While a much-loved attraction for the local community, Allison said it also brought with it substantial operating costs which Ngāi Tahu Tourism has had under consideration for a long time.
Coupled with the current restricted and uncertain climate, it had become clear the park was not financially viable, she said.
"We evaluated all options including changing the price point, offering a modified experience, and catering to the domestic market only – unfortunately, the unique environment of Rainbow Springs Nature Park has been prohibitive."
She said the international market was key to the attraction and though there had been moves towards fewer restrictions on international travel, it was not expected tourism levels will be back to their pre-pandemic levels for years to come.
"We empathise with the nostalgia that the Rotorua community has with Rainbow Springs, and we are sad that the current restrictions, high operating costs and ongoing uncertainty, meant that things were not sustainable for the future."
All wildlife would be rehomed by September.
Allison said it would focus on supporting impacted kaimahi and ensure the welfare of all animals during the transition period.
"Just as we are looking at the possible transition options for our kaimahi we will also look to secure the best and safest rehoming options for all animals affected by the closure of Rainbow Springs."
It will proactively work with the Zoo and Aquarium Association to relocate the animals.
The National Kiwi Hatchery, which is also located at Rainbow Springs, will remain open.
It will continue to operate at the site until plans are developed to move it to the recently reopened Agrodome site.
"We remain committed to providing an engaging, and world-class attraction to the local community through Agrodome and we have some very exciting long-term plans there which we will announce in due course."
