The Rotorua Lakes Council has launched a public survey on its controversial July 1 parking overhaul, which business owners say has devastated inner-city trade, prompted shop relocations, and caused retail sales to plummet by up to 35 percent across central Rotorua.
Parking Overhaul and Business Impact in Central Rotorua
A controversial parking system introduced across central Rotorua on July 1 has sparked intense backlash from local retailers, with business owners blaming the overhaul for driving customers away and draining vitality from the central business district. The Rotorua Lakes Council designed the system to improve turnover and make finding a park easier near shops, implementing changes that include new paid areas, permit-only parking, virtual parking meters, updated machines, revised zones, and a mandatory 10-minute registration window for the first free hour.
For former Hinemoa Street merchant Crystal McPhee, the repercussions were swift. McPhee relocated her shop, The Mum Collections, to Lake Road on the fringes of the city centre after watching daily revenues collapse. We went from making over $1000 a day to literally nothing
, she said, according to reporting from New Zealand media outlets. Some days her business brought in small amounts like $200 or $300, but sales otherwise dried up for weeks.
“I just feel like there wasn’t enough conversation happening around what the parking was and what was going to go down for the Rotorua community.”
Crystal McPhee, former Hinemoa Street business owner
Retailers Cite Confusing Rules and Falling Sales
Retailers report that the new registration mechanism and paid zones have created a psychological barrier for shoppers. Rahul Sethi, another Hinemoa Street retailer, said trade across his two businesses had dropped by 30 to 35 percent since the parking regime took effect. He noted that elderly customers frequently find the digital system confusing, recalling one shopper who simply left rather than navigate the plate-registration process.
“I don’t blame the council when it says every customer deserves a park, of course, I believe that. But charging for something that was free before, and asking for you to register within 10 minutes for free parking, it’s too much. That’s not a solution; it is a punishment.”
Rahul Sethi, Hinemoa Street retailer
Sethi added that he was ready to leave the inner-city at his earliest opportunity, describing the commercial district with blunt frustration: It’s become a ghost town again; the town is dead.
At the Korean Mart, owner James Kim reported that his sales had dropped about 20 percent, though he acknowledged that broader economic pressures might also be contributing to the downturn alongside the parking changes.
Council Response and Promotion Efforts
Council destination development manager Jean-Paul Gaston acknowledged that feedback on the new parking system had been mixed, with some motorists sharing positive experiences while others navigated a steep learning curve. Gaston noted that the council heavily promoted the transition before July, delivering more than 1,000 booklets to businesses, generating social media views exceeding 120,000, and signing up more than 900 people early for permits.
While the council has not received formal notices from specific businesses attributing closure decisions directly to the parking rules, officials recognize the severe financial pressures facing families and commercial operators. Gaston emphasized that the local authority viewed the July rollout as a starting point and remained open to adjustments once the community had time to interact with the system.
Public Survey and the Six-Month Review Timeline
To capture community sentiment, the Rotorua Lakes Council opened a public survey scheduled to close on September 20. This survey will serve as a baseline and feed directly into a formal six-month review of the parking system, helping officials determine what is working and what changes are required.
Business community leaders are urging stakeholders to engage with the upcoming assessment. Rotorua Business Chamber chief executive Melanie Short encouraged local businesses and residents to participate actively, noting that the chamber will file an appropriate formal submission drawing on member feedback once the review period reaches its conclusion.
