$593 million tourism boost

Cafe Ephesus owner Niyazi Gunaydin says business is booming. PHOTO/BEN FRASER

Rotorua has experienced one of Employment New Zealand's biggest increases in visitor spending, with growth in almost all markets and categories.

New figures released by the Ministry of Business, Innovation and Employment reveal visitor expenditure in Rotorua for the year to March 2015 was $593 million, an $85 million or 17 per cent increase over the previous year.

That's against an 11 per cent increase nationally and makes Rotorua the best performing North Island region.

Visitor spending was almost equally split between the domestic market ($298 million) and the international market ($295 million). Aucklanders spent $85 million, up $8 million or 11 per cent versus a 7 per cent increase nationally.

That made Auckland the single largest source market for Rotorua.

Destination Rotorua general manager Oscar Nathan said it was great to see so many Aucklanders reintroducing themselves to Rotorua.

"It shows that they are picking up on the Famously Rotorua campaign messages, which profile the many diverse activities that there are in the destination as well as the growing cafe and dining scene."

Visitors spent almost $100 million on cultural and recreational services during their Rotorua visits, a 9 per cent market share of total spend in this category and ranking Rotorua the third largest recipient of this type of visitor expenditure.

Tamaki Maori Village director Doug Tamaki said it had been a good year, with visitors looking for a meaningful experience as well as people keen to see local culture was alive and kicking.

"Our Maori culture, compared to other indigenous cultures around the world, has come of age. "We have seen good growth, particularly in the Australian, UK and North American markets.

"There's a real confidence out there in the market. Once people saw us as a long haul destination, but they now want to get away from all the trouble going on around the world to a place where the nature is intact and is a very safe place to go on holiday," he said.

Spending was not only concentrated within the tourism businesses, but also spread across wider sectors with $87 million being spent on Rotorua food and beverage services. Australians were the biggest spenders in this category at $13 million, followed by Aucklanders spending $11 million.

Cafe Ephesus owner Niyazi Gunaydin said his last two years on Eat Streat had been his best in almost 13 years in business.

Profits are up 60 per cent and we work one day less now instead of being open seven days a week.

Niyazi Gunaydin

"This winter has been very good with more customers and lots of repeat business. We are getting people here from all over New Zealand, lots of Aucklanders as well. But also British, Australians and Americans.

"Summer is always good for us, but I'm feeling confident it will be even better this year than last year."

In total Australians spent $63 million over the year, just less than China at $64 million, which is Rotorua's most valuable international visitor market as well as the market with the greatest increase - up $22 million or 51 per cent.

Rotorua mayor Steve Chadwick said the result was an indication the industry was
on-track to achieve the goal of doubling the value of the industry from $500 million in 2013 to $1 billion by 2030.

Rotorua visitor spending (year to March 2015)
- Total $593 million
- $85 million or 17 per cent increase over the previous year
- Domestic market-$298 million
- International market-$295 million
- Auckland single biggest source-$85 million
- Supplied by the Ministry of Business, Innovation and