Cruise ship Ovation of the Seas sailed in to Otago Harbour and berthed at Beach St wharf about 9am.
Many aboard decided to disembark and venture into the heart of the city.
Tourism operators, hospitality providers and retailers across the city were preparing for the 4180 passengers, and 1300 crew along with two other cruise ships — Seabourn Odyssey and Le Soleal — to descend on Dunedin and visit their businesses.
Passengers from Ovation of the Seas told the Otago Daily Times what they decided to spend their time doing while in the city.
Mark and Kim Holden, of Queanbeyan (New South Wales), were on a family trip with their two children Ambrose and Ruby over the holiday period, and had begun their day with a large breakfast aboard the ship before heading into the city.
The family was "keeping it light" before they walked to the Speight’s Brewery to take a tour.
They had spent the morning walking throughout the historic parts of the University of Otago campus.
"It’s really beautiful over there, and we got to walk down the main street before going to the brewery," Mrs Holden said.
The Holden children were pleased they had managed to take advantage of some of the sales at local retail stores.
Alan Armstrong, of Melbourne, was enjoying a mid-afternoon rest in the Octagon while his family members were browsing in a nearby shop.
He had taken an early morning ride on the Experience Dunedin Tours V8 three-wheeler motorcycle in order to see the sites of the city.
"It was a beautiful ride, well and truly worth the money," Mr Armstrong said.
His family had just finished having a cup of coffee in Stuart St, and were making the most of extended Boxing Day sales in the city.
John King and Janet Lodge, of Narooma (New South Wales), were pleased at the array of older architecture and buildings they could visit.
They had spent the day walking around the central city and had gone on the Dunedin Street Art Trail hoping to see some of the artwork painted by local and international artists.
"There’s some lovely old architecture in your city, and we went and looked at the street art," Ms Lodge said.
They had just come out of the cathedral and had picked up a couple of souvenirs.
"The cathedral looks lovely. I even picked myself up this beautiful bookmark," Mr King said.
The pair hoped to peruse the shops before heading back to the ship on the shuttle.