Indications are good year of growth is on the horizon

The new building being built for the Department of Corrections is just one of a number of projects planned for Rotorua which show increased business confidence. Photo / Ben Fraser

An increasing positive vibe around Rotorua's business sector is being backed up by news that New Zealand looks set for a year of solid overall economic growth.

The latest ASB Quarterly Economic Forecast predicts economic growth of about 3 per cent, driven largely by consumer spending.

It comes following Seek data that job numbers - particularly for skilled and higher end jobs - were on the rise locally, combined with the announcement of several large scale projects planned for the city and the latest Paymark figures have also been positive

Rotorua Lakes Council's economic growth portfolio lead, councillor Dave Donaldson, said there had been a positive vibe around Rotorua, which suggested that many in the business sector were feeling increasingly optimistic about the district's economic future.

"There have been some very good signals to support this, such as improved retail spend over the Christmas period, and strong visitor bookings over this summer and on the books already for months ahead."

Mr Donaldson said consent applications had showed encouraging signs of growth.

"The value of some of those consents is quite substantial, providing welcome employment opportunities among the resulting spin-off benefits. There were even more exciting commercial developments on the horizon that I expect to be revealed over coming months as those projects get firmed up."

Mr Donaldson said a line-up of major events meant it was going to be a big year for Rotorua and those would all have a "very positive" impact on the local economy.

"Our district's reputation for hosting successful events is growing year-by-year and boosting our local economy in the process."

This month's Rotorua Bike Festival and Crankworx Rotorua in March will draw large numbers of people to our city from around the country and from across the globe.

He also highlighted the coming TRENZ and Local Government NZ Conference, both of which were being hosted in Rotorua and would see increased exposure for Rotorua.

"I can't help but agree with the growing sentiment that Rotorua is on the move, and that we have a much brighter future ahead of us." Rotorua Chamber of Commerce chief executive Darrin Walsh said the statistics just backed up "what we all know and feel is happening around town at the moment".

He said the economy was going well and had been doing so in pockets for the past 18 months. Rotorua had been lagging behind but in the latter half of last year had started to turn, he said.

"We saw a number of development and investments announced late last year which has sparked an increase in business confidence. Businesses are now starting to dust off projects they had otherwise shelved - this has led to more employment and on the back of this our economy is looking good."

He said he thought 2015 would be a good year for Rotorua. "Nationally people have more disposal income and were now travelling for their holidays and we are benefiting from this.

"The same can be said for the international market - people are now travelling again and when in New Zealand - Rotorua is a must-see."

ASB chief economist Nick Tuffley said record-level net migration meant more people were being fed and clothed. Employment growth was solid and interest rates are likely to remain relatively low, supporting growth.

But there are risks to be mindful of, he said.

"New Zealand's main economic challenges lie on the export front. Dry conditions are starting to bite in a number of regions around the country."