Two Rotorua MIQ hotels have returned to normal while one will stay on as MIQ until the end of June, the Government has revealed.
From yesterday, the Ibis and Rydges hotels have ceased as MIQ facilities, the Ministry of Business, Innovation and Employment said.
As part of the decommissioning process, MIQ will ensure the facilities are safe and operationally fit-for-purpose as traditional hotels.
The Sudima will still be used as MIQ during the Omicron response until no longer required, but will not remain in the network beyond June 30, head of MIQ Chris Bunny said.
Sudima Rotorua is the largest of the city's three managed isolation facilities.
Rotorua's mayor also confirmed the move in a Rotorua Lakes Council strategy, policy and finance committee meeting this week.
During the meeting, mayor Steve Chadwick said she was told by the chief of staff, who led MIQ, that "the only MIQ that is going to remain open here is the Sudima".
Minister for Covid-19 Response Chris Hipkins announced on Thursday that 28 of the 32 nationwide MIQ facilities would return to being hotels by the end of June, scaling down managed isolation and quarantine as international travel starts back up.
About 17,000 returnees have been through the Rotorua facilities since July 2020.
Councillor and Lakes District Health Board member Merepeka Raukawa-Tait told the Rotorua Daily Post Weekend: "I won't miss them at all. I always felt the three MIQs were a blot on the landscape. I never thought it was necessary to have three in Rotorua."
She said the security fences gave the facilities a "shabby, unkempt" look and she wanted to see the city "looking smart again".
Lakes District Health Board member Lyall Thurston said MIQ put "huge pressure" on the health board's resources and staff.
He said the health board did a "tremendous amount of heavy lifting [with MIQ] and I think we've played our part tremendously".
He said the "incredibly dedicated" staff would return to their usual roles.
Thurston believed there would be a role for MIQ for the foreseeable future and personally thought it was "manageable" to have one operate in the city.
Te Tatau o Te Arawa chairman Te Taru White said he believed all facilities should have been removed at the same time.
"I think under the circumstances, now that things are lifting a bit and borders are opening, we should've had all of them released.
"Even having one in our city still puts a dampener on our city as a place to visit."
He said the combination of the MIQ and emergency housing made Rotorua "feel like a dumping ground".
However, he said the news was a "blessing" and the rooms were "essential" for the tourism industry with other motels earmarked for emergency housing.
He said the hotels would have a "reputation to restore" after "doing what they had to do to survive" by being MIQ.
Rotorua National MP Todd McClay said the Government should be able to set a date when double-vaccinated and tested visitors can return.
He said the Government was showing MIQ was no longer needed for double-vaccinated people which he said suggested people should be able to come back soon.
"Local tourism businesses desperately need them ... tourism operators in the city needed paying visitors."
He said while it was good to get the hotels back there was "a lot" of work to be done to restore the reputation of the city.
Rotorua Labour list MP Tāmati Coffey said keeping on some MIQ facilities was a reasonable thing to do as "we're not out of the woods yet".
"This is a decision that's been made ... I'm sure we will all rejoice when [Sudima MIQ] finally goes too.
"That will fully send the message that we've made it through this pandemic and we're coming out the other side."
He said the hotels served their purpose as a way to manage Covid in the community.
He said while he was pleased Rotorua could play its role in the national response, "I'm also glad to see the end of them".
Rotorua Economic Development chief executive Andrew Wilson told the Rotorua Daily Post last month that the facilities provided income for the properties, employment, and business for local food and beverage providers.
He said the available rooms would be "especially beneficial" once self-isolation requirements for visitors came to an end.
DHB chief executive Nick Saville-Wood said the staff of MIQ "have been real heroes" and most of the 60 health staff working in MIQ have joined Rotorua and Taupō hospitals.
Work was also continuing to redeploy those who wished to return to the health system.
He said MIQ staff took the biggest personal risks, working daily with people with Covid, keeping the country safe and the health system functioning.
He thanked them for their significant work in helping protect the country and communities.
Head of MIQ Chris Bunny said there was still a need for MIQ for unvaccinated Kiwis, community cases and special groups while the majority were being decommissioned.
This will be provided by 12 facilities, one of which is the Sudima Rotorua.
He said on a usual MIQ day, about 400 rostered staff from Rotorua and other locations worked across the three facilities over three shifts each day.
Bunny said all facilities will have a 90-day decommissioning process which "will be flexible so hotels can return to tourism operations before the end of this 90 days if they choose".
He said the process would allow hotels to re-enter the market following remediation or refurbishment.
He declined to say when individual contracts would end on the grounds of commercial sensitivity.
Bunny said the Ministry of Business, Innovation and Employment and other employers would be discussing options with the workers soon.
MIQ was working with iwi partner Te Arawa on a poroporoaki (farewell) to MIQ.
The Government has no concerns about the development on state land in Ngongotahā.