperatively and strategically adding weight of numbers to their efforts.
3.1 Why be
domestically engaged
Asian migrants in New Zealand play an important role both
economically and socially. The average Asian resident is higher qualified, less
likely to be unemployed or receiving government benefits, less likely to commit
crime and less likely to be reliant on on-going medical assistant than
non-migrants. This same migrant group is more likely to be either in full time
employment or own a business. [1]
The bottom line is, while there is significant fearmongering in the New Zealand
media around Asian immigration, the data would show that on average they
provide a positive contribution to our communities.
According to data collected at the 2018 census, and by the
Ministry of Foreign Affairs, Tourism New Zealand and Education New Zealand
there is an average of 240,000 Chinese language speakers in New Zealand at any
given time. There are also sizeable Korean and Japanese populations.
|
Language (not country)[2] |
Resident (2018) |
Visitor (2018) |
Student (2018) |
|
Chinese |
177,000 |
610,000 |
39,000 |
|
Korean |
36,000 |
93,744 |
7,300 |
|
Japanese |
13,100 |
99,800 |
11,00 |
|
Thai |
10,250 |
21,400 |
3,720 |
|
Vietnamese |
9,000 |
18,600 |
2,410 |
By engaging with the resident and transient Asian communities
in New Zealand councils will be able to influence their decisions when
considering travel destinations, looking for employment or considering where to
open a business. The migrant communities, visitors and international students
also play an important role as a conduit back to their home countries which in
turn can lead to further tourism, international students or investment.
3.2 Asian impressions of the Waikato Region.
According to the annual Eastern Bridge: Asia Perceptions
Survey, the Waikato Region is a fairly welcoming region for Asian migrants,
students and visitors. The number one concern by respondents was their
inability to access reliable information about the region or its communities in
their own language. The lack of Asian language support is an inhibitor to
visitors, international students, businesspeople or skilled migrants engaging
with the region.�
|
Welcoming Community |
Welcoming travel destination |
Liveability |
|||||||||
|
Ease of accessing healthcare |
Education satisfaction |
Ease of finding employment |
|
About the Eastern Bridge Migrant Perceptions Survey: The Annual Migrant Perceptions survey has been held every |
4.���������� WHY WORK
COLLABORATIVELY?
Maintaining
a meaningful international relationship can be a burden on district council
resources, particularly for those councils with small rating bases. New Zealand
councils are far smaller, both geographically and in population than their
counterparts in Asia. With these two major points in mind, it makes sense for
local government to work collaboratively as a region, when engaging in
international relationships. Their shared resources will allow for more active
engagement and their increased scale makes them a far more attractive partner
for Asian cities.
Unlike
New Zealand, in Asia, Regional (or Provincial) governments are responsible for
several administrative functions. They undertake many of the activities for which
our Central Government is responsible. When New Zealand local government
collaborates at a regional (or sub-regional) level, there is a more realistic
opportunity to engage with provincial governments in Asia. The provincial
government can enable and support far more activities than those of city
governments, meaning more opportunities for cooperation.
|
Regional Cooperation |
Goals:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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5.���������� OPPORTUNITIES
Whilst it is common to think in terms of Central Government�s role in
international relations, local government also has an important role to play
through harnessing international connections to promote community and economic
development outcomes at the local level. While many councils already maintain
sister-city relationships, these are often managed in a silo, for example
focusing only on economics while not considering the civic, cultural or
language opportunities. It is important to look at international relations in a
holistic manner , promoting education and understanding at a community level
while also reaching out to international partners to encourage economic
exchange and promote cultural and educational outcomes. Ignoring certain
aspects of an international relationship will inevitably compromise its
sustainability.
