Rotorua's tourism industry is hoping to receive a much-needed boost with the start of direct flights to Australia.
Air New Zealand yesterday said it would begin flying twice a week to Sydney from Rotorua starting on December 12.
The tourist mecca has been facing tough times in recent months with the drop-off in Asian visitors as a result of swine flu fears.
George White, chief executive of Rotorua Airport, which has been campaigning for transtasman flights for more than a decade, said they would benefit the local economy.
"Tourism is already a key industry in our local and regional economy. It is estimated to contribute $250 million to our gross domestic product and provide more than 7000 jobs - more than a quarter of all the jobs in the region."
White said the additional flights were expected to add between $6.75 million and $12.3 million a year to the economy as well as between 70 and 130 new jobs.
Destination Rotorua Tourism Marketing general manager Don Gunn described the flights as huge not only for Rotorua but for the region.
"There is a large catchment of expat New Zealanders living in Sydney able to travel back and forward and this obviously opens the opportunities for Australian leisure travellers."
More than 200,000 Australians visit Rotorua every year and Gunn estimated that could grow by 5 per cent a year.
He also believed the route would open up Rotorua to other visitors who came via Australia like those from India and other parts of Asia.
Air NZ Tasman Pacific general manager Glen Sowry said the existing strength of inbound tourism from Australia had lent weight to the decision.
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