The Rotorua Lakes Council's inaugural Mud Festival which is taking place next year has received a $1.5 million financial boost from the Government this week.

Announced by the Ministry of Business, Innovation and Employment today, the massive investment in the festival is being made through its Major Events Development Fund.

The Ministry of Business, Innovation and Employment will invest $1.5 million into the Rotorua Lakes Council's inaugural Mud Festival which is taking place next year. Photo: Thinkstock

MBIE Major Events manager Devorah Blumberg says this innovative cultural event will serve as a launch pad for international promotion.

'The first Rotorua mud festival event is scheduled to take place in December 2017. This investment will help seed the event's growth over its first five years,” says Devorah.

'The Rotorua mud festival will leverage Rotorua's extraordinary natural resources and will include a mud-arena, spa and wellness experiences, as well as education and historical story-telling.”

The festival's concept was inspired by the South Korean Boryeong Mud Festival, which has attracted a large following of millions.

Devorah says inviting the world to immerse themselves in geothermal mud is a unique opportunity to showcase Rotorua's distinctive volcanic and geothermal environment to an international audience.

'Over time, the event is forecast to attract a significant number of domestic and international attendees, which will generate strong economic returns for both Rotorua and New Zealand,” she says.

The Government invests, through the Major Events Development Fund, in major events that generate significant immediate and long-term benefits to New Zealand.