"All this work people have been doing on the domestic market has been working a treat for us. The majority of people we see coming through are Aucklanders, Hamiltonians and people from Tauranga, but by far Auckland is our biggest market."
Abracadabra Bar and Cafe co-owner Justin Genest said July was a lot busier than they expected.
"This is only our second July in business but it was definitely busier than we thought it would be, and definitely busier than August. There were lots of tourists and locals coming in for how cold it was. It was quite busy. It was quietening down at the end of August but has started to pick up again and we are looking forward to school holidays."
International markets were also strong in July, with Chinese visits to the city's attractions and activities up 18 per cent from last July, statistics from Destination Rotorua show.
The figures also show Chinese expenditure was up 74 per cent from last July, with Australian expenditure up 21 per cent, both well ahead of national averages, with a 10 per cent increase in electronic card purchases across the country.
Mr Mutu said Multi-Day Adventures had seen more Chinese tourists in the last six months than during the last three years.
"International numbers have really started to grow. It has always been a smaller part of our bike touring hire business, but we have definitely noticed market growth."
Commercial accommodation statistics showed strong growth this July compared to last July with guest nights up 7.8 per cent to 150,801, Statistics New Zealand reported.
A guest night refers to one guest spending one night in a hotel, motel, backpacker establishment or holiday park.
Cedarwood Lakeside Motel and Conference Venue owner operator Fiona Suurenbroek said the Famously Rotorua campaign had helped domestic visitor numbers there. Ms Suurenbroek said school holidays also would have helped boost visitor numbers.
She said August was a bit quieter than expected but forward bookings for summer were coming through earlier than usual.
"Hopefully we're on the right track."