The new service, which starts on November 1, was announced as part of a South Island-wide agreement by Health Minister David Clark yesterday.
Helicopter Emergency Medical Services New Zealand Limited (HEMS) - a joint venture between HeliOtago and Christchurch-based GCH Aviation - will operate a helicopter from Queenstown.
An on-call service based in Te Anau will continue.
The South Island's air ambulance services will be supported by existing trusts, and the funds raised by each trust will continue to support services in their areas.
Mr Tapper said he estimated the trust would have to double its fundraising to more than $700,000 a year.
By requiring the service to operate larger, twin-engined helicopters 24 hours a day with permanent staff, the Government had ''really ramped up the cost''.
''They've specified this level of service, and they expect the community - all the people of Otago and Southland - to pay more than they've done in the past.''
That fundraising burden would fall on LDART and its counterparts in Dunedin, the West Coast, Christchurch and Nelson-Marlborough.
''The minister would tell you we're going to get a Rolls-Royce service, but his expectations that the contributions from the community will be easily obtained, I think are a little bit optimistic.''
Queenstown Alpine and Cliff Rescue (ACR) team co-leader Chris Prudden said the implications of the announcement on mountain rescues in Wakatipu were a ''grey area''.
He would wait and see which helicopter company the police would be calling on for the ACR team's callouts.
Although the BK117 helicopter he understood HEMS would operate from the resort was ideal for most of the work carried out in the district, his team had developed an excellent relationship with Heliworks and its pilots.
''It's interesting news - we don't quite know who we're going to be working for and what those arrangements will be, so we'll see what happens.''
He expected those issues to be ''thrashed out'' in the next few weeks.
Regardless of the outcome, it was vital for his team to train regularly with the helicopter and its crew, and effectively operate its HETS winching system, he said.
