The council would be supporting and growing key events such as Lakeside, Crankworx and Matariki, which it said would contribute to Rotorua remaining a "thriving visitor destination" and cater for the local community.
"When the city is hosting manuhiri, local residents and businesses benefit and a thriving events industry plays a key role in bringing visitors here," the statement said.
Rotorua Lakes Council director of events Joelene Elliott said it recognised retiring the New Year's Eve event would be felt in the community.
However, with a "dramatic increase" in events coming to Rotorua for the rest of the year and beyond, it made sense to put the council's resources behind them to maximise the experience for residents and visitors, she said.
The Rotorua Night Market will be running a family-friendly event on New Year's Eve and will be similar to a whānau event held in 2020, which offered a range of local entertainment, food trucks and fun activities.
Rotorua events this summer:
· Crankworx (on now)
· Six60 (tomorrow)
· Rotorua Off Road Trail Run/Walk (Nov 2022)
· New Zealand Blues & BBQ Festival (Nov 2022)
· NZ Māori Touch Nationals (Dec 2022)
· NZ Secondary Schools Touch (Dec 2022)
· National Maori Basketball Tournament (Jan 2023)
· Tarawera Ultra Marathon (February 2023)
· NRL Indigenous All Stars vs Māori All Stars (February 2023)
· Opening of Sir Howard Morrison Centre (February 2023)
· Australasian Police and Emergency Games (March 2023)
· Xterra Rotorua Festival (March 2023)
· Lakeside (March 2023)
· Crankworx returns (March 2023)
For more information, visit the Rotorua Nui website.