A site blessing and cultural induction has been held on Mt Ruapehu as construction work begins on a new gondola.
On order from Italian company Leitner, the gondola is expected to bring in an extra $50 million of visitor expenditure to the region per year and create an additional 137 jobs.
The 50 gondola cabins will feature floor to ceiling glass with internal ski racks, audio, lighting and individual leather seats inside for up to 10 passengers.
It will be one of only two like it in the world.
Chief executive of skifield operator Ruapehu Alpine Lifts (RAL) Ross Copland said work would continue through the summer with a target launch date of June 1, 2019.
"This project will change the traditional flow of visitors throughout the North Island creating a compelling reason to venture off the beaten track deep into the Ruapehu district to experience this world-class attraction and the vibrant communities nearby," he said.
The gondola will run from the Top of the Bruce base area to the Knoll Ridge Café.
Due to the preparation of the ski field for the gondola, summer sightseeing options to visit Knoll Ridge are unavailable in 2018.
During this time, the café building will be refurbished, including a new deck on the lower level to overlook the pinnacles. The menu will also be expanded.
As a public benefit entity, RAL invests proceeds into developing facilities on the mountain. The new gondola is part of a $100m reinvestment strategy the RAL board announced in 2015.
The mountain sits within a Unesco Dual World Heritage Area and its outstanding natural beauty and cultural significance is there to be enjoyed by not only skiers and snowboarders in winter, but also walkers and sightseers in the summer months," Copland said.
The investment received backing and support from government through the Provincial Growth Fund and from Taupo and Ruapehu District Councils.
"Our design process involved working closely with Ngati Tuwharetoa and DoC during which time we significantly reduced the number of structures on the mountain, the new installation having less than half of the structures it replaces," Copland said.
We are very pleased to take this opportunity to continue shrinking the presence of infrastructure on the maunga while still meeting the aspirations of visitors to the Tongariro National Park."