"The tourism component of the route subsidises the local component . . . We have kaumatua in the Coromandel who are so excited they are going to be able to come down to Rotorua to see whanau," Ms Hart added.
Rotorua mayor Steve Chadwick said the new service would fill another niche.
"The cost of bus travel in New Zealand is incredibly reasonable and this will add to tourism, people will come down to visit.
"Travelling by bus means tourists don't have to navigate and can instead sit back and enjoy the scenery - it takes the pressure off."
Destination Rotorua chief executive Michelle Templer said the new service had dual benefits.
"It complements tourism as it will principally be tourists moving through but locals will benefit from it too.
"It will be great for the iSite because it offers increased flexibility for travellers . . . It's really important to get that connectivity."