At Tuesday's infrastructure services committee meeting, council transport manager Denis Mander said the forecast budget for environmental maintenance in the Wakatipu for 2010-11 was $856,000.
NZTA has allocated $106,830 to that projected cost, leaving a shortfall of nearly $750,000.
The district was different from others of a similar size because it hosted many short-term visitors who expected to be able to go out in winter rather than be "stuck in their" hotel rooms for the duration of their stay.
"As an international tourism destination, it's important that we have a safe, reliable and open transport system," Mr Mander said.
Infrastructure manager Mark Kunath said NZTA had sent a "clear message to councils that there was no more money for the maintenance of local roads".
"In reviewing NZTA's annual report, we can't see that we're being treated fairly. State highway budgets got in the order of 20% more funding through the year and local roads got less. On the face of it, that appears to be unfair," Mr Kunath told the Queenstown Times after the meeting.
Closing icy roads in winter could put the region's global reputation as a year-round tourist destination in jeopardy and put strain on the Government's coffers.
"You can't have a tourism-based economy in winter if you can't get around safely. If you can't get around, then that will reduce the amount tourists can spend, leading to less jobs in the district and less GST and tax revenue for the Government," Mr Kunath said.
