Jim Boult said he was delighted by the prime minister's announcement a travel bubble had been approved in principle for the first quarter of next year and said everybody in the Whakatipu and Wanaka would welcome the development.
"It's not a done deal yet because no date has been announced and one would assume it would be dependent on maintaining current Covid-19 conditions both sides of the Tasman.
"But in terms of something for us to look forward to, it's outstanding."
"First, let's say we would all like it tomorrow, but let's be realistic about it.
"We need to make sure there is a high-degree of surety around the conditions in both countries and I think by March we'll be comfortable in that regard."
He said Christmas and New Year's Eve would be important for the domestic market and would help businesses tick over before the Transtasman bubble opened.
"Having participated in a number of radio and TV interviews in Australia recently, the impression I have is they are busting themselves to get over here."
Mr Boult did not believe Kiwis planning to come to Queenstown in the coming months would cancel in favour of saving for an Australia trip.
"I expect a large number to come to what is the best part of the world."
The mayor said he fully expected to see Transtaman flights direct in and out of Queenstown, and had every confidence in the authorities putting the right protocols into place to allow that.
Air New Zealand Chief Executive Officer Greg Foran welcomed Ms Ardern's announcement as a "great step forward".
"Our teams are busy preparing for recommencing quarantine-free travel.
"Safety is obviously a big priority for our airline, and we've been working closely with governments, relevant agencies and airports on what is required to keep our customers and staff safe once travel opens up."
