One of the country's leading hotel chains is mothballing some of its hotels because of falling demand.
The largest New Zealand-owned hotel group says the move will help it survive the recession as hotels struggle to fill rooms.
The director of sales at Scenic Hotel Group, Steve Shearer, says this is one of the toughest times he has seen during his 10 years in the industry.
The situation has prompted the company to close temporarily in two seasonal resort areas, Fox Glacier and the Bay of Islands. Mr Shearer says those spots are the hardest hit by falling visitor numbers, with demand down even in peak seasons.