Mrs Stafford said there was a strong need for Rotorua to be advertising more as an ideal holiday destination.
"It's been six years of very hard work for all of us and we [the industry] were the first to feel the recession. The economic downturn has hit so many businesses in our city from attractions, restaurants and accommodation," she said. "We've seen many people who have had to walk away from their businesses because they couldn't make a living.
"[But] it's not all doom and gloom [business] is definitely improving, although it's slow. September this year for us is way better than September last year but we are all very keen to get back to where we were. We look forward to better times ahead."
Jenni McKinley, who co-owned and managed Midway Motel with Ross Oldham, said people were not booking in advance as they had in previous holidays.
"Certainly these school holidays have been slow but it is not only us, it's a regional and national problem," she said.
"The Minister of Tourism [John Key] needs to start working for us instead of promoting Auckland and other places to visit."
Ms McKinley said there needed to be a revitalisation in the city.
"We're not getting the major concerts or events, like other cities and just look at the [empty] shops in our town, that says it all really. There definitely is a lack of something here."
She said the high cost of insurance and other costs left very little financially to promote themselves to visitors. "We're doing what we can but it all costs money.
"We've been owners here for just over five years now so we're yet to really see the good time the other business have experienced before the recession."
But Rotorua Association of Motels president and owner of Cedarwood Lakeside Holiday Retreat, Fiona Suurenbroek said the general mood from the motel sector seemed to be positive with the feeling that these school holidays were a little better than last year.
"A number of properties have confirmed that they are hosting quite a few Australian families during these holidays with an increase in the number of international visitors on the whole, there are a number of domestic families visiting for the holidays, visitors doing road trips around the North Island and Bay of Plenty as well as guests attending the schools' conference this week," she said.