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The level 3 lockdown in Auckland and decision to move the rest of New Zealand into level 2 is "devastating news" for the hospitality sector, says Hospitality New Zealand.
The organisation says hundreds of thousands of New Zealanders rely on hospitality businesses for their living, from hotel, café, bar, casino and restaurant staff through to cleaning contractors, bakeries and delivery drivers.
Chief executive Julie White said the immediate impact of the lockdown will be a "wash of cancellations" throughout the country.
"As the week goes on, all hospitality businesses will be hit hard, in Auckland they will have to close for the second time this month and the impact will ripple throughout New Zealand.
“The only saving grace for some is the wage subsidy and the business resurgence fund, however, for others, these support packages will barely scratch the surface when it comes to covering the immediate losses and cancellations to come," she said in a statement.
White said "yoyoing" between alert levels was not helping matters.
“Our hospitality businesses are an essential part of our communities and will provide much of the employment that is needed for the recovery, but they can’t do that if they’re not here. Yoyoing in and out of alert levels may leave some operators contemplating how they will be able to continue to operate.”
However, Auckland Business Chamber CEO Michael Barnett said the problem is people not following the rules.
“Government cannot be blamed for having to take this drastic action and nor be accused of failing to contain this outbreak. We have let the government and ourselves down. We were trusted to follow the rules and do what is right to keep us safe. Those rules were broken and now we all have to live with the consequences.”
Barnett called on business, community and church leaders and also families to stick to the rules, with no exceptions.
"Send out the message that stay at home means exactly that, the sooner Auckland can get back on track and reclaim our lives and livelihoods the better," he said.
During Saturday night's lockdown announcement, Prime Minister Jacinda Ardern expressed frustration at the failure to follow the rules.
"We cannot exist in an environment where we set rules and they are breached consistently," she said.