"We have beautiful scenery, exciting attractions and an unparalleled visitor experience.
"As international visitor spending is booming, we must also invest to sustain the supporting infrastructure."
He said the Government was investing in infrastructure across the board to support visitors, including roading and mobile service infrastructure.
Mr Sandford said despite hard work by locals "it's frustrating to see the National Government on one hand promote tourism and on the other undermine it".
"We need investment in our infrastructure, most tourism workers in Rotorua are on the minimum wage, so if someone is working a full-time job and still struggling to get by the tourism industry will suffer as a result."
Destination Rotorua trade manager Patrick Dault said while it was great to see growth in local tourism, the challenge was to keep Rotorua's tourism products "top of mind".
"We must continue to maximise opportunities, aim to diversify our clientele visiting Rotorua, ensure we remain up to date with technology to meet the quickly evolving client demand and be nimble enough to develop bespoke experiences that are profitable and tailored to each market."
Rotorua tourism spend for January
● $773 million for the year ending January, up 4 per cent
● $102 million spent in January 2017, up 5 per cent
● $26,065 million spent nationally for the year ending January, up 7 per cent
● $2979 million spent nationally in January 2017, up 6 per cent
Source; Ministry of Business, Innovation and Employment monthly regional tourism estimates