A Rotorua tourism operator says waiting through winter for the October border opening will be the "making or breaking" of businesses.
Others struggling in the city say the phased border re-opening will be of little help to the industry until self-isolation requirements are dropped.
Prime Minister Jacinda Ardern signalled thisweek a review of Covid-19 restrictions, timed for once the Omicron peak has passed – which was estimated by experts to be about six weeks.
On Monday the Government announced an assistance package offering a payment of $4000, plus $400 per staff member up to 50 workers, for businesses that can show a 40 per cent revenue decline for seven consecutive days in the six weeks before phase 2 started.
Hell's Gate general manager Paul Rayner said it appreciated any and all help, but said the funding announced was likely to cover 30 per cent of business costs.
He said trying to operate throughout the pandemic had been a long fight.
Since the pandemic began, employee numbers had dropped from 50 to 12.
Operating under a red traffic light setting was not helpful, but it was wider uncertainties that kept people from travelling: "We've had the most amazing people, we just haven't had enough."
He did not foresee much of an improvement for the industry until self-isolation requirements were dropped for the five border-opening steps.
"We're going to need some financial assistance to ensure businesses are able to re-employ and scale up for October."
That is when the borders open to all visa holders, while double-vaccinated citizens and residents coming from Australia can skip managed isolation and quarantine and self-isolate instead from February 27.
Between those months, MIQ will be removed for most travellers, replaced by self-isolation and Covid-19 tests on arrival. Unvaccinated people still needed to go through MIQ.
Hell's Gate had made use of the wage subsidy previously and Rayner hoped it, or something similar, would become available again during those months.
"This wait is going to be the making or breaking of businesses."
Canopy Tours Rotorua general manager Paul Button said the phased border re-opening was a step in the right direction.
He said it was great for reconnecting whānau, but did not think it would help significantly with struggling tourism businesses until the requirement for self-isolation was gone.
While domestic tourism had been great and he was appreciative of supportive visitors, some businesses relied on "98 per cent international visitors".
Tourism Industry Aotearoa last week called on Tourism Minister Stuart Nash for an immediate package of support that will help tourism businesses.
In a statement, communications manager Ann-Marie Johnson said it urged the removal of border-required self-isolation.
"A recent survey by Angus & Associates found that 60 per cent of the New Zealand public supported opening the borders with vaccination and negative testing."
She said when the country moved to the red setting in January, operators were anticipating some disruption to trade.
This week, she said the targeted support would help smaller tourism businesses to survive the next six weeks.
Te Puia chief executive Tim Cossar said the business welcomed fewer than 200 visitors last week.
He said there had been numerous cancellations and postponements, made more challenging by the fact that it had built up its team when demand was looking strong.
"If ever there was a case for additional support in the form of wage subsidies and resurgence payments, it is now. There is literally next to no consumer demand."
He said the next six months would be some of the toughest since the pandemic began.
Rotorua Economic Development chief executive Andrew Wilson said about 40 tourism companies in its area were finding the current environment extremely tough.
There had been a steady erosion of balance sheets, he said, and Government funding had focused on keeping businesses open and people employed.
He said this will mean some will run out of options and can now neither hibernate nor make it through to the end of the year.
"Many will have fewer options, having already exhausted most of the support previously available to them from the Government."
Rotorua mayor Steve Chadwick said people were working extremely hard to do what they could to keep operating and was pleased the Government announced further financial assistance.
Rotorua National MP Todd McClay said tourism operators needed paying visitors, "not more welfare".
He said the Government needed to set a clear timeline for when there would be reduced or no self-isolation requirements.
Covid-19 Response Minister Chris Hipkins said in a statement last week that the settings for self-isolation reflect public health advice that arrivals have a similar Covid-19 risk profile to close contacts of cases in the community.
As a result, they would follow similar protocols as community close contacts in phase 2 of the Omicron plan.
"The self-isolation requirements will be kept under review, with a view to reducing them over time."
Nash said New Zealand was in high demand.
He said it had been made clear that the self-isolation times were likely to reduce and could be lower by the time the country was fully open to international travellers.