"The Government is pretending to address the problem with its Visiting Drivers Signature Project. In reality, however, most of the Government's strategies aren't working and won't work. It's time for action."
Officials were "doing little more than handing out stickers saying 'drive safely'." The lack of action was "shameful".
Mr Matthew-Wilson called for median barriers to be installed on the nation's highways, and in particular on crash hot-spots.
"There is no question that centre median barriers prevent exactly the sort of head-on collision that tourists are frequently involved in," he said.
"Yet these vital safety features, which cost very little, are missing from some of the most dangerous roads in the country.
"We also need to make it harder for bad drivers to get behind the wheel of a car."
Tourists arriving into New Zealand should have to sit an competency test before renting a car, and those arriving from a long-haul flight should not be allowed to drive for 24 hours, he said.
"Driving tired is as dangerous as driving drunk. Rental car firms would not be allowed to rent a car to a drunk driver, but are allowed to rent a car to a traveller who's liable to fall asleep and kill someone. This is just wrong."
A simple, computer-based competency test would also help assess whether people were qualified to get behind the wheel, he said.
A 32-year-old Chinese tourist will appear in court today charged with one count of dangerous driving causing death, and four counts of dangerous driving causing injury, in relation to the crash which killed the 5-year-old girl.
Four other occupants of the vehicle - a 41-year-old man, 40-year-old woman and two children aged 7 and 9, all family members of the girl - were airlifted to Dunedin Hospital with serious injuries.
Three other Chinese nationals were travelling in the ute. All four occupants were taken to Oamaru Hospital by ambulance.
Meanwhile, a 34-year-old Chinese tourist will appear in Queenstown District Court today on three charges of careless driving causing injury after a crash near Arrowtown on Saturday.
Two British tourists were seriously injured in the head-on crash and were flown by helicopter to Dunedin and Southland hospitals.
Comment is being sought from the New Zealand Transport Agency.