The Motel Association says the Rugby World Cup is proving to be more of a cost than a benefit for some its members.
A survey by the association of its 900 members shows 48% have had lower bookings than usual during the Cup, and only 28% have had an increase in business.
Chief executive Michael Baines says the tournament has been a success in drawing 95,000 overseas visitors, but has stifled domestic tourism.
He says reports of both overpriced accommodation and floods of overseas tourists have kept domestic visitors away.
Mr Baines says he never expected an economic bonanza from international travellers, but did not expect the domestic market to be so soft.