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The return of overseas tourists has already exceeded expectations - and the Reserve Bank is predicting that to increase over the summer months.
There is concern the sector will struggle to keep up with acute labour shortages, which may add to inflation, with higher prices for holiday makers.
A summer peak is on the way, with the Reserve Bank predicting tourism and travel operators will reach up to 75 percent of their pre-pandemic level this summer.
But with reduced capacity still lingering from closed borders, vacancies are still high and businesses are scrambling to meet demand.
Electronic card transaction data shows visitor spending is at $376 million in the Coromandel alone this year, which is up 7.3 percent compared to last year and 9.6 percent higher than pre-pandemic spending.
General manager of Destination Hauraki and Coromandel, Hadley Dryden, said bookings were looking strong for the summer period.
Hospitality in particular is struggling with staff shortages, but it is widespread across all operators.
Dryden said for adventure tourism they needed staff with the right skillset.
"I think they're trying everything, but you still have to maintain a level of quality. These guys have got awesome experience...you can't just turn up, so they have to rely on the existing networks that they've got, everybody in New Zealand is scrambling."
That struggle to keep up may result in a more expensive holiday, adding to the countries record inflation rate.
Matt Wong is general manager of Ifly Queenstown, an indoor sky diving centre that has about 60 percent of its international market back. But domestic tourists are dropping off as international travel ramps up again.
Despite launching a year before the pandemic hit, the firm has made an effort to retain its 16 staff.
But Wong is worried about other under-staffed businesses having an effect on his business.
"I'm not feeling comfortable about the summer," he said.
"Visitors are here in Queenstown and they've got no where to eat, so if you go out here on a Monday or Tuesday, it's pretty hard to find a restaurant open right now... it's going to do a lot of reputational damage to the Queenstown brand."
Rotorua Canopy Tours do zipline tours through local forestry and they have recently hired double the number of staff.
General manager Paul Button said it was a long process but they were able to lean on the local polytechnic for staff.
The business was tracking for a strong summer period but he said it would be a careful balancing act to make sure the firm did not take on more than it can manage, to avoid price hikes.
"I think this is about delivering - delivering on the nation's brand. If we get too excited and we try and do too much this year because the demand is definitely there, you know, you could sell yourself short," he said.
While they have got the right staffing levels now, he is worried about covid rippling through the team again in the next few months.
"People still get sick, you know our business is based on employees, but if we lose a couple of guys it actually really impacts what we can run for that week."
The reserve bank is predicting the tourism and travel industry will be back up to 95 percent of their pre-pandemic level by the end of 2025.
