Where to next for New Zealand's mecca of tourism?
The city has worked to rebuild from the effects of closed borders and a heavily criticised emergency housing approach. In the wake of the country's biggest visitor industry event Trenz, held this month in the city, Local Democracy Reporting looks at Rotorua's path to tourism recovery.
Five years ago, lives changed as the Covid-19 pandemic took hold and the world's people stayed home.
For Rotorua, which relied heavily on tourists, it was a blow.
But now, the New Zealand Prime Minister says the city is "on the up" and a landmark local attraction is welcoming more guests than it did pre-pandemic.
The city was in the spotlight this month when it hosted Trenz, a huge tourism trade show event which brought hundreds of international travel buyers and media delegates together to meet New Zealand's leading operators.
During his speech at the event, Andrew Wilson, chief executive of tourism organisation RotoruaNZ, said Rotorua was "transforming", had experienced a "genuine resurgence" in recent years with a forward momentum and "no intention of slowing down".
He said that investment into "world-class experiences, sustainable practices, and meaningful partnerships" that reflected its manaakitanga and ambitions firmly set Rotorua up for the future.
This included the recent announcement of the luxury Noho Lakeside Hotel to be built alongside the lakefront Wai Ariki Hot Springs and Spa.
Wilson also announced the "iconic ecotourism" operator Redwoods Treewalk would in September launch its "breathtaking new journey" — Redwoods Glowworms.
In a 70m-long "eco-cave" featuring waterfalls and rock formations, visitors would be suspended above reflective water and surrounded by more than 5000 glowworms, "creating a living constellation".
It was the product of about five years' planning and research.
The business partnered with Expedition Earth in 2021 to create the attraction and Treewalk co-founder Bruce Thomasen thought the bioluminescence particularly complemented its David Trubridge-lit night walk.
Thomasen said the business was up 16% on its 2019 visitor numbers.
Innovation was continuous, he said.
Recent additions included the award-winning Trubridge Horoeka walk-in lantern in 2023 and the 8m-wide Ruru lantern in 2024.
Speaking to media at Trenz, the Prime Minister said the conversation about Rotorua had turned away from Fenton St and emergency housing.
The last of the final seven contracted emergency housing motels in Rotorua are expected to close by the end of this year. Rotorua Mayor Tania Tapsell previously said she hoped they upgraded and returned to being "quality tourism motels".
The city had a "great future" and was "on the up", Luxon said.
Local Democracy Reporting asked Luxon for specific examples of how the Government was enabling tourism growth in Rotorua.
"We're doing everything we can," he replied.
Luxon listed visa settings changes, overseas promotion including to Australia and meeting with the Indian tourism industry.
A record 32 Indian operators attended TRENZ. Luxon said the country of 1.5 billion had a middle class of 455 million who wanted to travel.
RotoruaNZ's head of business growth, insights and innovation, Justin Kimberley, reckoned it was hard not to feel positive about tourism in the city.
He believed upcoming developments would attract new visitors and year-on-year visitation was growing.
Daily Rotorua visitor population during the autumn school holidays was up 13.4% on last year at 22,138. International visitors grew 36.8%.
Room for growth? Yes, but he believed it delivered a great product and would continue to deliver an "amazing experience".
February 2025 monthly visitor card spending was up 114% on February 2019 at $39.15m, compared with a 116% lift nationally.
Annual visitor spending in Rotorua to February 2025, based on tourism electronic card transactions, was $441 million according to MBIE data, a record high, but only when not taking inflation into account.
The Auckland market was the target of recent $93,985 Robe Trip campaign, promoting Rotorua as a spa, massage and "robe" destination, and Kimberley said this was "starting to change the perception" of those looking to holiday in Rotorua.
In September 34% of Aucklanders surveyed considered Rotorua for a holiday, which rose to 73% this month, he said.
Daily commercial accommodation stay units available are back to 66% of pre-pandemic levels in Rotorua and nationally 80%.
