Domestic hotel guest nights in Rotorua in the third quarter of the year were up 56 per cent compared to 2019. Photo / Getty Images

Rotorua is being labelled a “standout performer” and hotels are showing signs of bouncing back as new data shows guest nights have risen.

But a local hospitality representative is concerned there may not be enough

He said the sector had yet to witness any significant downward momentum in room rates, primarily due to Government-contracted business across some 32 hotels throughout many of the main regions in the country, representing 7200 rooms.