New tourism plan aims to increase Rotorua visitor spend to $1 billion by 2030

A high-end treehouse hotel could be potentially built in Whakarewarewa Forest as part of a new destination management plan for Rotorua. Photo / NZME

A high-end treehouse hotel in Whakarewarewa, 5-star accommodation in the city centre, indigenous food festivals and a new courthouse are all part of a plan that could take Rotorua's visitor spend from $695 million to $1 billion by 2030.

But before Rotorua's tourism industry can thrive again the city's social issues need to be resolved, according to a new plan for the struggling sector.

A 53-page summary of the Rotorua Destination Management plan was presented by Rotorua Economic Development at a Rotorua Lakes Council Strategy, Policy and Finance Committee meeting on November 11.

It sets out to develop the district as a "functioning and thriving visitor destination" and boost tourist spend almost 44 per cent in the next eight years.

Rotorua Economic Development chief executive Andrew Wilson believed Rotorua accommodation was not up to par.

A destination management plan presented to the council's Strategy, Policy and Finance committee. Photo / NZME

"The yields and returns that our accommodation sector were making [pre-Covid-19] were just too low."

Wilson said this was a result of having too many motels and too much low-quality accommodation.

"We want to make this a really attractive place that we can actually see new rooms planned or actually under construction."

Wilson believed Queenstown was developing around 3500 accommodation rooms before Covid-19, while Rotorua planned about 150.

The full Destination Management Plan provided to the Rotorua Daily Post said Fenton St, currently filled with motels serving as emergency housing, could be changed into space for much-needed homes. Visitor accommodation could move to the CBD.

It also said a high end "treehouse" hotel and lodges could potentially be built in Whakarewarewa Forest.

The plan said the unmaintained buildings in the central city were "giving the area a tired look".

Rotorua Economic Development chief executive Andrew Wilson. Photo / NZME

To revitalise the city, the next five years looked at creating liveliness with residents and accommodation in the central city, a new courthouse, bilingual signage and indigenous food festivals during Matariki.

Changes to the Rotorua District Plan would start new quality accommodation in the central city within the next three years.

The plan also addressed tourism job losses as a result of Covid-19.

Goals to reduce the perception of tourism jobs as illegitimate and poorly paid have been set.

Wilson said he wanted to ensure "all staff are paid a living wage" and all teams go through sufficient training modules.

Councillor Tania Tapsell said at the meeting she was pleased with the summary.

"I do wholeheartedly support the training and upskilling as well as addressing fair wages and the wider housing issues that come with that," Tapsell said.

"The sun will shine again and we need to be ready for it."

Councillor Tania Tapsell. Photo / NZME

Rotorua Economic Development was currently appointing a destination manager to implement the plan through a fixed-term two-year contract.

The organisation needed someone with project management skills, tourism industry knowledge, budgeting and fundraising knowledge.

The Ministry of Business, Innovation and Employment would be funding the position and the first stages of plan implementation.

It also fully funded the creation of the destination plan, written by Tristan Adams, Economic Development programme manager.

When asked, Rotorua Economic Development would not reveal how much the plan had cost due to commercial sensitivity.

The Ministry of Business, Innovation and Employment was asked how much the plan cost and how much money it had contributed.

Manager, investment management performance, tourism branch Liz Vallières said the ministry had given Rotorua Economic Development funding from the 2020 Strategic Tourism Asset Protection Programme which had allocated $20.2m in grants to the 31 Regional Tourism Organisations across New Zealand.

Vallières said the investment was to support these organisations to implement destination management and planning and encourage more people to explore their regions.

Rotorua Economic Development received $1m from this.

It was also given $1.5m in grants as part of the 2021 support - Tourism Communities: Support, Recovery and Re-set Plan which saw Regional Tourism Organisations and Regional Tourism New Zealand allocated $26.8m in grants.

- Samantha Carter is a journalism student at Massey University