The feasibility study (phase 1) highlighted that the existing natural, historical and cultural assets of the Te Aroha Domain (and its surrounds) could be enhanced and developed into a spa resort. Te Aroha is centrally located between Auckland, Hamilton and Tauranga, making it well-positioned for tourism.

Visitor Solutions were appointed to develop a business case (Phase 2) to assess the commercial viability of a new spa facility.

The business case concluded:

• A significant number of tourism opportunities exist in Te Aroha and many of them have widespread support from sectors of the community, including Mana Whenua.
• Based on available data, the best catalyst opportunity for tourism in Te Aroha is the development of a new spa facility, using the available geothermal resource.
• The spa development will create an environment that fosters private business opportunities. There are several individuals and entities that have expressed a desire to develop a range of new businesses on the back of the proposed spa.
• A series of spa options have been developed that take into consideration risk mitigation (these are detailed in the business case)
• Based on the estimated volumes, pricing, costs and capital costs, the redevelopment of the spa and pools in Te Aroha are considered financially viable.
• As a largely fixed cost operation, the financial viability is sensitive to changes in volume and price.
• Assistance from the Provincial Growth Fund should be sought for 50% of the cost of development of the Spa (circa $9.4 million with parking and escalation costs).

Read the full business case here

Matamata Piako District Council commissioned an addendum report to the Te Aroha Spa Business Case in order to determine what if any impact the COVID-19 will have on the project. The addendum focuses on post COVID-19 visitor impacts, capital cost changes, a review of financial models, an examination of new or changed project risks (and potential mitigation steps), economic impacts and employment contributions that can aid the COVID-19 recovery.

You can read the addendum report here