Tauranga City Council has signed a new strategic partnership with the University of Waikato, committing up to $2.4 million to boost student numbers and strengthen the tertiary presence in the city centre.

The agreement aims to transform Tauranga into an “integrated university city”, with a focus on growing education, research and industry connections to support the region’s economic development.

Mayor Mahé Drysdale said in a media release that the partnership was a key step in shaping Tauranga’s future.

“This partnership’s an important step in shaping Tauranga as a city where students can learn and build their futures.”

Drysdale said the investment would help attract and retain young people while supporting workforce growth.

“Investing in education is investing in Tauranga’s future workforce and productivity. This agreement helps ensure we attract and retain talented young people while supporting the growth of our local economy.”

University of Waikato vice-chancellor Professor Neil Quigley said the deal reflected the growth momentum of both the city and the university.

“The university has a strategic vision to create a city-integrated study environment that is culturally vibrant, globally connected, and aligned with international opportunities.”

University of Waikato vice-chancellor Professor Neil Quigley. Photo / Tauranga City Council

He said the partnership would help position Tauranga as a destination for both domestic and international students, researchers and industry partners.

Increasing student numbers have been identified as a key driver of city centre growth, with council funding set to support new programmes, a larger student presence and the development of inner-city accommodation.

University of Waikato Tauranga campus director Joseph Macfarlane said the institution has already played a role in revitalising the city centre since opening in 2019.

“Beyond the economic contribution generated by students and staff, a strong university presence helps grow local talent, connect employers with ideas and capability, and support business and city activation.”

Macfarlane said student numbers hit a record high in 2025 and continued to grow this year.

The partnership aligned with council goals to enable sustainable growth and create a more vibrant city centre.

Economic analysis suggests the university was already contributing about $28m annually to the local economy through student-related activity.

Priority One chief executive Dave Courtney said a strong tertiary sector was critical for the Western Bay of Plenty’s future.

“A thriving university contributes far more than education outcomes. It helps attract talent, supports research and innovation, encourages investment, and strengthens a city’s competitiveness.”