Cities of

Opportunity
New Zealand
Supplement

A city of opportunity is defined in the

study as a city that balances economic
and social strengths to offer a good
quality of life now, while actively
planting the seeds for a good social
and economic balance in the future

How new world cities are knocking the

traditional powerhouses down the list
The Cities of Opportunity report is the
fourth edition to be released by PwC and the
Partnership for New York City. It identifies
lessons and trends that can help cities grow
and remain resilient, and paints a changing
picture of urban success. One of the key shifts
is that the traditional capitals of global power
may not be the finance and business centres
of the future. This is exciting news for us, as
the world becomes more virtual and mobile,
holistic cities with balanced economies and
good quality of life, offer resilience during
downturns and appeal for the skilled people
who will build our future.
Our commentary on the report provides some
relevant insights for New Zealand as it develops
its metropolitan areas into key economic hubs.

Balance drives success

A balanced
performance was
key to New Yorks
success

New York comes out on top in the 2011 study

which analyses and ranks how 26 global
centers of finance, business and culture
perform across 10 key indicators. However
despite finishing first it hardly dominates. New
York leads because of balanced performance
across all of the indicators. This is likely to be
key to the citys continued economic resilience
and outstanding performance in other areas
such as intellectual capital, lifestyle assets and
technology readiness.
New York is followed closely in the top five by
Toronto, San Francisco, Stockholm and Sydney
importantly for New Zealand all of these
cities are more notable for quality of life and
balance than for global business dominance.

Torontos performance resonates for Auckland

because it also went through a controversial
amalgamation process in the late 1990s.
Toronto scores particularly well in the areas
of intellectual capital, health and safety, and
livability. Closer to home, Sydney, our closest
Australian city climbs two places this year,
finishing in the top three in the livability and
sustainability indicators.
While these cities cant match the size or
economic clout of longstanding commercial
hubs like London, New York, Paris or Tokyo,
their performance highlights a changing global
dynamic. Modern cities arent as dependent on
geography, historic connections and traditional
industry. Cities need to adopt a holistic
approach to attract and retain highly educated,
technologically adept, creative minds and
cutting-edge businesses that will build the
future. Intellectual capital and the innovation
that springs from it, drive both social and
economic development.
Traditional leading cities such as London
(ranked sixth this year) and Paris (ranked
eighth) retain their power and allure, but they
dont come out on top like they have in the
past. Theres a lesson in the results about the
future success, or not, of our cities with global
migration changing city profiles so quickly and
people being able to work anywhere they chose
in the world, previous dominance in any sector
isnt guaranteed.

PwC Cities of Opportunity | 4

The Cities of Opportunity key indicators and top three cities in each are:
Indicator

1st

2nd

3rd

Intellectual capital and innovation

Stockholm

Toronto

New York /
San Francisco

Technology readiness

New York

Seoul

Stockholm

Transportation and infrastructure

Paris

Chicago

New York

Demographics and livability

Stockholm

Sydney

Toronto

Economic clout

London

Paris

New York

Cost

Houston

Los Angeles

Chicago

Lifestyle assets

New York

Paris

London

Health, safety and security

Stockholm

Toronto

Chicago

Ease of doing business

Hong Kong

Singapore

New York

Sustainability

Berlin

Sydney

Stockholm

Importance of understanding
key issues
While the results are interesting, looking at
the details behind the rankings is needed to
understand how these cities deal with core
urban issues. Interviews with world authorities
at the centre of city thinking, provide a deeper
exploration of these core issues. They address
some of the most pressing challenges facing
cities today including education, attracting
and retaining talent, congestion,
transportation, sustainability, urban design,
preservation and regionalisation.
Many of these insights are extremely relevant
to New Zealand cities. A good example of how
the challenges are being recognised locally is
Auckland Mayor, Len Browns, vision to create
the worlds most livable city based on the
following four pillars:
A productive, high-value economy
An excellent transport system
Quality urban, rural and natural
environments
Cohesive, resilient communities

Mayor Browns four pillars are supported by

the report findings, which identifies three
necessary types of infrastructure required
to make a city liveable:
1. Physical infrastructure (makes a city
attractive and easy to navigate, and must
be able to withstand climate related shocks
and other emergencies)
2. Economic infrastructure (diverse enough
to withstand economic shocks, and
innovative enough to seize opportunities)
3. Resilient social infrastructure
4. When all three are strong, cities will not
only offer a better quality of life but they
will also enjoy greater economic success.

