Will 2026 be the year of the gondola in Queenstown?

Momentum seems to be building behind a proposal for a gondola network to address Queenstown's traffic woes. So where's it at and what comes next?

Introduction

Tāhuna/ Queenstown is a year round visitor destination in Aotearoa’s lower South Island, known for its winter skiing and year-round adventure tourism activities. The town of Queenstown has 29,000 inhabitants in the town and 53,800 people in the wider Queenstown-Lakes District, which includes Wānaka, as at the 2023 Census. But this number is overwhelmed by the 4,575,400 visitor nights in Queenstown-Lakes District during the year to September 2025¹.

Readers familiar with the blog will already know my thoughts about the Queenstown gondola proposal in my Gondola Fever Strikes Queenstown post back in June, including my thoughts on where gondolas works and don’t work.

Since that post was written, things have moved on and the gondola proposal appears to be gaining traction and momentum.

So, what’s the problem?

Putting it simply, getting in the Queue for Queenstown in the old school travel poster below meant literally sitting in the Q looking over a small remote settlement of a few thousand people. Nowadays, the meaning is much more literal as Queenstown’s insatiable desirability as a year round visitor destination, fed by air and road access improvements, has led to significant year-round congestion in the town.

The town has a good bus system, focused on a core route - route 1 - between Sunshine Bay and Remarkables Park via Queenstown Town Centre and Queenstown Airport. This route runs from 6am to 12.30am every day of the year and is frequent between 6am and 8pm every day. Routes 2-5 service Arrowtown, Shotover Country, Lake Hayes Estate, Jacks Point, Kelvin Heights and Quail Rise at lower frequency while route 6 is a ferry between Queenstown Town Centre and Kawarau Falls on the Kelvin Peninsula.

Queenstown Bus Network Map. Source: Otago Regional Council website

Bus anyone who has ridden a bus along State Highway 6A from Queenstown to Frankton knows that these buses get stuck in a lot of traffic, can be pretty unreliable as well as being frustratingly slow.

In spite of this, the current bus system performs remarkably well in Queenstown. In the 2024/2025 financial year to 30 June 2025, there were 1,966,086 trips on the Queenstown bus network², which isn’t bad for an urban population of 29,000, noting that visitors can outnumber residents and make a significant contribution to public transport use in Queenstown.

Current investment

The current investment in upgrading the BP Roundabout at the intersection of State Highway 6A and State Highway 6 in Frankton (and the upgrade of the adjacent Frankton bus hub)³ will make some difference in the short term when complete. But, of course, the insatiable desirability of Queenstown, combined with current fly and drive dominated travel patterns, means that the BP Roundabout improvements will be quickly overwhelmed by the increase in car travel that it likely induces. This will be further exacerbated by high population growth on approaches to the BP Roundabout from the east in Ladies Mile and even more from the south from growth in Jacks Point, Coneburn and Hanleys Farm.

BP Roundabout upgrade. Image source: Waka Kotahi NZTA website

One of the challenges of growth is that distance is a key driver of mode choice in Queenstown. The graphic below shows this clear - as the areas closest to Queenstown Town Centre - Queenstown Hill and Queenstown Bay - have the highest non-car mode share for journey to work. Frankton is around 8 kilometres from Queenstown Town Centre and Kelvin Grove, Lake Hayes and Jacks Point are all over 10 kilometres by road from Queenstown Town Centre.

In summary, the changes are twofold:

• Current transport investments in Queenstown won’t make a significant change to current travel patterns and may in fact reinforce car-centric mobility.

• Growth is accelerating in communities more distant from Queenstown town centre and most of the car trips generated needs to pass through the BP intersection to get to its final destination.

Growth, more than ever

Just before Christmas 2025, a draft decision from a fast-track expert panel was issued for a major housing development at Homestead Bay by Jacks Point on the southern approach to Queenstown.

The development would initially enable 1,438 standalone residential lots, alongside 22 medium-density superlots and 14 high-density superlots across a 205-hectare site at the southern end of the Queenstown urban area.

If fully built out, the site could eventually accommodate around 2,500 to 2,800 homes, though the higher-density and commercial areas would require further consents⁴.

This is just one of many growth areas to the south and east of Queenstown, from where any road-based trip will need to pass through the BP Roundabout.

There is an inverse correlation between distance from Queenstown Town Centre and sustainable mode share, as shown in the chart below, derived from Commuter Waka⁵

Data from 2023 Census commuter datasets, with travel mode information from Aotearoa Data Explorer.

Distances from the town centre increase from left to right in the chart while sustainable mode share decreases.

This chart starkly outlines that for public transport to work for Queenstown, it needs to achieve significant mode shift for the longest journeys on the network such as those from Lake Hayes Estate and Jacks Point. This is where non-car mode share is lowest and distances are longest, meaning that private vehicle travel contributes to network congestion over a longer distance.

