Plans for a new hot springs spa in Rotorua are going ahead, with a $38 million grant from the Provincial Growth Fund.
The $45m project looked doubtful when Covid-19 impacted on the balance sheet of the developer, Pukeroa Oruawhata Group.
Following the government grant, work on Wai Ariki Hot Springs and Spa on Rotorua lakefront is expected to start in October.
Pukeroa Oruawhata Group spokesperson David Tapsell said the indoor complex would be themed around the culture of Te Arawa iwi.
It would provide 250 jobs during construction and 150 permanent roles, he said.
The spa is expected to be completed in early 2022.