This strategy identifies ten opportunities that are available to the
Region, which have been segmented into three loosely defined categories:
�
Enablers, tools with
which to grow connectivity and leverage outcomes from having an international
partner;
�
Community Development,
providing education and understanding of our international partners; providing
opportunities for our community to become more internationalised, while also
sharing our culture with our partners; and
�
�
Economic Development,
encouraging sustainable business links with international partners to create
meaningful employment and growing local prosperity. All the opportunities are interlinked.
|
ENABLERS |
COMMUNITY |
ECONOMIC DEVELOPMENT |
|
Sister |
Language |
Tourism |
|
Regional |
Exchanges |
Export |
|
Information |
Cultural |
Trade |
|
|
|
Investment |
5.1������������ ENABLERS
5.1.1��������� Sister-Region
Relationship
Within the
Region: Hamilton, Taupo, Hauraki and Waitomo have established sister-cities
with Asian partners. In all cases these relationships are either inactive or
confined to basic education and cultural exchange. Hamilton, Taupo and Hauraki
councils have semi-regular (at least once every two year) meetings with their
partners, however these engagements usually revolve around political
pleasantries, at the Mayoral level.
The
Waikato councils struggle to maintain an active engagement with their
international partners for a number of reasons. These include the cost of
resourcing regular contact, particularly the availability of elected officials
and council staff to travel to those partner cities; access to appropriately
skilled and knowledgeable personnel who can manage these relationships while
also liaising with local stakeholders; and the disparity in scale between New
Zealand cities and their international counterparts. In the case of China, it
isn�t uncommon to have a 100-fold difference in population or economic output.
For the
reasons outlined above it is sensible for Councils to collaborate, sharing the
resourcing burden while also maximising their scale.� A practical way of achieving this is through
the development of Sister-Region (or Sister-Province) relationships.�
For such a
regional approach to be successful it is important for the Councils to work
together, sharing a unified strategy for engagement with their sister province.
It is also important that they act as a unified group and not undermining each
other�s efforts.
A working model of a New Zealand
sister province relationship is between the Eastern Bay of Plenty districts of
Whakatane, Opotiki and Kawerau and Jiangxi province. The relationship was
formalised in 2019 and is actively managed by Eastern Bridge Limited.
Outcomes from the relationship
include:
- a
scholarship fund and cultural grant being established - a
Jiangxi produced television documentary about the Bay of Plenty - and
the launching of a Bay of Plenty promotion centre in Jiangxi with a
planned reciprocal campus for the Eastern Bay of Plenty.
While current economic projects are
on hold due to the Covid19 pandemic, discussions have been held between schools
to support more fee-paying international student recruitment, two significant
investment projects and a joint television production to promote tourism.
|
Sister Regions |
Goals:
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Strength:
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Opportunity:
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Weaknesses:
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Threats:
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5.1.2��������� Regional
Promotion Centre
There are
a small number of cities internationally, which have established city or
regional, promotional offices in their Asian sister cities. London, New York,
Nottingham and the Eastern Bay of Plenty are four such examples. They chose to
establish offices in China to promote their cities, while providing their
business communities with a landing pad as they enter the Chinese market.
While ambitious, a Regional Promotional
Centre would provide a significant enabler for the promotion of the Region�s
economic, cultural and language ambitions in China.
|
Regional Promotion Centre |
Goals: To establish a regional Centre which will be used to |
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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5.1.3 Information Portal
Communication is critical in raising
awareness of the Region. It is important that participating organisations work
collaboratively to develop a �Waikato� narrative when promoting the Region. Few organisations in the
Waikato have embraced a multi-lingual approach, even promotional organisations
tasked with marketing to international audiences only have partial translations
� insufficient to fulfil the needs of the user.
A common argument made by
council staff is that migrant communities in New Zealand speak English. While
highly inaccurate, for those who do speak English, accessing information in
their native language is more comfortable and decreases the risk of
misunderstanding. Language is a major barrier for Asian migrants to integrate
into New Zealand communities. Those who are not native speakers often feel
isolated or excluded from the community. The Covid19 lock-down in March � May
2020 highlighted how vulnerable this community is as many were unaware of the
rules or their rights.
The portal is available in
English, as well as Chinese (simplifies), Korean, Japanese, Vietnamese and
Russian.
As an international
marketing tool, a language portal can raise New Zealand�s profile.
