Prime Minister John Key, who is also Minister of Tourism, announced the grant at a tourism industry forum in Queenstown yesterday, saying the event was an ideal way of showcasing New Zealand's "pristine winter landscape" to the estimated 350 million viewers around the world expected to tune in to the event, which will be known as the 100% Pure New Zealand Winter Games.
Mr Key said the decision to back the games had been made because the media coverage provided New Zealand with a valuable marketing opportunity.
Events such as the Winter Games, a precursor to next year's Winter Olympics in Canada and also the 2011 Rugby World Cup in New Zealand, had the potential to "bring a lot of people here . . . for years and years" afterwards, he said.
The funding comes from the major events development fund and ensures the event will meet its operating budget after failing to attract a major naming sponsor from the private sector.
Winter Games NZ Trust chief executive Arthur Klap said the announcement had been a "big relief" for the board. While the budget was still short of contingency money, the board had previously been facing a $500,000 shortfall in its target of $3.5 million.
"We were actually about $750,000 short three months ago."
Since then, the public had stepped up and subscribed to preferential stakeholder schemes.
While the funding has only been guaranteed for this year, Mr Klap hoped the Government would continue to support the games through the 100% Pure brand. He was "convinced this is good value", as it would promote Otago and New Zealand - the TV coverage of the games would include video clips showing New Zealand through the seasons.
Winter Games NZ Trust chairman Eion Edgar, who was not able to be present at yesterday's announcement but had advance knowledge of the big grant, told the Otago Daily Times on Thursday the money was "the key to everything".
He said he was delighted with the grant.
Mr Edgar said the funding, and what it would do for the games, was was "wonderful for the region, wonderful for New Zealand and certainly puts us on the map".
The Winter Games NZ will involve skiing, curling, skating, ice hockey, snowboarding, cross-country skiing, adaptive snow sport, and two demonstration sports - luge at Naseby and winter triathalon.
Mr Klap said earlier this year the games would give international competitors, along with New Zealand's winter sports teams, "valuable preparation time" before the next Winter Olympics, being held in Vancouver next year. The United States, Canada, Britain and Japan have indicated their participation in the August event in New Zealand.
Mr Klap believed numerous benefits would come to Otago from hosting the event.
It would provide the opportunity for New Zealand winter sports athletes to compete on the international stage at home and would develop the skills of local sports administrators to international levels.
