Rotorua tourism industry bounces back from Covid as Velocity Valley marks 25 years with new ride

Surviving in tourism through economic ups and downs is hard enough, let alone coming up against the financially crippling beast that was Covid-19. With no international visitors, the heart of what makes Rotorua tick was ripped away. But the city is dusting off its challenges and bouncing back. Senior journalist Kelly Makiha checks the latest data and talks to key players about why the future is bright and businesses feel confident to launch new products.

There’s nervousness, there’s uncertainty and there’s fear as you plummet suddenly without any way to get back up.

That is how thrill-seekers at Velocity Valley will feel when they take the plunge at Rotorua’s newest tourism offering this weekend.

It’s also how those in the industry felt during the past three years as they fought to keep Rotorua’s reputation as a world-class visitor destination alive.

But talk among operators is positive and the latest visitor spending figures show the city is weathering the storm.

In 2019, visitors from New Zealand put $288 million through Rotorua tills. In the 12 months to July 2023, it was $303m thanks to visitors from Waikato, Wellington and most other parts of New Zealand, while the Auckland market dropped.

The international spending tally was up more than $1m in the same timeframes to $415m, with American big spenders partially offsetting drop-offs from China, Germany and Britain.

All told, visitors spent nearly $2m more in the past year than the year just before Covid struck.

Tourism operations that closed or reduced hours during the tough times are now back in full swing with only one major casualty – the closure of 90-year-old business Rainbow Springs in March this year. A Ngāti Whakaue collective has since bought the site and has been considering its options.

RotoruaNZ head of marketing and communications Marisa Balle said the future was bright.

“There has been significant investment into Rotorua from both private and public sectors over the past few years which means that despite some closures, Rotorua as a destination in terms of its tourism offerings has drastically improved.”

Wai Ariki Hot Springs and Spa opened in June. Photo / Jono Parker

She listed new examples such as Wai Ariki Hot Springs and Spa, the Lakefront redevelopment and Te Pūtake o Tawa Mountain bike hub, plus operators that reinvested in their products such as Velocity Valley, Skyline and Te Pā Tū (formerly Tamaki Māori Village).

“Rotorua’s business community is extremely resilient and we are really proud of the way in which our city has responded to the issues that were created by Covid.”

Velocity Valley general manager Debbie Guptill said it had wanted to launch a new product since 2010.

Today marks the start of Vertigo, where for $150 visitors can leap off a ledge and drop 43m into a net hanging over a river.

The launch coincided with Velocity Valley’s 25th birthday, and this weekend it was also offering discounts on other rides, staying open late on Saturday and, on Sunday, a visit from Shaun the Sheep and Bizter the dog from the Agrodome.

The adventure tourism business started in 1998 with Agrojet. Bungy Swoop came along six months later and The Shweeb joined by 2007. In 2010, the individual owners consolidated and formed Agroventures Adventure Park. It was rebranded as Velocity Valley in 2018.

Velocity Valley's Vertigo attraction is a 43m leap off a ledge into a net hanging over a river.

Employing 15 to 22 people full-time, Velocity Valley retained its staff during the Covid crisis. Its confidence in Rotorua was rewarded on Queen’s Birthday Weekend 2020 – the first long weekend after lockdown – with a record number of visitors clocking more than 600 rides from 350 people.

Guptill said having unique offerings, keeping pricing realistic for the domestic market and not inflating the prices for the international market were keys to surviving so long.

“Adding this new ride keeps us front of mind for adventure so we’ll be around for some time yet.”

Guptill said Rotorua’s future was looking great.

“The products we have to offer here in Rotorua are the best in New Zealand … I can’t reiterate enough that Rotorua is an amazing place to bring your loved ones for a visit, we have a plethora of things to see and do.”

Velocity Valley general manager Debbie Guptill on the adventure operator's new ride, Vertigo. Photo / Andrew Warner

She said the new Government should understand the importance of the tourism sector as it was the largest contributor to GDP (gross domestic product) before Covid.

“I’m confident they understand what Rotorua has faced over the last couple of years and will provide additional support to help build back our reputation, and we will once again be the jewel of the North Island.”

Iconic tourism attraction Te Puia, which incorporates the New Zealand Māori Arts and Crafts Institute, is also rebounding after having to close its doors during lockdown and let 140 staff go.

Te Puia had been 93 per cent reliant on the international visitor market and had to reinvent itself to stay afloat.

Chief executive Tim Cossar said it was “the single toughest thing in business I have ever had to manage”.

“We survived. Nothing was easy … Lots of juggling and hard on so many – especially those we had to farewell.”

Te Puia chief executive Tim Cossar. Photo / Andrew Warner

He said Te Puia learned a lot and now knew more about who it was and who it wanted to be.

“We all have to be positive about our destination as a tourism region. This will take a collective effort from all stakeholders. If we don’t, others will roll over the top of us regionally.”

He encouraged everyone to get behind Rotorua and push forward.

“We have challenges post-Covid but nothing we collectively can’t get ahead of if we are strategic and collaborative and positive about it.”

Novotel Rotorua Lakeside and Ibis Rotorua Lakeside general manager Edward Judd said while business was not at the same level as before Covid, this year had seen strong growth.

“For us in the hotel, our strength in surviving is making sure we are part of the community and also ensuring we are looking to connect with the community and offer something different than other bars, restaurants and accommodation.”

He said finding staff continued to be a challenge but he believed this was “the new normal”.

Pig and Whistle and Capers Cafe owner Gregg Brown said businesses had made a commitment to both teams it would keep all staff employed, no matter what.

Pig and Whistle owner Gregg Brown. Photo / NZME

“That commitment led to creative thinking about how we would trade.”

The businesses offered a home delivery service for meals, takeaways and table service when they had to.

“We opened every hour we could. We also had staff working on renovations if they wanted to. While it cost the businesses a fair amount of money, it was the right thing to do and we came out the other end much stronger as a team.”

The Pig and Whistle would turn 30 in December.

Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.