Local businesses and representatives believe putting Rotorua at the red setting of the new traffic light system could be "devastating" and "a step backwards".
But they fear that is where the district could end up if vaccination rates don't increase in time.
On Monday Prime Minister Jacinda Ardern announced the whole country would move to the traffic light system at 11.59pm on December 2, providing a "pathway out of lockdown and give vaccinated New Zealanders more freedoms".
The colour each region will move into will be confirmed on November 29 - green, orange or red - the latter will involve greater restrictions and fewer freedoms.
Rotorua Chamber of Commerce chief executive Bryce Heard said the business community was waiting with "bated breath" to find out where Rotorua would sit.
"It's still very speculative as we don't know what our fully dosed vaccinated level will be by December 2 but at this stage, it appears it will be a huge task to reach 90 per cent.
"However, one thing is certain is that if we do go into the red setting we'll be going backwards from where we are now, and we can't afford to allow that to happen."
He said moving into red would make it even harder for struggling businesses to keep afloat and the simple answer was for people to get vaccinated now and reduce the risk.
"Everyone is waiting for more information about the traffic light system and we desperately need to know now so we can prepare for December 2."
Rotorua MP Todd McClay said a red alert level would be "quite devastating" for local businesses.
"Red is extremely restrictive. I'm hearing businesses are even concerned about level orange. Many will have to alter their practices and orange will have greater restrictions than level 2 for many."
He said businesses wanted to know the plan and the rules as soon as possible.
In his opinion there didn't need to be a traffic light system because vaccination levels were already high, he said.
As of November 22, 86 per cent of the eligible Rotorua Lakes resident population had their first dose and only 76 per cent were double-vaccinated.
The Prime Minister previously said vaccine levels and case numbers would be a key determining factor in what level of the new system each region was put in.
"We don't want people yo-yoing. So starting in green is an unlikely place for people."
The Government has already decided Auckland will move into the red light setting and will reveal more information for businesses this week.
Hennessey's Irish Bar owner and Hospitality New Zealand Bay of Plenty branch president Reg Hennessey said he was still confused about the traffic light system.
"We desperately need more information now about the mechanics of how it will all work. But if [we] do go into the red it will be ridiculously difficult to run a hospitality business under these conditions."
Hennessey said another 14 per cent to reach the magic 90 per cent double dose requirement appeared to be a "mountain to scale" before December 2.
He said it was not an impossible target but it was crucial that people got fully vaccinated now or the whole community in Rotorua would have to suffer the consequences.
"It's only four weeks until Christmas Day and under the current [Covid-19] modelling we can't afford to go into the red setting. It's pretty horrible to even contemplate doing so.
"It's would be so disappointing after all the hard work put in by business owners and our staff who all got vaccinated and have been abiding by all the rules to find it out it could all be for nought. It's crucial people got vaccinated now, don't wait."
Rotorua's Blaze Fitness owner Dan Brons said it was definitely concerning double vaccination rates in the city were still well below 90 per cent.
Brons said he was concerned the full implications for business owners of having to operate under a red light setting were still unknown.
He said business owners were already under great pressure to keep their businesses afloat and he did not want to have to police customers' vaccination status.
"I don't want to have to turn unvaccinated people away and I am already fielding lots of questions about what is going to happen on December 2," he said.
Brons said he believed the Government should have responsibility for enforcing the traffic light system regime rather than business owners having to deal with the potential backlash from angry customers.
"We already have enough pressure trying to keep our doors open without this added stress," he said.
Rotorua deputy mayor Dave Donaldson said Rotorua was "certainly at risk of starting on red but we don't want to get stuck there".
"It's absolutely crucial that we get our vaccination rates up to enable more freedom and enable businesses to operate with fewer restrictions.
"I know there's a concerted effort going on to get our local vaccination rates up and I would encourage everyone to get vaccinated. Protect yourself and others and protect our economy."
Donaldson also said he believed businesses wanted greater clarity about how they applied vaccination certificate processes.
"It would be great if there were support and/or subsidies available from the government for the technology needed to do this as effectively and efficiently as possible.
"In terms of tourism, our visitor economy has always been very resilient. I have great confidence in our industry leaders to do all that's required to provide safe manaakitanga for people wanting to come here.
"We also need to ensure that our health sector is sufficiently resourced and supported to provide appropriate care for the Covid cases we will undoubtedly get."
A Lakes District Health Board spokesperson said: "The Covid-19 protection framework brings us a world where we are freer to move and live with less disruption and offers the stability businesses need to plan for the future.
"The best thing people can do to protect themselves, their whānau and community and to be able to enjoy greater freedom is to get vaccinated.
"We will need to continue to wear masks, keep a record of where we go/ scanning in, stay two meters away from people you don't know."
Rotorua Economic Development head of investments and development Michael Hancock said vaccination certificates will enable most businesses to keep their doors open in the new system.
"It will also give both locals and visitors a sense of confidence that these businesses are operating in a Covid safe environment.
"From a destination management perspective, this is hugely important as we know that our visitors from our largest market i.e Auckland, will all be double vaccinated.
"From a community perspective, it also means these businesses are doing their part to keep people safe."
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