Business View Oceania | December 2019

31 32 BUSINESS VIEW OCEANIA DECEMBER 2019 BUSINESS VIEW OCEANIA DECEMBER 2019 Economic contribution Day-to-day operations in the retirement village industry contributed around $1.1 billion to the country’s GDP in 2017, accounting for roughly 0.4% of the total GDP. This is similar to the value added from department stores or the motor vehicle retailing industry in 2016. Village operators are also significant employers, with around 19,000 people employed in a variety of occupations – cleaners, chefs, managers, onsite carers, medical staff, activities coordinators, gardeners, maintenance, accountants and others. The wage and salary bill came to $837 million last year, up from $536 million in 2013. The sector ranks 25th out of the 42 sectors in Statistics NZ’s Business Operations Survey 2016, comparable to the number employed in real estate or arts and recreation. New village development The report found that the construction of each new 250-unit village directly supports some 303 FTE staff and contributes approximately $21.4 million in design, construction and fittings. Employment includes: THE RET I REMENT V I LLAGES ASSOC I AT ION OF NEW ZEALAND • 44 engineers, quantity surveyors, architects and other technical and business professionals, • 230 builders and other tradespeople, site managers, building product suppliers, and people involved in land subdivision and site preparation; • 15 labourers delivering civil works; • 14 people involved in the supply and fitting out of furniture, fittings and equipment retailing. The economic contribution includes: • $4.8 million in engineering, quantity surveying, architectural work and the like; • $13.9 million in building and construction, supplies and site preparation; • $1.8 million in civil works, roads, drainage and underground services; • $0.9 million in furniture and fittings. Why do people want to move in? Older people move to retirement villages because