Participating regions and communities can showcase their unique attributes. The
reality is few people in Asia know much about New Zealand. In a survey
conducted by the Ministry of Foreign Affairs & Trade the main attributes
associated with New Zealand are: natural environment, free-country, rugby,
milk, honey and kiwi(fruit); while not negative connotations, there is more to
New Zealand which we should be promoting.�
Non-local government stakeholders in
the relationship should also be able to participate in building the Waikato
narrative. Stakeholders why may wish to contribute could be Iwi, Regional
Tourism Organisations, Economic Development Agencies, schools, or individual
businesses.��
Such an information portal
can enable a range of opportunities for the participant councils: showcasing
towns and regions, providing positive news stories, selling local products
(both domestically and internationally), attracting international students and
tourists; and providing the information needed for business people to make
decisions about relocating or investing. The portal can also support community
cohesiveness by providing a platform for incoming migrants and locals to engage
and communicate, a platform the councils to communicate important messages or
promote community events.
A Waikato Information
portal is already under development with uptake from several local
authorities.� For the portal to be a
success it will need continued support from the region.
|
National |
Regional |
District |
Local stakeholder |
|
Highlighting New Zealand�s comparative advantage to other countries |
Introducing the Waikato Region and what sets it apart from other parts |
Introducing the individual district or city. |
A healthcare |
|
Introducing national level rules and regulations which could affect |
Introducing the region�s tourism offering |
Introducing the local tourism offering. |
A tourism and |
|
National level news which would be relevant to Asian viewers (keeping |
Introducing the region�s export education offering |
Introducing the local export education offering, education providers |
A school and education provider directory. |
|
|
Introducing the region�s work, business and investment offering |
Introducing the local work, business and investment offering. |
A business directory where local businesses can be displayed. |
|
|
Showcasing the region�s products |
Showcasing the local products including a buy local e-store. |
|
|
|
Providing regional news and current events |
Providing local weather, news, current events and public notices |
|
|
|
|
Providing a discussion form where interested parties can ask questions |
|
|
|
|
Detailing council services and how residents can access them. |
|
|
Information Portal |
Goals:
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Strengths:
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Opportunities:
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Weakness:
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Threat:
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5.2�������� COMMUNITY
DEVELOPMENT
5.2.1��������� Language
Promotion
Eight in
ten New Zealanders can only speak English and the number of students in New
Zealand studying a second language has been declining for over 20 years.
According to an Asia NZ report the number of senior secondary students studying
an Asian language has declined by 34 percent between 2012 and 2016. This figure
is concerning in view of the importance that Asia has for New Zealand. Already,
New Zealand companies are struggling to employ New Zealanders with the language
and cultural skills to engage with China, Japan and Korea.�
Multi-lingual
New Zealanders have huge advantages when working abroad, particularly in Asia
where they are obviously �foreign�. In Asia, a �foreigner� who speaks their
language can usually command a far higher salary than a foreigner who only
speaks English and there are a wider range of employment opportunities in Asian
companies.
For New
Zealanders to perceive Asians as potential partners rather competitors and a
threat it is important that cultural and linguistic awareness is improved and
the benefits of cooperation between New Zealand and Asia are understood.�
New
Zealand has a strong demand for Asian language speaking New Zealanders in a
range of sectors including tourism, education, trade, finance, banking and
entertainment. Currently most roles requiring Asian speakers are taken by
migrants of Asian descent.
Communities are led by their councils, with the Waikato local
authorities taking an active interest in being Asia ready their residents will
follow. Through the likes of the regional relationship, there will be increased
opportunities for residents to travel into Asia and experience the language and
culture first-hand. There will be greater connectivity between Waikato schools
and their counterparts in Asia providing more exposure of Asian languages to
the students. Business operators will see the importance of having staff with a
degree of foreign language ability and will encourage training.
Councils can further assist by promoting community language
classes or encouraging schools to start Asian language programmes.
|
Language Promotion |
Goals:
|
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Strengths:
|
Opportunities:
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Weaknesses:
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Threats:
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5.2.2��������� EXCHANGES
Exchanges
are a great way to build people-to-people connections between countries through
sister and friendship cities. There are many forms that exchanges can take. The
most common exchanges are usually run for students. Sister school relationships
are popular and allow for students to connect online and to become modern day
�pen pals�, as well providing opportunities for students to travel to each
other�s schools.
