Rotorua Mayor Tania Tapsell has defended the city's transition out of the controversial contracted emergency housing motels scheme.
Last week, Associate Housing Minister Tama Potaka announced there were no more households living in contracted emergency housing motels in Rotorua.
The Government began placing homeless people in Rotorua motels in 2020 to address the immediate need to house people at the start of the Covid-19 pandemic self-isolation and lockdown requirements.
The scheme grew to include 13 contracted motels at its peak, and became a national flashpoint as issues arose with people staying long term, their living conditions, central city crime, and damage to the city’s reputation.
A 2022 report estimated the city – New Zealand’s birthplace of international tourism – lost $17 million in tourism spending in three months due to "negative perceptions", in part driven by the motel issues.
The current Government pledged to end the scheme by December this year, and by mid-2025 stopped new referrals to the motels.
At its peak, 240 households were in the 13 contracted motels, making Rotorua "the poster child of a broken emergency housing system", Potaka said.
In response, Labour housing spokesman Kieran McAnulty said he saw eight homeless people on a recent Rotorua visit. He argued the Government’s plan risked shifting people back on to the streets.
Concerns about people sleeping rough in the CBD, and antisocial behaviour by some, had hit the headlines over winter, with Rotorua Lakes Council eventually issuing trespass notices.
Tapsell said she was "annoyed" by McAnulty’s comments, and she did not want Rotorua used as a political football.
"It hurts when comments are not accurate.
"I haven’t seen any evidence that those sleeping rough on the footpath are due to being removed from emergency housing motels."
The process of transitioning from emergency housing was monitored and phased to ensure residents moved into safe, stable housing, she said.
About half of the new homes built in Rotorua last year were social housing or affordable rentals – including 104 new Kāinga Ora social housing spaces. Last month, the Government announced a further 80 coming to Manawa Gardens next year.
In 2024, Rotorua had a public housing proportion of 2.5%, below the national 4% average.
This made increasing the affordable housing stock a key factor in combating what was likely Rotorua’s "worst-ever social disaster", Tapsell said.
"It has been a phased approach," she said.
"We wanted to directly reduce the emergency motels but make sure people were going into safe and stable homes.
"We are seeing families being placed in brand-new and affordable healthy homes."
Tapsell praised the "ongoing generosity" of Ngāti Whakaue iwi as well as local volunteer groups who provided "food, support, and filled gaps where needed" with little fanfare.
She said crime rates had also improved due to the reduction in emergency housing, as well as investment in the community safety hub, City Guardians, increased CCTV and additional police presence.
New Zealand Police victim statistics show a 6.7% drop in central city crime between 2022/23 (September-August) and the same period in 2024/25, with a 10.35% drop in the city overall.
Tapsell now wants Rotorua to shed the reputation it has gained in recent years.
"There was, at one time, over 1000 negative media articles and interviews in one year about our city," she said.
The recovery strategy included attracting more investment into domestic and international tourism.
Council staff were also finalising a homelessness strategy alongside housing, health and education agencies.
"It’s not just finding these people a roof," Tapsell said.
"It’s helping connect them into employment, addressing health issues, and preventing homelessness in the first place."
The homelessness strategy should be out "early next year", Tapsell said.
A Ministry of Social Development spokesperson confirmed two non-contracted emergency housing providers remain in Rotorua, providing shelter for nine households as of October 31.
Rooms are provided via an Emergency Housing Special Needs Grant for those in genuine need.
LDR is local body journalism co-funded by RNZ and NZ On Air.
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