The resort's hospitality, accommodation and activity sectors have all grown steadily, and in some cases ahead of visitor numbers, those in the industry have said.
The Wakatipu Collection owner Jo Weir told the Otago Daily Times at the Trenz tourism showcase in Auckland this week it was more important than ever for operators to promote points of difference in order to be successful.
''The size of the cake is the same but the slices are getting smaller. I wonder whether some operators, if they are not marketing properly, will manage to survive.''
Queenstown was a different town to when she settled in the resort about 15 years ago.
''In May everything shut down, there were about five restaurants and now there are more than 100. It's becoming even more challenging to operate a business in Queenstown.''
Mrs Weir said her business, established last May, marketed a set number of operators each providing innovative and complementary experiences for tourists.
Being dropped off by helicopter at a high country station for smoko was one such example of the move away from standard offerings.
''People like to be able to say they've come here but they were not one of a million other tourists, so we are offering things which not every operator is able to. In a way the competition is good because it puts the impetus back on us operators to provide great experiences for visitors,'' she said.
Nomad Safaris managing director David Gatward-Ferguson said the key to alleviating competition among operators was to encourage more visitors to stay longer in the resort.
Those who landed with little time and less idea of what to do were likely to choose just one experience, and often it was an option which did not require a booking.
That left a lot of operators in the too-hard basket.
''That's where the competition is, when a visitor to Queenstown only has half a day and there is competition between activities,'' Mr Gatward-Ferguson said.
Despite the situation, many individuals and companies were continuing to invest in Queenstown's tourism sector.
Hotel St Moritz just announced a $3 million upgrade, starting in spring, to celebrate 15 years of operation.
''This investment ... will further differentiate the hotel and help us remain at the forefront in a competitive market,'' general manager Lynne McVicar said.
Thunder Jet added another boat to its fleet recently and Southern Discoveries planned to launch a multimillion-dollar catamaran later this year, for cruises on Lake Wakatipu.
Speaking at Trenz in Auckland this week, Prime Minister John Key said one of the challenges for New Zealand's tourism sector was to continue offering unique experiences in a global context.
