The NZRU confirmed last week that Queenstown had missed out on its usual big match in 2009 because Sky Television wanted the game to be played at night and the Queenstown Events Centre did not have lights.
The Highlanders have played afternoon matches in the resort for the past two years and did have a tentative match scheduled for April 11.
Mrs Taylor said there was a commitment that both Sky and the NZRU would continue to work with the Queenstown Events Centre, managed by Lakes Leisure, in the hope a game might be played in Queenstown in 2010.
"We're incredibly disappointed [primarily] that the opportunity to host a family-focused afternoon game has been lost.
"We've attracted a lot of young fans and players. It's been a real family atmosphere.
"It's just disappointing really for everyone. It was something that people were starting to feel was a permanent thing.
"It's a great event for us to hold and there [was] a lot of excitement about it, especially among the young fans and players."
Mrs Taylor said the board was aware of the limitations of the ground for top-level games due to the lack of lighting and was "certainly looking at it".
"It does have some logistical problems with the [Queenstown Airport] flight plans.
"We can't build structures over a certain height.
"However, all of those things are subject to negotiation and with good will on both sides we could possibly look into temporary lighting for some matches.
"There's obviously a cost factor, but we are looking at options and that is certainly one.
"Having said that . . . a night game is not going to attract the family atmosphere that we've had."
Destination Queenstown marketing general manager Graham Budd said the decision was disappointing, but not entirely unexpected.
"It's always disappointing to lose an event that both locals and visitors look forward to.
"While it's only been in town a couple of years it was becoming established as an event.
"It's disappointing . . . but we knew that it was always a little bit tenuous in terms of the facility there, relative to the other options available.
"We're not entirely surprised, just disappointed."
Mr Budd said Destination Queenstown did not anticipate numbers in the resort over the Easter period to change as a result of the Sky Television and New Zealand Rugby Union's decision.
"The people will still be coming to Queenstown . . . they just won't be coming to watch the rugby."
