Govt funding for lakefront spa complex (+video)

FILE

The Government will invest $350,000 towards investigating a new lakefront five-star spa and hotel complex in Rotorua, Prime Minister John Key has announced.

Mr Key made the announcement at Trenz in Rotorua this morning.

The facility will be built on the QE Health Site on the lakefront and will provide a significant boost to the local economy.

Once built, it's estimated the spa and hotel will provide between $36 and $48 million in economic benefits to New Zealand, with a large chunk of that staying in Rotorua.

"The spa and hotel facility will be the first stage of a multi-million dollar redevelopment of 11 hectares of prime lakefront property close to the CBD that will transform the central city and will attract more visitors to Rotorua," said Rotorua MP Todd McClay.

"Tourism is very important to Rotorua and the country; it is our largest employer and is worth $500 million to our local economy each year.

Mr Key said tourism was a significant part of our economy and a major employer.

"The World Spa project aims to develop an international standard spa and wellness complex on Rotorua's lakefront. The Rotorua District Council has set a goal of 1.5 million commercial spa visits yearly, and the development of this new spa complex will certainly help with achieving that goal," Mr Key said.

The funding comes from the Tourism Growth Partnership fund, a contestable fund for projects that seek to boost innovation and productivity in the tourism sector.

Mr McClay said the total investment in Rotorua's tourism industry over the past 18 months was now $1.29 million.

Previous funding for Rotorua includes $300,000 towards the Tarawera Ultramarathon held In Rotorua last year, $225,000 towards upgrades to the Skyline Gravity Park on Mt Ngongataha, and $420,000 towards the running of the international mountain biking event Crankworx.

"The investment of $1.29 million here over the past 18 months shows the Government understands the importance of the industry in this region," Mr McClay said.

More to follow.