Prime Minister Jacinda Ardern said the rules were "the toughest in the world". Ardern also told New Zealanders not to travel overseas if they don't have to and issued stark advice: "No hugs, hongi or handshakes".
All cruise ships have also been banned to New Zealand until June 30.
Chadwick encouraged everyone to be responsible for what they may need to change and manage in their daily lives and workplaces.
"People's health remains the number one priority and I would urge everyone to keep following the advice of our Ministry of Health. We need to be guided by the experts and follow their advice."
The mayor also encouraged people to not travel unless absolutely essential.
"We still can't be certain of the extent of the impact of this locally or nationally at this stage – this is still an evolving situation.
"From an economic point of view we are already being impacted."
Destination Rotorua chief executive, Michelle Templer, said the new self-isolation guidelines would have a significant impact on the visitor economy and the businesses in Rotorua that were part of it.
"The Government has signalled further announcements regarding major events and gatherings and we're waiting to hear what that will mean for community and business events planned for Rotorua."
Templer said, like many in Rotorua, they were looking forward to the Government's economic package announcement tomorrow.
It was important that all efforts were made to ensure the benefits flowed into the regions as soon as possible, she said.
"While this is a challenging time for everyone, our priority must be the health and safety of New Zealanders and our visitors.
"Our advice to local business owners remains consistent: continue to support each other and work together in the way that we've already seen demonstrated, particularly when it comes to talent sharing and cross-promotion."
However, some tourism businesses were already feeling the pinch.
Rotorua Top 10 Holiday Park co-owner Jared Adams said in the last 24 hours they had between 30 and 40 cancellations, and he expected cancellations to continue during the next week.
Adams said quite a few people were still visiting but he worried about the lack of incoming holidaymakers when things quietened down from summer.
"The whole thing is pretty devastating, but we can understand why this is happening."
He was glad things were being done before Covid-19 turned into a bigger issue than it already was.
"But it will definitely have a fairly direct impact and we don't think it will be just in tourism, there will be a lot of places that feel this.
"We are in uncharted territory with what is happening at the moment, no one knows what the effects of this are going to be, the best we can do is predict and guess.
"I expect this will take a year if not longer before it recovers once international travel starts again."
Port of Tauranga was expecting another 15 cruise vessels (plus the Noordam already in port) before the end of the cruise ship season in April. It expected these calls to be cancelled.
The company was working with border authorities, the cruise lines and their agents to manage the impact of the cancellation of the remainder of the summer cruise season.
A Port of Tauranga spokeswoman said the port had "multiple areas" of business where staff would be moved to following the cruise ship cancellations.
"Most of the staff that are employed for the cruise ship season are in security and since the port operated security throughout the business, they would just be doing other duties, the spokeswoman said.
Key points from Saturday's announcement
• Effective from midnight Sunday, all travellers, except for those coming from the Pacific Islands, will have to self-isolate for 14 days on their arrival to New Zealand
• The PM says the rules are the toughest in the world
• She told New Zealanders not to travel overseas if they don't have to and issued stark advice: no hugs, hongi or handshakes
• All cruise ships have been banned to NZ until June 30
• There will also be further announcements on mass gatherings
