Co-organiser Eduardo Diaz says there will be performers and food trucks coming from Hamilton and Auckland, along with local ones.
He says there will be a great opportunity for people to watch paella being made, which is always fun.
"Apart from the great food and lineup of entertainment, with Rotorua being a multicultural city it's important to support our friends from South America."
Eduardo says the fiesta was held last year too, and it was planned to be an annual event.
"I think people realise when they listen to Latin music and eat Latin food, that it's a vibrant, exciting and contagious culture."
He says this is an event not to miss and the Village Green is a nice setting for the fiesta.
Many shows and community events had been affected by Covid-19 so it was great to be able to hold this for the community, Eduardo says.
The fiesta is put on by Multicultural Rotorua and the Latin American community, with the help of the Rotorua Night Market team, he says.
Kathy Nicholls, Rotorua Lakes Council arts and culture, communications and marketing lead, says the Rotorua Night Market team is so excited for the fiesta event.
"We love working with the local Latin American community because they are so passionate about their culture.
"It has been a tough time for events over the last few months, and it is great that we are starting 2022 with a burst of Latin energy and fun."
She says Rotorua has a diverse community and the team wants to showcase as many cultures as possible, to foster understanding and allow people to enjoy unique experiences.
People need to have a My Vaccine Pass to enter the Rotorua Night Market, and to scan in and wear a mask to keep everyone safe.