Hotel room rates are set to spike in popular tourist destinations as the accommodation shortage bites.
A Government-ordered report finds the country will be short of 4526 rooms - the equivalent of 26 hotels - over the next decade because of the tourism boom.
The research is part of "Project Palace", set up by New Zealand Trade and Enterprise and is a programme aimed at speeding up new private sector investment in New Zealand hotels.
Five tourist hotspots studied were Auckland, Rotorua, Wellington, Christchurch and Queenstown.
Auckland will be under intense pressure next year facing "critical constraint status" with events such as the World Masters Games in April, the Lions rugby tour in June-July and the Rugby League World Cup in November.