The choice for Queenstown

If Queenstown doesn’t want to choke (even more than it’s already doing) in its own congestion, then it has two fundamental choices:

1. Prioritise buses

This would involve providing extensive bus lanes on the eastern and southern approaches to the BP Roundabout. Between the BP Roundabout and Queenstown Town Centre, State Highway 6 is very constrained between Lake Wakatipu on one side and steep hills on the other. So the choices here are likely to be about providing bus priority on the approaches to significant intersections, which would need to be signalised, and priority through those intersections to get buses ahead of the traffic queues.

2. Avoid traffic entirely

This is where the gondola proposal comes in as it avoids the tricky, and possibly contentious, need to prioritise public transport over private vehicle access on the approaches to Queenstown.

If there is no political commitment and money to do option 1, then option 2 by default becomes the best choice.

So what is the gondola option for Queenstown?

Now known as the Queenstown Cable Car, it is planned to be a cable car network linking central Queenstown with a number of key catchments including Frankton, Queenstown Airport, and Ladies Mile. It is made up of two primary lines:

1. Airport – Town Centre Line, connecting Queenstown Town Centre with Queenstown Airport via Queenstown Hill, Lake Johnson, and Frankton Hub

2. Frankton–Ladies Mile Line, extending eastwards from Frankton to the Ladies Mile urban area via two potential route options and connecting to line 1 at Frankton Hub

Proposed Queenstown Cable Car Network. Image source: Project website

According to the project website, the features of the cable car network are:

• Around 20 minutes from the airport to the town centre

• Carries up to 3,000 people per hour each way

• Cabins depart every 12 seconds

• Spacious, 10 passenger cabins for comfortable travel

• Fully electric and zero emissions

• Consistent travel times, reliable in all weather⁶

The Queenstown Cable Car project is advancing through the Fast Track process and was referred by then acting Minister of Infrastructure Shane Jones on 2nd April 2026.

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Fast Track for Dummies

Here is the Coles Notes version of the New Zealand Fast Track process:

1. Any person can apply to have a project of regional or national significance considered for Fast-track approval.

2. Depending onthe project, it may need one or more other approvals as part of the Fast-track process in addition to a resource consent.

3. The project needs to notify or consult with various organisations before applying for referral, including relevant local authorities; the relevant administering agencies; any relevant iwi authorities, hapū, and Treaty settlement entities.

4. The Ministry for the Environment assesses referral applications and provides advice to the Minister for Infrastructure to inform decisions on referral applications.

5. The Minister for Infrastructure decides whether the project should be referred to the substantive stage of the Fast-track process.

6. If a project is referred, a substantive application for resource consents and other approvals must be made within 2 years of the referral⁷.

The Fast Track website has more detail about this process.

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What happens now

Referral to Fast Track is the end of the beginning of the process, but there is quite a bit of process to follow before a substantive application can be submitted. One of the benefits of the Fast Track process is the ability to act as a one stop shop for approvals. But the flip side of this means that all necessary pre-requisite approvals need to be in place before the substantive application can be lodged. And there are quite a number of these.

So what are the next steps in the process?

Actually quite a few steps in addtion to resource consents under the Resource Management Act 1991.

Treaty settlements and other Iwi obligations

Relevant Māori groups identified were Te Rūnanga o Ngāi Tahu, Te Rūnanga o Moeraki, Kāti Huirapa Rūnaka ki Puketeraki, Te Rūnanga o Ōtākou, Hokonui Rūnanga, Waihōpai Rūnaka, Te Rūnanga o Awarua, Te Rūnanga o Ōraka-Aparima, Aukaha, and Te Ao Marama Incorporated.

The Ngāi Tahu Claims Settlement Act 1998 is the relevant Treaty settlement for the project area but no other obligations such as Mana Whakahono ā Rohe or joint management agreements were identified.  While the Ngāi Tahu settlement provides for a statutory acknowledgement over Whakatipu-wai-māori/Lake Wakatipu, the project area is set back from the lake and the information provided by the applicant suggests it is unlikely to be directly affected. Several other he Ngāi Tahu Claims Settlement Act 1998 provisions – including a deed of recognition, right of first refusal, taonga species, a nohoanga entitlement, and a conservation protocol – do not appear to be impacted by the application as it currently stands, but nonetheless underline the traditional connection of Ngāi Tahu with this area and its environment.

Some of the reserve land within the project area is subject to a notice under Part 9 of the Ngāi Tahu Claims Settlement Act 1998, which is relevant to some of the concessions required under the Reserves Act 1977. The applicant intends to seek a lease over any land subject to this notice for a term (including renewals) of less than 50 years. However, should a lease exceeding 50 years be proposed, the applicant has stated any necessary supporting information would be provided as part of the substantive application, including written approval for the project from the relevant iwi authority.

Department of Conservation Te Papa Atawhai

The project will directly affect several areas of public conservation land, including marginal strips, and local purposes reserves and recreation reserves vested in and/or administered by Queenstown Lakes District Council

There are existing arrangements and active concessions for the public conservation land, including right of way access for gravel extraction, right to convey sewage, wildlife authorities for trapping pests, collection permits for lichen, and construction of monitoring wells.

