"It is not just hospitality," he said.
"Shops are springing up all over the place.
"It is like a little Melbourne and it has a really good vibe to the place."
A restaurant that is already established in Taupo is also planning on opening a branch at Mount Maunganui.
Construction is set to start later this week.
The owner of Dixie Brown's, Michael Opperman, who established his successful Lake Taupo restaurant, said he was setting up his second restaurant in the old Blue Restaurant and Cafe site on Marine Parade.
Mr Opperman said when the restaurant opened on December 13 it would provide seating for 70 patrons inside and 20 in the outside dining area, and employ 25 full-time staff.
Meanwhile, work is also progressing at the site of the old Grumpy Mole Saloon on the corner of The Strand and Harrington St.
Veros Property Planners development manager Peter Williams said work on the $2 million three-storey replacement had had a few false starts but was otherwise progressing well.
The development will be known as The Lofts and Mr Williams said a restaurant had been confirmed for the ground floor but he was not able to confirm its identity.
He said half of the first floor had also been tenanted and there had been significant interest in the rest of the development.
Mr Williams said it was always positive when development managers were busy, because it was a good sign for the economy.
"We are working on real projects, which will ultimately benefit the city."
