A major slip on the Chaslands Highway could deal a major blow to tourism in the Catlins.
Whistling Frog Resort manager Nicole Bridson said since the slip occurred on June 22 - and the detour from Papatowai to the Niagara-Tokanui Highway was put in place - business and tourism in the region suffered, as visitors stayed away.
''We've all worked so hard to get recognition for the Catlins and get that tourism momentum going,'' Ms Bridson said.
''But this has really put a hold on that momentum.''
People have stopped driving through, and guests were cancelling bookings, believing the whole road was closed.
The Whistling Frog, 25km along the Southern Scenic Route from Papatowai, had already been forced to issue staff with a warning that hours could be reduced due to the road closure.
''We've already been hit so hard,'' Ms Bridson said.
''We've started to get people backing out of bookings and functions.
''They're just bypassing the Catlins completely."
Clutha Development destination marketing manager Joanna Lowrey said it was important that visitors were not discouraged from visiting the area.
Tautuku Beach, Lake Wilkie and McLean Falls were all still accessible, she said.
Southland District Council roading asset management engineer Hartley Hare said it was too early to tell what work would be required after the slip.
Possible timeframes as to how long the work should take would be known once an engineer's report was prepared early next week.