The Deputy Prime Minister is defending the use of Rotorua hotels for managed isolation.
The latest Ministry of Health figures, dated to June 23, stated 323 people had been sent to Rotorua to isolate.
The first arrived on the weekend of June 20.
A recent survey of 120 Rotorua Chamber of Commerce members showed 43.7 per cent feared the isolation facilities would damage the city's tourism reputation, reduce visitors, and damage businesses who relied on domestic visitors to survive over the next few months.
But 37 per cent said they would support the managed isolation in the city if they could be assured the safety protocols were working effectively, and people were communicated with in advance.
Deputy Prime Minister Winston Peters was in Rotorua on Saturday to announce $2 million additional Provincial Growth Fund support for the Rotorua Museum restoration and another $90,000 for the Whakarewarewa / Tokorangi Forest development.
When asked afterwards about the managed isolation, Peters said he supported the use of hotels in Rotorua "for the time being".
"We've got to use all the facilities we've got and if we've run out in some parts of the country, we all have to share the burden of looking after New Zealanders coming home. They are, after all, New Zealanders."
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"With proper surveillance and quarantining there should be no effect on any other business," he said.
He couldn't answer whether more hotels would be used for isolation in Rotorua but he expected demand would slow down, not increase.
Rotorua mayor Steve Chadwick also addressed the hotel issue at the announcement.
"We can manage bringing our people home ... and the domestic tourism. And we can do that with an open heart and an open mind and say 'nau mai, haere mai to Rotorua'."
Act leader David Seymour has been a critic of the Government's handling of the managed isolation facilities.
During a visit to Tauranga on Tuesday, he told NZME he believed the Government had failed to communicate well about opening the Rotorua facilities.
"I think one of the things the Government would claim is that it's done really good communication, if nothing else, and communication is important. People need to know what's going on. That's a failure."