"Our first boat just can't cope with the demand. There appears to be a growing market for people who want a relaxed sightseeing tour," co-director Wayne Perkins said.
In 2009, customer numbers doubled on the previous year and further growth has occurred in the past 10 months.
"We could have gone one more year just using the original ship but we wouldn't have been able to advance any further," co-director Betty Perkins said.
Resource consent was granted by Queenstown Lakes District Council to operate with a second, larger vessel this week.
The new vessel, Million Dollar 2, arrived at Frankton Marina on Thursday last week.
It measures 16.74m from bow to stern, has 48 indoor seats and is licensed to carry 60 people. The original cruise ship has 34 seats.
"We had days last summer where the boat was full all day and we had to turn people away," Mrs Perkins said.
During winter operations, numbers are often reduced ascold temperatures prevent the use of outdoor seating.
"With two ships running, we'll be able to operate regardless of cold weather," Mrs Perkins said.
The scenic cruise company plans to run the vessels together twice a day in winter, and three times a day in summer.
"The boats will idle along the Frankton arm together to minimise the overall impact on local shore-side residents," Mr Perkins said.
The company has spent $20,000 on refurbishing the new vessel, the majority of it on meeting resource consent standards.
"We had to invest to make sure the soundproofing was the same level as our existing boat."
Mr Perkins said the increased customer demand had occurred as a result of the increasing population in Queenstown and a growing need for affordable cruise tours.
Data released on Tuesday by Statistics New Zealand shows the Queenstown-Lakes population grew by 700 (2.5%) last year, making it the fastest-growing population in New Zealand.
Mr Perkins said trials of the new ship would take place over the next week and it was set to be officially launched in seven to 10 days.
