(d) Conclusions
Having gone on a field trip to Queenstown, with the given task of surveying the various costs that a local would experience. I have come to the conclusion that our hypothesis, “That the cost of living in Queenstown is more expensive than in Invercargill, because of tourism” is true.
We can base this on the facts and evidence that we have gathered. This evidence is presented in the form of prices of basic necessities that a local would require in order to carry out a typical lifestyle.
Example would include fuel prices, to fuel their transportation around town. Parking costs to leave their transportation safely. The price of homes in order to live and the rates that must be paid to the local authorities. Taxi prices, which have various uses for both locals and tourists alike. Alcohol prices for a common drinking activity. Lastly, the grocery prices which is needed for living.
A simple generalization that I would make is that across the board, prices for all these necessities are much higher in Queenstown. The reason for this higher cost of living is largely based on tourism that Queenstown receives more than Invercargill.
Fuel prices in Queenstown, which are normally controlled and similar across nations, are slightly higher than that of Invercargill. The prices of the 3 major fuel companies Shell, Caltex and Esso are similar in Invercargill and Queenstown. However Queenstown’s diesel price is a $1.529 while Invercargill is a $1.479. There is a difference of about $0.05. 91 Unleaded petrol price in Queenstown is $2.109, Invercargill at $2.059. Difference of $0.05. Although the difference of $0.05 may be negligible, they do however make a significance when purchasing fuel in large quantities.
Reason: Tourism / Market Demand
Parking spots in Queenstown are hard to find as a contrast to Invercargill, due to the amount of visitors, buses and campervans. It is due to this high demand for parking spots that we see a much higher price for parking. Queenstown’s parking per hour is $2.50 whilst that of Invercargill only $0.90. Difference of $1.60. It is not only harder to find parking spots in Queenstown but also extremely expensive.
Reason: Congestion due to Tourism
The biggest difference in prices between Queenstown and Invercargill is the prices for houses. A typical 3-bedroom house would cost only $250,000 in Invercargill while $836,000 in Queenstown. Difference of $586,000. That means a house in Queenstown would cost 3 times as much as it would in Invercargill. Queenstown being a popular destination, many people purchases houses here as an investment hence the price. Owners use them only during holiday seasons and rent them out when not in use. The rent in Queenstown is 2 times higher than that of Invercargill. $300 per week in Queenstown and $125 - $130 in Invercargill. The yearly tax rate on property is also higher due to the higher capital value.
Reason: Tourism/Market Demand
Even grocery prices are not spared, Queenstown has a higher overall cost than Invercargill and this highly effects the cost of living. The only cheaper items in Queenstown are perishable goods like fruits such as Apples and Bananas. This is only cheaper most likely due to the cost of transporting such goods across the country. Basic items such as milk, bread and butter have a vary big difference in price between Queenstown and Invercargill.
Reason: Transportation/ Tourism
Taxis in particular are more expensive in Queenstown as there is a larger demand for it than Invercargill. Tourists are much more likely to take taxis than locals as they may not be able to drive in New Zealand or posses a car.
Reason: Driving permit/ Vehicle/ Tourism
Lastly Alcohol prices are much higher in Queenstown as well. A 24 Speight’s costs $54 while Invercargill only $36, which is a difference of $18. 12 pack of Heineken has a difference of $14 and a bottle of wine with a difference of $7. Consumption of alcohol figures is likely to be higher in Queenstown, which is largely a reason for the huge difference in prices.
Reason: Tourism, Consumption Difference
Having seen the impact of Economic and Socio-Cultural – the evidence is clear and all points towards the effects of tourism on Queenstown. Tourism in Queenstown is high due to its magnificent natural environment, which is something that Invercargill cannot compare to. However if Invercargill may find a reason to attract a large amount of tourists, the same economic effect will happen to Invercargill as well. It is much cheaper to live in Invercargill and peaceful as well, for there is minimal disruption of lifestyle from tourists and foreign nationals.
The data presented here are as accurate as I can possibly get, however there is a slight margin of miss accuracy that is difficult to correct.
