Editorial: Spa plan helps ease dairy woes

The Lakehouse Hotel is being upgraded to a spa hotel.

News that Rotorua's iconic Lakehouse Hotel is set to get a new lease on life is exciting for the city.

As we reported on Saturday, the prime real estate sitting on the hill above Ohinemutu is set to be turned into a 250-bed upmarket "spa hostel" - the result of an agreement between Rotorua's Pukeroa Oruawhata Group and an international firm The Friendly Group.

It couldn't have come at a better time, something positive for the economy on the day when Fonterra slashed its forecast payout in a move that is set to cost the region millions.

It's all well and good for us townies to glance over the news without so much of a second thought.

Milk payouts don't really affect us do they?

And besides, farmers had it good for a while.

Except it will impact and we should care.

Rotorua is a farming region. When times are good for farmers they're in town spending, and it benefits the economy.

Talk of farmers losing $100,000 from their income and the farmgate milk price dropping below break-even for many will make for tough times for Rotorua retailers.

Think you won't be affected and think again.

That's why news like Pukeroa Oruawhata's development is so crucial.

It's the latest in a string of developments that have been planned for Rotorua - following on from the multi-million dollar Lynmore Junction which is set to get under way next year, to the smaller scale developments that are progressing around the city.

And let's not forget Pukeroa Oruawhata's own major development at the other end of the lakefront, which is likely to include a five-star hotel and spa complex and could create up to 400 jobs in the city.

Whether you like what's been done at Rotorua Central or not, Pukeroa Oruawhata have proven themselves as a player in Rotorua's market.

News that they are set to turn their focus to tourism now that they've largely completed their large-scale retail projects has to be encouraged.

There's no doubt the dairy downturn will have an impact on Rotorua - but continued investment like their's could be just what the city needs to get through.