Tag Archives: Multipliers

thoughts and faces #loosematerial

My father [never a follower of the FedUp Farmers, as he deemed them; always the campaigner for removal of farm subsidies, to enhance production and market competition] had ‘stock’ phrases with which to judge the faces of female adversaries, those with little brain or spine in politics, pretenders. One adept phrase that sticks in my mind is “like a horse eating thistles” —so I look on the following with my tinted lens, and laugh, rurally (ruefully). No one target.

On 19 May @StuFleming tweeted: “Spend $200k, revenue projections of $2.4M to others, 10% margin yields say $240k net”
[minus ODT news photo of face]

[DUD ‘money hype’ typically depends on false multipliers, anechoic silences, and arrogant self-belief —this (yes) bleak statement applies across a broad range of proposed deals and associated marketing detritus in the city, especially to events, conferences, sport, hospitality and accommodation, and even the re-use (Not conservation) of truly rare and precious instances of historic heritage] Here’s to all the fricking horses out there, including hypocritical colleagues and friends with blinkers like demo balls prepared to squeeze the last dollar and pass us to Hell. Anyway, back to “the business”…. cargo cult tourism. The wider effects of tourism are like those of dairying. Too many eggs in one basket and everybody (I mean, everybody) ends up doing it badly —killing Our Place for generations. Greed, like endorphins, like a running addiction, binds them up. They think they’re bright, they think they’re enablers (read risk takers/investors centred on their own gains only), they think they’re entrepreneurs, better than others (but because I for one will tell you things you don’t want to hear, you’ll say “I’ll ring you tomorrow”, that silence again) but they’re just funneled, tunneled sheepybaas – doing it wrong. Like cows, deer, Chinese gooseberries (Kiwifruit!), wines, stadiums….. or ‘getting a room’ behind the poorly remembered, heavily made-up, Disney’d facade of our city and nationhood. The worst kind didn’t, or didn’t bother to, ‘grow up’ here. They get desperate, create mess, import other yes men. Ring you like nothing happened, their exploits —not to ask deeply madly who and how you really are.

### ODT Online Sat, 20 May 2017
Trenz prompts high aspirations
By David Loughrey
Next year’s Trenz conference in Dunedin is set to cost ratepayers $200,000, but the long-term pay-off should run well into the millions.
The Dunedin City Council will next week be given an idea of the costs to the city of hosting the conference from May 7 to 10, and also the estimated benefits. The city learned last week it would host the tourism industry event next year, bringing up to 1200 international travel and tourism buyers, media and New Zealand tourism operators to Dunedin. It will be the first time the event, run by Tourism Industry Aotearoa (TIA), has come to Dunedin and the first time it has been hosted outside Auckland, Rotorua, Christchurch or Queenstown since it began in the 1960s. Trenz is an opportunity for New Zealand tourism operators to sell their product to buyers, effectively overseas travel agents who put together itineraries for overseas tourists. Attracting more than 350 buyers to experience the tourism products on offer here is considered a huge coup. On average, each buyer sends 4000 visitors a year to New Zealand, totalling 1.5 million. It comes as figures show New Zealand’s tourism market is expected to continue to grow strongly, topping $15 billion by 2023. Tourism contributes more than $690 million to Dunedin’s economy every year.
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Meanwhile, although we (‘our stock’ NZ) and the UK farm gate look pretty much the same……

‘Herdwick Shepherd’ aka James Rebanks (@herdyshepherd1) farms Herdwick sheep in the English Lake District. Author of bestselling memoir, The Shepherd’s Life:

### ODT Online Saturday, 20 May 2017
OE to Britain set to get tougher
Prime Minister Bill English says the Conservative Party’s new plans to clamp down on immigration will sting New Zealanders wanting to live in the United Kingdom, including on the traditional OE, but there is little he can do until Brexit is completed. The British party’s election manifesto includes plans to drastically cut net migration from 273,000 to less than 100,000 by targeting students and those on working visas. It proposes cutting the number of skilled migrants to get visas, higher levies on employers who take on migrant workers and tripling the National Health Service immigration health surcharge from £200 to £600 ($NZ380 to $NZ1130) a year for those in the UK on visas of more than six months and 450 for international students. That surcharge increase will also affect those on the traditional OE, although there is no mention of scrapping the two-year youth mobility visa which allows young New Zealanders to get a two-year visa to work and travel in the United Kingdom. Mr English said the changes would affect those on their OE but they would have to grin and bear it until Brexit was completed. NZME.
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Super City mayor Phil Goff has a plan for getting money from tourists – it bears some similarity to that of the Mongrel Mob……

### NZ Herald Thu, 18 May 2017
Winston Aldworth: Seeking the smart money
OPINION What do Phil Goff and the Mongrel Mob have in common? As hundreds of travel industry figures from all around the world gathered in Auckland for last week’s Trenz conference, one of the many topics up for discussion was the Auckland mayor’s enthusiasm for a hotel bed tax on visitors to the city. Meanwhile, up north at Ahipara on Ninety Mile Beach, three German tourists were approached by two local Mongrel Mob members who told them that they were on Maori land, and had to pay koha. They also told the tourists they’d be taking a few of their cigarettes. A tobacco tax, if you will. Perhaps their plan for putting heavy taxes on visitors was inspired by the Super City mayor. Goff’s bed tax is about as blunt an instrument as the Mob’s shakedown. “Look there’s a foreigner! Let’s get a couple of bucks off them.” The airport tax introduced by John Key a year ago is equally clumsy. It’s a travesty that these tariffs are the best we can come up with for making money out of tourism. Yes, other countries put dull levies on visitor arrivals, but that’s no reason to follow suit. We New Zealanders pride ourselves on being innovators, so let’s find innovative ways to get more money out of the tourism sector. Both Goff and Key were ministers in governments that did everything they could to remove tariffs from the dairy trade. Today, the best and brightest marketing wallahs of Goff’s inner circle are putting forward a plan no more sophisticated than one devised by two Mongrel Mob members standing on a Northland beach. I’m not against making money out of tourists — quite the opposite, in fact. I think it’s terrific that our country can be boosted by an industry that encourages us to care for our environment, celebrate the things that make our culture unique and spreads revenue quickly and efficiently to the regions. But how about instead of putting a dumb tax on the visitors, we upsell them? Take their money at the gate for sure, but give them something special in return.
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Enough randomising. More rain and ice falls.

Posted by Elizabeth Kerr

This post is offered in the public interest.

24 Comments

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Jafas, come hither…. it’s alright here if warped

Douglas Field Published on Jan 7, 2016
Climate Change Panic 8 1 16
‘Green’ Mayor Cull panics over floods in Dunedin and blames ‘climate change’ and sea level rise as the cause. Promptly debunked by local climatologist and hydrologist as absurd.

Commenting at ODT Online
macfod, unduly negative and downcast —not a local economist like John Christie (Enterprise Dunedin), or a Terence Davies (DVML) – who place reliance on bought multipliers to talk up sweet virtue and powers of attraction.
blip blurp blop

Dave Cull couldn’t sell toffee
Submitted by macfod on Fri, 08/01/2016 – 7:33am.

Oh my god, what a big draw it would be saying that we have places such as ..

Cadburys – a factory! Farmers Market and bacon butties – a joke! Museum – visit it once only. St Clair beach – it’s eroding and DCC are doing nothing about it.

What [they] are promoting [is] where they have spent money . . . stadium – unused cycle lanes. I love Dunedin but get so frustrated that we are not growing and not attracting jobs..

Aucklanders are already buying our property, but as investments as the rental returns at approx 8% make it good business.
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New Zealand Herald: Dunners in drive for Jafas to roll down to Deep South

INFLUX….
jaffa-race Dunedin Cadbury Chocolate Festival [dunedinnz.com]

Jafa is a slang term (usually pejorative) for a resident of Auckland, New Zealand. It is the acronym for Just Another Fucking Aucklander. The term is also misspelled as Jaffa, a chocolate confection from Dunedin.

