One of Rotorua's newest tourist attractions, the Orbserver , will be out of action for up to eight weeks.
Company director Marco Dumas said last week's bad weather and high winds had caused a mooring rope to fail, which resulted in further damage and made the helium-filled balloon partially deflate.
He said the technical issues would require repair and although most of it could be done locally, he would have to wait six-eight weeks for specialist parts to arrive from overseas.
The tourist attraction on Ngongotaha Rd opened in mid-April and offers views of Rotorua from its 20m-diameter balloon that is tethered to the ground and takes off and lands on a purpose-built platform.
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It can carry up to 20 passengers 120m into the air.
Mr Dumas said the company would refund people for any cancelled flights.
"We first have to assess the damage, so we are not sure when it will be back up, but hopefully in the next six-eight weeks.
"We need some clarity and that will take about a week, then we will know when it will be back up in the air.
"We want to have it back up very soon so everyone can enjoy it.
"It is what it is," Mr Dumas said.
"We are really sad this has happened and we apologise to anyone who missed out."