The resort’s wider hospitality industry is also counting the costs as the Cryptosporidium outbreak continues.
By yesterday morning there were 35 confirmed cases of cryptosporidiosis, eight probable cases, and seven under investigation.
The Rees Hotel chief executive Mark Rose said since the outbreak began there had been cancellation costs of "about $50,000 to $60,000".
"But the real cost is the reputation damage.
"It’s all the incidental stuff.
"We’re having to source water so guests can do things such as brush their teeth and drink their coffee. It’s painful."
He said he knew of one company that had cancelled its event because of the outbreak.
"You can’t blame them. They are right to be concerned."
Mr Rose said the issue had become a national one.
"Queenstown is the gateway for tourism in the country.
"All political parties should be sitting down for New Zealand tourism’s sake and thinking of a way to fix this now."
Crowne Plaza general manager Stewart Manson said it had contingencies in place to ensure wherever there was consumption, the water was either bottled or boiled.
There had been some cancellations, but they had more or less stopped.
"The outbreak announcement came as a shock to us, but we’re a pretty resilient bunch."
Mr Manson said Queenstown was still open for business.
"We’re still here, and everything is open."
"It would be great if we were able to get moving on a solution."
Hilton Queenstown general manager Chris Ehmann, whose business was affected, said people were "making a mountain out of a molehill" where there only "30 or so cases".
Restaurant Association of New Zealand chief executive Marisa Bidois said its Queenstown branch members were in contact with the Queenstown Lakes District Council, which was "working really hard to resolve the matter".
It had surveyed its Queenstown members, asking them what impact the outbreak had on their business.
Of the 61 who replied, 37.5% said the impact had been "significant", and 62.5% said it had been moderate.
Impacts included loss of revenue, increased operating costs (e.g. through purchase of water or investing in water filtration systems), increased labour cost, health and wellbeing or stress due to managing the situation and disruption of usual operations, Ms Bidois said.
A Queenstown Airport spokeswoman said passenger numbers into the airport for the month were looking similar to the same time last year.
The airport had temporary alternative water supplies in place and was investigating its options given the boil water notice was likely remain in place for an extended period, she said.
