Artist impression of what the new backpackers lodge on Toko St could look like. Photo / Spectrum Architects Ltd
A brand new $2 million backpackers lodge is being planned for central Rotorua.
The Rotorua Lakes Council issued a building consent valued at $1.5m in April for the new backpackers lodge at 27 Toko St.
Local tourism leaders say a ready supply of high-quality backpacker accommodation was important as bordersreopened and it was great to see new investment in the sector.
Roger Willard, speaking on behalf of the owners Rivers Property Management Ltd, said the $1.5m consent was for a two-storey backpackers lodge with 28 rooms and the project was expected to cost $2m total.
Willard, who is the architect and director of Spectrum Architects Ltd, said each room would be a double with ensuite bathrooms.
Willard said the land was currently occupied by a former hostel, which would be demolished to make way for the new backpackers' lodge.
The project was going to cost about $2m.
Willard said the owner had the idea to build the backpackers before Covid-19 hit in 2020 after researching tourism occupancy levels in backpacker accommodation.
"He wanted to do something more upmarket ... for foreign tourists primarily."
It was hoped the backpackers would be built in time for next summer but Willard said delays were expected with access to building materials and rising construction costs.
He said he was unsure when construction would start on the project.
"But it won't be too far away," he said. "It is getting the timing right. You have to look at the economics of the situation."
Willard said the backpackers would create "a few" job opportunities, including hiring a resident manager, caretaker and cleaners.
The building's design would "blend in" with the street and would be built as sustainably as possible, he said.
One feature included cobblestones, which were a special product that let the water soak through to avoid a runoff, he said.
Underground water tanks would store the rainwater to avoid flooding, he said.
Rotorua Association of Motels chairperson Nick Fitzgerald said it was fantastic to see confidence and people investing back into tourism accommodation in Rotorua.
"That is exciting."
Fitzgerald, who owns Aura Accommodation, said Rotorua needed more quality accommodation options.
"It gets me really excited to see someone having the confidence to invest back into tourism and that we can have another quality accommodation option.
"Rotorua has always had a wide variety of accommodation for travellers and I think this is great because it will only add more options, and a different style of accommodation, which is great."
He expected the new investment would likely demonstrate the evolving needs of some modern travellers from backpacking establishments to other accommodation options.
Rotorua Economic Development head of marketing and insights, Jo Holmes, said Rotorua was a favourite destination for the international youth market so a ready supply of high-quality backpacker accommodation was important as the borders reopened.
"We have lost a lot of our backpacker beds over the past two years so we would absolutely welcome quality developments in this area."
Holmes said one of two accommodation opportunities identified in its destination management plan was space for a new generation five-star hostel to meet the needed of the discerning youth market.
Backpacker Youth Adventure Travel Association of New Zealand board member and Destination Rotorua's marketing manager, Haydn Marriner, said young people were progressively seeking out travel that was "values-based".
"Rotorua is ideally placed as a destination that is founded upon deep and meaningful values.
"Covid has sped up the evolution of the sector away from the stereotype that the young traveller is solely in pursuit of a cheap thrill, to richer and deeper more memorable experiences."
The new backpackers on Toko St was part of six commercial consents valued at more than $6.1m that were issued in April. May's figures were yet to be released.