News

Trails aren't just tourism infrastructure. They're one of the South's fastest-growing business sectors.

Bike trails are now delivering $280 million a year in visitor spend for Queenstown Lakes alone, up 125% in real terms since 2021, and supporting 1,148 jobs across the district. That's not a niche recreational trend. Cycle tourism across Australia and New Zealand is growing at 11.8% a year, and is projected to reach $29.9 billion by 2034. Central Otago and the wider South are positioned right in the middle of that growth curve, and the past few weeks have made that clearer than ever.

Our team was proud to attend the Otago Trails Forum 2026 alongside several members. More than 120 tourism operators, trail representatives and stakeholders gathered at Te Puna Mahara, Ōtepoti Dunedin's Memorial Events Centre, the largest forum to date. Conversations spanned trail development, marketing, resilience, collaboration and visitor behaviour, but the message was consistent: our trails are among the South's highest-returning pieces of visitor and community infrastructure. They generate business for accommodation providers, hospitality operators, transport and shuttle companies, bike hire, wineries, retailers, attractions and whole communities across the region.

The numbers back this up. When the Lake Dunstan Trail opened, it was forecast to attract around 7,000 riders a year. In its first year alone, more than 80,000 riders used it. That's what happens when you invest in infrastructure that benefits visitors and locals alike, spreading economic activity through towns and businesses right across Central Otago.

More trail, more reach

There's plenty more on the horizon. The Kawarau Gorge Trail opens on 25 October 2026, linking the Queenstown trail network at Gibbston to Central Otago's trails around Bannockburn and Cromwell. Its completion creates an interconnected Otago network of more than 560 km of purpose-built off-road cycling and walking trails. Work is also progressing to close the remaining gap in the Roxburgh Gorge Trail, expected complete in early 2027, connecting Alexandra and Roxburgh for the first time.

The real opportunity: spreading the spend

This is where the business case sharpens. Right now, 75% of Southern Way international visitors include Queenstown in their trip, but that drops to 36% for Wānaka, 34% for Fiordland, 28% for Dunedin, and into single figures for Southland, Waitaki, Central Otago and Clutha. The average international itinerary touches just 2.1 of our eight areas. If just 10% of visitors extended their stay to visit one extra Southern Way location, that dispersal would add hundreds of millions of dollars a year in extra international spend, most of it landing in towns that see a fraction of Queenstown's visitor traffic today.

The Southern Way 1000, a new bikepacking route being promoted here and internationally, is built to close that gap. It brings together Otago and Southland's Great Rides, Heartland Rides, cycle trails and backcountry roads into a journey of up to 1,000 km through the lower South Island, with more than 600 km following the established Ngā Haerenga Great Rides network. Riders can take on the full route over one to two weeks or choose individual sections, creating demand for accommodation, hospitality, bike hire, transport, luggage transfers, guided experiences and retail in the very areas that need it most. For businesses in Southland, Central Otago, Clutha and Waitaki, this is a direct route to visitors who are already in the region and looking for a reason to stay longer.

Following the Forum, our team also attended the Otago Central Rail Trail Business Network AGM in Naseby, a reminder of the business ecosystem that has grown around our trails over two decades. The Rail Trail connects accommodation providers, hospitality businesses, bike operators, transport providers, retailers, attractions and communities right across Central Otago, and its strength comes from businesses working together, sharing knowledge and cross-promoting. Thanks to Anthony Longman and the Network for the work they continue to do championing our trail businesses and communities.

Why this matters beyond the South

The national picture backs the regional one. A 2025 evaluation of the Ngā Haerenga Great Rides found they generate $1.28 billion in visitor spending a year, and 45% of trail-related businesses didn't exist before the trails opened. 87% of communities say their local trail is highly valued. Trails aren't a side project for tourism. They're proven, ready-made demand generators, and the South is one of the best-placed regions in the country to capture that.

For local businesses, especially those outside Queenstown, the opportunity is real and it's growing. Getting positioned along the network, cross-promoting with neighbouring operators, and being visible to Southern Way 1000 riders now is how you capture spend that's currently going somewhere else.