Lakes Environmental manager for regulating and corporate Lee Webster said only 16 permits were issued for the period from November to mid-January, compared with 19 for the previous corresponding period.
He said the process for applying was very simple.
"If you want to busk, you get in an application form; we check it; we say `yes' or `no' and there's no charges."
The kind of activity allowed under busking permits is not limited to acoustic guitars and pan pipes - even bagpipes and drummers could be considered.
"Basically, you can pretty much make any application you like. But if you are making a nuisance we can make you move on or revoke your permit."
Buskers Dion Birch-Thompson, of Queenstown, and audio engineering student David Bell, of Christchurch, said it was a simple process to get a permit and they were not sure why busker numbers were down.
"Maybe there's not too much money to be made," Mr Bell said.
Mr Birch-Thompson agreed.
"You make $40 to $50 a time and it depends on the time of the day and the sort of people around as well."
They both noted the best busking returns came when the weather was fine, an observation echoed by a French busker.
"It's too windy to busk ... My music just goes flying everywhere," he said.
He also thought the volatile summer weather might have something to do with the drop in busker numbers, and said he had witnessed other buskers leaving when conditions worsened.
While he apparently did not know a permit was required, Lakes Environmental did not come across many errant performers, Mr Webster said.
He said tip-offs sometimes came from members of the public who were curious whether certain buskers had permits.
