The suspension of the trans-Tasman bubble during the Australian school holidays has cost Queenstown millions of dollars, Mayor Jim Boult says.
The start of the Australian school holidays was meant to be a lifeline for Queenstown's beleaguered businesses, instead that lifeblood has been cut off.
The government closed the trans-Tasman bubble for at least 72 hours over the weekend, now those in the tourist resort face being left out in the cold after the Prime Minister ruled out financial help.
Nine flights, carrying more than 1500 passengers, were scheduled to arrive into Queenstown Airport today from Sydney, Melbourne and Brisbane. Instead they were all cancelled.
Boult said he supported the government putting the public's health first, but it was a huge blow for the local economy.
"Being honest with you, I think we are going to see an extension of the closure for a period yet. It will require things to settle down in Australia and hopefully that'll happen in a few weeks. But it does look like we are going to kiss goodbye to the Aussie school holidays."
He was gutted for locals as this week held so much promise.
"This is the week we've been waiting for since the 6th of April when the bubble was announced. I'm now hearing from hoteliers, operators, that bookings are being cancelled by the dozen - somebody described it as an avalanche of cancellations. Instead of being a fabulous week, it's a bit of a gloomy week, I'm afraid," Boult said.
Mayor Jim Boult says the bubble suspension is another huge blow for the local economy. Photo: RNZ / Belinda McCammon
Rees Hotel chief executive Mark Rose said the timing of the trans-Tasman bubble's closure could not have been more cruel to Queenstown.
"It's horrific. Starting last Monday we took the first punch and lost a bunch of business out of New South Wales, which is our biggest market, and then when they closed down Australia. It's just been horrific. We've never seen cancellations like it."
Vacancy rates were sky rocketing, Rose said.
"Last Monday for the 1st of July, I was at 100 percent full," he said.
"This Monday at 9am for the 1st of July, I was at 35 percent. And when I left the office 10 minutes ago, we were below 30 percent."
The snow finally arrived at Cardrona Alpine Resort today, but the visitors had not.
Cardrona's head of operations Ewan Mackie said there was a sole Australian family staying at the resort's apartments, but they would be leaving in the coming days.
"We have about 30 percent of our guests come from Australia, so at this time of year with it being the Aussie school holidays we'd expect quite a few Australians out and about. We see a lot coming through for their ski trips, also just a lot of visitation to the snow for snow play and first time skiing.
"So obviously we'll be losing that element of the business, but our thinking is it's a short-term moment and hopefully we'll be able to welcome the Aussie whānau back later on in the season."
If the bubble reopened tomorrow, there would be plenty of the white stuff waiting for Australians after a decent dump caused Cardrona to close today.
"We're receiving a good old southerly storm," Mackie said.
"It's blowing up into the 70s and 80 kilometres an hour, so we can't actually run the lifts. But what's good about that is it's of course bring us some fresh new snow and cold temperatures with that southerly are enabling us to make some snow as well.
"So it's a storm which is closing us down today, but sets us up better for the season ahead."
Boult said that was good news for when the New Zealand school term ends.
"This [trans-Tasman bubble closure] is going to cost us multimillions - that's the sad reality of it," he said.
"However, we have got the New Zealand school holidays coming up. The domestic market is enormously important to us. We love Kiwis coming here - let's hope we get plenty. They're certainly not going to fight for space on the ski fields."