The Government has also announced investments in the Tarawera Ultra and Skyline's development of a ground-breaking mountain bike park, with expectations the city will soon stage one or more global mountain-biking events.
Rotorua Mayor Steve Chadwick said another vote of confidence was the announcement New Zealand's largest annual tourism event, the Trenz international trade expo, was to be staged in Rotorua next year.
"What a superb boost for our city's national and worldwide tourism profile."
Efforts to entice visitors from Auckland appear to be paying off, which Mrs Chadwick put down to the Famously Rotorua marketing campaign.
"Aucklanders are seeing us in a fresh new light. They're looking at Rotorua for holidays, investment and even relocation possibilities."
She said Air New Zealand's decision to introduce larger Q300 aircraft on some services between Auckland and Rotorua had increased sector capacity by 30 per cent.
"In the two months since the new aircraft commenced, passenger growth has hit more than 20 per cent, and Air New Zealand is seriously considering putting larger aircraft on the remaining services to and from Auckland."
Latest visitor arrival statistics for the year ending March 2014 showed commercial accommodation visitor nights were up 3.5 per cent with international visitor nights up 6.5 per cent and domestic up 1 per cent. The average length of time visitors stayed in the city was also up 6.2 per cent.
Events & Venues has seen an increase in inquiries from organisations looking to stage major events in Rotorua, many from outside the region.
A number of local events-related companies have also indicated they are looking at expanding their business portfolios in Rotorua.
Local developer Ray Cook said he was currently working on three new businesses to add to the inner city and fringes - with details to be announced soon.
"We've seen a very definite increase in commercial property inquiries that wasn't there before. The future is looking bright for Rotorua," Mr Cook said.
Mrs Chadwick said there were other substantial commercial and business developments on the horizon although most remained commercially sensitive at present.
"I'm aware of at least one exciting new private development under serious consideration in the timber-processing sector, and this is on top of recent news about investment in a new innovation centre for forestry and wood-processing industries at Scion's innovation park.
"There's also strong interest in our geothermal potential. Investment in a number of spa-related developments is currently being investigated and I'm confident we'll see new developments before long. I expect iwi to be significantly involved in this sector, and to be a major player in our district's wider economic growth."
Peter Faulkner, client manager for Te Arawa's Pukeroa Oruawhata Trust, said a major upgrade of the Rotorua Central mall complex had just been completed and it had secured 100 per cent tenancy. He said the trust was now turning its attention to new developments on its lakefront land.
"We're extremely optimistic about the future of Rotorua. We've been experiencing a considerable uplift in tenant inquiries and we're also now looking at three major projects across a range of industry types. There is a general feeling across the board that opportunities in Rotorua are now being recognised," Mr Faulkner said.
Backing that up, the number of new commercial projects gaining building consents in the district and the value of those projects are this year set to exceed those of the previous two years (not including the one-off police headquarters project).
The council's scrapping of development contributions and revised procurement policy encouraging more "buy local" opportunities for local businesses have also been touted as positive moves.
The inner city revitalisation programme, a partnership between the council and business stakeholders, has also had generally positive reviews.
"Eat Streat, new streetscapes, sculptures and the very popular free parking initiative, are all adding renewed vitality and a very positive vibe around town," Mrs Chadwick said.
"One healthy sign of confidence in Rotorua is the number of new businesses moving into the inner city. The council estimates that in the last six months alone around 30 new retail and commercial businesses have set up in the central city, indicating a possible reversal of past trends," she said.
Envy Shoes opened a store in Tutanekai St late last year, one of seven throughout the North Island. Envy's Jacqui Warbrick said the Rotorua branch was now their top turnover store, and was growing every month.
A four-year decline in inner city pedestrian numbers appears to have been turned around with the most recent figures showing a 2.5 per cent increase in footpath pedestrian counts. Occupancy of parking spaces in the central city is also positive, having climbed to 85 per cent in the peak middle-of-the-day.
Rotorua Chamber of Commerce president Kathy Hawker said business people she spoke to were feeling confident.
Westpac area manager for business banking Steve Pinder said many local businesses he was seeing had improved balance sheets.
He said recent improvements to the inner city meant people felt better about where they lived, which in turn made them more inclined to invest.
"It [Rotorua] is a good place to be and it's a good place to do business."
Deloitte Rotorua partner Murray Patchell said his firm was noticing strong results across some sectors, particularly dairy and forestry.
"We've got some very good businesses at the core of our economy and some very good business leaders."
Mr Patchell said local organisations now had the capability to invest back into Rotorua, rather than the city relying on outside investment coming in.
John McRae, also a Deloitte partner, said while some were still "finding their way a little", in general his clients felt it was a good time to look at opportunities in Rotorua.
"The general feeling is things are definitely on the up."
Rotorua Daily Post general manager David Mackenzie said he too had noticed a slight turnaround in market conditions.
"We have seen a lift in advertising activity across some sectors of our business which is a good indication that our local economy is showing signs of improvement, after what has been a really difficult time.
"It's still tough trading conditions but any small improvements are encouraging to us all."
Following construction of the new large-scale police headquarters in Fenton St, another announcement on a major government complex redevelopment in the inner city is imminent, according to Mrs Chadwick. She said a number of CBD property owners were also currently investing in refurbishment and upgrades of their buildings.
"Not everything's rosy of course, but the signals we're seeing right now do give an encouraging picture of a district that's turning the corner and is on the move. "We've a long way to go yet but there's certainly a sense of optimism that Rotorua's future is looking increasingly bright.
"I really think we may be on the verge of some exciting times. So my message is for us all to continue working together and to ensure we keep that positive momentum going," Mrs Chadwick said.