Ms Sanders said the festival might be under-appreciated by locals.
Rotorua has the rights to hold the festival for another year.
Ms Sanders said it was important for Rotorua to have a solid fan base for the event to ensure the city continued to host it in future.
Each year the concert has been held, organisers have been flooded with requests from cities around the country asking to host the festival, she said.
"We'd love to keep the event in Rotorua.
"The artists love coming here, with its cultural heritage and geothermal activity it's something special and unique for them. It's a place where they really get a taste for New Zealand culture."
But Ms Sanders said it would be cheaper if the event were held in Auckland, as it would cut travel and accommodation costs for the artists and event crews.
Rotorua District Council's events and venues general manager Peter McLeod said he hoped the event would continue to be hosted in Rotorua as it was "hugely beneficial" to the local economy.
"It has really put Rotorua on the map as an entertainment destination," he said.
However Mr McLeod said the festival's local attendance rate was not overly concerning.
"We've had locals make up to 30 per cent of people attending the event, which is quite a good number," he said.
"I think Rotorua strongly supports the festival."
The council would meet with festival organisers to discuss what happens after the city's contract to host the event expired, he said.
"It's an amazing festival and long may she continue here," he said.
Some readers on the Rotorua Daily Post Facebook page said they were not attending this year because it was too expensive, they didn't like the event being split over two days and they didn't like the line-up.
Discounted Raggamuffin tickets will be available for locals if bought at the Rotorua Night Market on Tutanekai St from 5pm tomorrow.
