To ensure the safety of those at the hotel the decision was made to close it.
Thirty six jobs will be lost as the Chateau is handed back to the Department of Conservation, which owns the land.
Mayor of Ruapehu Weston Kirton said people all over the country would be gutted about the closure of the iconic building.
“It’s a jewel in our crown and we’re going to fight as much as we can to you know retain ownership so we can include that in the many many activities and accommodation we’ve got in our district.”
Kirton said the community will fight to keep the Chateau a part of the region’s attractions.
“My parents were actually having their honeymoon in that building.
“You know, we’ve all got some association and recollection of how good it was and is and we want to continue the best way possible forward.
Kirton said the council would be working with central government to see whether they could get the business up and running again.
Sam Clarkson of nearby Skotel Alpine resort said Kah New Zealand brought very little to the area during their nearly 30 years running the hotel.
“The foreign owners could have done a far better job in their kaitaki role of the Chateau.
“I think they’ve neglected the place, and as far as an international corporation like Kah is concerned, the Chateau is just a couple of lines on a spreadsheet.
Clarkson said the community deserve to hear the details of the reasons behind the closure.
Owners of the Chateau Tongariro Hotel and its sister hotel, Wairakei Resort Taupō, earlier confirmed they would continue investing in New Zealand, and the Wairakei Resort Taupō and its staff were not impacted by the closure.
Clarkson said the government should step in to prevent the site becoming a ghost hotel.
“There’s an opportunity to do the right thing here, or let a community struggle and die, and I hope they see the positive potential in stepping up.
“From a fiscal perspective, helping is far more fiscally prudent than destroying.”
