A Rotorua cafe owner believes a decision to reopen a cafe in the i-Site could stop tourists from going into the central business district - and spell bad news for local shops.
But the i-Site manager says it's important to provide visitors to the transport hub with food and beverages onsite.
Sue Burnett, operations manager for Jubilee Deli and Bar in Tutanekai St, said in her view the decision would have a negative impact on the city centre as a whole.
Earlier this month the Rotorua Lakes Council called for expressions of interest to operate three cafes at council-owned facilities including the Rotorua Visitor Centre and i-Site on Fenton St, and the Aquatic Centre.
Ms Burnett said she believed opening a cafe at the i-Site would ultimately mean fewer people heading into the CBD - which was negative for all businesses.
"I think it shows a lack of support [for other businesses] and almost a lack of empathy and a true feel of what is going on for local businesses."
Ms Burnett said it gave the council the perfect opportunity to "trade out and leave it to the businesses in the city centre".
Ms Burnett said she could understand the need for a cafe in the i-Site if there weren't other options but said there were plenty of places nearby that offered refreshments.
"There will be no more coffee sold [in Rotorua] because it is there."
In response to questions from the Rotorua Daily Post, i-Site and Visitor Centre general manager Graham Brownrigg said a cafe had historically operated out of the facility but had stopped trading when that part of the building was closed in 2014 after a seismic assessment.
"The intention has always been to re-open a cafe once the remedial work has been completed.
"As a major transport hub and gateway for our city, we believe that provision of food and beverages onsite will enhance the experience for visitors arriving and waiting in transit."
Mr Brownrigg said a cafe operator had not been selected but they had interest from a number of local entrepreneurs and business owners.
He said the expression of interest for the lease closes this Monday and the cafe was expected to open in late October.