City Liveability
There are a number of things that contribute
towards a city being great to live in. Ease of
walking; being well lit; teeming with energy
both day and night; exciting architecture; great
local cuisines; beautiful natural setting; not
too big; and easy access to the countryside and
ocean are just some desirable qualities. We
have an advantage that New Zealands major
cities tick a lot of the boxes already.

The Cities of Opportunity study reinforces the view that changes in communications,
knowledge-sharing, transportation and urban migration are transforming world
dynamics; cities that want to thrive need to adapt to these changes. New Zealands
future success will be reliant on our cities addressing these challenges, the good news
is that size is no longer a predictor of influence.
John Shewan, Chairman PwC NZ

Looking globally for inspiration, Berlin is a

great example of a city that we could learn
from. It has become a magnet for creative
and skilled people by having a clear strategy
to focus and nurture its strengths. While
the brain drain is a big issue for most cities,
thanks to its energy, art and good quality of
life, people are returning Berlin. This trend
supports the view that arts are essential
for the lifeblood of a great city.
Wellington is adopting a similar strategy
to Berlin through the Creative Wellington
- Innovation Capital long-term strategic
vision. The aim is to capitalise on Wellingtons
reputation as New Zealands centre of
creativity and innovation in order to attract
and retain smart, innovative people, as well
as creative, forward-looking enterprise.

City Economy
The Cities of Opportunity report emphasises
the importance of a citys economy, which is
often the major driver of its formation and
expansion or contraction. To generate jobs,
cities need to streamline the consents process;
manage rates; develop programs to create
incentives for people to build; understand
and nurture the citys strengths; plus ensure
fundamental basics like public transportation
and education are the best they can be. It
also states that geography, specific cultural
profile or historical experience dont influence
business investment, its a combination of
flexible labour policies, openness to the rest
of the world, and the ease of starting and
maintaining an enterprise that matter. If this is
the case, New Zealand has a real opportunity
to compete on an international level.

Urban Transportation
One of the pillars of the Auckland Mayoral
vision is an effective integrated transport
system that will transport two million
Aucklanders by 2030. This will make it
easy for people and freight to get around
and it will support better environments. An
efficient transport system and relieving traffic
congestion is important for cities not only
economically, but for social and environmental
reasons too. Congestion is becoming a major
issue for cities around the world due to
increasing urbanisation, and New Zealands
large urban centres arent exempt. Cities are
struggling to cope with migration putting
pressure on infrastructure and services such
as transportation.
Globally, cities are addressing traffic
congestion with high occupancy vehicle lanes,
urban densification and congestion pricing.
Singapore led the world with congestion
pricing in 1975 and reinforced it with policies
that severely limited car ownership. Per capita
car ownership is now 122 per 1000 people,
compared with 780 in the US. Stockholm has
also had a positive experience, with traffic
declining by 20% and traffic congestion
decreasing by 30%. Key messages for Auckland
are that successful congestion management
requires input from every level of government
and an efficient public transport system.
The discussion in the report recognise trains
to be the wave of the future because of their
ability to transport large numbers of people
using very limited space and with little
environmental impact. The report also
points out that rail transit is absolutely
essential as the backbone of transport
and economic development.

PwC Cities of Opportunity | 6

It isnt surprising then, that the proposed

Auckland CBD rail link has been identified
as possibly the most important element in
Auckland being transformed into a globally
competitive urban centre. But aside from
obtaining the required funding, there will be
other challenges that need to be overcome.
The report states that to achieve clean efficient
transportation, it is important that people
actually live in the city. And to attract people
to live in the city it needs to be vibrant both day
and night, but also needs clean air, green areas,
recreation opportunities, and mobility.

