A Rotorua business owner says the Government's plan to reopen borders "might be too late".
Prime Minister Jacinda Ardern yesterday outlined a five-step plan to re-open New Zealand, beginning on February 27 for Kiwis and other eligible travellers in Australia, culminating in a border fully reopened to all visa categories by October.
Our House and The Rotorua International on Eat St director Tim Smith said it was going to be another challenging year with some businesses ''on the edge''.
''It might be too late for some businesses as there are no more loans that they can get.''
However, he was excited about the plan and preferred to stay positive.
People on holiday visas and backpackers were an important part of the hospitality sector alongside skilled labour and the earlier they arrived the better, he said.
''We have massive skills shortages in the hospitality industry at the moment," he said.
Others in the community expressed hope and relief.
MDA Experiences co-owner Takurua Mutu said the plan was positive.
"When Covid first hit New Zealand, there was a really clear plan ... it's really nice to see that style of leadership come back.
"Having some sort of plan to work to, there is relief in that alone."
"Things will change, but at least now we've got an understanding of what's likely to happen.
He said his business was "massively" affected by the border closures and wanted to see "how much of a return back to normal" the October reopening would be.
VolcanicAir director Dorien Vroom-Barclay welcomed the announcement but wasn't sure it would be enough.
"In line with the recent Tourism Industry Aotearoa response, our view is that our recovery won't start until quarantine-free travel is allowed for all visitors."
"Therefore, we are hoping for a clearer timeline on when that will be possible."
Leonardo's restaurant manager Kapil Rawpani said the reopening was "great news".
The border closure had been "very bad" for business and he had trouble finding staff.
The October reopening would be a "really good boom for the whole industry", he said.
Travel agency Galaxy World, Rotorua director Joanna Corbett said there had been ''so many false starts, and glimpses of relief for our beleaguered industry and our world of passionate travellers''.
''So we are left holding our breath again.
''We have just lived in an environment where the rules are changing all the time. We need certainty with our government's decisions as we've had the rug pulled out from under our feet before.''
Travel Agents' Association of New Zealand president Brent Thomas said there were only one in three agents left in the industry and it could be ''a chance to bounce back''.
He said there was pent up demand from customers who were keen to book and travel.
Meanwhile, from April 12, step three of the plan allows international students to return in time for semester two.
John Paul College principal Patrick Walsh said he was "very excited" about the possibility of bringing international students back to John Paul College.
The school normally had about 60 students but that had fallen to 13.
"It has been a big financial hole in our school budget and we already have lots of applicants from China and Japan wanting to come," he said.
He also hoped the plan would help address the "chronic shortage of teachers" in mathematics, technology and science subjects.
"If we want more doctors, scientists and architects then we do need those STEM teachers here."
Rotorua Economic Development chief executive Andrew Wilson said it was great Kiwis in Australia would be able to return without having to stay in MIQ [unless unvaccinated].
''The return of international students is also great step forward and for Rotorua will have significant impact. Unfortunately however, there is unlikely to be any significant upside for our visitor economy until self-isolation requirements for international visitors are reviewed.''
Rotorua mayor Steve Chadwick said the past two years had been hard and the announcement was fantastic news for the tourism, hospitality and international education sectors.
''It gives us renewed hope at a time where businesses are facing very real challenges relating to record inflation rates, supply chain issues and labour shortages. We cannot wait to welcome our international visitors back to Rotorua and to New Zealand.''
She also hoped the plan signalled change was on the horizon for the events industry which was struggling immensely.
"I acknowledge the announcement will bring a fair amount of anxiety and concern as it will also likely bring levels of Covid-19 into our community that are yet to be experienced in New Zealand. This will make adherence to public health advice and guidelines more important than ever before.''
The plan unveiled yesterday indicated that managed isolation and quarantine facilities would be scaled back, with a few left in place to cater to "high-risk" travellers.
Managed Isolation and Quarantine head Chris Bunny said the Ministry of Business Innovation and Employment was moving to the next phase by planning for capacity reductions.
Rydges Rotorua, Ibis Rotorua and Sudima Rotorua were part of 33 quarantine hotels nationwide.
''We are currently developing a plan, and we will be working closely with our partners and workforce on this to ensure the reduction of our operations is done in a managed way.
Rotorua National MP Todd McClay said the news would come as a "welcome relief" for Kiwis stuck overseas and their family in New Zealand.
"I have had so many families in Rotorua just desperate for their loved ones to come back."
But he said yesterday's announcement did not benefit tourism operators in the Bay of Plenty as Australian tourists were unlikely to want to self isolate for up to 10 days.
"While this is good for Kiwis, ultimately the shot in the arm the tourism sector desperately needs hasn't been delivered. The Government is going to have to look at this carefully otherwise more businesses will have to close.
"They [tourists] are not going to come to Queenstown and Rotorua to hide away in a hotel."
Tourism Minister Stuart Nash said the reconnecting plan was about "much more" than just reuniting with family and friends and was a crucial part of ongoing economic recovery.
He said health advice made it clear self-isolation was needed to "manage our way through Omicron" however this would not always be the case.
He said self-isolation times were likely to reduce and could indeed be "lower" by the time the country opened up fully to international travellers.
Ardern said during the announcement it was "easy to hear the word MIQ and immediately associate it with heartache".
"There is no question, that for New Zealand, it has been one of the hardest parts of the pandemic.
"But the reason that it is right up there as one of the toughest things we have experienced, is in part because large-scale loss of life is not.
"The anguish of MIQ has been real, and heartbreaking. But the choice to use it, undeniably saved lives.
Police have said he was evading arrest, but a family member disputed that.