Mr Walsh said whether they were glitzy functions or scaled-back, more casual affairs, the annual Christmas get-together was an important part of the calendar for most businesses.
"It gives them the the opportunity to get the team together and is a bit of team bonding."
Lakeland Queen general manager Craig Hammond said he had seen a steady start to the summer season thanks to international visitors and Christmas functions.
"We have been really busy with Christmas functions from November through to December so it's been great to see companies coming out to enjoy themselves after a busy year."
Mr Hammond said he had seen more businesses not only pay for the meals but pay for bar tabs this year too, as well as giving Lakeland Queen vouchers to staff who couldn't attend the function.
He said his company had introduced a BBQ Dinner Cruise which had taken off really well.
While Christmas functions were mainly for local businesses, Mr Hammond said they had also hosted functions for businesses from around Bay of Plenty and Waikato.
Skyline Rotorua marketing manager David Blackmore said this season had been one of the best since the financial crisis, with bigger groups heading through for Christmas functions.
"It's been excellent. We seem to have had more groups and bigger groups through."
Mr Blackmore said it had been better than last year, which was the best since the financial downturn of 2007/2008.
"We really turned a corner last year and this year has been more positive again."
Most of the bookings had been made well in advance of the launch of Skyline's new restaurant, Stratosfare, but Mr Blackmore said that had made an impact on general dining numbers with plenty of people wanting to check it out.
While the Rotorua District Council does not hold a staff Christmas party, for the first time in many years it plans an alcohol-free staff lunch in the staff cafeteria on Christmas Eve.
The council allocated $15 per staff member for Christmas celebrations.
Lakes District Health Board held a Christmas lunch for all Rotorua staff.
Spokeswoman Sue Wilkie said 665 people attended at a cost of about $9700. She said health board managers served the lunch, which ran over two hours so staff could attend in rostered lunch breaks.
She said the DHB also held a collection for food items to be donated to the Waiariki Women's Refuge.