The mayor of Invercargill says the city's international reputation has been damaged by racial comments made against a taxi driver.
Police are investigating a complaint from Pakistan-born driver Tariq Humayan that he was racially abused by passenger Greg Shuttleworth.
Mr Humayan has released four minutes of footage he took using his mobile phone about 1am last Friday. It shows Mr Shuttleworth, aged in his mid-40s, swearing and telling him that he should go back to where he comes from.
Mayor Tim Shadbolt on Monday condemned the comments, which he says have gone viral on the internet.
Mr Shadbolt said the Southern Institute of Technology has 670 overseas students and is already getting calls from worried agents and the incident has set back the South Island city's multicultural drive.
The Taxi Federation said the case was some of the worst racial abuse it has been notified about and should be made an example of.