Edward Shand from Napier spotted the fire as on a Sunday evening drive as he cruised down down the hill to Waipatiki Beach.
He said the group saw what they thought was a huge bonfire, but as they drove closer it was clear the fire was nowhere near the beach.
Shand said he and his friends parked up, along with about 20 locals, and waited for emergency services, who arrived 10 minutes later.
A representative of Waipatiki Beach Holiday declined to comment on Monday morning.