Posted by Elizabeth Kerr

*Image: dunedinnz.com – Jaffa Race, Baldwin Street

alright ● all right ● alright ● all right ● alright ● all right ● alright

36 Comments

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Reminder to DVML | Annual cost for Stadium stings renters ratepayers $25M

16.12.15 ODT: Concerts a $20m bonus
International promoters are eyeing Dunedin for regular sell-out concerts after Forsyth Barr Stadium delivered strong ticket sales and a nearly $20 million boost to the city’s economy […] DVML chief executive Terry Davies said the results showed the stadium was delivering on “two key drivers” – delivering economic benefits and a boost to the city’s pride.
http://www.odt.co.nz/news/dunedin/367093/concerts-20m-bonus

Comment at ODT Online:

Stadium economic dis-benefit
Submitted by JimmyJones on Mon, 21/12/2015 – 8:15pm.

DVML claims an economic benefit to Dunedin of $19.7 million for the concerts held this year. Economic benefit figures are notoriously exaggerated, especially when they are provided by someone whose reputation is at stake.

Anyway, it is misleading to claim a $20 million boost to the Dunedin economy without mentioning the annual $25 million (aprox.) cost to renters and ratepayers to fund the stadium. This is a net drain on the local economy and something Mr Davies and Mayor Cull should be ashamed of.

Also, almost none of the citizens forced to pay for this financial disaster receive any financial benefit from this so-called economic benefit – this is a wealth transfer, with a few businesses benefiting greatly at the expense of all the citizens of the city – the many suffer, to benefit the few. On the whole the stadium continues to be a millstone around the neck of Dunedin’s economy.

[ends]

Posted by Elizabeth Kerr

projectimagestreamstadium2-ashxForsyth_Barr_Stadium_ ETFE_Roof_5 of 6

*Images: fubar stadium, Dunedin

5 Comments

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Thoughts on marketing

Received from Hype O’Thermia
Sun, 8 Jun 2014 at 11:11 am

Strategy guru, Harvard Business School professor Michael Porter was speaking at the World Business Forum in Sydney on Wednesday and highlighted two key features of a good business strategy.
http://www.stuff.co.nz/business/industries/10127196/The-value-of-unhappy-customers

“….1. Choose a distinctive value proposition.

Porter says leaders must decide which customers they are serving and then work out what are the needs of those customers that the business is a “master” at fulfilling.

“We can be pretty good at some things, but what are we going to stand out on? Customer services? Product design? Customisation? Which particular needs of that set of customers do we really want to meet and what price will we ask?”

Leaders should decide what the value proposition is and how it compares with competitors.

“Because, unless we have a unique value proposition, unless we have different answers to these questions than our competitors, then we have no strategy. We are just competing on operational effectiveness,” he says…..”

The university / rugby / stadium would do well to look at that and ask how their “marketing” lines up with that sensible advice.

Tourists and other visitors do not come here for a stadium. Some come here to watch a game, a concert. Where it is held is of little importance. When it’s what they want to see – it’s what they want to see.

Over-filling accommodation and eats and drinks venues once in a while is poor business. It’s a big boom, long bust strategy. It’s temp staff working their guts out, then days and weeks, possibly months, of having short hours and thin paydays.

Amusements as an attraction to students is likely to attract young people who are more interested in prolonged privileged adolescence than the quality of the teaching and research available. Fostering these people as bar clients is an effective way of parting them from their money, at some cost to the rest of us in terms of messy antisocial behaviour, and isn’t doing them any long-term favours. We have seen something in the drive to cater to students, that is not unlike the cynical placement of disproportionate numbers of pokies in low-income suburbs.

[ends]

Posted by Elizabeth Kerr

2 Comments

Filed under Architecture, Business, Concerts, DCC, Democracy, Design, DVML, Economics, Events, Fun, Geography, Heritage, Innovation, Inspiration, Media, Name, New Zealand, Otago Polytechnic, People, Politics, Project management, Property, Sport, Stadiums, Tourism, University of Otago, Urban design