Taupo is a tourist centre, particularly in the summer, as it offers panoramic views over the lake and to the volcanic mountains of Tongariro National Park to the south. It offers a number of tourist activities including sky diving, jet boating and paragliding.
Taupo services a number of surrounding plantation pine forests including Kaingaroa Forest, the largest man made forest in the world, and related industry. A large sawmill is sited approximated 3 km to the north east of the town on Centennial Drive.
The Wairakei geothermal power station is a few kilometres north of the town
