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An economic shock and redundancies in the tourism-heavy Queenstown Lakes district will likely result from strict new travel restrictions, the district's mayor warns.

Jim Boult says the district is in for a "tough time" after Prime Minister Jacinda Ardern today announced the strictest border restrictions in the world, which come into effect at midnight Sunday.

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It was inevitable some seasonal and part-time workers, and potentially permanent staff, of tourism-focused businesses would lose their jobs, he said.

However, the severity of the impact would depend on the duration of the restrictions, and also the extent of a soon-to-be-announced Government support package that would "hopefully lessen the effect on operators and individuals".

"I'm also concerned about the average family which depends on the tourism industry for their income."

All travellers, including New Zealanders, will have to self-isolate for 14 days, apart from those coming from the Pacific Islands. The measure will be reviewed in 16 days.

Mr Boult said he hoped the restrictions would be lifted at the first opportunity, but it would be prudent for business operators to plan for the long term.

He had arranged a meeting with senior council staff on Monday to discuss what the council could do in response.

Although the announcement would be a "bombshell" for many, he had had an inkling about what was coming.

"I've been reading the tea leaves after discussions with some government officials over the past week."

Warbirds Over Wanaka

Warbirds Over Wanaka general manager Ed Taylor said the announcement would have an impact on the airshow, which is set to be held on April 10, 11 and 12. 

"We will be analysing the impacts overnight and will have a get together tomorrow and hopefully have a conference with the board to discuss our position going forward.

"A number of aircraft are coming from United States and the Australian Airforce, but a lot of our visitors are from Australia and overseas and if they are going to be put into quarantine or self isolation they are not going to come.

"We will make a decision and inform people as  as soon as we possibly can."