The Government has approved new funding of $6.745 million for the Queenstown Trails Realignment Project, from Ngā Haerenga, the NZ Cycle Trails Fund (NZCT).
The Queenstown Trail is one of the most popular Great Rides and a major contributor to the local economy.
Total cost of the project was $20.773 million, with the NZCT Fund contribution being $6.745 million. NZCT funding was subject to the outcomes of the partial review of the Otago Conservation Management Strategy to allow for mountain biking on some public conservation land.
The project will be supplemented by $4.49 million funding from Waka Kotahi, the NZ Transport Agency.
It was currently a hub and spoke network of more than 120km of recreational, connector and commuter tracks, linking Queenstown, Arrowtown, Gibbston, Lake Hayes Estate, and Jacks Point.
"The new project will improve the trail by realigning it, turning it into a more clearly defined world-class, multi-day cycle route that showcases the history, culture, landscapes, and vineyards in the Wakatipu Basin," Nash said.
"The improved trail is expected to attract an additional 65,100 recreational users by 2033 and the project itself will involve about 28 full-time jobs each year over the five-year build."
Cycle tourism and cycle trailed enjoyed strong support all over New Zealand and some of the most extensive and popular networks were in the lower South Island, he said.
"Cycle tourism and associated activity like construction and maintenance of the trails, accommodation, cafes, retail and transport services has breathed new life into jobs, businesses and the economic recovery in our visitor destinations.
"Cycle tourism is popular with both domestic and international visitors and showcases spectacular landscapes and historic and cultural sites dotted around our regions."
Nash will officially open the 52km Lake Dunstan Trail
The trail which connects Cromwell to Clyde, the start and endpoint of the Otago Central Rail Trail, will open this afternoon.
"The new Lake Dunstan trail skirts the shore of the lake created by the Clyde Dam and traverses some of the most breathtaking features of the Cromwell Gorge."
Highlights included suspended boardwalks hanging off rock faces just metres above the lake.
"It will be an awesome cycling experience in a spectacular setting, and another drawcard to attract people to the district and connect with the Great Rides in the region.
"Today's milestones for the two cycle trail projects are testament to the efforts of local businesses, individuals and charitable trusts.
"The wider communities of the Wakatipu and Cromwell Basins have given untold hours of volunteer labour and significant financial contributions, and have been a driving force behind the projects," Nash said.