The April increase in the minimum wage will be an added expense for some Rotorua businesses that are already struggling and the cost is likely to be passed on to consumers.
This week's announcement by Labour Minister Kate Wilkinson that the minimum wage will rise by 50c to $13.50 an hour has met with mixed reactions. While most people would like to see minimum wage earners' incomes lifted, some business owners said they could not afford to absorb yet another increase in costs.
Rotorua Chamber of Commerce chief executive Roger Gordon said the change would not affect all businesses in the district, but would have an impact in sectors such as hospitality.
"We are certainly in a very soft business environment - particularly in Rotorua - and some of our retailers and other businesses are struggling."
Gordon said many sectors paid well above the minimum of $13 an hour because of labour market forces and these would remain relatively unaffected by the lift to $13.50.