The Hobbiton Movie Set tourist attraction in Waikato is temporarily closing its doors because of the coronavirus pandemic, and staff are losing their jobs.

The movie set in Matamata made the decision on Saturday, following Prime Minister Jacinda Ardern's announcement that introduced alert levels.

Chief executive Russell Alexander said it was devastating to have to take such extreme measures that would not only affect its staff and their families, but the wider community.

"This is a matter of public health and we felt we had a duty of care to our staff, to any visitors still coming to Hobbiton, to our wider community and New Zealand to minimise travel into the district and exposure to Covid-19."

CHRISTEL YARDLEY/STUFF Hobbiton Movie Set in Matamata is temporarily closed.

Alexander said it was distressing time for all involved.

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The closure, which was preceded by a massive drop-off in visitors to Hobbiton Movie Set as a result of travel restrictions, has led to proposals for a drastic restructure which will affect nearly all of Hobbiton's 266 staff, he said.

The proposed restructure would seen as many as 241 permanent employees and a small number of fixed term and casual staff being made redundant. A small team of 25 people will remain at Hobbiton to ensure the set is maintained and ready for reopening.

"It is with deep regret that we even consider closing the site and making any of our employees redundant, especially in this current economic environment," Alexander said.

"The Alexander family have had many decades of connection to this land and have been involved in the development of Hobbiton since the very start.

"As a major employer and tourist facility we take our responsibilities to our local community very seriously. These decisions have, by far, been the hardest thing we've had to do since Hobbiton Movie Set was established. For a place that has brought so much joy to many, many people, this is a very sad time."

Alexander said people with bookings would be contacted.

The hope was to re-open tours and soon as tourist numbers start to increase again.

"We will, without doubt, turn to any affected staff who already know how we operate for any reappointment opportunities."

Meanwhile, Hanmer Springs Thermal Pools and Spa, 130kms north of Christchurch, has now closed for the foreseeable future. The notice sits prominently, across footage of water-sliders, on their website.

General manager Graeme Abbot said the facility had stayed open during snow and earthquakes but as Covid-19 cases rose, the right thing to do was shut.

The management team made the decision to close with "very heavy hearts" and he expected the roughly 120 staff would be upset.

"We will work hard to support everyone and do all we can to retain their jobs but, as we know, this is a serious situation."

New Zealand's largest theme park Rainbow's End announced a temporary closure on Tuesday.

In a post on social media, the theme park's team said it was awaiting further instruction from the Ministry of Health.

"We will be updating our website and social channels as the situation develops."

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