Development and Preservation

The report includes some interesting learnings
around urban design and character as well
as the role of heritage and preservation in
maintaining unified communities. It highlights
the risk of losing character as cities become
so big that they fall apart into fragments. The
importance of creativity, architecture and
planning in creating a city with character and
quality urban design, cant be underestimated.
The report points out that One size does not
fit all when it comes to cityscapes. Skylines
can be impressive but seem to be less relevant
to the urban experience than the more flexible
notion of a cityscape, which reveals more
about a citys sense of itself than a skyline does.
Disasters that destroy large areas of cities can
also result in opportunities to rebuild and
create beautiful cities through careful planning
and creativity. Chicago provides an example
of a city that was rebuilt by planners following

the great fire of 1871. Looking to the art deco

successes of the Hawkes Bay following the
1931 Napier earthquake, New Zealand has
a major opportunity to achieve this with the
re-build of Christchurch.
Cities that are expanding and being
redeveloped, face conflict between welcoming
progress and preserving historic structures
and ways of life. Preservation is taking off
worldwide, with 12% of the earths surface
now preserved. The past is hot in the present.
But why? According to the report, in the last
decades of the 20th century, redevelopment
destroyed not only social networks but also
took away the particular identity and feeling,
the atmosphere that a place had for perhaps
centuries. Now planners, decision makers
and conservationists are trying to identify
the elements that should be retained in order
to keep that sense of place and identity.
No matter what forces created a heritage,
local communities are its living custodians
they embody it.
The redevelopment of the Wynyard Quarter on
Aucklands waterfront provides a good example
of a development where some of the key
heritage and character elements that reflect
the history of the area are being preserved. The
marine and fishing industries that are located
in the area and form an important part of its
identity, are being retained so that the local
businesses, social networks and communities
that they support, remain in place.

Per capita car

ownership in
Singapore is now
122 per 1000 people,
compared with
780 in the US

Regionalisation

Conclusion

Another core issue facing todays cities that

is directly relevant for New Zealands cities
and districts, is regionalisation. The report
points out that modern urban thinking
can only be effective if its framed in terms
of cohesive urban regions. The challenge
is how to effectively manage cities while
taking into account their surrounding areas.
Challenges also include difficulties securing
funding for infrastructure projects that
extend beyond local borders; intra-regional
competition; economic disadvantages
associated with regionalisation for
individual cities within the region; and
integration of infrastructure and services.
These issues were key drivers for the
creation of Aucklands Super City, and will
no doubt be directly relevant to Minister
Hides current Smarter Government,
Stronger Communities review.

The Cities of Opportunity report provides

some important insights into what makes
cities grow and remain resilient, as well as
highlighting the changing dynamics that
successful cities of the future will need to
adapt to. The in-depth discussion on some
of the key challenges facing cities today
also provides some important lessons,
many of which are very applicable to
New Zealands cities and districts. In order
for our major centres to develop into key
economic hubs that are competitive and
recognised on the global stage, our growth
strategies and future planning have to
be tackled holistically. Looking at New
Zealands progress to date against the
broad scope of the key indicators in
the Cities of Opportunity report, it is
encouraging to note that our cities are
on track with their plans and strategies
to becoming cities of the future.

PwC
PwC| Cities of Opportunity | 8

For more information

If you have any questions about the newsletter items, please
contact one of us below, we are here to help.
Craig Rice
Partner - Advisory Leader
P: +64 9 355 8641
E: craig.rice@nz.pwc.com

John Shewan
Chairman
P: +64 4 462 7254
E: john.shewan@nz.pwc.com

David Walker
Director
P: +64 9 355 8033
E: david.a.walker@nz.pwc.com

Gareth Stiven
Director
P: +64 9 355 8608
E: gareth.n.stiven@nz.pwc.com

John Dobson
Partner
P: +64 7 838 7411
E: john.r.dobson@nz.pwc.com

John Dixon
Managing Partner - Napier
P: +64 6 833 3733
E: john.j.dixon@nz.pwc.com

Murray Harrington
Partner
P: +64 3 374 3094
E: murray.d.harrington@nz.pwc.com

Duncan Scott
Director
P: +64 4 462 7160
E: duncan.p.scott@nz.pwc.com

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