The government is lending $10 million towards the construction of a high-speed gondola at Mount Ruapehu's Whakapapa ski field.
Snow at the base of Whakapapa Ski Field. Photo: Supplied: Mt Ruapehu
The money will come out of the government's Provincial Growth Fund and once constructed, will bring in an estimated half a million additional tourists by 2025.
Some residents were concerned about the possible strain to existing infrastructure and the environment.
Construction on the $25m project is set to begin in November, opening in time for next winter.
It was predicted to create 550 jobs in both its construction and associated activities.
The project is part of a broader plan to boost visitor numbers to the Ruapehu and Taupō districts.
Owner of Skotel Alpine Lodge in Whakapapa Village, John Strevens, said it would be good for his business, as it provided a continuity of visitors throughout the year.
"Months like April and May we're pretty quiet then, but if there's a gondola in operation it provides a reason for people to come to Ruapehu, and we will do a lot better in times where we may otherwise be a bit quiet," he said.
However, Mr Strevens said he was concerned about the older infrastructure in the area not being able to support an influx of visitors.
"For things like toilets and roads it needs national support, small places like us really can't cope with hordes of visitors who come and go and actually are not paying rates and not contributing that much to the economy where we are," he said.
'Desperate for accommodation'
Ski Haus manager Alfracinia Jacobs said available bed space was already scarce for their business this time of year, and they had to turn people away.
"We actually close. For the Ruapehu Alpine Lifts staff and people who come into work, they are desperate for accommodation," she said.
Ms Jacobs said she was also worried about what the environmental impact of the gondola would be.
Raupehu Alpine Lifts chief executive Ross Copland said they had been working closely with Ngāti Tūwharetoa and the Department of Conservation to reduce the number of structures on the mountain, while still reaching visitors' expectations.
He said the gondola was expected to bring in $50 million of extra visitor spending, with minimal impact to infrastructure.
"The intention is to attract visitors right throughout the shoulder season and as a function of that we're not concerned about big infrastructure impacts or peaks," he said.
But, Regional Economic Development Minister Shane Jones acknowledged some spending on infrastructure would be needed.
"The government doesn't want to be short sighted, it realises this $10 million is going to expedite the growth of tourism and associated infrastructure will be required and if they bring suitably developed proposal government, they'll be pushing on an open door," he said.