"We have good offerings in Rotorua and more to come in 2017, so we are definitely heading in the right direction.
"Rotorua is in really good heart in terms of how we are thought of and perceived and I'm seeing so many visitors keeping our shops busy.
"People are here and they are spending, and that's all to the good," he said.
McLeod's Booksellers co-owner David Thorp said sales were up 7 per cent on last Christmas "and last Christmas was a real ripper".
"It's a really satisfying and secure feeling to know we have a viable business again.
"We're not totally sure what turned it around, but it's been a number of things.
"Over Christmas we have come into our own as we are more like the old-style, real shopping experience and people are looking for worthwhile gifts with a decent range."
He said he thought Rotorua Lakes Council had done a wonderful job with the CBD bringing in markets and tidying up the streets.
"But what I still think is lacking is smaller, locally owned businesses populating the central city and encouraging people into setting up their business in the CBD."
Mr Thorp said the latest challenges to book stores in terms of technology, such as online shopping and e-readers, seemed to have been overcome.
"I don't think you can replace the book, you take a Kindle on holiday, but there's nothing like the book.
"We see more and more kids are reading now and that's really encouraging and satisfying."
Rotorua Chamber of Commerce acting chief executive Allison Lawton said she believed the upward trend was here to stay.
"I've been speaking to a tourist operator who said it was pumping out there and that's part of why we are seeing the increase in spend through increasing tourist numbers.
"There are lots of people in the city and everyone is benefiting.
"If tourism remains buoyant for the next 12 to 18 months we will continue to see growth in not only retail, but in all other sectors."
Pukeroa Oruawhata Trust client manager Peter Faulkner said Central Mall retailers he had spoken to said it had been another good Christmas and new year period with a lot of visitors in town.
"It appears the confidence is there and continuing on a steady upward trend," he said.
During all 12 months of 2016, Paymark processed 1.2 billion transactions for $57.4b of goods and services with the underlying growth rate for 2016 at 6.7 per cent, marking the fourth consecutive year of strong growth.
Bay of Plenty Paymark spending figures for December 2016
- Up 9.9 per cent on December 2015
- Just over 8m electronic transactions for the month
- Total spend of $410.6m
