Mrs Hollis said her son had grown up in New Zealand but they went back to Japan each year.
"His dad is Kiwi. It's nice to be to take part and show him Japanese culture."
Kaito said he had been to the festival before and his favourite part was making the decorations.
Ngongotaha locals Sayaka Yamada and her son Tyga Yamada, 3, were busy making decorations.
Mrs Yamada, who has lived in Rotorua for 14 years, said it was the third time they had attended the festival.
"I wanted to show him my home culture."
Lynmore resident Esmeralda Hutchinson had come to the Arts Village with her family, including her grandkids aged from 7 to 11.
She said it was the first time she had attended the festival.
"It's wonderful. My family are into Japanese culture. My son has a really good Japanese friend, and he spent three months living in Japan."
Main organiser Hiroe Howell said it was "good chaos" at the event.
"Before the festival takes place it's hard with all the preparation but once it is happening it's satisfying. I'm happy to do the event for Rotorua."
Mrs Howell said she thought there were more people in attendance than last year's festival.
Organiser Paul Howell said even before the event began at 2pm people were waiting to come inside.
"It's a good turn out."
He said following the decoration-making, there would be storytelling, a star quiz and six members of the Taiko Japanese drumming group would perform.
Edible treats, both savoury and sweet, were made by Japanese locals for people to taste.
Trying out some of the treats was local Hiria Skudder, 26.
She had come down with family members who had heard about the event thorough the Rotorua library and their schools.
"It's free and it's different and it's something to do inside [on a Sunday]."
