"I'm aware of numerous developments in the pipeline and there is a reason Rotorua people are feeling confident; it's very pleasing to hear that they are."
He said the council was working on a number of initiatives regarding infrastructure.
"It's good pressure on the council to make sure we have infrastructure in place to support the growth in our community. We need to keep cracking on ... it's a great problem for us to have," Mr Donaldson said.
Rotorua Chamber of Commerce chief executive Darrin Walsh said the survey results reinforced what Rotorua already knew.
"The economy is good, the level of confidence is growing and businesses are reflecting that.
"We have lagged behind the rest of the country, but now we are going ahead. I think that's what is causing the confidence."
He said 2015 started the sustainable foundation, but more residential development was needed.
"I think 2016 is going to be a strong year," Mr Walsh said.
Darren McGarvie, chairman of business networking group Rotorua X, said new and old businesses were doing well.
"In terms of our community of Rotorua X, supporters are relatively easy to attain and renew confidence in at the moment."
Mr Garvie said he couldn't put it down to one industry leading the way but that there were many taking charge.
"Tourism is very strong, engineering, manufacturers, the Auckland property market, anyone who is involved in any of these is confident.
"In the six-and-a-half-years we have been running, I don't think I have ever seen it this good since starting."
