Ocean Spa

An update on Ocean Spa 

Napier City Council took back the operation of Ocean Spa on 1 February 2023, after its lease to a third-party operator concluded. Once we took over, it closed temporarily for essential maintenance and refurbishment works before reopening in May 2023. At that time, Council was open to either operating Ocean Spa itself or considering another external leasing option.

The cost to heat Ocean Spa’s pools has risen a lot recently, which has placed pressure on its ability to cover its costs. Residents want us to keep costs down, so over the past year we’ve been looking at options to enable Ocean Spa to be financially sustainable. We are considering whether an external provider could manage Ocean Spa and purchase or lease all its assets. Council would stay as the owner of the land but would lease out the land. If we can identify a suitable external provider and a suitable lease arrangement, we would then consult with the community before a decision is made. 

Alternatively, Napier City Council could continue to own and operate Ocean Spa as a commercial business, with any losses funded through loans. We would need to find new ways to increase Ocean Spa’s income. This could include changing how we deliver food and beverages at the facility or reviewing external contracts such as for cleaning. We are looking at how we heat the pools to manage increasing gas costs. 

A second alternative is that Council could operate Ocean Spa in partnership with an external provider. The provider would contribute finances for improvements to Ocean Spa, in return for a share of the income. Napier City Council would continue to own Ocean Spa’s assets and the land. 

Important note: We are not considering selling the land that Ocean Spa sits on. (It is zoned as Reserve Land.)