"Rotorua is a major destination for motorhomes and campervans but some drivers find that they can't park close enough to the inner city so avoid the area altogether.
"This means retailers, cafes and other businesses in the central city often miss out on their custom.
"Others park their large vehicles on the street in spaces meant for smaller, regular-sized cars, making it difficult for other motorists to drive past.
"During our recent consultation with the local community to develop our Rotorua 2030 vision and goals, we received comment about the lack of daytime parking for these vehicles."
Ms Hunt said the parking area was a practical compromise which helped take larger campervans out of the centre of the city.
"But at the same time it provides an easily accessible designated parking location that's free to use and is still only a few minutes' walk to Tutanekai St, Rotorua Museum, the i-SITE and other visitor spots."
It also meant easy access to Te Ara Ahi cycleway and the new cycle route proposed across the inner city.
The council hoped the new campervan facility would be the first of a number of designated parking areas for motorhomes around the city.