The Mayor of Queenstown Lakes District is calling for an end to social distancing on planes, saying it's "impossible" to enforce.
Jim Boult told Newshub if the distancing continues on into school holidays it will be "a big issue" for his district.
"We really need the economic activity," he said on Friday.
Under alert level 2 restrictions, Air New Zealand can only sell about half the seats on turboprop aircraft and just under two-thirds on jets. Jetstar has temporarily withdrawn from the New Zealand market as it's not viable to keep flying.
Boult says with planes operating at half capacity, prices are increasing - meaning fewer can afford to holiday with their families.
"We're really asking the Government to reconsider this - I know it's a widely held view in tourism and travel that this requirement of social distancing is not required now."
Boult says if requirements are not relaxed the situation will be even more dire.
"I understand the Government position on this completely and this is not at all critical of them," he said.
"Everyone is abiding by the requirement to wear masks but the reality is social distancing on planes is impossible...once you stand up you can't help but be close to the person across the aisle from you."
Statistics released in April revealed the Queenstown Lakes District - a major tourist hotspot and one of the hardest hit by the pandemic in New Zealand - had gone from being the richest region in the country to one of the poorest due to COVID-19 and closed borders.
