The Scenic Hotel Group is mothballing its hotels at Fox and Franz Josef glaciers.

A West Coast's development agency report predicts 62 percent of its region's businesses won't survive the next six months without support.

Westland Mayor Bruce Smith said Scenic's move could be a lifeline for small accommodation providers.

He says it's well known there are way too many beds and cafes in the Franz and Fox area.

There's also little bounce in hopes for a bubble for tourism operators. 

Scenic Hotel West Coast manager Brendan Taylor told Heather du Plessis-Allan the Government needs to be less aspirational and come up with a plan.

"As private businesses, we were keen to try and work with the Government to make it work to keep everybody safe, but we keep getting pushback." 

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