Tourist slump after fish kill

Locals believe a marine virus which killed thousands of fish and left the lake brown and reeking has caused hundreds of tourists to stay away or cut their visits short.

One business owner claimed trading was down by as much as 90 per cent when compared with the same school holiday period of previous years.

Many now fear Lake Cathie's seaside reputation may have sustained long-term damage from the environmental problem.

Doug Dillon, owner of Dougie's Fish and Chip Shop, said he had spoken to many tourists who had expressed disappointment at the sad state of the lake.

"For a lot of families, it's the same as going to the snow for a skiing holiday but then finding there's no snow," he said.

"People come to Cathie to swim and enjoy the lake but they obviously can't do that now."

Fishing, once a hugely popular activity in Lake Cathie, has all but ceased since the fish kills.

That has been bad news for Brett Dolsen, who owns the Lakeside Tackle Shack.

"These holidays have been absolutely disastrous for us. We're only doing 10 per cent of the business we could potentially be doing," Mr Dolsen said.

"Every business in Cathie is suffering. I heard that one motel had a group of 300 people cancel because they had read about the lake problem.

"We won't know the full extent until the holidays are over but it's safe to say this has been a devastating time."

Mr Dillon added: "Our biggest fear is that these people will leave Lake Cathie and tell others not to come here.

"If people want to swim in a lake and we can't provide that then obviously they're going to try somewhere else."

Hastings Council is awaiting further test results from NSW Fisheries aimed at finding out why the fish have died.