Outcome 1: Prosperous and adaptable people, sectors and regions

Strong regional economies are critical to New Zealand's long-term productivity and prosperity. Continued investment in tourism, infrastructure and resilience helps unlock economic opportunities, improve productivity and strengthen communities' ability to respond to climate and economic shocks.

A $70 million Major Events and Tourism package and $3.69 million in targeted regional tourism funding are helping attract visitors to regional destinations and stimulate economic activity. Investments to date have supported regions to showcase their visitor offerings, encouraged travel beyond the main tourism centres, and increased demand for events, local accommodation, hospitality, transport and tourism businesses.

Changes to travel settings, including a 12-month visa waiver trial for eligible Chinese and Pacific visitors coming from Australia with an eligible Australian visa, made it easier for visitors to travel to New Zealand from November 2025. More than 101,000 New Zealand Electronic Travel Authority (NZeTA) requests were received under this trial during the year. Traveller feedback indicated the process was well received, with 96% of users satisfied with their NZeTA experience. Ease of travel also plays an important role in attracting visitors, with 85% of travellers reporting it influenced their decision to visit New Zealand.

The Tourism Growth Roadmap was launched in June 2025 as part of the Going For Growth strategy, setting a target to double the 2023 value of tourism exports by 2034, increase tourism and hospitality employment, and enhance visitor experiences. Supported by $35 million in annual investment from the International Visitor Conservation and Tourism Levy (IVL), the Roadmap's first stage was fully funded in 2025/26, with initiatives focused on increasing international visitor numbers and delivering high-quality visitor experiences.

During the year, 30 productions were approved, generating approximately $1.16 billion in qualifying New Zealand production expenditure and supporting employment across a wide range of industries. In addition to direct investment, these productions help build capability in New Zealand's screen workforce, support technology and knowledge transfer, and create opportunities for local businesses. The rebate also contributes to New Zealand's international profile, reinforcing the country's reputation as a world-class destination for film and television production. By supporting a high-value export industry, the rebate helps grow jobs, skills and economic activity across New Zealand.

Additionally, in response to industry feedback and increased international incentives, changes were made to maintain the competitiveness of New Zealand's rebate, taking effect from 1 January 2026. The changes lowered the minimum qualifying spend from $15 million to $4 million, reduced the 5% Uplift threshold from $30 million to $20 million, expanded eligibility for the 5% Uplift to include post-production, digital and visual effects only projects, and removed a cap on above-the-line costs. These changes were positively received by industry and the New Zealand Film Commission has reported increased interest from medium-sized, independent productions in particular.

Through the Regional Infrastructure Fund (RIF), a combined $15.3 million package of investments was announced to help strengthen 3 of the West Coast’s most important transport assets: Hokitika Airport and the ports at Westport and Greymouth. Together, these projects will improve connectivity and resilience, support the movement of people and goods while enabling long-term economic activity across the region.

A $15.35 million Regional Infrastructure Fund loan is supporting the installation of a solar farm and battery system, alongside electricity network upgrades and smart meters on Rakiura/Stewart Island. The project is expected to reduce diesel use for power generation by up to 75%. By reducing reliance on imported fuel, the project strengthens local resilience while creating opportunities for innovation in remote energy supply, with flow-on benefits for tourism, aquaculture and other local industries.

Additional investments improved regional connectivity and enabled growth through industrial land development in Southland, airport upgrades and infrastructure supporting the space sector.

Economic modelling undertaken in June 2026 shows that regional development investments have delivered significant economic returns, with every $1 invested by government generating at least $3 in additional expenditure. By June 2026, $7.24 billion in combined government and co-investment had supported an estimated $14.52 billion in expenditure, $6.24 billion in gross domestic product (GDP), and over 62,000 full-time equivalent (FTE) roles nationwide.

Alongside initiatives to support growth, MBIE continued investing in infrastructure that helps communities adapt to increasing climate and weather-related risks.

Community resilience was strengthened through investment in flood protection infrastructure. Projects completed during the year helped reduce risks to communities, businesses and critical infrastructure. These investments support communities to adapt to climate-related events while strengthening the long-term resilience of regional economies.

Improving resilience to climate and economic shocks

In 2025/26, MBIE continued to strengthen regional resilience through the RIF, with $197.9 million committed to 74 flood resilience projects across New Zealand. Flood protection is a core component of the RIF, recognising the importance of protecting people, businesses, productive land and critical infrastructure from increasingly frequent severe weather events. Delivered in partnership with local authorities, these projects include stopbanks, floodgates, pump stations, drainage improvements, culverts and river management works. By June 2026, 12 projects had been completed.

Across two funding rounds, the investments are helping protect almost 30,000 hectares of residential land, 120,000 hectares of pastoral land, 126 schools, 23 hospitals and medical clinics, 14 marae, 11 airports, and key transport, telecommunications and energy infrastructure across 12 regions. These improvements strengthen community resilience, support business continuity and reduce the long-term economic costs of flood recovery.

An excellent example is the Lower Motueka River stopbank project in Tasman. Following two significant floods in 2025, including the largest river flood ever recorded, upgraded flood protection helped reduce the risk of stopbank failures and protected a community of more than 8,300 people, around 2,800 properties, State Highway 60, and over $2.2 billion in assets. The project also helped maintain access to essential services and supported the recovery of surrounding rural and horticultural areas by protecting Motueka's role as a key service and supply hub for the region.

Through targeted, place-based infrastructure investment, MBIE is helping communities adapt to climate change, reduce vulnerability to natural hazards, and build more resilient regional economies.

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