Prime Minister Jacinda Ardern has ruled out a targeted wage subsidy for businesses in communities dependent on tourism, says Queenstown's mayor.

Lakes district mayor Jim Boult held an online meeting with the PM and Tourism Minister Stuart Nash on Tuesday. 

Boult says he outlined many of the challenges and struggles faced by communities across the country who are heavily reliant on tourism, and the visitor and accommodation sectors.

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But, short of another lockdown, they confirmed they won't use public money to support those businesses directly through another wage subsidy.

"Yes, this is disappointing news and I am sure it will be a bitter pill for those who may have been holding out for that as a lifeline," Boult says. 

"However, I appreciate the frank discussion with the Prime Minister and the clarity she provided. Personally, I will continue to work assiduously for our community on this matter."

Many business owners in Queenstown, Fiordland, the West Coast and elsewhere have been lobbying the Government for more assistance.  

But Nash indicated last week that there would be no targeted subsidy, telling The AM Show businesses should instead accept the "cold hard reality" of 2021, with international tourists unlikely to return in numbers until next year.

Boult, however, says the PM and Nash agreed to explore some possible assistance in other ways, he says. 

Queenstown mayor Jim Boult and Tourism Minister Stuart Nash's first meeting in Queenstown after last year's post-election cabinet shuffle

"I recognise this is a unique situation, for our district, for Aotearoa New Zealand, and at a global level," Boult says.

"In that context I appreciate there are hard decisions that Central Government has to make in the ongoing efforts to stamp out COVID-19 and keep our communities safe. 

"These are tough calls and it is times like these we need to pull together and support each other whenever we can.

"Locally we are enormously thankful for the many Kiwis who have and are intending to visit us. Operators here are committed to adjusting the offerings to suit the domestic market and their budgets."