Palmerston North City Council is considering a bylaw restricting begging, as a way to get beggars off the streets.
A report by a community development officer says a number of business owners believe they are losing customers because of an increase in people begging.
The report recommends that the council takes action to provide better social care for those begging.
It says if that was inadequate, a bylaw could be introduced to restrict begging, allowing police to prosecute beggars who refuse to move on.
Meanwhile, business owners say the presence of beggars on the streets is a bad look for the city, especially with the Rugby World Cup approaching.
One business owner on Broadway Avenue, Bruce Graves, says there are nine beggars in his area and some of them are quite aggressive and intimidating.
"I mean there's a guy, you walk past him and he says "have you got any money" and you say "I haven't" and he says, "I know where you are, I'll getcha". I mean, how intimidating is that?"
Mr Graves wants the council to provide better social care for those begging and says a ban will just push the problem somewhere else.
