The Grand Chateau Tongariro is not taking any new bookings for 2023 and 2024. Photo: Wikimedia Commons
Developers have been keen to take on the Chateau Tongariro hotel, but they need more certainty from DOC to make it happen, a local mayor says.
The historic hotel at the base of Mount Ruapehu has been closed since February last year after getting an E grade seismic assessment - which puts the earthquake risk at 25 times greater than expected for a new build.
It is costing taxpayers more than $2 million a year while it sits empty and in disrepair.
Ruapehu District mayor Weston Kirton told Checkpoint the lack of action was "very disappointing" and it would take a lot to bring the building back into use.
"We know it's an icon for not only our district but for the rest of the country, if not the world.
"The fact it's been sitting [empty] for over 12 months is very disappointing, and ... we're seeing now some of the figures coming out probably due to a [lack] of security... We could buy a lot of paint, a lot of scaffolding for that [$2m]."
A detailed seismic assessment of the Chateau hotel had laid out a litany of shortcomings, including under-strength foundations, chimneys and parapets at risk of toppling, a lack of bracing and unreinforced masonry infix.
The land under the Chateau is owned by the Department of Conservation (DoC), but Kah New Zealand, the operator that previously ran the hotel, had quit the lease.
There had been "a lot of interest" from people overseas who specialise in similar renovations, Weston said.
"They know what's at stake here. We need to get around the table with a business model to allow any potential investor to have a fair go at getting this over the line."
Weston acknowledged there were a number of stakeholders to consult, including local iwi for whom the area was culturally significant.
"We just want to work with those people to get some business opportunities, for new blood to come into the area and actually take on those challenges."
This would require greater certainty for those investors to enable them to commit to the property in the long term and make a profit.
As it was responsible for issuing DoC concessions, the government had "skin in the game", and could fast track or intervene with regard to DoC requirements, he said.
"They need to consult with local iwi and get buy-in by local iwi, [who] may well be a stakeholder going forward... It could well be that they invest as well but we're not privy to those negotiations [or] those sensitive issues."
"We know it's an icon for not only our district but for the rest of the country, if not the world" - Ruapehu District mayor Weston Kirton
Among those expressing interest was a tourism group in Quirkier who was experienced with heritage buildings, as well as potential bidders from overseas.
The government - through Minister for Conservation Tama Potaka- had the discretion to "fast track, if not to intervene with the Department of Conservation's requirements under the Resource Management Act ... to get a concession over the line".
"It's my personal view that the minister could come and intervene, and we'll be having that discussion to see ... how that could happen."
Weston hoped the hotel would be up and running again within the next five years, but with flaking exterior paint and damp-affected interiors it would take "millions of dollars to get it up to speed".
"This is a great opportunity for anyone coming into an area where it sells itself in terms of [being a Unesco] World Heritage [Site], and it's an industry that's growing...
"If someone was to come into the area they're almost guaranteed a good business."