The survey analysis said local operators were \u201closing sleep\u201d over global instability, rising energy and fuel costs, inflation and trying to find skilled staff.<\/p>\n
Businesses were facing \u201cnear\u2011record\u201d price hikes as costs continued to outpace revenue, with fewer customers and losses on existing contracts.<\/p>\n
Many were absorbing those costs rather than passing them on, it said.<\/p>\n
Businesses were freezing expansion plans, halting new capital investments and pulling back on intended staffing increases.<\/p>\n
Perceptions of the economic outlook for New Zealand, Rotorua and businesses fell in the April 2026 Rotorua Business Pulse Survey. Graphic \/ Rotorua Business Pulse Survey<\/p>\n
Dedicated questions about the fuel crisis revealed more than a third of respondents reported being highly or extremely exposed to fuel price fluctuations. <\/p>\n
Profitability expectations dropped more than 50% from the October 2025<\/a> survey \u2013 the largest shift since the survey began in April 2022.<\/p>\n Confidence in business survival fell and nearly two-thirds of respondents expected general conditions to worsen over the next three months.<\/p>\n The also survey showed 82% of businesses used artificial intelligence (AI) across their business to save time, improve productivity, communicate better and support decision-making.<\/p>\n For Rotorua over the next year, respondents felt most positive about tourism recovery and event attraction, with business growth and development their highest priority for the city. <\/p>\n In a media release, Rotorua Mayor Tania Tapsell said the results reflected a challenging environment. <\/p>\n She said many in the business community were saying the city was \u201cimproving\u201d and \u201cfull of potential\u201d. <\/p>\n Rotorua Lakes Council would continue \u201cdoing everything we can to support resilience and unlock opportunities for growth\u201d.<\/p>\n In the release, both RotoruaNZ chief executive Andrew Wilson and Business Chamber chief executive Melanie Short said the results matched what local businesses had been telling them.<\/p>\n Rotorua businesses were resilient and \u201cunderstand they are largely responsible for navigating this latest period of challenge\u201d, Short said. <\/p>\n Wilson said businesses\u2019 resilience was encouraging and they were choosing to focus on what they could control. <\/p>\n He noted positives from the survey in areas such as business strategy, organisational culture, productivity and supply chains. <\/p>\n Businesses were focused on sustainability and adopting tools like AI to work smarter.<\/p>\n \u201cAfter five challenging years, Rotorua businesses are clearly drawing on what they have learned and continuing to make practical, future-focused decisions,\u201d he said.<\/p>\n Fuel pressure bites<\/p>\n Forestry firm Kaingaroa Tipu chief operations officer Dean Witehira told the Rotorua Daily Post the uncertainty reflected in the survey showed economic conditions were likely to stay challenging in the near term, particularly with ongoing cost pressures.<\/p>\n \u201cRising input costs, particularly fuel, and global market uncertainty, coupled with a squeeze on log prices, have created ongoing operating pressures right across the value chain,\u201d Witehira said. <\/p>\n