Direct flights to Wellington are expected to bring in $45 million to the ACT economy a year, and could add up to $44 million to New Zealand's GDP, the ACT government says.
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A sister city relationship between the trans-Tasman capitals was formally established on Wednesday night at a lavish party welcoming Chief Minister Andrew Barr and his delegation to Wellington.
Both the ACT government and the Wellington City Council are pushing hard to boost trade and business exchanges ahead of the commencement of international flights in September, and say the benefits of the sister city relationship will be much more than symbolic.
The two capitals have obvious similarities, most notably a major public sector and service industry, and both are high-earning, highly educated cities seeking to diversify their economies.
On Thursday morning, the Canberra Business Chamber and the Wellington Business Chamber signed a deal that will further business co-operation between the cities.
The memorandum of understanding will see more than 5000 members of the Canberra Business Chamber given membership of the Wellington chamber, an agreement expected to boost collaboration and make it easier for businesses to expand to both capitals.
Mr Barr said the deal would help give a "soft landing" to exporting businesses, particularly those doing so for the first time.
"It makes the arrival in-market for a Canberra business coming into Wellington much easier, and vice versa," Mr Barr said.
"There's still obvious points of difference in terms of the way legal systems, business systems operate and the like," he said.
"So having that advice on the ground to assist business entry into the market for the first time is a real advantage."
The start of Singapore Airlines direct flights between the cities in September has been the catalyst for a number of business agreements, including one signed on Wednesday between the Wellington-based BizDojo and the CBR Innovation Network, which both help start-ups collaborate and grow.
Mr Barr said the flights alone have the potential to bring in $45 million to the ACT economy, while Wellington Mayor Celia Wade-Brown said New Zealand was expecting a gross expenditure of $95 million and a $44 million boost to the country's GDP.
Both governments will attempt to build a co-operative relationship in areas of smaller industry – wine production, for example – to join together and sell into major markets like China.
Canberra Business Chamber chief executive officer Robyn Hendry said the deal with her Wellington counterpart, president Peter Cullen, would "bring life to our aspirations of connection".
"We can be the mouse that roared together better than we can apart," Ms Hendry said ahead of the signing.
Later this year, the government has committed to hosting a "Canberra week in Wellington" to showcase Canberra across the ditch.
Mr Barr is on day two of a three-day trip to Wellington, and met with Prime Minister John Key on Wednesday.
