Mr Coffey said he felt his election as chairman was a "strong show of support" in his ability to provide leadership for the area.
The sentiment was echoed by the Labour Party's general secretary Tim Barnett.
"Often 'Region 2' leaders come from Hamilton, so it is really good to see a different leader from a significant, progressive regional centre such as Rotorua being elected."
Mr Barnett said regional New Zealand was a renewed focus for the Labour Party and he was confident Mr Coffey would help open fresh conversations with regional business and communities leading into the party's 2016 centenary celebrations and the 2017 election.
"In his time with Labour, Tamati has shown an incredible ability to bring people together and up our standards of organising. I have every belief he will expand that role and that work in this new position."