New Zealand Prime Minister John Key announced the government will invest NZ$350,000 (US$256,000, €230,000, £163,000) in a multi-million dollar spa development which is expected to provide a boost to the country’s economy and create additional jobs.

The spa complex called World Spa, which is being led by Pukeroa Oruawhata Group and World Spa Ltd, is expected to cost approximately NZ$10m (US$7.3m, €7m, £5m) and is to provide between NZ$36m (US$26m, €24m, £17m) and NZ$48m (US$35m, €31m, £22m) in economic benefits to New Zealand – with a large chunk of that cash staying in Rotorua.

World Spa director Peter Sharplin said the finished development would be unlike any other spa seen to date and would draw on the expertise of international spa consultants.

"The aim is to develop an entirely new format of spa offering that complements, rather than necessarily competes with existing spas," said Sharplin.

Speaking at the recent tourism industry TRENZ conference in Rotorua, Prime Minister Key detailed the investment from the Tourism Growth Partnerships fund into the World Spa development: "The World Spa project aims to develop an international standard spa and wellness complex on Rotorua's lakefront. The Rotorua Lakes Council (RLC) has set a goal of 1.5 million commercial spa visits yearly, and the development of this new spa will certainly help with achieving that goal.”

Pukeroa Oruawhata Group's Peter Faulkner described the scale of the development as a "game changer" for Rotorua. Faulkner added that the stage-built development is expected to open in 2017 and – at capacity – will provide 120 new jobs. The development aims to tap into the 3.2 million yearly visitors to Rotorua, as at present only 500,000 commercial spa visits are made to the region annually.

Rotorua MP Todd McClay welcomed the development and said tourism was worth NZ$500m (US$366m, €328m, £233m) to the Rotorua economy each year.

"The spa and hotel facility will be the first stage of a multi-million dollar redevelopment of 11 hectares (27 acres) of prime lakefront property close to the central business district that will transform the central city and will attract more visitors to Rotorua," said McClay.

The development has also been welcomed by Rotorua Mayor Steve Chadwick, who said it fitted RLC's vision for the district to reclaim its title of 'Spa capital of the South Pacific’.

"The funding will provide a boost towards progressing the work that has been underway for some time," said Chadwick. "It's great to have central government endorsing our vision to be a world class spa destination. Rotorua has a hot springs heritage that dates back to its earliest Maori residents. We believe the potential for spa and spa-related developments is huge. It could be what takes our tourism industry to the next level and I look forward to further progress."

Chadwick recently outlined her vision for Rotorua as a thermal spa city in an exclusive Thought Leader column for Spa Opportunities. Chadwick also attended the 2014 Global Spa & Wellness Summit to promote development of the region’s hot springs.

Mayor of Rotorua on New Zealand's hot spring development opportunities

NZ$18.5m hot spring development planned by Wyndham Hotel Group

Mayor of hot spring city Rotorua in New Zealand invited to GSWS

New Zealand attraction first to gain qualification for agricultural skills

Rotorua to be developed as South Pacific’s spa and hot spring capital

FEATURE: New Zealand thermal spa – Pooling resources