'Town is dead': Rotorua businesses look to leave CBD after parking changes

Business owners in Rotorua are blaming a new parking management system for a significant decline in customer traffic and revenue. The local council claims the changes were intended to improve parking turnover, but retailers are now considering relocating.
Why it matters
The situation illustrates the tension between municipal urban planning initiatives and the economic viability of small local businesses.
One Rotorua retailer has already left the CBD and another says he is looking for a way out, blaming a <a href="https://www.1news.co.nz/2026/02/10/rotorua-could-axe-coin-payments-as-it-reviews-city-parking/">controversial parking overhaul</a> they say is driving customers away. <b>By Mathew Nash of Local Democracy Reporting</b> The <a href="https://www.1news.co.nz/2025/07/10/rotorua-lakes-council-takes-back-control-of-parking-services/">Rotorua Lakes Counci</a><a href="https://www.1news.co.nz/2025/07/10/rotorua-lakes-council-takes-back-control-of-parking-services/">l</a> is seeking public feedback on the parking system it <a href="https://www.1news.co.nz/2026/07/01/rotorua-shop-owner-fears-new-parking-rules-will-drive-customers-away/">introduced on July 1.</a> Changes included new paid areas, permit-only parking, virtual parking meters, updated machines, revised parking zones and a requirement for motorists to register their licence plate to access a first free hour of parking. The council said the <a href="https://www.1news.co.nz/2024/02/03/what-tauranga-rotorua-councils-earn-and-pay-for-parking/">overhaul</a> was designed to improve turnover and make it easier for people to find a park close to shops and businesses. Feedback so far had been "mixed". For former Hinemoa St business owner Crystal McPhee, the impact of the new system was felt almost immediately.
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