Skyline Rotorua sales and marketing manager David Blackmore said most people arrive at Skyline by bus or car, but getting more people to arrive by bike would have benefits. "We get a few people turn up by bus, but biking would create a whole other avenue so I think it can only be positive."
Ngai Tahu Tourism Central North Island marketing manager Angela Best said Rainbow Springs were unlikely to see an impact from the Cy-Way.
"Overall for the community I think it's great, but I don't think it will draw a lot of traffic our way."
Deputy mayor Dave Donaldson said the Cy-Way would benefit the local population and the environment.
Mr Donaldson disputed the idea that money could be better spent on roading infrastructure.
He said urban cycle ways would be for everyone and lowering the number of cars on the road would also impact air pollution levels.
The Cy-Way will receive $1.5 million from the Urban Cycleways Fund, along with $2.09 million from the National Land Transport Fund and $1.93 million from local government.