Kennedy said the money will be used for domestic marketing, industry capability, event marketing and destination management/planning alongside Ruapehu District Council destination development manager Warren Furner.
Forward bookings in the Visit Ruapehu region were "promising, but it's early days", Kennedy said.
"So far the sector is doing well, buoyed by a strong school holidays and weekends skiing on the maunga."
Furner said Ruapehu District Council was looking forward to working closely with Visit Ruapehu in delivering its role in the destination management plan.
"Government's investment through the STAPP is testament to council's steady hand at the wheel and continued investment in the Regional Tourism Organisation," Furner said.
Regional Tourism New Zealand chairman David Perks said the investment plans developed by each region contain a high degree of inter-regional collaboration, resource sharing and industry capability support.
"The building blocks are being put in place to develop a much more resilient industry according to the different needs of their communities, local government partners and industry," Perks said.
Paul Chaplow from Whanganui & Partners said the additional funding was a significant boost to the RTO's budget.
One of the most important projects to come from the funding will be the destination management plan, Chaplow said.
"A destination management plan brings together different stakeholders to achieve the common goal of developing a well-managed visitor destination. It will allow us to make the most of our opportunities while ensuring our visitor industry is sustainable.
"This was the first winter we've done a destination marketing campaign, and we've seen the impact. We know that our marketing is having a positive effect, and I'm really excited to see what we can do with an increased budget."