The 100% Pure New Zealand Winter Games is expected to attract more than 1000 elite athletes from around the world for 16 days of snow and ice sports.
Queenstown Lakes Mayor Clive Geddes said the announcement was a great success for the district as well as for Queenstown-based Winter Games NZ chairman Sir Eion Edgar and his team.
The events were a wonderful opportunity to expose young New Zealand snowsports competitors to overseas talent, which would in turn raise their aspirations.
Mr Geddes said there would be the immediate economic benefit of a large number of domestic and international competitors, trainers and managers coming to Queenstown and Wanaka.
Regional tourism organisation chiefs echoed his expectation the games would be a major drawcard.
While August was traditionally a busy month, they were confident Queenstown and Wanaka could handle the additional capacity.
Destination Queenstown chief executive Tony Everitt said the Winter Games would help make 2011 a "mega year" for the resort and slotted in after tourism trade expo Trenz and the Winter Festival and before the Rugby World Cup.
The Games would bring "extra visitors and extra exposure", he said.
Lake Wanaka Tourism general manager James Helmore said the global media coverage would place the Southern lakes on the map as a winter destination internationally.
"Wanaka is hosting all the free ski, free ride and cross-country events and that fits in perfectly with our infrastructure, facilities and brand position."
Chief executive James Coddington said NZSki looked forward to an even bigger and better Winter Games.
"We're going to host all the alpine events, slalom and grand slalom at Coronet Peak and host for the first time super G at Mt Hutt. We're very excited about that and it works in nicely with all the top international athletes training here."
Mr Coddington said 72% of medals in the Olympic Games in Vancouver in February were awarded to alpine athletes who had trained at Coronet Peak and Mt Hutt.
They were all booked up for next year.
