"So she was very much an institution."
The Ministry of Foreign Affairs has now confirmed the deaths and says it is working to provide consular assistance to the families.
Ms Paterson had seen Ms Davidson a few weeks ago before she left on her trip and said she was "very happy and excited''.
Ms Davidson's first husband, Jim, had died about eight years ago and the couple had an adult daughter, Lisa.
"They were very close, like sisters,'' Ms Paterson said.
"It's just going to be terrible for Lisa.''
Ms Davidson and Mr Bishop had been together for a number of years and it was his passion for motorbikes that sparked her interest. She was always the passenger.
"They used to go off touring on the motorbike quite often, in New Zealand. So she became a fan of them,'' Ms Paterson said.
There was comfort in knowing the couple died doing what they loved and while enjoying a well-deserved honeymoon.
Ms Davidson worked for the New Zealand Film Commission for many years before going to the festival, which she left in late 2008 to go to Radio New Zealand.
She had a "huge passion'' for the arts and remained involved through such networks as Women in Film.
"She was just lovely. Warm and compassionate,'' Ms Paterson said.
"She was a really well-known Wellingtonian.
"She will be really missed by the community here, both the arts and film community.''
Mr Bishop, a self-employed garden landscaper, had two adult sons, Fairfax reported.
The Ministry of Foreign Affairs and Trade said it was providing consular assistance to the families of the couple.