The annual University of Otago Economic Impact Report was released last week at the latest University Council meeting.
The report, which was compiled by the office of the Vice-Chancellor reported on the economic impact that the University had on the local economy, through expenditure of the University itself, its staff and students.
The University, which is one of the 50 largest employers in the country inject an estimated $881.1 million into the local economy, through direct spending by the University, staff and students. However, an economic model which calculates the trickle down effect of this spending predicts the total impact of a campus in Dunedin at $1.55 billion to the city's $5.8 billion GDP, also adding 13,902 jobs both directly and indirectly.
University Planning and Funding Director David Thompson said that “expenditure by the University and its students has a direct influence on local economic development.” He added that “the impacts are far reaching across many sectors of the economy, with the institution, its staff and students spending widely in local businesses.”
Although 88 percent of staff and 93 percent of students call Dunedin home, the University was also making large impacts in other cities with campuses. Both Wellington and Christchurch added $51.9 million and $50.5 million to their local economies respectively, while Invercargill contributed $2.4 million.