Student
exchanges are a good way to foster interest in other cultures and languages
amongst New Zealand students. Exchanges also open students� minds making them
receptive to new ideas and building aspirations. Greater understanding of
different cultures leads to diminished anxiety of the �other�. Incoming
students on short-term exchanges will experience New Zealand life and
educational environment. Some students choose to return as fee paying
international students.
There are
also exchanges for professional personnel, for example teachers, researchers,
engineers and in sectors where cross-pollination of ideas or a closer working
relationship can be of benefit to both countries.
Exchanges are not usually run on a
commercial basis, however there are often minor costs involved, for example for
airfares, visas, insurance and in some cases management fees for the
organisers.
|
Case Study: There are schools in most |
|
Exchanges |
Goals:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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5.2.3��������� Cultural
Preservation
A large part of what makes New
Zealand special is our unique cultural perspective and diversity. Many New
Zealanders do not understand the importance of our culture and this can be to
the detriment of NZ Inc. By sharing our local culture, we not only raise
awareness of New Zealand internationally, we also build our sense of identity
and pride in our communities.
China, which understands the
importance of cultural influence for its people and economy, has been engaged
in raising cultural awareness overseas for the past two decades. South Korea
and Japan also invest heavily in cultural promotion with Japanese pop-culture
gaining a massive following globally in the 1990s and South Korea K-Culture
currently dominating Asia and making strong waves into Europe and the
Americas.�
Whilst the Region cannot hope to
compete with the scale of cultural investment from the three Asian countries
above, there are opportunities for it to grow its influence with its sister and
friendship cities and regions. Many of these opportunities will be based on
Maori culture since this is New Zealand�s �point of difference�.
|
Case Study: An example of how New |
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� Cultural Preservation |
Goals:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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5.3�������� ECONOMIC
DEVELOPMENT
5.3.1������ Tourism�
According
to Tourism New Zealand data, international tourism is a $10 billion industry
for New Zealand, with the strongest growth in numbers and expenditure driven by
Asian countries, in particular Japan (up 23 percent) and Korea (up 90 percent)
in 2017. While the Covid19 pandemic has halted almost all international tourism
for 2020, there will be a slow recovery through 2021, with the industry
rebounding in 2022 � 2023. The Ministry of Business Innovation and Employment
predicts Asian will become the leading source of international travellers led
by China. There is also strong growth predicted from South Korea and Japan.
|
|
China |
Japan |
South Korea |
|
Tourism Visitors |
436,256 |
102,480 |
92,384 |
|
Tourism Economic Value |
$1.46 billion |
$271 million |
$230 million |
|
Largest Tourism Market |
2nd |
5th |
6th |
Note �
Table Information Is Derived From 2016 Data
The
majority of Asian visitors currently choose to visit only a few destinations:
Auckland, Christchurch, Queenstown, Rotorua and Wellington. Hobbiton and
Waitomo Caves are popular attractions with Asian travellers, however the
visitor numbers are driven largely through organised tours where the visitor is
based in Rotorua. There is a slow increase in Free and Independent Travellers
(FITs) who choose to explore beyond the main tourism route. There are, however,
a number of hurdles, primarily access to information in their languages, as
well as the unpreparedness of local operators for Asian travellers.
Apart from
international visitors there are approximately 336,500 Chinese, Japanese and
Koreans residing in New Zealand either as resident or on long term visas. Most
of these migrants live in Auckland but with sizeable populations in
Christchurch, Wellington and Hamilton. These groups provide an affluent market
for regional tourism operators. They generally have a higher level of language,
access to their own transport and are more confident about experiencing the
�real� New Zealand. They also come with the added benefit of providing a base
for their friends and family members from back home who, in their turn, can
become tourists to the regions.��
The
Waikato Region has several key hurdles to overcome when attracting more FIT
Asian travellers. According to the 2019 Migrant Perceptions Survey the Waikato
would benefit greatly by having more information about the region available in
Asian languages. While there are three Regional Tourism Organisations operating
in the Waikato: Waikato Tourism, Tourism Coromandel and Taupo Tourism, only
Taupo Tourism has expressed an interest to priorities becoming �Asia Ready�.
