Prime Minister John Key's extra investment in tourism could translate into funding for the proposed $50 million convention centre in the resort, as the Queenstown Lakes District Council hopes.
Mr Key discussed the role convention centres played in attracting high-yield visitors to New Zealand and did not rule out Government funding for a centre in Queenstown, along with Christchurch and Auckland, during Trenz in Auckland last week.
Queenstown Lakes Mayor Vanessa van Uden said the council was ''obviously delighted and very encouraged by these comments as we continue to negotiate funding.''
The council announced in February it entered negotiations with a preferred consortium, led by investors Ngai Tahu Property Ltd and Morrison & Co, with SkyCity Entertainment Group its preferred operator.
The preferred site was 4ha of council owned land at the top of Man St, overlooking central Queenstown.
Chief executive Adam Feeley said negotiations ''remained firmly on track'' and the council sought comments through the draft annual plan process.
''A consultation process specific to the convention centre will happen once that detail is known. It's essential the community can give informed feedback,'' Mr Feeley said.
Discussions focused on two issues: a preferred site and the consenting issues involved with the site; and the possible financial arrangements for the investors; operators and both district and central governments.
Investors needed to know the convention centre project was financially viable; the operator needed to know it represented a good business opportunity; and central and district government needed to make sure the scope of any contribution was both well-defined and capped, as well as delivering indirect economic benefits more than the direct investment, Mr Feeley said.