Rotorua Economic Development, also known as Destination Rotorua, is changing its name to RotoruaNZ.
The organisation's representatives say the name change provides "a really clear signpost of what we're all about - our people and our place".
The council-controlled organisation revealed its new name in a Rotorua Lakes Council strategy, policy and finance committee meeting on Thursday.
The name change would apply to its legal and trading name. At the moment, the organisation's legal name is Rotorua Economic Development (RED) and its trading name is Destination Rotorua.
RotoruaNZ, as it is now known, is the district's combined regional tourism and economic development agency.
Rotorua mayor Steve Chadwick said she loved the new name and it was "significant".
"I didn't ever like it being called RED."
Deputy mayor Dave Donaldson said he liked the name and thought it had already been changed.
Councillor Tania Tapsell said she thought the name change could be a "backwards step" because it appeared to focus only on tourism, not economic development.
"RotoruaNZ doesn't accurately reflect the significant and important work that's done to support our local businesses.
"If we have people [who] want to invest, that want to bring new businesses here, does RotoruaNZ mean anything to them? Potentially not."
Chadwick said it was a combination of both.
"It's how people find us, it's all about search engines.
"They're not going to drop … those other activities at all."
Councillor Merepeka Raukawa-Tait said she was sure the RotoruaNZ board had "looked carefully at it" but she'd thought the name "looked like a trucking company".
"Where's the economic part of it? But however, they would have done their homework on that."
Councillor Raj Kumar said the name change could "polarise" the community.
Council district development deputy chief executive Jean-Paul Gaston said RotoruaNZ would remain the council's combined regional tourism and economic development agency.
"It's not to diminish any those two roles.
"It's not intended to create disruption or demean any part of that organisation."
Councillor Fisher Wang said Rotorua Economic Development had been "a bit of a mouthful" and the new name was "more personalised" and "more intimate".
The discussion was part of the committee's oversight of the council's three council-controlled organisations' statements of intent for the new financial year.
In a statement in RotoruaNZ's statement of intent, which was jointly attributed to chairman John McRae and chief executive Andrew Wilson, it said the name change came "alongside" the new logo for the organisation.
"This name is already well-established through our marketing social media channels and provides a really clear signpost of what we're all about - our people and our place."
The committee voted unanimously to "support" the name change.
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