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.