Destination Queenstown answers key questions about their role and strategy

Is it back to quantity over quality - under the current Government's growth policies?

Thanks to Mat Woods and Sarah O’Donnell at Destination Queenstown (DQ) for answering what we felt were the most urgent questions around local tourism numbers, marketing, the environment, strategy and funding.

How does DQ feel about the Government’s recent “we want all tourists - as many as possible” statement - this goes against the DQ quality not quantity message of the last couple of decades?

Queenstown is unique within New Zealand’s tourism landscape. We’ve seen a strong recovery in visitation to Queenstown, Wānaka, and places like MacKenzie Country, which is not the case for all parts of the country. We recognise that the Government’s current investment in tourism aims to boost visitation nationwide.

However, at Destination Queenstown and Lake Wānaka Tourism, our focus remains on attracting high-contributing visitors—those who take the time to immerse themselves in the region, connect with locals, and give back. These visitors stay longer, engage more deeply with our community and environment, and have a more positive economic, social, and environmental impact.

Queenstown has a key role in national tourism. Many domestic and international visitors want to come here, and in doing so, we contribute to regional dispersal and the national brand. However, it’s crucial that we maintain a balance—delivering a world-class guest experience while ensuring our residents benefit from the visitor economy.

A sustainable tourism model requires investment in both public infrastructure and the visitor experience. While our operators are continually investing—such as major upgrades at The Remarkables, the investment at Skyline, and Soho at Cardrona—public infrastructure has not kept pace, to keep up with both residential and visitor growth. The congestion in the roading network is a clear example of this. Without direct investment or alternative funding mechanisms, such as a visitor levy, our ability to sustainably manage growth is limited, with such a small ratepayer base and large visitation.

What benchmarks does DQ operate on - and how has your performance tracked against those benchmarks?

DQ uses a comprehensive set of benchmarks to measure performance across economic, social, and environmental dimensions. These include:

• Visitor expenditure and visitor numbers

• Length of stay and seasonality trends

• Market mix and visitor demographics

• Community sentiment toward tourism

• Visitor experience and Net Promoter Score

• Referrals to member business from queenstownNZ.nz

In addition, DQ is working on developing a High-Contributing Visitor Index (HCVI), a data-driven metric based on our Visitor Experience Survey Programme. This index will help us identify and attract visitors who align with our values—those who contribute positively to our community, environment, and local economy.

By tracking these benchmarks over time, we are evolving our strategy to target a sustainable, high-value visitor economy while maintaining the quality of life for our residents.

What is DQ’s annual budget and what is the breakdown of expenditure - staff numbers, ad budget etc. Can you supply the last three years DQ accounts?

DQ is primarily funded by its members through a targeted levy on commercial rates, which makes up 95% of our budget, with the remaining 5% from general rates.

Our total annual budget is approximately $5 million, covering both destination marketing and destination management activities, aligned with the Queenstown Lakes Destination Management Plan (DMP).

Our key focus areas include:

• Marketing & Promotion (domestic and international)

• Trade, Business Events & Member Capability

• Implementation of the Destination Management Plan (DMP)

• Advocacy & Industry Representation

DQ has 20 full-time employees working across these areas.

Back in FY23-24, DQ introduced the delivery of work in the destination management space, expanding the organisation’s mandate alongside destination marketing.

The reason for the widened scope is to ensure a thriving future for the tourism industry, and our communities. This means not only ensuring a pipeline of demand from high contributing visitors but balancing this through supporting the industry to meet the region’s regenerative tourism goals which balance economic growth with environmental, social and cultural sustainability.

The visitor economy is critical to our region, so what we do matters, both as businesses and people who are part of the community. We must continue to work toward an evolved tourism strategy that prioritises human connection, environmental stewardship and community wellbeing. This means identifying visitors with values akin to our own; evolving our experiences to make them environmentally and socially sustainable, understanding optimal visitation and ensuring that tourism supports the forging of social connection within our community.

We are an Incorporated Society and not a council-controlled organisation, our accounts are available to our members.

What percentage of your funding comes from special targeted rates and how much from all ratepayers?

95% of our funding comes from the targeted commercial rate levy, while 5% comes from general rates to support the implementation of the destination management plan (DMP).

