Three Otago councils have partnered to develop a joint proposal to central government under the Regional Deals framework.

Queenstown Lakes District Council (QLDC), Central Otago District Council (CODC), and Otago Regional Council (ORC) have developed the joint proposal for how Otago Central Lakes would further deliver sustainable economic growth over the next 30 years.

The proposal reflects a collective vision for growth that builds on the region’s dominant tourism and viticultural sectors, maximises investment and visitation for New Zealand, and ensures the region remains an attractive and liveable destination.

Queenstown Lakes Mayor Glyn Lewers says the proposed regional deal for Central Otago and Queenstown Lakes would provide a path to support continued economic growth that also addresses the growth pressures the community has been experiencing for some time.

“Prioritising our collective vision is the logical choice to move the dial on New Zealand’s economic growth as the first Regional Deal partner. Our part of the country is an economic powerhouse, but there is urgency to address critical infrastructure needs and deliver affordable housing.”

“In the past year alone, Queenstown Lakes and Central Otago enabled the third highest number of new dwellings nationally, but demand and prices continue to increase. We continue to grow but we need to grow well to retain and boost what makes our region special.”

“It’s also a fantastic opportunity to leverage our combined strengths to improve tourism productivity for the region and for New Zealand.”

Central Otago Mayor Tamah Alley says the joint approach is in part driven by Otago Central Lakes being one of the fastest growing areas in New Zealand, with growth that’s not expected to slow over the next 20 years.

“The combined Central Otago and Queenstown Lakes area will add billions to New Zealand’s GDP over the next decade and our proposal sets out how the region could add billions more while remaining a fantastic place to live.

“With the right infrastructure and services enabled by new funding and financing tools such as visitor levies, we could showcase broader opportunities for NZ Inc and be a test bed for regional models that could be rolled out elsewhere.”

The Otago Central Lakes proposal includes packages that will be delivered by the private sector but would require some form of support, such as regulatory change, from local or central government to get off the ground.

ORC Chair Gretchen Robertson says ORC’s role is particularly centred on public transport, especially in rapidly growing areas like Queenstown, but also in the wider 'Central Lakes' area.

“The region faces significant demands for infrastructure investment, and Queenstown’s geographically constrained environment, tourism-driven travel patterns, and growing population create uniquely complex transport challenges which require innovative solutions and collaboration, she says.

“By working together, thinking innovatively, and being open to new ways of getting things done, we can turn constraints into smart solutions that benefit our communities, economy, and environment.”

“These are complex challenges, but with the right approach, they become opportunities,” Cr Robertson says.

Late in 2024 the Government invited all New Zealand councils to join with neighbouring authorities and register their interest in being part of Regional Deals. On 18 December 2024 QLDC, CODC and ORC co-signed a letter to express their interest in submitting a proposal.

Since then, elected members and staff from the respective councils, along with representatives from the private and public sectors and iwi, have been working together to refine a proposal to put to central government.

The proposal will be discussed and voted on by councillors at QLDC next Tuesday [25 February 2025] and at CODC and ORC next Wednesday [26 February 2025].

If the three councils agree to support the proposal, the next step would be to submit it to the Department of Internal Affairs (DIA) by 28 February 2025.

The proposal, as instructed by DIA, is closely aligned with existing strategies and plans where significant research and consultation has already taken place. Should the Otago Central Lakes proposal be selected to progress, then more work will be carried out to negotiate and agree the details of the deal. The packages set out in the proposal are a starting point for negotiations and will still need to be formally agreed by the three parties and any delivery partners.

Otago Central Lakes’ proposed deal is based on the councils’ existing Spatial, Destination Management and Economic Development plans, and represents long-term commitments designed to endure.

Note: 

The Otago Central Lakes Regional Deal proposal and the proposal packages are available at our 25 February Full Council Meeting webpage under “Agenda”.

Otago Central Lakes statistics

• Current GDP: $6.1 billion p.a. (Queenstown $4.2 billion, Central Otago $1.9 billion in 2024)
• GDP in 10 years if current trends continue: >$11 billion p.a.
• GDP in 10 years if productivity is increased to match NZ’s: >$12 billion p.a.
• GDP in 10 years if productivity exceeds NZ’s by 25%: >$15 billion p.a.
• Queenstown attracts visitors who contribute over $1.3 billion to New Zealand’s GDP and created 13,700–17,000 jobs nationally.
• Visitors to Queenstown spend three times more across the South Island than those who don’t visit Queenstown.
• Queenstown Lakes consistently delivers the highest number of new houses per capita in NZ (29 in 2024 compared to the NZ average of 5), and Central Otago consistently delivers the third or fourth highest (11 in 2024).
• QLDC has enabled over 1,300 new residential dwelling consents per year (on average since 2019), which is nearly double the residential population demand of approximately 650 to 700 houses per year, and 2-3 times the national average.
• In 2024 the total number of building consents delivered across the sub-region was exceeded only by Auckland and Christchurch.
• Across Otago Central Lakes approximately 7,800 new dwellings, 6,350 in Queenstown Lakes, have been consented since 2019
• Across Otago Central Lakes approximately 80,850 to 101,000 additional houses will be enabled over the next 30 years (compared to a demand for housing from residents of approximately 26,000)
• 1 in 3 international visitors pass through Queenstown.
• Spending by visitors to Otago Central Lakes was over $3 billion in 2023
• Almost 14,000 people were employed in the tourism sector across Otago Central Lakes (38% of jobs in QL and 12% in CO compared to 6.9% nationally).
• Queenstown Airport international arrivals are 28% higher and total arrivals are 8% higher than in 2019.

The proposals align with the following:

• Central Otago Destination Management Plan
• Central Otago Economic Development Plan
• (CODC) Cromwell Masterplan.
• (CODC) Vincent Spatial Plan
• (CODC) Teviot Valley Spatial Plan
• ORC Regional Land Transport Plan
• ORC Regional Public Transport Plan
• Queenstown Transport Business Case
• Queenstown Lakes Spatial Plan (with ORC)
• Queenstown Lakes Economic Diversification Plan
• Queenstown Lakes Destination Management Plan
• Queenstown Lakes Economic Development Plan

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