Time to Invest in Christchurch: Why New Zealand Needs Two Economic Engines

The Risk of a One-Engine Economy

New Zealand’s economic power is overwhelmingly concentrated in Auckland. The City of Sails is home to a third of our population and generates about 38% of New Zealand’s GDP. Even Auckland’s own mayor has described the region as “more like a city state” and the powerhouse of New Zealand’s economy. But relying so heavily on a single city is risky and unsustainable.

A 2017 NZIER report estimated that Auckland’s congestion will cost the local economy $2.6 billion per year by 2026. Meanwhile, the median house price in Auckland is $1.04 million – out of reach for most families – compared to around $699,000 in Canterbury. These pressures illustrate the perils of putting all our eggs in one basket.

South Island’s Untapped Potential

Christchurch already contributes 8.4% of the national GDP, and the broader South Island accounts for only 22% of GDP despite making up nearly a quarter of the population. The South Island is full of underutilized assets: world-renowned tourism, advanced agriculture, renewable energy, and growing innovation hubs.

Australian tourists, for example, spend 63% of their NZ holiday nights in the South Island, showing clear demand. Christchurch could be the natural gateway – not just for tourists, but for talent, trade and transformation.

Building Connectivity: Railways and Runways

The South Island hasn’t had a meaningful intercity passenger rail service since the Southerner shut down in 2002, despite widespread public support for its return. In 2022, Dunedin City Council submitted a formal request to central government to restore regional passenger services, with overwhelming public feedback backing it.

A modern South Island rail network could revolutionize transport. It would increase resilience (particularly after events like the Kaikōura earthquake), slash emissions, and boost mobility in ways private vehicles simply can’t. One regional councillor described South Island rail investment as “long overdue”.

Meanwhile, Auckland Airport connects to 41 international destinations, while Christchurch offers only around 10. Tourists heading for Queenstown or Franz Josef still have to layover in Auckland, increasing cost and congestion.

There are signs of change. In 2024, Air NZ launched a jet route from Christchurch to Hamilton. Qantas boosted flights to Sydney and Melbourne from Christchurch, and Singapore Airlines added more services. Even Christchurch-Cairns flights are now launching. These upgrades need active government backing to become the norm.

Nationwide Benefits of a Two-Engine Strategy

This isn’t a South vs North debate. A strong South Island economy reduces pressure on Auckland, cooling its overheated housing market and easing infrastructure strain. With Canterbury house prices ~$300,000 cheaper, many families and businesses could thrive in the South – if connectivity and opportunities exist.

Distributing growth also builds resilience. The pandemic taught us how quickly a single-city shutdown can affect the nation. With two engines, shocks are absorbed more smoothly. Tourism flows diversify. Businesses find room to grow. Freight moves faster and cheaper.

Tourists and exporters alike benefit from direct access. Imagine a visitor flying straight to Christchurch and hopping a train to Queenstown. Or a South Island grower exporting goods with fewer bottlenecks. This is not a dream – it’s smart national policy.

A Call for Equitable Investment

It’s time to move beyond slogans. For years, we’ve heard “what’s good for Auckland is good for New Zealand.” But equally, what’s good for Christchurch and the South is good for New Zealand.

We need:

• A modern South Island rail system with regional and intercity passenger services
• Support for Christchurch Airport to grow long-haul international routes
• Government funding parity with northern infrastructure projects
• Digital and economic incentives to attract businesses south

New Zealand needs to stop being a one-engine country. With two economic engines – Auckland and Christchurch – we build a more balanced, inclusive, and future-ready economy. The time to invest is now.

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