Heart of the City is hitting back at critics of Auckland's new Christmas tree saying it's part of the rejuvenation of the central city at the busiest trading time of the year.

Some have baulked at the cost of a million-dollar Christmas tree going up in downtown Auckland.

Heart of the City's Viv Beck told Morning Report the cost for the tree was being split three ways and Auckland Council's portion was coming from a rate paid by city centre property owners, businesses and residents, not from general rates.

"Heart of the City committed, when we had to retire Santa just before Covid, that we would bring a significant new Christmas activation to the central city, and we're absolutely delighted that Precinct Properties and Auckland Council has acknowledged the priority of rejuvenating the central city.

"We want to be able to attract families here, bring some magic, other cities invest in Christmas and it's the biggest trading month of the year so we want some of our businesses that are still really finding it very tough going to see the benefit of attracting more people."

This was a long term investment, Beck said, with Santa having lasted 60 years.

"It's built of solid material that's very different from an inside mall tree, it has to endure the elements... It's stainless steel, it's outside, and if it last 10 years that's $124,000 a year split three ways, now we're hoping it lasts a lot longer than that."

Beck said they considered other options and this was the best one.

"We hope for people will absolutely love it and for new memories of Christmas in the years to come.

"We want to be special, we want to be magical, as we think now is a good time."

The tree is over 18m tall, has more than 10,000 LED lights, 4000 pohutukawa flower decorations, 200 giant baubles.

"It'll be appealing during the day but at night there'll be a 5 minute light show every 10 minutes from 7.30pm-10pm."

Auckland Ratepayers' Alliance spokesperson Sam Warren told Morning Report the tree had an "extremely high" price tag.

"It's a bit of a shame I find myself being The Grinch this year, but I wouldn't be doing my job if I didn't question this spending.

"I think it's too much, you can't help but wonder if this could be done for a little less."