Rotorua's inner-city is bustling with new shops highlighting interest in Rotorua as a place to do business.
It comes as new figures show the number of empty shops in the CBD has dropped significantly and is now the lowest in six years.
The figures, which the Rotorua Daily Post can reveal today, buck a nationwide trend of struggling retail.
The TelferYoung 2016 Rotorua Central Business District vacancy survey, which was carried out in December, showed a decrease in both the number of vacant retail shops and the amount of vacant retail space.
In December 2016 there were 65 vacant shops compared to 82 in 2015.
Since the survey several new businesses have opened their doors including fashion store Apt Collections on Tutanekai St, Ems Flowergirl on Pukuatua St and shop Kulture Shock has relocated from Ngongotaha to Hinemoa St.
A new Indian vegetarian restaurant is set to open in the old The Grand building which has been empty for about three years since The Great Kiwi Ale House closed its doors.
TelferYoung director Grant Utteridge said the decrease reflected an increased level of business confidence, a growing Rotorua economy and a strong tourism centre.
"The decrease in Rotorua retail vacancies is particularly significant, as it is in contrast to difficult retail conditions nationally, where increased internet trading, changing spending patterns and economic conditions have impacted directly on retailers."
He said it should be noted 15 of the 65 vacant shops were in the Hinemoa Arcade building between Hinemoa and Pukuatua Sts, where the majority of sites had been vacant since its redevelopment in 2011.
The lowest vacancy rates were in Rotorua Central Mall, Eat Streat, at the northern end of Tutanekai St and on Fenton St surrounding the iSite.
Inner City Focus Group spokesman Mike Steiner said a growing interest from people wanting to open businesses in Rotorua was proof "the plan is working" while Rotorua's Chamber of Commerce said the new businesses were backing up positive economic data for Rotorua.
Mr Steiner said the group had set about creating a nice space and nice environment where people wanted to be and that was paying off. He said he was talking to another four businesses about opening in the CBD.
"We have something to sell now. Four years ago they wouldn't consider it."
Rotorua mayor Steve Chadwick said the survey results were a marked improvement and further evidence Rotorua was making progress and attracting investment.
"These results also reinforce what we've seen and been told anecdotally that there's renewed vibrancy in our inner city. It shows that the work we've done to date to revitalise the inner city is having an impact and we must continue on with our plans."
Mrs Chadwick said Rotorua still had some vacant space and that provided an opportunity to start thinking differently about the inner city and consider whether the next phase of development could be inner city living.
Rotorua Chamber of Commerce interim chief executive Allison Lawton said the new businesses opening backed up the positive economic data she was seeing.
She said over the Christmas period two or three people had popped into the Chamber office wanting to discuss retail opportunities and the economic environment. They went away feeling "inspired and excited", she said.
She said being able to give them the data around the latest Infometrics report was "a really good story to sell".
Ms Lawton said the positive spin-offs of new businesses opening were two-fold - locals noticed it and from a business point of view seeing new businesses open built momentum.
"I think it is exciting for us."
Kulture Shock's Jess Caulfield said she had noticed a huge difference in the Rotorua central business district in the past few years.
She said when she last worked in town about four years ago as a hairdresser town was "getting quite bad" when it came to empty shops - but she believed that had now changed.
Miss Caulfield said there were numerous reasons behind the business' move from Ngongotaha to Hinemoa St, including cheaper rent in town and more space to expand.
However, she said the increase in foot traffic and the tourists in town were also a bonus.
Apt Collections general manager Jane Coleman said they had been looking at opening in Rotorua for about 10 months, since the closure of Finns. The fashion shop opened on the corner of Tutanekai and Eruera Sts about three weeks ago.
"It has taken a wee while to find somewhere we were happy with."
Mrs Coleman said while they'd only been open a short time, they were pleased with the numbers of customers.
She said Rotorua was also appealing because of its visitor numbers and activity, which was a good opportunity to capitalise on.
Emily Stevens from Ems Flowergirl opened the florist shop because she had confidence in Rotorua.
She previously owned a florist in town, but had been thinking of reopening for some time.
Ms Stevens said she couldn't ask for anything better from her first week of trading.
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