The second hurdle to attracting more Asian tourism to the Waikato is the lack
of high-quality tourism product � including accommodation and activities. While
the region has several key attractions such as: Zealong Tea Estate, Hobbiton,
Waitomo Caves, Wairakei Terraces � the region would benefit from more premium
tourism offerings.
|
Tourism |
Goals:
|
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Strengths:
|
Opportunities:
|
|
Weaknesses:
|
Threats:
|
5.3.2��������� Export
Education
Export
Education is New Zealand�s 4th largest export with a value of over $5.1 billion
and has created approximately 50,000 jobs. International students bring
substantial economic benefit to their host communities, paying fees to their
host school, paying for homestay or rented accommodation as well as spending
money. International students also contribute to New Zealand�s domestic tourism
market. Aside from their short-term economic contribution, international
students bring in new ideas and so assist with the diversification of our
communities. Many students who study in New Zealand return to their home
countries, becoming ambassadors for the New Zealand brand and contributing to
an international pool of talent from which New Zealand Inc can draw.
China,
India, Korea and Japan make up our top four international student markets, with
Saudi and Korean students being the highest spenders per student in 2018.
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Rank |
Number of Students |
Economic Value |
Growth (by spend) |
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Chinese |
1st |
39,000 |
$1,920 Million |
+37% |
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Korean |
4th |
7,300 |
$300 Million |
– 4% |
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Japanese |
3rd |
11,00 |
$340 Million |
+ 18% |
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Thai |
5th |
3,720 |
$120 Million |
+9% |
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Vietnamese |
7th |
2,410 |
$90 Million |
+32% |
The Export
Education industry involves language schools, private training enterprises,
polytechnics, universities, primary, intermediate and high schools as well as
individual operators. 80% of the export education market is centred in
Auckland. The Waikato region takes 6% ($280 million) of the export education
market, largely thanks to the University of Waikato.
The
Waikato region could become a major player in export education by promoting
study options in the region�s primary and high schools and promoting education
pathways through to tertiary study. Key inhibitors to growing the market
include a lack of information about the region�s schools and community services
and poor public transport connecting the district internally and to Hamilton.
The rail link between Hamilton and Auckland would play an important role in
enticing more international students from Auckland to the Waikato.
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Case study In 2019 a cluster |
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Export Education |
Goals:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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5.3.3������ Trade
The New
Zealand economy relies heavily on trade. According to Statistics New Zealand
data in 2017, two-way trade was worth over $110 billion, of which $53.7 billion
was exports. East Asia is an important trading market for New Zealand with
China being New Zealand�s largest trading partner.
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China |
Japan |
South Korea |
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NZ�s largest Export Market |
1st |
4th |
5th |
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Export value |
$12 billion |
$3.14 billion |
$2.3 |
New
Zealand exports are dominated by primary produce which includes dairy, meat and
logs.� There are also higher value, or
value added, commodities exported but their relative worth is small when
compared with the primary products.
New
Zealand has a strong reputation in Asia for producing high quality food and
beverage products, of these the most highly sought after are: milk powder, manuka
honey and wine. There is an opportunity for more small food and beverage
companies to increase their capability and begin exporting to East Asia.
In the
fresh fruit and vegetable sector New Zealand has a strong advantage due to our
seasonal difference with the northern hemisphere. New Zealand has been
especially successful in South Korea with Kiwifruit where it holds a 70% market
share and butter-squash (a 90% market share).
The
Waikato Region�s chief exports to Asia are: Dairy products, meat, logs, fruit
and seafood. There is strong potential growth for the region to become a leader
in agri-tech, which will be in high demand in our key Asian markets. Recent
investment into transport and logistics infrastructure including the inland
port in the Waikato district, will allow the freer flow of products around the
region, making the Waikato a very competitive exporter.�
The Region does have some challenges:
boutique and niche food and beverage manufactures which could have strong
demand from Asian consumer, but struggle to get a market presence; While there
are numerous capacity building workshops for exporters offered in the region,
few go beyond identifying a general opportunity or provide meaningful advise
Finally, there needs to be a shift in business owners mentality when
considering exporting � many are reluctant to spend money on building offshore
markets , choosing to work with unverified agents and lose control of their brand
offshore.
