Visitors to Tauranga and the coastal Bay of Plenty spent $773 million in the past year - an increase of $86 million from the previous year.
The figures reflect spending by both domestic and international visitors in the year to March 2015, collated by the Ministry of Business, Innovation and Employment.
The coastal Bay of Plenty region, stretching from Waihi Beach to Ohope, was the sixth-highest earning region in the country. Rotorua was 11th with a $593 million spend. The 12.5 per cent increase showed Tourism Bay of Plenty was doing a great job, chairman Ian Smith said.
"We have a huge domestic market here. While for a long time we had that retirement village reputation, Tauranga is increasingly being recognised for more than that.
Mr Smith, who is also the owner of Waihi Beach Top 10 and Beachaven Kiwi Holiday Park, said Tauranga City Council's events strategy and the low New Zealand dollar had played a big part in the growth.