However, Outdoors New Zealand sounded a note of caution, saying the "devil may be in the detail".
Foremost among the recommendations of the Department of Labour-led review are the introduction of compulsory registration schemes with "up-front safety audits".
The report into the adventure and outdoor commercial sector was released by Labour Minister Kate Wilkinson.
It found there were no fundamental problems in the sector's ability to develop appropriate safety systems, but there were "gaps" in the safety management framework, which allowed businesses to operate according to standards which were different from those "generally accepted".
"While these gaps remain, there is insufficient assurance that preventable accidents will not occur," Ms Wilkinson said.
"This situation could result in harm to individuals and their families and damage to New Zealand's reputation as an international visitor destination."
The report said while penalties might act as a partial deterrent, they might be "seen as the ambulance at the bottom of the cliff, when what is really needed is a fence at the top".
Prime Minister John Key asked Ms Wilkinson for the review after receiving a letter from Chris Jordan, the father of English backpacker Emily Jordan (21), who died in Queenstown in April 2008.
Ms Jordan drowned after becoming trapped against a rock during a commercial river-boarding trip run by Black Sheep Adventures Ltd, trading as Mad Dog River Boarding.
A year ago today Mad Dog River Boarding was fined $66,000 and ordered to pay $80,000 in reparation to the Jordan family after admitting two Health and Safety in Employment Act charges in the Queenstown District Court.
The report said it was time for the adventure tourism sector "to step up and properly manage the risks associated with its business".
Ms Wilkinson said the scheme would require most operators to obtain an up-front safety audit, based on the risk profile of their business.
"By introducing a registration scheme we will know exactly what adventure activities are on offer and all users ... can be assured that any associated risks are being managed."
Destination Queenstown board chairman Mark Quickfall said the review was "pertinent" for the Lakes District given Queenstown was "the backbone of New Zealand's adventure tourism industry".
"Adventure tourism is a $3 billion industry in New Zealand and it's important that we do our utmost to get it right."
Queenstown Lakes District Council chief executive Debra Lawson said she was fully supportive of the department's review and the initiatives taken by Queenstown operators and related agencies.
Outdoors New Zealand chief executive Paul Chaplow, of Wellington, said while the review was "timely and welcomed", if there were concerns from the organisation it would be around whether clubs and volunteer organisations "get caught in the net".
"It will never be possible to reduce the risk of serious incidents to zero in outdoor adventures without fundamentally taking the adventure out of such activities, [but] we do believe the outdoor sector and Government have a responsibility to ensure all outdoor commercial operators have robust safety systems in place.
"The devil may be in the detail, but overall we believe this is a good outcome."
AJ Hackett Bungy chief executive Michelle Trapski said Queenstown and New Zealand had an outstanding, world-class reputation for adventure tourism and safety.
"Anything that reinforces that has got to be positive."
The review was "well overdue" and would ensure potential operators, or "cowboy operators" would have a duty of care: "You have got to have the duty of care ... If you can't live up to it, you shouldn't be in business."
Ngai Tahu Tourism southern region general manager David Kennedy said in, some respects, the recommendations were expected, but the two points which gave customers surety of safety were the registrations and external audits.
The Labour Department would report back by November 30 with detailed proposals on the design of a new system.
