Mr Hill said "literally hundreds of prizes" were donated by Papamoa businesses and main sponsor Papamoa Pak'nSave.
The event, along with Dinner in the Domain and the Papamoa Little Big Markets, were a real boost to one of Tauranga's largest suburbs, he said.
"It just shows that Papamoa's crossed the threshold in viability and everybody's taking it seriously now."
The parade is one of the first of several Christmas events planned across the city.
The TrustPower Christmas Parade, previously held in Mount Maunganui, will bring the streets of downtown Tauranga to life on November 29.
Mainstreet spokeswoman Sally Cooke said the event would be the highlight of Christmas in the downtown area.
Last year's hidden Santa Claus decorations would be replaced with a different surprise Christmas theme downtown this year, she said. Downtown shoppers also had the chance to win a car, with the winner drawn on December 19.
For the second year The Phoenix on The Strand will also host a family fun day at Masonic Park on December 14, raising money for Variety Children's Charity.
The Strand will be closed to traffic, allowing children to ride bikes or scooters on the road, and entertainment will include fire engine rides, face painting and a visit from Santa.
Across the bridge the final Christmas wreaths with baubles and lights were going up on lampposts in Mount Mainstreet this week.
Mount Mainstreet manager Peter Melgren said the shopping centre was running a 12 days of Christmas promotion, giving shoppers the chance to win $200 worth of gift vouchers in the first 12 days of December.
Mr Melgren said the malls could not compete with what Mount Mainstreet could offer Christmas shoppers, including 22 boutique and gift shops.
"This place has got character and still maintains the village atmosphere."