Prime Minister John Key announced yesterday Tourism Waitaki Ltd's Harbour St project was one of five new projects the Government was investing in to help grow tourism.
Tourism Waitaki chairman Marcus Brown said the announcement was a ''fantastic'' vote of confidence in Oamaru.
Tourism Waitaki, in conjunction with the Oamaru Whitestone Civic Trust, wants to develop a heritage centre and experiential guided heritage tours for visitors to Oamaru.
The project includes establishing an IT-rich themed centre and live streetscape, with demonstrations, penny-farthing experiences, artisan and interactive Victorian-era activities, giving visitors a taste of colonial Oamaru.
The heritage centre will be developed in the Neil Brother's Store, by the Loan and Merc, in Harbour St.
''We're seeking to bring the precinct alive for these visitors,'' Mr Brown said.
Living history tours were not common in the southern hemisphere and the opportunity presented itself to build on the annual Oamaru Victorian Heritage Celebrations into a daily experience that engages visitors.
It will be enhanced by the use of technology and live displays to ''bring the past to life''.
Mr Brown expected penny-farthing experiences would be one of the main drawcards.
''It's different and it certainly reflects the fact that people find Oamaru definitely different these days,'' he said.
''I think it's a quirkiness about Oamaru which we need to cherish and promote.''
The project would generate business and create jobs.
The Victorian Precinct was a core visitor attraction but lacked the ability to produce sustainable revenue.
Tourism Waitaki would work closely with tour operators to promote the facility and provide tourists with an opportunity to stop in Oamaru, spend more time, more money and get a better understanding and experience, he said.
Mr Brown said the project required final approval and the $290,000 in Government funding was subject to approval from the Ministry of Business, Innovation and Employment.
The rest of the project would be match-funded by Tourism Waitaki and the trust, Mr Brown said.
If it is approved, construction is expected to start next year and the facility could be in operation by October 2017.