Wine contributes $1.3b to Marlborough economy

 Marlborough's wine industry contributes $1.3 billion to the region's economy and accounts for 4000 jobs.

A report on the economic impact of the New Zealand wine industry by the New Zealand Institute of Economic Research clearly defines just how important the sector is to Marlborough's economy.

The report, commissioned by New Zealand Winegrowers, found that $1 of every $5 of economic activity generated in the region could be attributed to the wine sector.

One of the report's authors, John Ballingall, said the report showed the economic benefits flow out to the entire regional economy, generating a lot of additional jobs outside the immediate wine industry.

"It's not the planting of the vineyards that generates the spill over effect, it's the revenue that is generated by them."

For every dollar earned by vineyards or wineries, the return to Marlborough's economy was $1.71, the report said.

The number of wineries in Marlborough had doubled in the past 10 years and grape growers had more than doubled in the past five years.

With 109 wineries and 524 grape growers, Marlborough was now home to the largest proportion of the New Zealand wine industry.

The sector directly employed 2500 full-time equivalent jobs and was indirectly responsible for an additional 1500 jobs in Marlborough.

This is the first time in 13 years that detailed analysis has been done on the financial impact of the wine industry in Marlborough.

A 1996 study by Lincoln University showed the wine industry contributed $70 million to the local economy and provided 448 full-time jobs.

Mr Ballingall said the rate of growth since that report was nothing short of spectacular, and despite tough economic times, he expected the growth would continue.

Nationally, the wine industry contributed more than $3.5b to the economy and directly employed 5900 fulltime-equivalent workers, with a further 10,600 employed elsewhere because of the activity within the wine industry.

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