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Trade |
Goals:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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NOTE: Daikou is a popular
selling method in China which relied on personal networks and direct
relationships to sell products. Daikou is now heavily regulated at the border,
but is common for domestic sales. New Zealand producers can still leverage off
this sales model by using e-commerce trade zones.
5.3.4������ Investment
Investment
has become a controversial topic, regarding Asian investment. As of 2016
Australia, the United States and Canada are by far the largest sources of
Foreign Direct Investment (FDI) into� New
Zealand, however China is becoming increasingly important. (Currently of all
FDI classed �sensitive� only 10% originates from Asia).� Japan is also a substantial and established
investor in New Zealand and has a track record of working with a number of Iwi
groups. Korea is a minor investor in New Zealand.
Asian
investment is focused in primary food production (26%); property development,
hotels and land development (25%); forestry, horticulture (24%); services and
utilities (11%); food and beverage manufacturing (excluding meat and dairy)
(6%); and general manufacturing (non-food, the remaining 8%).
According
to an Asia New Zealand report, in 2018 Auckland and Waikato region comprised
22% of the New Zealand Foreign Direct Investment from Asia. When looking at FDI
from Mainland China and Hong Kong the Waikato has also done well, receiving 13%
of FDI.
According
to a survey conducted by Eastern Bridge, New Zealand is considered a safe
destination for investment. Including immigration to New Zealand through the
investment visa category, New Zealand presents an attractive investment option.
However, there are also several concerns raised: the number one hurdle to
attracting investment into the regions is a lack of preparedness from the New
Zealand side.
Incoming
Asian investors often struggle to identify realistic investment opportunities:
- they struggle to obtain accurate information
relating to the size of an investment - the indicative costs of running the business
- �and the
estimated return on investments.
New
Zealand also has a reputation of moving slowly when it comes to permits and
consents while being unforgiving when a business operates outside its consent.
The Eastern Bridge survey also identified concerns with the processing speeds
of visas, particularly with applications from China. Further to this many
potential Chinese investors struggle to move their funds out of China as the
Chinese government is tightening up regulations regarding movement of its
currency.
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Investment Attraction |
Goals:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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6.���������� RESOURCING
For the
Councils to have success with their international partnerships it is important
for them to be resourced. As with any relationship the council and community
need to invest in and commit time to the long-term development of the
relationship. This section outlines the main areas which need to be fostered
and the indicative cost to enable a meaningful international relationship to
grow.
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CAPABILITY BUILDING |
DELIVERY |
MANAGEMENT |
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Training |
Outward |
Strategy Management |
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Market Intelligence |
Inward |
Budget |
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International Communication |
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Local Communication |
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RESOURCING |
Y1 Q1 |
Y1 Q2 |
Y1 Q3 |
Y1 Q4 |
Y2 Q1 |
Y2 Q2 |
Y2 Q3 |
Y2 Q4 |
Y3 Q1 |
Y3 Q2 |
Y3 Q3 |
Y3 Q4 |
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TRAINING |
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Council Strategy |
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Business Workshop |
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School Workshop |
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Delegation |
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INFORMATION |
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Collecting |
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WeChat content (for |
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General Introduction |
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General Introduction |
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General Introduction |
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6.1������ CAPABILITY
BUILDING
6.1.1������ Training
Training
and exposure to information relating to Asia is an essential part of this
Strategy. The Strategy�s training component focuses on three areas: Civic /
Council training for those staff and elected officials who need to engage
directly with foreign diplomacy, as well as staff who work with new migrants or
existing migrant communities; Business people wishing to know more about
foreign markets and doing business in Asia safely; Schools and community
organisation by providing opportunities for students and other community
members to learn more about Asia and ways to experience it first-hand.
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Civic / Council |
Business Community |
Schools / Community |
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Workshops for Mayors |
Provide market |
Encouraging and |
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Workshops for |
Provide cultural |
Provide information |
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Provide |
Business |
Assist in � |
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Workshops for � |
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Assist in |
6.1.2������ Market Intelligence
It is
important to understand how Asian residents as well as Asian populations
outside of New Zealand feel about New Zealand and the Waikato Region. Having a
knowledge of Asian sentiment towards our communities will help direct the
Councils and relevant organisations to develop strategies to better manage the
relationship. Understanding where migrants struggle will also allow the region
and councils to provide targeted support.