Kimberley said the accommodation landscape in Rotorua had shifted in a positive direction.
The number of hotel stay units had increased by about 130 since 2018, which resulted from more
"higher-value visitors".
It increased by 5.2% last year to reach 1974 in March of a total 4529 units.
Kimberley said the decline in capacity of motels and other types of accommodation like backpackers was driven by "obvious reasons" such as longer-term accommodation use.
Most if not all high-quality motels and backpackers still offered visitor accommodation, he said, and there was no strong demand for low-quality and low-price offerings anymore.
Kimberley pointed to a recent Howarth hotel sector report he believed showed encouraging signs.
Hotel occupancy for the past three months was at 82% in Rotorua, up from about 77% in 2024 and down from about 88% in 2019.
Ngāi Tahu Tourism owns both Agrodome and the National Kiwi Hatchery in Rotorua, a place general manager Jolanda Cave called a key destination for international visitors.
Manaakitanga and manuhiri experience was Ngāi Tahu Tourism's focus since the pandemic.
Cave said it moved the hatchery to the Agrodome and increased offerings there, such as the farmers markets.
Cave said the newly reduced requirements on translated visa document certifications came at a "fantastic" time as the sector looked to grow.
The Chinese market was about 60% what it was pre-Covid nationally by the end of last year and was in the top five markets for Ngāi Tahu.
It was up from 37% for the year ending December 2023.
"What we are seeing is that China is still very strong for those businesses that have always been predominant for Chinese markets such as Agrodome here in Rotorua."
She said that the market was growing for the southern iwi entity's South Island businesses as Chinese manuhiri behaviours changed to be more independent, "wanting that value-added experience, wanting something quite unique".
Her takeaway from talking with others and hearing the heads of industry at Trenz was that the next 12 months looked "extremely positive".
Wai Ariki Hot Springs and Spa general manager Debbie Robertson called the event "phenomenal" and said it showcased what the business and Rotorua offered.
Buyer engagement was positive and Robertson said there was a buzz about the spa.
The luxury offering opened in June 2023. About 75% of its market was domestic and she expected the international portion to grow.
Robertson said its point of difference was its "elevated experience" and "cultural infusion".
It wasn't just Rotorua attractions finding value in the event.
Chris and Dean Savage, at Dive Tatapouri, offer reef ecology tours and swimming with wild stingray near Tairāwhiti Gisborne. Chris said at Trenz they reconnected with buyers, made new beginnings with others and supported the Gisborne community by promoting it as a destination.
"It's a journey but once you get there you don't want to leave."
Hawke's Bay's Gannet Safaris Overland general manager Sophie Phillips said with great bookings, great agents and "awesome engagement", it was its best Trenz yet. The region was being included in more itineraries, she said.
Ecotourism was a drawcard and Phillips said people were "engaged with the uniqueness of the tour" showcasing the largest most accessible mainland gannet colony in the world and its recently launched sunrise tour.
More people were looking for "wow factor" visuals and that was what they offered, she said, as well as unique and more exclusive "higher-end" tours.
Dunedin offered three locally themed ice cream flavours: Emerson's London Porter and Spicy Peanuts; No8 Distillery Gin and Plum sorbet; and Southern Clam and Tomato Shooters.
Wilson said Trenz went "fantastically well".
RotoruaNZ was among eight regional tourism organisations (RTOs) involved in a newly announced trade initiative targeting the North American market.
It was also involved in a partnership of 15 RTOs aiming to accelerate visitor return from key markets including Australia, North America and China. Total international visitor arrivals into Auckland International Airport are at 84% of 2019 levels.
Tourism and Hospitality Minister Louise Upston voiced the intention at Trenz to turn the $44 billion-generating tourism sector from the country's number two export to number one.
Five years on from the start of the pandemic, Rotorua is showing signs it's trending in the right direction to help make that happen.
LDR is local body journalism co-funded by RNZ and NZ On Air.
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