Health New Zealand Te Whatu Ora

The report identifies a Government Purpose (Hospital) Reserve owned by Te Whatu Ora/ Health New Zealand with an unclear reserve status. The Depatment of Conservation recommends that this matter be clarified through a land status check. We note this parcel of land has been excluded from the project area for the purpose of the referral application. This is significant as this is the identified site for the Queenstown Airport cable car station.

Heritage New Zealand Pouhere Taonga

Heritage New Zealand Pouhere Taonga has advised that the project has the potential to modify or destroy a recorded archaeological site and may encounter additional archaeological material therefore an Archaeological authority under the Heritage New Zealand Pouhere Taonga Act 2014 will be required.

New Zealand Transport Agency Waka Kotahi

New Zealand Transport Agency/ Waka Kotahi considers that the project could deliver significant benefits and align with strategic transport documents, but only if it is well integrated with adjoining land use and the existing and planned transport system - particularly public transport - and adopts an aligned fare structure for all public transport users, including cable car users.

New Zealand Transport Agency/ Waka Kotahi note that funding, delivery, operation and governance of the Queenstown Cable Car remain outstanding and that they have no pathway to engage in any discussions regarding these matters. These matters have a bearing on the viability of the project and will need to be worked through with New Zealand Transport Agency/ Waka Kotahi outside of the fast-track approvals process. The applicant will also need to separately secure approvals from NZTA for the aerial occupation and surface installations over and within the designated state highway road corridors.

Queenstown Airport

Queenstown Airport, as the operator of a controlled aerodrome has statutory obligations under the Civil Aviation Act 2023, Civil Aviation Rules, and its own certification requirements.

Elements of the proposed infrastructure - such as pylons, cables, and construction activities - may penetrate the airport's protected airspace, including multiple Obstacle Limitation Surfaces. A full aeronautical study will need to be undertaken by the applicant, including detailed design work, obstacle assessments, airspace and operational modelling, and safety case development. Construction activities may temporarily affect navigable airspace which will require coordination and compliance with Civil Aviation Rules Part 77.

Transpower

The project is located near Transpower’s Cromwell-Frankton 110 kV transmission line, the sole electricity supply route to Queenstown and the wider Wakatipu area. Transpower notes that the proposed Route B cable car route would cross beneath the transmission line over the Frankton-Ladies Mile Highway.

Transpower considers that protection of this line, and potential alterations, will need to be assessed as part of the project. It highlights two key matters: mandatory compliance with New Zealand Electrical Code of Practice 34 separation distances during both construction and operation, and the need to determine the technical feasibility and safety of the cable car crossing. Transpower will need to review any electrical clearance assessments. Transpower notes that modifications to the existing transmission line - such as raising or adding structures - may be required to achieve safe clearances. Transpower expects these matters to be addressed through the substantive application, potentially including a condition precedent requiring feasibility to be confirmed before construction.

Obviously, this only impacts this particular route option and if the other option is chosen, then the issue is avoided.

Other approvals required

Civil Aviation Authority of New Zealand – as the project area is adjacent to Queenstown Airport and the Civil Aviation Authority is the responsible agency for managing the safety of navigable airspace around airfields

Land Information New Zealand Toitū te Whenua – as the applicant identifies that a separate approval (occupation consents) will be required from Land Information New Zealand outside the fast-track approvals process

Aurora Energy, Eon Fibre and Chorus – as infrastructure companies that hold existing legal interests (easements and caveats) over sites within the project area

The information in the sections above is synopsised from the Queenstown Cable Car stage 2 briefing to the Acting Minister of Infrastructure on 31 March 2026.

Final thoughts

A lot of water has passed under the bridge but there is lot more water to flow to even get to a substantive application for the Queenstown Cable Car. But it’s clear that a lot of work is being done to facilitate the necessary consents and approvals.

While I still believe that there is a bus solution for Queenstown, there doesn’t seem to be the political will nor the money to make this happen. I’ve always believed in my professional career as a public transport planner that our job is to work with what is there or likely to be there. So, assuming that the Queenstown Cable Car gets across the line - noting that funding, operating model, governance and integration with the rest of the public transport system remain open - then it’s incumbent on transport planning professionals to help make it the best project that it can possibly be.

1. Quarterly Economic Monitor Queenstown-Lakes District, September 2025

2. Dunedin, Queenstown bus passenger numbers keep increasing, Otago Regional Council media release, 2 September 2025

3. Changes are coming to Queenstown’s busiest intersection, Waka Kotahi/ New Zealand Transport Agency December 2025

4. Queenstown Homestead Bay housing development draft fast-tracked despite backlash, New Zealand Herald, 24 December 2025

5. Commuter Waka, Statistics New Zealand website

6. Queenstown Cable Car website, accessed on 19 April 2026

7. Referral Application to Use the Fast Track, Fast Track website, accessed on 19 April 2026