Queenstown hoteliers are welcoming news the struggling tourist town could soon be used by overseas sports teams to quarantine in.
The Southern District Health Board was working with the Ministry of Business, Innovation and Employment and the Ministry of Health on plans for one to be based there for exceptional circumstances, such as for sports teams.
Hotelier and industry spokesperson Nik Kiddle said based on discussions already had with the government, the town could host Rugby Championship sides and even Americas Cup teams.
He said it would be a welcome boost for an otherwise quiet sector and should not pose a risk.
"They've already had a lot of health checks done on them. Although the medical facilities in the district are short of what would be needed to handle an outbreak, we're hoping that this would certainly get nowhere near that level of risk."
Meanwhile Queenstown Lakes District Mayor Jim Boult was welcoming planning being done around quarantining sports teams in his town.
He said the idea was first mooted in July.
Boult said planning was most advanced with the Rugby Championship sides and the town was waiting with baited breath to see if that competition would go ahead.
"Well if you take the Rugby Championship on its own, they'll be here for about two months, between the three teams about 200 hotel rooms. So 200 hotel rooms times two months, it's a lot of business."
Boult said they were also hoping to have cricket and netball sides serve out their quarantine in Queenstown.