A business owner thinks the changes to gathering capacity limits will encourage people to do more in Rotorua during alert level 2.
Prime Minister Jacinda Ardern announced the level 2 restrictions around gatherings would be changed to allow a maximum of 100 people to gather inside. Capacity sizes were restricted to 50 people inside and 100 people outside.
Ardern also announced Auckland would move to level 3 at 11.59pm on Tuesday night after spending just over a month at level 4.
Matai Restaurant owner Ryan Gregorash said the change wouldn't see turnover skyrocket but it was a good step forward.
"Business isn't going to double overnight. We're not all of a sudden going to double our turnover," he said.
"What it does, though, is give the wider population more security — that's the big thing. When the wider population feel safe and secure, they'll come out."
Ardern also said until Auckland moved down from alert level 3, the rest of the nation would stay at level 2. Cabinet will review Auckland's alert level status on October 4.
Gregorash said his business would be able to maintain itself for another fortnight, but he understood others in the restaurant and hospitality sector might not be faring so well.
"I've got a very strong business and a good team. We're able to ride this out ... It's a good time for us to show strength and redevelop going forward into summer."
Redwoods Treewalk co-founder Bruce Thomasen agreed the move in alert levels would help boost public morale.
"Everyone is a little bit shy of heading out, so every time we head down an alert level that's good news."
The next school holiday starts on October 2, and while Auckland won't have moved out of level 3 by then, Thomasen hoped an alert level change afterwards would enable people to travel to Rotorua.
"This holiday now is probably more about Waikato, Wellington, Tauranga-Bay of Plenty and the rest of New Zealand being our dominant market," he said.
"The key now is getting vaccination rates up and that we can get to the summer holidays and not run the risk of a level 4 lockdown."
Nigel Tutt, chief executive of economic development agency Priority One, said the vast majority of businesses his team had been in contact with were faring well at level 2.
However, those in events, hospitality and retail were quite badly affected.
"Lockdowns and the prospect of a continued bad period for the next few months do bend confidence a bit, but by and large businesses are still in pretty good shape," Tutt said.
"Supply-chain difficulties and the like are probably as equal a problem as social distancing. It's a disrupted time, but people are still pretty positive."
Tutt said he was most concerned about event businesses that relied heavily on the summer months. Typically, the summer events period runs from November to February but can vary.
"We need to get down to level 1 to get that bump over summer," Tutt said.
"The more events we can pack in, be it small or massive ones, does make a big difference."