From a
business perspective, having a strong knowledge of what, local and international
Asian partners want will allow them to adjust their marketing strategies; or,
if deemed worthwhile their product or service. The tourism sector will benefit
from gaining a better understanding of visitor trends � it is important to note
that Asian visitor trends can change; many Regional Tourism Organisation�s fail
to keep their members up to date with the ever evolving visitor landscape.
For
schools, teachers and administrators will benefit from an increased
understanding of the culture of Asian education � allowing them to better
support international students. The will also benefit from insights on what
perspective international students, and their parents are looking for.
This
Strategy outlines three key areas for gaining information about Asia as well as
disseminating it to the Councils and key partners.
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Collecting insights |
Monitoring |
Research |
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Continuing to run the Migrant Perceptions Survey. Work |
Review foreign language media for references to the Waikato |
Whenever possible partner with |
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Market |
Goal:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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6.1.3������ Communications: International Partner Engagement
While the
Hongi information portal will provide mass communications and marketing
participants will also have� a
requirement to engage with international partners. Ongoing communication is
critical to ensure the longevity of the relationship. Communication can be
conducted both in written form (letters and emails) as well as through
scheduled video conferencing.
Eastern
Bridge�s International Relations Manager will prepare the meetings including
confirming agendas, speaking points and proposed actions.�
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Since |
6.1.4������ Communications:
Local Engagement
Good
communications will ensure that all participating organisations and key
stakeholders remain focused on their international engagements. Each
participating organisation and key stakeholder should identify an individual
contact who is responsible for passing on relevant information and providing
feedback to the Eastern Bridge International Relations Manager. Historically,
the points of contact in councils have usually been economic development
managers or councillors with an interest in economic development.��
The public
should be made aware of any international relationship. Ideally, such
relationships will be inclusive and community organisations will be welcome to
leverage off them. Including the community in these relationships allows for
greater exchange which in-turn strengthens them. Inclusion of the community
also helps to ensure the longevity of the relationship, as there is less
likelihood of complaints about unnecessary council funding if the community
sees the relationship as a community good.
Communication
with the community can be done through key stakeholders, as well as engagement
with local media organisations. The councils can also use their own websites
and social media platforms to issue press releases.
6.2������ DELIVERY
6.2.1������ Outward
Delegations
Successful
delegations should serve to deepen international relationships and expand links
between the people of the Waikato and the sister province . They do not need to
be confined to the council. They are most successful when councils lead
inclusive delegations since these facilitate opportunities for the Region�s
businesses, schools and other community organisations.
Delegation
members require training as there are always several formal events. Process and
protocol are particularly important across Asia and a breach of the rules isn�t
usually forgiven easily. In many cases the offending party may not know that
they have lost favour, however they may be treated coldly, or distance may be
placed between them and the offended entity. Demonstrating a basic
understanding of local customs and language will endear the delegation to their
hosts. Planning ahead will save all involved from feeling uncomfortable or
embarrassed. Ensure that group participants all have business cards and that
enough gifts are prepared.
There is
no set rule for the frequency of delegations, however one every couple of years
would foster the relationship. A reciprocal visit may be expected during the
in-between years. Delegations could be arranged during special events, such as
a city anniversary, trade show or festival. The aims of the visit should be
agreed between the region and the province beforehand. Promotional events for
the home region�s school, tourism or export businesses could be run and sport,
music or kapa-haka group performances could be showcased.� If a local business is planning to sign a
deal with a company in the sister region, having the council attend would add
credibility to the event. It would also mean their local government would
become involved which would give �face� to the Asian partner business.
The status
of a delegation is raised if it is led by the Mayor. For significant events,
participating organisation may wish to invite their local Member of Parliament
to attend as this will raise the status of the event even further and ensure
attendance by a provincial government (or even a central government)
representative. The attendance of these officials adds to the credibility of
the relationship and will encourage more engagement and exchange in the future.
It is also
important that successful delegations are celebrated, as success breeds
success. If businesses learn of opportunities through participating in overseas
delegations more will want to attend, further enhancing their value.
