"All the hospitality owners are just trying to knuckle down and see the light at the end of the tunnel."
The event industry has also taken a hit with the cancellation of many big fixtures, including Ironman which brings in thousands of visitors each year.
"The suite of events like Ironman, Cycle Challenge, and those really big events have had to cancel or postpone," Keehan said,
"That's really impacted all the flow-on effects from it as well.
"Typically with Ironman, people would be staying here for an extended period of time, dining out and enjoying everything that Taupō's got to offer, and we've really missed out on that this year.
"Some of the smaller events that can operate within the 100-outdoor-limit currently, they've been able to carry on and operate but it's just not financially viable with all the safety that needs to go into that.
"So what we're really hoping - and what we would ask the Government now for the events sector - is to really increase those caps.
"These are professional operators. They've done this for years and they know how to implement safety measures," he said.
Taupō Mayor David Trewavas said there were additional pressures on business owners that local government didn't foresee.
"The 'domestics' made up a big part of the Taupō market anyway.
"We've got a wonderful product here, it's easy to get to.
"Having said that, they've been here two or three times now and we're starting to desperately miss the 'internationals'."
And now Trewavas is calling on the Government to pay those businesses a visit and offer some reassurance.
"Get out and visit these businesses - talk to them.
"Give them confidence and give them a cheer up basically and get that Australian market open as soon as possible."
Keehan agrees.
"We just need certainty on how we can operate and if we can operate, so we can invest in our people and invest in our infrastructure and run our business knowing that we can get through.
"The uncertainty is almost worse than anything else."
With the ski season just around the corner, the region is hoping for a much-needed boost from domestic and international visitors.