A man in his 20s isolating at the Sudima Lake Rotorua is one of two latest returnees who have tested positive for Covid-19.
The man, who arrived in New Zealand on June 27 from England, has been in managed isolation at the hotel since arrival. He tested positive on July 9 - day 12 of his stay, it was revealed today.
A Ministry of Health spokeswoman confirmed the person had a test at around day 3 which was negative.
Another man in his 20s, who arrived in New Zealand on June 28 from India, had also tested positive yesterday.
He has been at the Sudima Auckland Airport facility since arrival. He tested negative on day 3 of his stay and has subsequently tested positive to his day 12 test.
It has been 70 days since the last case of community transmission.
There were now 23 active cases of coronavirus after three people recovered in the past 24 hours.
Both people will be transferred to a managed quarantine facility in Auckland.
Waiariki Labour MP Tamati Coffey told the Rotorua Daily Post the identification of the new case illustrated the "system was working well".
Having spoken to some in the accommodation sector, Coffey said providers had no concern regarding the "sullying" of Rotorua's image in relation to the Covid-19 isolation hotels.
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"In fact, they would say business is booming and if you talk to some of our tourism operators, they all echo the same thing and actually business is better than ever.
"It led me to believe that concerns raised about that are merely concerns. The reality of the situation is that it is quite the opposite."
Coffey and his partner Tim Smith co-own the Our House restaurant and bar and the Ponsonby Rd Lounge Bar on Eat Streat.
Coffey said from his experience, the hospitality industry was also doing better than anticipated.
"I put it down to the fact that Kiwis are not flying anywhere and as a result spending money they normally would overseas, locally.
"I get people's anxieties ... but the words that I am getting back is people are doing better than they were before the lockdown."
Reg Hennessy, Hospitality New Zealand Rotorua branch president and owner of Hennessy's Irish Bar in Rotorua said business had been good in recent weeks.
"The [school] holidays are proving really good but we know after this set there is a large break before the next holidays. So we know we need to make hay while the sun shines."
But, Hennessy said, the new positive case was concerning amid recent escapes from isolation facilities elsewhere in the country.
Rotorua MP Todd McClay said people were still waiting for guarantees from the Government that the systems in place in Rotorua were working following the events of this week.
"The people of Rotorua need these guarantees now from the Government urgently. We need to 100 per cent make sure that what happened in Auckland and Hamilton this week doesn't happen in Rotorua, and the Government has been silent on that."
In a written statement a Covid-19 Response Group spokesperson, said the person who tested positive in Rotorua was transferred to the Jet Park quarantine facility in Auckland the following morning.
They said managed isolation hotels were "stand-alone facilities and there are no shared public spaces or facilities with other members of the community".
"Fencing at all managed isolation facilities has been enhanced so all fences are 1.8m high, and police now provide around-the-clock presence at all facilities.
"We appreciate the continued support of communities where isolation facilities are located, particularly in Rotorua where locals have displayed generous hospitality for our returnees, such as providing gift packs and offers of support."
There have now been three people who have escaped managed isolation since Saturday, and Minister of Health Chris Hipkins said, at a press conference yesterday, that could be an indication of the type of Kiwis now returning from overseas.