The DMP was developed between May 2020 – December 2022, in collaboration with our community (both businesses and residents), Queenstown Lakes District Council (QLDC), the Department of Conservation (DOC), and Iwi. It was unanimously endorsed by the council in February 2023 and is recognised globally as a leading example of a regenerative tourism strategy.

Our goal is to ensure tourism enriches our communities, enhances visitor experiences, restores the environment, and strengthens economic resilience—creating a thriving future for Queenstown Lakes.

We are now seeing other leading destinations in the world striving for regenerative tourism, so it is great to be part of the first movers which will create advantages for our region for both members and residents.

How have you adapted to social media and the ability of your members/tourism operators to self market?

Social media is an important but not exclusive component of our marketing strategy. While many businesses effectively use social media to promote themselves, it is only one part of the bigger picture.

As Queenstown’s official tourism organisation, DQ plays a key role in shaping a consistent, credible, and globally recognised destination brand. This means integrating social media, traditional media, digital campaigns, trade partnerships, and destination storytelling to position Queenstown effectively in both domestic and international markets.

By maintaining our role as a neutral, trusted source of information, we ensure that Queenstown’s reputation is built on authenticity, sustainability, and a high-quality visitor experience.

Would you support a change to a Singapore style economic development agency - so all development in one agency?

We don’t believe it is our place to comment on alternative economic development models for the region. However, we do see an opportunity for New Zealand to improve the national tourism system by taking a more holistic approach that balances both supply and demand.

A National Tourism Development Authority could help create a more sustainable industry by managing infrastructure investment, tourism dispersal, workforce planning, and environmental impact alongside visitor attraction. This would ensure long-term sustainability, benefiting both visitors and the communities they visit.

What’s the status of your destination management plan - why use an overseas agency (cost) some members have complained re expensive hospitality by DQ for these consultants?

The implementation of the DMP is well underway, delivered in partnership between DQ, Lake Wānaka Tourism (LWT), and QLDC. The plan focuses on three key pillars:

1.Enriching communities & enhancing visitor experiences

2. Restoring the environment & decarbonising tourism

3. Building economic resilience & productivity

As part of its development, three agencies were engaged—Think Place (NZ), Proxima (NZ), and Destination Think (Canada)—bringing global expertise to create a best-practice model.

The cumulative cost for these services was under $200,000, funded through MBIE’s Strategic Tourism Asset Protection Programme. The development of the 30 regional DMPs across NZ was mandated by the previous government, however Queenstown had been discussing the idea of destination management pre Covid, so was able to include the DMP as an output of the Spatial plan.

This investment has positioned Queenstown Lakes as a global leader in regenerative tourism, benefiting both our visitors and local communities.

We have a website www.regenerativetourism.co.nz which outlines the plan in detail and some of the projects underway.

Do you depend on Government funding for your new management plan and has that been refused or withdrawn?

Government funding would certainly accelerate our ability to implement the DMP, but we have not received any central government funding for its implementation to date.

We continue to explore funding opportunities at both the local and national level. The International Visitor Levy (IVL), which increased from $35 to $100 per visitor in 2023, generates approximately $240 million annually. Given that a significant portion of these funds are generated by international visitors who come to Queenstown, we believe it is reasonable to advocate for a share of this funding to support projects that enhance the visitor experience and benefit our communities.

What are your five top measurable achievements over the past 5 years?

In no particular order we believe the following are major achievements:

1. The Shared Services Agreement with LWT – This collaboration has streamlined operations, improved efficiency, and enhanced our ability to deliver on the Destination Management Plan.

2. Launch of the Destination Management Plan (DMP) – Developed in partnership with LWT, DQ, and QLDC, this was the first NZ destination plan to set a vision for regenerative tourism by 2030.

3. Regional Events Fund Administration – Over three years, we attracted 14 new events and supported 32 existing events in collaboration with LWT and Tourism Central Otago.

4. Evolution of the Marketing Strategy – A shift towards values-based storytelling, moving beyond traditional conversion tactics to building a long-term, sustainable brand and destination reputation.

5. Launch of the Member Capability Building Programme – Launched in 2024, this free initiative supports local businesses with education, training, and resources on topics like carbon reduction, waste management, and sustainable tourism practices.