"Some of the pubs seem to be doing okay but many parents won't take their kids into pubs. Tourists who do come into town are either sitting in the pubs or choosing to stay in their backpackers to watch the games on TV."
Mr Harvey criticised Tauranga's city councillors for what he said was their "lack of leadership" in failing to champion a special RWC fan zone in the city for people to flock to.
"A lot of people in our community were hoping for a family orientated fan base in Tauranga and most restaurant owners were pinning their hopes on one.
"For heaven's sake council has had six-and-a-half years to save up for it but nothing has happened. Council has let us all down. Two bar owners have offered to spend $8000 each of their own money taking a huge risk, when it should be council leading this."
But Alan Sciascia, regional manager of Hospitality Association of New Zealand, said that what Tauranga is experiencing is typical of what is happening elsewhere, even in Rotorua and Auckland where games are held.
According to a recent Restaurant Association survey, business at most Auckland restaurants has plunged with the majority faring worse because of the tournament and even eftpos spending had slowed down.
Mr Sciascia said it is disappointing but some Tauranga restaurant owners expectations of a huge boom time were far too high as people were always likely to flock to where the RWC games were being held and he was not convinced creating a special fan zone in Tauranga would make a huge difference at this late stage in the tournament.
"Someone with a little bistro or restaurant was unlikely to pick up much trade anyway."
But Mr Sciascia said there are still three weeks to go with more RWC tourists expected to fly in for the quarter- finals, semifinals and final.
Mid-week these visitors would be looking for something to do and those heading to Rotorua or Hamilton hopefully will add Tauranga to their itinerary.with APN