Work on Lynmore Junction. PHOTO/STEPHEN PARKER
Rotorua's economy is continuing to boom - enjoying a "stellar" quarter with economic indicators outstripping the national growth rates.
The latest Infometrics quarterly economic monitor for the Rotorua district saw Rotorua's gross domestic product up 4.1 per cent, ahead of the national rate of 3.2 per cent.
Rotorua also grew at rates ahead of the rest of the country when it came to traffic flow, non-residential consents, house price increases, the number of houses sold, guest nights, retail trade, car registrations and commercial vehicle registrations.
The independent report described Rotorua as having enjoyed a "stellar September quarter" with all indicators of spending, investment and labour market activity pointing in a positive direction.
"As Rotorua increases in popularity, businesses are beginning to ramp up investment in the area."
Real Estate Institute of New Zealand spokeswoman for Rotorua Ann Crossley said it was great to see the positivity across all of Rotorua.
She said while the housing market was going through a correction with the numbers "just the proof", it was more than just a strong housing market.
Mrs Crossley said the feeling was particularly noticeable because almost all the industries were experiencing the positivity.
"Joe Bloggs driving around the streets of Rotorua will feel it. They will notice more people on the roads, people more upbeat in the shops.
"There is just a really good vibe in town."
She said the last time real estate had felt so buoyant was in 2007 - but this surge felt more robust.
"It is an exciting time for us and it is our moment."
Skyline Rotorua general manager Bruce Thomasen said the growth in tourism was reflective of the effort and investment the industry had put in.
"All of that is helping us grow market share higher than the national rate."
He said the industry hadn't got to the point it was at because of the short term, and it was down to a lot of hard work over the past few years.
"Once we lay the foundation that good work continues."
Mayor Steve Chadwick said it was encouraging to see the upwards trend had continued.
"Overall right now, Rotorua's in very good health.
"We've got an economy consistently performing above the national average, a population now topping 70,000, unemployment dropping and key sectors like forestry and farming in good health."
She said tourism was booming and Rotorua was looking forward to a busy summer after a record off-season with visitor numbers predicted to keep increasing.
Mrs Chadwick said key events also boosted the economy and the news Crankworx, which injected $8 million this year, would stay in Rotorua for the next 10 years was great.
The council's efforts to enable economic growth had focused on strong partnerships with key community stakeholders, she said.
"We're working together to achieve shared goals. That's been very evident in the inner city where retailers and business owners have worked alongside us on improvements and are now reaping the benefits of increased trade."
Deputy mayor Dave Donaldson said the figures were good news for Rotorua as a whole.
"Rotorua district has continued to show progress with annual GDP figures tracking above the New Zealand figure for the last four quarters."
He said Rotorua also had the lowest average annual unemployment rate since September 2009, with visitor night growth also on the up.
"We have population growth and are reducing unemployment at the same time."
He said the strong visitor economy was also good news for school leavers.
"There are jobs there for the students in the school holidays."