Rotorua 'punching above its weight'

PHOTO/FILE

Rotorua's economy is continuing to outshine the rest of the country when it comes to performance - with more people moving to town, a booming tourism industry, spending up and house sales jumping.

And the Rotorua Daily Post can reveal today the strong economy has lured another national retailer to the city with NZSale set to open a new store in Tutanekai St. The announcement comes just weeks after national clothing chain Max confirmed it would soon open in the city.

The latest Infometrics quarterly economic monitor showed Rotorua's economy performed strongly in the second quarter of 2016.

The GDP grew by 3.6 per cent over the 12 months to June 2016, compared to 2.7 per annum growth nationally. Rotorua's GDP growth has now been above the national average for four consecutive quarters.

Rotorua also saw a 5.9 per cent growth in retail spending- almost double the 2.8 per cent seen nationally.

Inner City Focus Group member Mike Steiner said the retail figures were fantastic.

He said while it was easy to say Rotorua was on a roll, a lot of work had gone in to achieving the growth.

"The difference is the perception of what Rotorua is and has to offer has changed so dramatically in the last three years in particular."

He believed people were now enjoying being in the city and found it more attractive.

Mr Steiner said while there was still a long way to go, in his view the city had moved from being economically stagnant three or four years ago to a place where people wanted to be.

He said it was highlighted by the fact major retail chains such as Max were coming to the city.

"It is a game changer. Those type of businesses don't establish themselves on the warm fuzzies, they look at the bottom line."

Mr Steiner said the majority of businesses he had spoken to were saying they were busier than they had ever been.

"If I was talking to you three years ago I was a very worried person and probably a bit despondent for Rotorua. I really feared for what was happening in Rotorua."

Rotorua Chamber of Commerce chief executive Darrin Walsh said the figures showed Rotorua was above the national average in "just about everything".

"We see it and feel it here in Rotorua at the moment."

Mr Walsh said what was needed to make it sustainable is more land for development.

Rotorua Lakes Council deputy mayor and economic growth portfolio leader Dave Donaldson said Rotorua was "punching well above its weight".

He said tourism operators had told him they were expecting a bumper tourism season coming up with many hotel occupancy levels running into the 90 per cents through until the end of March.

However, he said the flipside was the booming economy and more people moving to Rotorua had put pressure on housing, with some having difficulty finding homes.

Mayor Steve Chadwick said it was reassuring to see the fourth quarter of growth which showed it was more than just a "blip" and was sustained growth.

She said seeing the international net migration figures almost double to 917 in the year to June compared to 509 the previous year was "fantastic".

One of those who has recently moved to Rotorua is teacher Carmel Skeaff, who moved from Auckland two months ago to take up a job at Western Heights High School.

While she admitted Rotorua "probably wouldn't be the first place I would chose to move to" she was surprised by how she found the city.

"It's definitely very beautiful which I didn't realise before. The town is quite beautiful, and so is the environment."