Domestic visitors spent an estimated $10.1 billion, up $320 million from last year.
Getting people to stay longer in Rotorua was crucial to get a bigger slice of the pie, Mr Nathan said.
"Our efforts remain focused on getting visitors to stay longer in Rotorua, two or three nights minimum, and to do more while they are here. While we're fortunate enough to have the unique selling points of Maori culture and geothermal attractions well established, we're also working hard to drive the message about the many other activities and attractions on offer.
"Having international media coverage, like China's biggest reality TV show Dad, Where Are We Going? screened to over 400 million Chinese, is also a great score for Rotorua and will translate into more growth in the months ahead."
Chinese spent $83 million in Rotorua in 2012, $71 million in 2013 and $53 million for the year ending March 2014. They spent $57 million in Queenstown in 2012, $104 million in 2013, and $150 million in the year ending March 2014.
Mr Nathan said council and tourism operators were striving to ensure total visitor receipts hit $1 billion by 2030.