"It's just a bit of fun, to be honest.
"It's what's distinctive about Rotorua - and it probably smells a hell of a lot worse in some of those toilets."
Rotorua's supporters have also sent themselves up.
They claimed on April Fool's Day that Hugh Hefner was moving there after reading reports that hydrogen sulphide - the source of the city's distinctive odour - had aphrodisiac qualities.
"We did it as a bit of a tongue-in-cheek joke, and it went all around the world," Gunn said.
Tauranga's new campaign could also be seen as payback from local rugby fans after the coastal city failed to secure any games in the 2011 Rugby World Cup, despite a joint bid with Rotorua. Sulphur City will host three.
Burgess said there was some disappointment in Tauranga about the decision, but he was hoping to scoop team hosting rights for the tournament.
The latest campaign's main aim was to change perceptions of Tauranga as a "beachside retirement town".
"People who haven't been here for 20 years would be blown away by the growth that's gone on."