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Outward Delegations |
Goal:
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Strengths:
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Opportunities:
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Weaknesses:
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Threats:
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6.2.2������ Inward
Delegations
Inward
delegations can progress exchanges between the Regions significantly,� so when hosting a delegation, it must be
clear who is coming and the purpose of the visit.�
While it
is expected that regional partners will request letters of invitation to visit
the region, there will be additional ongoing requests from non-partner
organisations or businesses operating on behalf of overseas councils. These
approaches need to be considered carefully and a unified response made.
For
delegations which are accepted, the organisers need to be encouraged to spend a
reasonable amount of time within the host region. As with outward delegations
there must be planning to ensure that the visit assists in progressing the
overall goals of the region. To ensure that suitable members are included in
the delegation there needs to be good communication with the foreign affairs
offices of the partner government.
The cost
of hosting an inward delegation is substantially less than a delegation
offshore, however there will naturally be some expense. The host local
government should hold a formal meeting with the delegation, some entertainment
may be arranged, for example a visit to a place of cultural significance, a
school or regional business. The local council should also host a banquet,
either lunch or dinner.
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Inward Delegations |
Goal:
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Strengths:
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Opporutnities:
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Weaknesses:
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Threats:
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6.3������ MANAGEMENT
6.3.1������ Strategy Management
The International Relations
Manager will be responsible for the overall work outlined in this strategy. The
International Relations manager is supported by a team of translators, editors,
developers and staff based in New Zealand and across two offices in China.
Council responsibility:
Each council will identify someone
within their organisation who will be the liaison point between the
International Relations Manager and the relevant council officials and staff.
This role will be minimal and centre around forwarding information (to and from
the International Relations Manager) and arranging bookings when required.
In regard to the language portal,
there may be a one-off requirement for the council to provide the International
Relations Manager with content for inclusion. There will also be an ongoing
requirement to provide council updates, public updates and local news; this
council be sent directly from the council�s communications team.
A
full breakdown of roles and activities required to maintain and implement the
Strategy can be viewed on the following page.
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IR Manager |
Councils |
Regional stakholders (Iwi, Business , schools, etc) |
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Internal |
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Quarterly |
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Develop a database of Waikato stakeholders |
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Provide a quarterly update to the Waikato (non-council) |
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External |
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Prepare draft email, letters for international partners |
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Provide feedback and sign-off on external communications |
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Translation or interpretation of external communications |
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Manage the Hongi information portal |
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Respond to correspondence from the migrant communities |
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Produce content for the Hongi information portal |
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Work with international influencers to promote the Hongi |
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Use social media such as WeChat, Kakao and Line to engage |
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Training |
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Prepare and deliver training to support the region�s Asia |
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Participate in training |
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Market |
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Regularly review foreign |
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Tofacilitate Migrant Perceptions |
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To conduct research, due diligence checks and produce |
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Sister |
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Identify and recommend a |
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Undertake |
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Sign off and formally approve the relationship |
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Formalise the relationship (either in New Zealand or |
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Agree on a work plan based on identified opportunities |
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Manage the relationship, liaise with offshore partners, |
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Support businesses, schools and other stakeholders to |
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(If |
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Outward |
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Plan |
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Work with international partners to confirm schedules |
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Arrange bookings and travel planning |
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Arrange visas (if required) |
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Arrange translation and other in market support staff |
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Arrange and produce any required marketing materials |
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Provide pre-departure training |
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On-ground troubleshooting |
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Participating in the delegation |
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Inward |
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Work with international partners |
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Sign off from councils for inward delegation � confirm a |
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Work with business community and key partners to prepare |
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Provide training to participants |
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Provide translation and interpretation |
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Follow up with key partners to action and outcomes |
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6.3.2������ Budgets
Maintaining
an international relationship does not need to cost a great deal. If Councils
work collaboratively, the costs for a range of activities can be shared. The
delivery of this strategy would require a minimum of five participating
councils
Indicative
costs per participating council are shown below. The prices below are inclusive
of the management fee, delegate travel, accommodation and other associated
offshore costs, printing and marketing. The cost estimates are based on four
years experience of manging council international relationships.
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Year 1 |
Year 2 |
Year 3 |
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International |
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Offshore |
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Inward |
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Total estimated contribution� per council |
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