A Rotorua business is closing because of unruly behaviour outside its CBD store - including swearing, spitting and fighting.
Antique Treasures will shut within the month, adding to the number of vacant spaces in Rotorua's CBD.
However, a business leader says the city is making good headway with new developmentspopping up around Rotorua, increased investment in the CBD and the city making good progress in "pushing out the bad stuff".
The owner of Antique Treasures, who spoke on condition they were not named, said an increase in unruly behaviour - including swearing, spitting and fighting - outside the business had, in his view, contributed to a drop in foot traffic.
He said the business was "definitely better" when the store first opened, and he did not allow his children into the store any more because of behaviour in town.
McLeods Booksellers manager Jemma Morrison said Saturdays were quieter than previous years and there were fewer elderly customers.
"We are concerned about all the empty shops around town; it's not a good look," she said.
The store was a "destination shop," which helped soften the blow of decreased foot traffic as a result of the number of vacant stores.
Morrison said business dropped when the Post Shop on Tutanekai St closed and parking charges discouraged elderly customers from visiting.
Sulphur City Soapery was a new business launched three months ago with a store in town as well as online.
But owner Jackie Lunam now feared she made a mistake opening a store in the CBD.
Located on Hinemoa St, the store's second location was something Lunam had to do because the first location, in the Hinemoa St business complex, had no foot traffic.
"You see many shops open and then fold and I do worry that I'm going to do that too," she said.
Lunam said she hoped the ethical basis of her products would entice customers.
TelferYoung registered valuer Grant Utteridge said the challenges facing Rotorua's CBD were being seen in other parts of the country.
"We think the vacancies appear to be increasing in the retail sector.
"This trend is pretty similar to most other provincial centres; it is not just Rotorua."
His comments come ahead of the release of a market insights report by TelferYoung report, which will cover CBD issues.
Rotorua Chamber of Commerce chief executive Bryce Heard said while the CBD was experiencing some problems, the future looked bright with a range of developments planned.
Rotorua Lakes Council granted one building consent for the CBD in the first month of the year.
The consent comes almost two weeks after Rotorua's first five-star hotel, the Pullman, opened on January 15 employing 80 people following a multimillion-dollar fit-out.
It was just the start of a long list which included two more hotels on Fairy Springs Rd, the new Bay of Plenty Regional Council building on Fenton St plus council initiatives, Heard said.
"There is heaps happening. We still have problems, but as long as we are doing more good things and making headway, that is the main thing.
"On the whole, there are a heck of a lot of good things happening and were are starting the decade with a bit of a bang in terms of development and investment in town."
Heard said he believed Rotorua's CBD had a lot more happening than other cities and hoped the positive work would eventually push "all the bad stuff out".
Rotorua property developer Ray Cook confirmed he recently secured the 14,000sq m PlaceMakers site on Te Ngae Rd for redevelopment, but could not confirm any specifics.
"We are presently demolishing the site and removing all existing buildings from the site.
Vacant land on Te Ngae Rd was hard to come by, he said.
"Now, with the confirmation of the road widening, it has given us the enthusiasm to do something with it."
The old St John Ambulance station site on Pererika St had also been cleaned up and leased out by Rotorua developer Tony Bradley, he confirmed.
He said no redevelopments were currently planned for the site.
Rotorua Lakes Council said the TelferYoung report was due to be released late this month and it was at this time that council would be able to respond.
Rotorua Police Area Commander Phil Taikato told the Rotorua Daily Post police were committed to ensuring the safety of all who work and live in the Rotorua CBD, and worked closely with other agencies and local businesses to achieve this.
"An example of this is the ongoing Safe City Guardians programme, which is a partnership with Rotorua Lakes Council and businesses and involves safety patrols in the CBD. There have also been increased foot patrols in the CBD over the holiday period," Taikato said.
"We encourage anyone who has immediate concerns for the safety of themselves or others to dial 111. You can also get in touch with police to report matters that aren't urgent by dialling 105."
Key CBD-related Rotorua Lakes Council projects currently under way:
• Last May the council approved an inner-city transport functionality review that would take a comprehensive look at how people and vehicles move around and use the CBD, a review of speed limits and consultation. The initial phases of that review are under way.
• Work to progress the redevelopment of Amohau St is also continuing. This is an NZTA project which aims to improve safety and linkage between Central Mall and the inner city ahead of revocation of the state highway status of this road. It will revert to "local road" status with the council taking over responsibility for future management and maintenance once the upgrade project is finished.
• Improved connections to the central CBD are also part of future plans for the Lakefront redevelopment which is now under way.