The owner of a Tauranga club criticised for having a Nazi piñata party on Anzac Day says he will do it 'bigger and better” next year.

Bahama Hut owner Tony Carraway has defended the Adolf Hitler piñata used as part of the club's Anzac day celebrations saying it was an awesome night with everyone enjoying themselves.

Tauranga's Bahama Hut invited club goers to come and hit an Adolf Hitler piñata last week as part of Anzac Day. Photo supplied.

Last week, the club posted a photo on its Facebook page showing the German dictator's piñata with the comment 'make sure you're here around midnight to smash this guy up!! He's filled with lollies and drink vouchers!! Happy Anzac Day!!”

The German Embassy labelled the piñata event as insensitive and something they do not look forward to seeing splashed across social media sites.

'It was used in the connection with Anzac and because it doesn't somehow fit together on a day where New Zealand soldiers and Australians are commemorated it is not the right way to respond to that,” said an embassy spokesperson.

But Tony is surprised the organisation is defending the dictator.

'After killing millions upon millions of people it's staggering the German Embassy would defend the name in any way shape or form.”

'It's not like he's a well-respected leader or anything. Of all people to complain about I wouldn't think Adolf Hitler would be high up on the list.”

Responding to the ‘insensitive' claims, Tony asks whether it is insensitive to the Jewish community who suffered in the holocaust.

The club plans to host the celebrations again with a bigger piñata next year.