Tourism giant Real Journeys has begun building a village for its staff at Walter Peak, in response to exorbitant Queenstown rents.
The company has spent $1.5million on three new houses for staff at Walter Peak High Country Farm, to which it operates the vintage steamship TSS Earnslaw.
Chief executive of Real Journeys' owner Wayfare, Richard Lauder, said many of its staff faced "rent challenges" in Queenstown.
"We had noticed seasonal staff were changing their contracts from six months to just three, and that 50% of job applicants inquire about staff accommodation."
Located a few hundred metres from the lakefront, the houses are the first stage of a future "village" of 14 dwellings, of between one and six bedrooms, which will eventually house about 50 workers.
Built in Invercargill and trucked to the site, they were fitted out and connected to utilities a week ago.