Queenstown's mayor isn't happy about plans to host returning New Zealanders in the hard-hit town

The Government's considering Queenstown and Dunedin hotels - as need grows for new Covid-19 isolation facilities.

But Mayor Jim Boult says while he supports the need to find more quarantine sites - Queenstown isn't suitable.

He says the region has an extremely limited healthcare capacity in the event there was an outbreak in the community.

Boult says this needs to be taken into consideration before a final decision is made.

He says the Queenstown Lakes District Council and the Southern DHB also need to be involved in any further discussions.