A new economic insight report commissioned by Trust Tairāwhiti shows the Waioweka Gorge closure and ongoing access disruptions are placing significant pressure on business, freight, tourism and regional confidence.

The report concludes unreliable access through the Waioweka Gorge is creating a major economic resilience risk for Tairāwhiti, disrupting an estimated $190 million in annual tradeable GDP, and driving wider impacts across the regional economy.

The Waioweka Gorge closed fully on 16 January 2026 before moving to restricted convoy access for several weeks. Although it has since reopened, it has been subject to regular temporary closures, and the economic effects have continued.

The report draws on economic modelling by Infometrics, MarketView visitor spending data, freight intelligence and feedback from a survey of local businesses.

Key findings include:

  • Widespread impacts on freight, staffing, production, tourism and business confidence.
  • An estimated $482k per day in additional travel costs during closure periods.
  • About $524k per day in road-dependent tradable GDP is disrupted.
  • Visitor spending was down $1.71m over a six-week period compared with the same period last year.

Trust Tairāwhiti chief executive Doug Jones says the findings confirm the region is facing more than a short-term transport issue.

“Reliable access is fundamental to the economic future of Tairāwhiti. When access becomes unreliable, the impacts flow through the entire economy. Freight becomes more expensive, visitors hesitate, businesses lose confidence and investment decisions are affected.”

Business feedback included reports of freight surcharges, delayed deliveries, missed shipping windows, cancelled bookings and higher operation costs.

The report also identifies growing concern that repeated disruptions risk creating a long-term market-access penalty for Tairāwhiti.

“Ongoing uncertainty to our businesses is killing our local economy. Businesses can manage short-term disruption, but they cannot absorb uncertainty forever.

“The Trust is calling on the Government to recognise the strategic importance of resilient access to the region and prioritise long-term investment in our State Highways, particularly through the Waioweka Gorge,” Mr Jones says.

“We are a proud region that wants to stand on its own two feet, but we need reliable infrastructure. It underpins transport, jobs, exports, tourism, regional investment and builds business confidence. Every closure weakens confidence, and if this continues, the long-term consequences will be business closures, job losses, industry restructuring and more people leaving Tairāwhiti.”

economic insight report