Happy Trails

Whether you’re young or old, a hardcore Harry or a weekend warrior, an Alexandrian or an Arrowtowner, there are very few in this region who haven’t benefited from the growth of the trail network. 

The trails that have been established over the years by different trail trusts, supported by philanthropists, local businesses, Central Lakes Trust and councils, have helped turn Central Otago into one of the world’s great cycling destinations. And while trails may not initially rank highly in terms of regional issues when compared to things like health, housing or roads, the way these trails are working together - and, over time, getting joined up - is a tangible example of long-term regional thinking that benefits all of Central Otago. 

It’s clear that focusing on tourism will not create the economic growth the region needs, but cycling does attract the right kind of tourism. We don’t need more tour buses full of passengers that stay for a couple of days and don’t spend much in town. We need high-value tourists who stay for a while, and cyclists tend to fit that bill. 

Cycling also has a lower environmental impact, and it spreads the tourism base from Queenstown and Wānaka to the broader region. Places like Bannockburn, Clyde, Cromwell and Alexandra have all benefited on the back of the Dunstan Trail and, before that, the Rail Trail helped rejuvenate many small towns and businesses. 

At Forsyth Barr, many of us are keen cyclists and we’re about to become a corporate sponsor of the Queenstown Trails Trust (the Edgar Family Foundation is also helping to fund the Upper Clutha Trails Trust).Big donors like Rod Drury, himself a very keen biker, have been essential to the growth of what is a diverse network of assets - from the mountain biking venue on Mount Dewar that’s hosted major events like Natural Selection and showcased the region to an international audience, to the Gorge Road Jump Park to the very well-used trails that now link up Arrowtown, Queenstown, Arthur’s Point and Kelvin Heights.  

The 32-kilometre Kawarau Gorge trail is nearing completion, and this will undoubtedly be another huge drawcard. Eventually, being able to ride from Wānaka or Queenstown all the way to Dunedin (and then around the harbour on the city’s own impressive new route) will become a bucket list trip for many and, like arteries transporting blood around our bodies, these riders will transport economic growth around the region. 

This is not just about tourism, however. It’s also about transport. Many of the trails are also an increasingly viable option for commuters. The Hāwea to Wānaka trail, which is currently being redone, many of the trails around Queenstown, and the School to Pool path in Wānaka, attract a significant number of locals who prefer to use their legs rather than their car. As the law of induced demand has shown, if it’s there, people are more likely to use it and as the roads get busier (and as the ebikes take us further), the incentive to get on two wheels grows stronger. 

Usage is expected to increase across most of the trails in the region in the coming years. So how are we planning for that? In the past, it was largely ad hoc, but as patronage has grown, more planning has had to be done for things like car parks and toilets. In this way, it’s relevant to our industry because if a business can prove there is demand for what it’s offering, it is likely to attract more capital to grow. Crucially, to attract that investment, it needs to have a long-term plan. 

We are extremely fortunate to live in a beautiful place that this growing trail network allows us to access by bike or on foot. Perhaps the only thing that’s missing is a proper destination ride over a couple of nights around Wānaka, similar to the Old Ghost Road on the West Coast (if someone builds it, Forsyth Barr will commit to taking its entire team on that trip). 

While the public and private partnerships have worked well in most cases, there are still separate trail trusts that focus on their own areas. They generally work well together, but just like our relatively piecemeal approach to health, there is still potential to look at this with a wider Central Otago lens so that investment happens in the right place - and scarce resources can potentially be shared to ensure the trails are well-maintained. 

When John Key announced the plan for a 3000km network of cycle trails around the country back in 2009 as part of his economic growth agenda, there were a few doubters. But even his detractors would admit that it - just like the Te Araroa walking trail - has been a success. 

The investment in this infrastructure has also been a success here. More trails have meant more cyclists and walkers. That’s good for those on the trails, and it’s good for everyone else in the region, too.

To talk investment - either for yourself or the region – get in touch with us at Forsyth Barr Investment Advice Central Otago on 03 443 2980.