Unesco approved the Te Wahipounamu region as a World Heritage site.
Dr Smith said yesterday that the chances of the region being stripped of its special status was "zip".
"Those that claim that a tunnel or any other visitor facilities of that sort would remove World Heritage status, in my view, are mistaken," he said.
But in a letter to DOC, Unesco said that the two developments were "likely to be considered incompatible" with the site's World Heritage status.
It said that the region's Outstanding Universal Value was dependent on human interference being peripheral.
Unesco officials said that the monorail track would run through areas of special grassland and areas which contained endangered kaka and yellowhead - two factors which were influential to the World Heritage award.
The organisation said that DOC had not provided environmental impact assessments of the tunnel and the monorail on the specific regions which earned Te Wahipounamu its special status.
"We recommend that until such as process ... is considered these projects should not be authorised to proceed further."
Stop the Tunnel member Trish Fraser also alleged that DOC had agreed to consider the tunnel application based on studies which were mostly based on information provided by the applicants Milford Dart Limited.