Housing and Urban Development Minister Phil Twyford says Government officials will work with the Queenstown Lakes District Council to prepare a visitor levy proposal for Cabinet to consider "in the coming months".
However, any proposed levy for the district looks likely to be challenged by the 134-member Tax Equity Group, formed to fight the council's plan.
Mr Twyford said while a "visitor accommodation levy" was a decision for the Queenstown Lakes community, "we have said that if the referendum showed there is clear support, the Government would consider any necessary legislation".
"Once results are finalised, officials will work with the Queenstown Lakes District Council to put together a proposal for Cabinet to consider.
"I expect an announcement will be made in the coming months."
Queenstown Lakes Mayor Jim Boult said he was "chuffed" by yesterday's provisional non-binding referendum result and was "over the moon" the support for a levy was above 80%.
"I think that's a very, very clear message."
He expected to formally present the result to the Government and request it enact enabling legislation within the next fortnight.
"We understand that process will take up to two years, so this is not a fast project, much to my frustration, but we anticipate that the levy will be able to be enacted from mid-2021."
Mr Boult said he was "very confident" it would come to fruition.
"From a number of discussions I've had with Government, at a political level and at an official level, there is a real desire by the Government to recognise the issues that face our district and enable this to happen."
Lobby group member and The Moorings owner Peter Sutherland, of Wanaka, said the group would meet next week and "we'll be looking at other plans".
He was "not surprised at all" by yesterday's result, but the group did not believe there was "much prospect of changing the council's mind", Mr Sutherland said.
"This requires some form of legislation to be introduced so ... when our opportunity arises to comment on the proposed legislation we'll be pointing out, I guess, the failings of this levy proposal and how just with a bit more thought something a lot more successful and more equitable could have been introduced," Mr Sutherland said.
He believed from a ratepayers' perspective the levy, as proposed, was a "failure", given the council "wanted $37million" and it would collect, at present visitor rates, $22.5million.
Mr Boult said he was not surprised by the group's potential challenge, but said the group needed to recognise a "massive majority of folk in this district support this".
Queenstown Chamber of Commerce chief executive Anna Mickell said it was a "really pleasing result" but it was "just one step of a big, long journey and a tax design process".
"It's not been done before and we'll be making sure that all the stakeholders ... are heard, so we get a really good policy outcome.
"Our view is now it's about making sure implementation's done in the best possible way - by that, I mean that we collect the right amount ... with the least possible harm on the affected communities - the accommodation sector."
Destination Queenstown chief executive Graham Budd declined to comment.
