Mr McClay said he was delighted with his appointment saying it would be good for Rotorua and New Zealand.
"Tourism is an extremely important part of the New Zealand economy and was worth $23.9 billion in 2013 and Rotorua is a significant part of the New Zealand tourism.
"I look forward to continuing to work closely with Rotorua tourism operators and representatives to enhance our attractiveness as a tourist destination and to attract investment and jobs to the local economy," he said.
Rotorua tourism and business officials said the move was excellent for the city. Destination Rotorua Marketing general manager Oscar Nathan said it was a great announcement, not only for Rotorua but the wider New Zealand tourism sector.
"Throughout his time as Rotorua MP, Todd has remained a strong advocate for the visitor economy and the direct and indirect impact the sector has on regional New Zealand.
"The fact we now have our local MP in such a position will only strengthen central government's appreciation of the sector and I am sure there are many people here in Rotorua and across the wider region that will be excited at the prospect of Todd working alongside Prime Minister John Key at such a crucial time for the industry and our economy," Mr Nathan said.
Grow Rotorua chief executive Francis Pauwels said the appointment was fabulous news.
"Tourism is one of the sectors Grow Rotorua is focused on. We have been working with Todd on a few other initiatives and for us his new position is just fabulous.
"It's fair to say we had slipped off the radar a bit in Wellington but Todd and Steve [Chadwick] have been influential in getting us back on the map."
Mr McClay said one of his top priorities was a change to Easter trading laws but would probably not look seriously at the issue again until after the next election.
"Easter trading has always been a priority for me but only worth doing when we have the numbers in Parliament.
"I know the tourism industry throughout New Zealand is very keen to see some changes."
