Bay of Plenty Business News February/March 2017

BAY OF PLENTY BUSINESS NEWS February/March 2017 3
Lakefront spa a “game changer” for Rotorua
QE Health’s current building which will be
demolished to make way for the hotel.
From page 1
which includes a Motion
Entertainment venue.
The lakefront spa and hotel
development on an 11.4ha
site alongside Government
Gardens is expected to provide
a range of health and
wellness-orientated facilities,
servicing both domestic and
international tourists.
What we are talking
about here is the
first purpose-built
wellness facility that
has been created in
town for 120 years.
Mr Faulkner said he
regarded the lakefront spa
complex as a game-changer
for Rotorua.
“It’s a game-changer in the
context of taking the opportunity
to capitalise on our
strategic point of difference
- geothermal and our culture
- and building on wellness
tourism which is one of the
fastest growing tourism sectors
and something in which
New Zealand is not well rep-
resented.
“It will move Rotorua away
from being seen as a package
tourism market to one having
a significant depth of exposure
in the high value market
and that’s really where we see
the potential for the city.”
He said wellness through
geothermal activity was a
key point of difference for
Rotorua.
“We make no claims about
being the creators of the concept
because in fact it was
the very reason Rotorua was
established in the first place.
“It was first settled 650
years ago, due to the geothermal
resource. The Crown
negotiated with the Ngati
Whakaue iwi 136 years ago,
because of the uniqueness of
our geothermal assets with the
vision of establishing Rotorua
as a spa city in the southern
hemisphere. So we are really
looking on capitalising on
that.”
Mr Faulkner said the lakefront
site was unique and a
great opportunity to have a
brownfields development of
that scale within the heart of
an established tourist destination,
right on the lakefront and
with the geothermal resource
and the historical connection
of wellness that went with it.
“What we are talking about
here is the first purpose-built
wellness facility that has been
created in town for 120 years.”
Mr Faulkner said Pukeora
Oruawhata is in discussions
with the existing tenant, QE
Health which has a strong
reputation in the clinical and
rehabilitation end market.
“We are talking to them
about building new facilities.”
Longer-term, Pukeroa
Oruawhata is planning a 150
to 200-bed, five-star hotel
which in itself could cost $75
to $100 million. The various
other facilities on the large
site could push the cost up
towards $200 million, he estimated.
He said the complex is
an opportunity to establish a
new market but also to complement
Rotorua’s existing
offering which included significant
investment through
Skyline Gondola’s additions
to its product, Te Puia’s
redevelopment, the Motion
Entertainment venue, as well
as ventures such as Canopy
Tours and the Redwoods
Treewalk Rotorua.
Mr Faulkner said Pukeroa
Oruawhata is working towards
lodging a resource consent
application and starting construction
in October.
He said the lakefront
project would help add to
Rotorua’s shoulder season,
attracting visitors during the
winter months.
Rotorua’s potential as
a geothermal health spa is
well recognised by Rotorua
Lakes Council. In December,
following the signing of
an agreement with a South
Korean city, Rotorua will host
the country’s first ever Mud
Festival which emphasises the
use of mud as a therapy and
treatment.
Meanwhile, another of
Pukeroa Oruawhata Group’s
projects is making progress.
Its Trade Central development
aims to revitalise a dowdy
area near Rotorua Boys’ High
School on Amohau St. The
shopping centre includes
major tenants Kmart and
Mitre10 MEGA and provides
a further 9000 sqm of retail
space.
“We are getting strong
interest from new-to-town
operators,” said Mr Faulkner.
“It’s a reflection that as the
corporate retailers are looking
around, they see Rotorua
as providing value for their
investment.”
Dave Donaldson said
all the development taking
place would put pressure on
the district’s infrastructure.
Improvements in the Eastern
roading corridor, New Zealand
Transport Agency’s $8 million
roundabout in front of Te
Puia, the $4.9 million upgrade
of Rotorua Airport and the $30
million wastewater treatment
upgrade would be significant.
Work underway at Pukeroa Oruawhata
Trust’s Trade Central development.
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