A hotelier in the Bay of Islands says he's forced to offer staff accommodation himself because of a lack of affordable rental housing in the area.
The holiday hotspot has a growing demand for hospitality staff but the tourism sector has said seasonal workers simply can't afford to live in the area.
Riki Kinnaird, co-owner of the historic Duke of Marlborough Hotel in Russell, said the lack of affordable accommodation was so bad they've taken matters into their own hands.
"We've decided to tackle the problem a different way. We've bought some land and we're developing staff accommodation - but that's probably 30 beds.
"So you can see the gap already is quite big but it's a start."
Ross Brljevich from marine tourism operator Explore Bay of Islands said the industry relied on seasonal staff from overseas.
"That market hasn't turned up in the Bay of Islands, and if they do they get up here and within two weeks find out that the accommodation issue is way too much to pay ... two weeks later they give their notice and they're gone."
Mr Brljevich said the rise of AirBnB properties had worsened the problem, which will only get more acute as the holiday hot spot floods with around 50,000 visitors this summer.
"With talk of cutting visas back for people coming into New Zealand, being seasonal, we survive off that overseas market to get through the seasonality. If that's cut back [with] the accommodation problem chucked in there, it's just a nightmare."
Tourism Industry Aotearoa chief executive Chris Roberts said the problem was not unique to the Bay of Islands.
"We clearly have a nationwide shortage of affordable housing and in popular tourism areas that gets exacerbated by the growth of AirBnB where people quite rightly are taking that option up because it provides a higher income than renting it to a local or temporary worker."
However, he said the answer was not getting rid of AirBnB.
"They are a legitimate part of our industry. There are questions around how it's regulated but we don't want people stopped from providing AirBnB options."
Mr Roberts said operators like the Duke of Malborough and Explore Bay of Islands were doing the right thing by front footing the housing shortage.
Mr Kinnaird said his business had to roll up its sleeves and provide staff accommodation so it could provide guests the service they demanded.
He said the government should relax visas and properly assess how tighter restrictions affected overseas seasonal workers so desperately needed by isolated tourism areas.
