Nicholas Craig column

Jan 12 2007 By Nicholas Craig, The Journal

I've arrived in South Island, a beautiful, peaceful part of New Zealand. It is stunningly photogenic.

Film makers agree. Lord of the Rings and The Chronicles of Narnia used the timeless landscapes to breathtaking effect.

Ironically, not a trace of these two blockbusting films remains around Queenstown, while, just up from where Aragorn fell from a cliff into a river you come across a decaying, dank North Korean prison camp set.

Disney built it for a forgotten film called The Rescue. For some reason the park's owner decided to keep it. It is a surprising, out-of-place monument to an otherwise exceptional site. Tourism is New Zealand's biggest industry, earning more from foreign currency than dairy products. It now employs one in 10 people and has geared itself up to appeal to tourists of all ages - offering a range of imaginative extreme sports as well as more traditional cruises and tours through its dramatic scenery and national parks. I must admit that the prospect of heli-hiking appeals - a helicopter takes us to the top of the mountains to appreciate the scenery. The jet boats, glacier walks, white water rafting, canyon swings and bungee jumps may have to wait.

Businesses in South Island are small but thriving - 96% of companies employ fewer than 20 people. The island is keen to diversify away from its well established meat and dairy produce core. In the 1970s exports were limited to Britain but New Zealand meat and dairy goods now sell around the world.

What I find most interesting is the real drive for biotechnology in the South Island. Many of the new biotech businesses are based on agriculture and horticulture, using the island's key strengths to provide new impetus in the economy.

The South Island is also pushing its wine making industry to new markets. Excellent idea which we can all toast. We have also been enjoying Queenstown's tea-shops and quaint cafes reminiscent of English towns many decades ago. The atmosphere in South Island is decidedly upbeat. It is succeeding in tourism and immigration because of its flexible, welcoming approach to doing business. Creative industries are also fast developing such as film and television, yacht design, fashion and art. It's a fascinating mix out here - and a whole country away from the cricket. I won't dwell on the Test Series. They've moved on to the one day competitions and I'm moving on to North Island, more next week.

Nicholas Craig is a partner at Watson Burton LLP