Some cash-strapped small businesses will need to hire extra staff to check My Vaccine Passes, a business development executive warns.
The news comes as the Ministry of Business, Innovation and Employment is advising owners to provide staff with ''wording'' they can use if customers become abusive or they could consider calling police if behaviour escalates.
Rotorua and Taupō would start in the red traffic light setting on Friday. Businesses that required vaccine certificates would be able to operate with capacity limits and distancing.
However, businesses that opted not to use the certificates would have harsher restrictions and some - close-contact businesses, events, gyms - would not be able to operate.
Markets Twelve 21 business development executive Julia Haira said there would be a "no certificate no entry" process in place.
But the markets' small businesses were "struggling" with hiring extra staff to mandate the certificates.
"We've had to find the money from somewhere. And I imagine other small businesses have this issue as well [which] is the extra resources that come at a cost to the businesses, not the Government.''
Haira said the markets would hire security "to avoid any conflicts with the public".
"I guess having that security badge suggests enforcement and it takes some of the pressure off us and our small businesses.
"But again it's a catch 22 - where do we find the finances to be able to get these extra people?"
She said the impact would be "detrimental" due to the loss of unvaccinated customers.
"Markets are doing okay at the moment - we are turning over profits. They're not large profits but they are able to sustain themselves in business in the current climate."
Rotorua Top 10 Holiday Park owner Jared Adams said he was looking at implementing a "no vax no stay" measure because he wanted customers and staff to feel "as safe as possible".
Adams said the business would be checking vaccine passes with the verifier app or people could send them through before arriving.
"We are in very new territory so we're just trying to do our absolute best as we can with it.
"We're not sure what to expect ... this is the most unique Christmas we probably have ever had thrown our way."
Adams said Rotorua had been "absolutely slaughtered" without domestic and international tourism.
"We were 70 per cent international prior to Covid so this has all been quite difficult."
Co-owner of Brew Bar and Croucher Brewing Paul Croucher said staff would be checking vaccine passes "at the greeting phase".
He had created "a little holding area" because it was not always obvious to some customers what to do upon entry.
"By creating that little 'please wait here', it makes it a little bit more explicit and that's a good opportunity for them [staff] to check those passes."
Croucher said it was not "a huge impediment" to check vaccine passes but it would mean an increased labour load.
However with the Auckland border coming down on December 15, this would create "more opportunity" for business, but being in Red could make Rotorua "a less attractive destination", he said.
Polynesian Spa chief executive Gert Taljaard said he was "confident" the business would be ready from Friday.
Taljaard said he was looking at deploying some seasonal workers for the checking of vaccine passes but this was "not too much of a burden". Current staff would also be checking passes.
He said it was "hard to say" what the impact would be on the business, but for Rotorua overall, some people might find it "a bit more difficult to operate".
Rotorua Chamber of Commerce chief executive Bryce Heard said a lot of tourism businesses that had already been through "two poor seasons" could not face a third.
"It's affecting everything from occupancy rates in accommodation through to hospitality, cafes, restaurants, events are particularly affected.
"The only answer I can see is if people get out and get vaccinated."
In his view, Heard wanted the Government to "set out in black-and-white irrevocable terms what we have to do to get to Orange, because we don't understand that".
Rotorua president for the Restaurant Association of New Zealand Sharon Wallace said members were "set up" for the traffic light system.
"We want to be positive about everything and move forward."
Retail NZ was asking people to be calm and understanding as businesses geared up for Friday.
Chief executive Greg Harford said 2021 has been a tumultuous year for retailers and it hoped there would be some light at the end of the Covid tunnel.
A spokesman from the Ministry of Business, Innovation and Employment recommended employers gave staff wording they can use if things escalate so they can de-escalate a situation.
"We recommend you are clear when workers should walk away or decide not to continue to engage with the person.
"You should also consider what kind of behaviour might mean you call the Police and indicate that abuse of your staff will not be tolerated."
Ministry of Health data showed as of Monday, 88 per cent of the eligible Lakes District Health Board population had received one dose, and 79 per cent were fully vaccinated.
No new cases of Covid-19 were announced yesterday in the Lakes DHB region. The total cases for Lakes remained at 26, including three who had recovered.
The Department for the Prime Minister and Cabinet and the Ministry of Business, Innovation and Employment have been approached for comment.