The Ruapehu district is set to benefit from funding of $9.6 million for improvements to the Forgotten World Highway.
Regional Economic Development Minister Shane Jones announced yesterday that the Provincial Growth Fund (PGF) would allocate the money to seal the remaining unsealed section of State Highway 43 which runs between Stratford and Taumarunui.
Jones said sealing the 12km gravel section of the highway through Tangarakau Gorge would contribute an estimated $35m to $45m to the region and create 30 to 60 new jobs through increased economic activity.
"Aside from the natural beauty it showcases, it also serves as an important freight route for beef, lamb and dairy businesses, forestry, and the burgeoning local manuka honey industry," Jones said.
It would also help boost tourism, since many vehicle rental companies do not allow hirers to drive on unsealed roads. Many overseas visitors also expressed safety concerns when driving on this highway, he said.