Dunedin is set for a massive March next year following confirmation British pop superstar Ed Sheeran will perform at Forsyth Barr Stadium on March 29.

Most accommodation has already been snapped up and additional flights to the city are planned for the concert.

Cheap flights to the city are already gone and online accommodation providers are offering few, if any, vacancies.

Otago Motel Association president Sue Rhodes said all rooms at her motel were booked in four minutes yesterday morning and it was a similar story for most of the city.

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''There's only two motels showing vacancies and that's out of the 50 in Dunedin,'' she said.

''We are delighted Ed Sheeran is coming to town. It will be very good and it's still the tourist season at the end of March.

''Absolutely everything will have been booked out. Anything that's got a bed will be gone.''

Commodore Motel owner Rick Meder said he had never experienced a rush like that following the announcement Sheeran was coming.

''It's bigger than [an All Blacks' test] because he appeals to a completely different audience,'' he said.

''Ed Sheeran appeals to everybody. Anyone from a teenager right up to a grandma.''

That impression was supported by traffic to the Otago Daily Times' Facebook page, as the concert announcement drew hundreds of comments and more than 2000 likes.

Mr Meder said he had received so many people interested in finding a room he had to turn some away.

''The phone's been going non-stop,'' he said.

''We are just stoked. Most of Dunedin is just stoked that someone like this is coming to town.

''It's awesome.''

Enterprise Dunedin destination Dunedin manager Ryan Craig said yesterday it was estimated the concert would pump $7million to $10million into the city's economy

Air New Zealand chief executive Christopher Luxon said the airline would ''absolutely'' put on more flights to cater for the concert.

Mr Luxon said it would look at what else was happening at the time and how many aircraft it could free up.

''We don't have a problem with that,'' he said.

''We've been really good at surging our resources and our capacity into places when there's great demand and need for that.''

The airline would also discuss the issue with Dunedin Airport chief executive Richard Roberts and other organisations in Dunedin.

As of last night, most accommodation websites had little or no accommodation, while the cheapest room on the Distinction Dunedin Hotel website for the night of the concert was $499.

Distinction Dunedin Hotel general manager Dean Nicol said the phones had been ''ringing hot'' since the announcement was made.

''It's going to be massive for the city,'' he said.

''[Rooms] are going pretty quick.

''We have a few left but demand is pretty hot.''

Dunedin i-Site visitor centre manager Louise van de Vlierd said there were still accommodation options available in the city and further afield than the CBD.

''There's no need to panic. There'll be something there,'' she said.

Options would probably open up after tickets went on sale and people cancelled their bookings, she said.

There would also be options for people in Oamaru, Palmerston and Balclutha.

Last night, the cheapest flights to Dunedin had also gone.

On Tuesday, the cheapest flight to Dunedin from Christchurch was $81.

Yesterday, the cheapest flight arriving before the concert was $126.

Pre-sale tickets go on sale from next Tuesday and general sales will begin at 2pm on March 23.