Tony Bullow, Bay of Plenty Accommodation group sector chairman said there were a few rooms available but most had been snapped up.
The high demand - encouraged by quality events such as the jazz festival - allowed providers to charge peak rates.
The 56th annual National Jazz Festival in Tauranga got under way at Baycourt yesterday with minimum fuss, launching straight into the music.
There were a few welcoming words from Tauranga City councillor Leanne Brown, then the first school competing in the two-day 41st National Youth Jazz Competition - Whakatane's Trident High School - took to the stage.
About 250 musicians - local and international - will perform in the six-day festival, which opened with three events already sold out.
Festival director Craig Wilson said the advance sell-outs were "unprecedented" in the history of the event, started by the Tauranga Jazz Society in 1963.
As well as the two-day, gold-coin entry Downtown Carnival there will be nine ticketed events where The Strand will close, bars and restaurants will extend their outdoor areas and four stages will be erected in the street.
Wilson said he expected between 8000 and 12000 people to attend each day.
"There's something for everyone and the atmosphere is so great you don't need to be into jazz music to have fun."
The event will wrap up with the TECT Big Band Bonanza on Monday.
City events manager Gareth Wallace said Tauranga's council had provided $60,000 funding for the festival, which in 2015 generated 4560 visitor nights and boosted regional GDP by $359,000.
Also contributing to packed motels this weekend was the Mel Young Easter Basketball Classic with 130 teams of players aged 11 to 19 in action across four venues in Tauranga.
Other events on the calendar included Tauranga Rotary Club's 31st annual Easter Book Sale, sprint cars and derby at Baypark, the Little Big Markets and Easter egg hunts in Katikati and Mount Maunganui.
Easter weekend weather looking good
MetService meteorologist Claire Flynn said the forecast was looking "pretty good" for Tauranga.
Rain on Friday morning was expected to pass Tauranga early leaving sunny skies and occasional cloud. The rain may return only briefly on Sunday afternoon.