The Queenstown Lakes District mayor is reassuring visitors they remain open and ready as the school holidays kick off

Heavy rain has plunged both Southland and Queenstown into a state of emergency.

Glyn Lewers says teams have been working hard to ensure the resort town is cleaned up -- and 99 percent of businesses are now operating as they normally would.

Meanwhile, parts of the cemetery has been affected by slips, and is closed to the public.

Council and emergency management teams are liasing with iwi and religious groups.