A ship bound for New Zealand continued its journey despite 61 of 90 people on board not holding valid visas.
Minister of Immigration Kris Faafoi has discussed the incident in a media conference at the Beehive.
Watch here:
The Le Laperouse cruise ship is just outside the country's exclusive economic zone, after 61 of the 90 crew were twice declined critical worker visas.
Despite being notified last Friday that they had been declined, the ship had already set sail and continued on its course.
A second application for visas was made and again declined, but the ship still continued, Faafoi said.
"It only began hovering outside our EEZ this morning. The ship is being contracted by a New Zealand firm which intended to and I believe has already begun marketing and selling cruises here in New Zealand."
Faafoi said he wanted to make it clear the border was closed.
Watch - Immigration Minister discusses cruise ship's denial of entry:
Officials are currently talking to the ship's crew about their options.
"At this stage those options are to turn around, restock and refuel somewhere else. If it cannot do that, the ship will be escorted to port. If it docks, the ship and 29 of the crew who do have visas approved for maintenance could stay for the maintenance. The 61 other crew will be required to leave New Zealand as soon as possible. The other option is for the ship to dock, to refuel and restock... and leave immediately."
The ship had clearance to conduct maintenance here and be delivered here for service, but only if crew had appropriate visas.
There are no passengers, only crew.
The 61 denied visas were bar staff, a hairdresser and the like, Faafoi said. The other 29 who did get visas were critical for operating the vessel.
The first set of visa applications was made on 8 January and declined on the 22nd of January. The second set of applications was made on 21 January and declined on Wednesday, said Faafoi.
"I want to reiterate the Prime Minister's clear message last week that where people are organising events, such as concerts or tours, they need to have all the necessary paperwork and Covid compliance requirements sorted before they make bookings, sell tickets, or try to bring workers into New Zealand.
"New Zealand's strict Covid border controls have been in place for many months now to keep New Zealanders safe and control spread of the virus.
"Where businesses ignore those border requirements, or try to find ways to get around them, they put other New Zealand businesses and communities at risk."
He said he was being "diplomatic" but the company was "facing the consequences".