The hospitality industry is facing an unprecedented crisis - as more than half of Hospitality New Zealand members are warning they'll be bankrupt within three months due to Omicron.

A survey revealed more than 200 businesses are preparing to close their doors, while hundreds of others have lost close to half their turnover since the move to red.

The country is on Tuesday night moving into the second phase of the red light setting, which the group's chief executive Julie White told Max Towle will further kill businesses.