Hospitality New Zealand has presented a case to Government illustrating the extent of the desperate financial situation of the region's hospitality venues.

A statement from Hospitality New Zealand states half the sector has seen a drop in revenue of more than 40% under the red settings.

Hospitality New Zealand CEO Julie White said half the sector also believes it will have to close venues within three months.

"This will worsen over the next few weeks as Omicron infection increases."

She said there was now a call for the wage subsidy to resume and the resurgence payment, along with a reduction of stand-down periods and ability to use rapid antigen test (RAT) kits to manage staff and customer safety.

Hospitality New Zealand documented the situation last weekend in a video that recorded empty streets and venues, worried staff and desperate owners.

Watch it here

Hospitality New Zealand marketing and communications specialist Mark Lindsay said the sector has asked again for the wage subsidy and resurgence payments, for as long as the Omicron wave lasts.

Infographic: Hospitality NZ

Central Otago hospitality businesses The Central App spoke to were getting ready for a prolonged quiet period of trading.

The Stoaker Room owner Quintin Quider, of Cromwell, said they had gone quite well until a week ago.

"It's really slowed down.

"The whole environment is changing now," he said.

"There is so much uncertainty . . . with the rules right now we could be closed more than we are open."

The Stoaker Room's owner Quintin Quider. PHOTO: Supplied

Quintin said a member of his team was on a flight with a positive Covid-19 case and was now in isolation in Auckland for two weeks.

"We can't afford to pay our staff to not work.

"It feels like a no-win situation for us . . . we anticipate going backwards in the next five months.

"It's almost a new sort of lockdown, we are not allowed to open because almost the whole of the country is going to be self isolating."

Quintin said he would like to see rapid antigen testing available to every business and hospitality deemed as essential, which would enable them to access these tests.

Alexandra's Industry Lane front of house manager Talia Duncan said they were still pretty busy.

"Things have slowed down a little bit, possibly it's due to what is going on with Covid locally at the moment.

"We've had a mix of tourists in and also our awesome regulars so far this morning."

The cafe owners are aware of things "tightening up", Talia said.

"The bosses are preparing for the worst case scenario.

"I really feel for how those in hospitality in Queenstown are struggling."

Mayor Tim Cadogan found two of the four hospitality business in Glenorchy had closed on a recent visit.

Central Otago District Council Mayor Tim Cadogan said he was not aware of Central Otago losing any hospitality businesses yet.

"You can feel it, people are not going out like they used to.

"We've been insulated by our bike trails to some extent.

"The Lake Dunstan trail has helped to bring new business in."

Tim said hospitality businesses were facing an inevitable drop, with Omicron possibly only days away from being here.

Central Otago's first new Covid-19 case was confirmed in the district on Thursday.

He said he was no longer using loyalty cards when buying coffee, one of the ways he was trying to support businesses as much as he could.

Central Otago District Council economic development manager Nick Lanham said the best way to do that was patronage.

"We know some people are hesitant to venture out to their local cafe, or restaurant due to Omicron.

"If dining in isn't for you at the moment, consider buying a voucher to use in the future or as a gift, or perhaps takeaways to take home, or to your favourite picnic spot."

He encouraged people to keep up to date with changes local hospitality businesses might be making to encourage customers, including outside dining, takeaways or deliveries.

Nick said it had been a "long road" for the hospitality sector over the past two years - one of the sectors most affected by Covid-19 alert level restrictions.

"The hospitality sector has been affected by staffing shortages that have limited its ability to make the most of the busiest times.

"This has added to staff and owner fatigue as they do their best to provide an exceptional experience.

"The other aspect amplifying the fatigue is the uncertainty that the sector has been dealing with around labour, government support, operating under restrictions and when we will resume to some sort of normality."

He said despite the challenges, Central Otago was fortunate to have a diversified economy, which puts it in a good position to "weather any headwinds".

"Our economy is still performing well, however it is carrying the extra weight of staffing shortages, disrupted supply chains and the threat of Omicron."

*Hospitality NZ represents the interests of around 3000 hospitality and commercial accommodation business.