$2 million will be allocated to expand the Dunedin Tunnels Trail and elevate Dunedin as a leading cycling destination.
“By investing in the Dunedin Tunnels Trail, we will attract more visitors to the Otago region, helping to unlock the region’s full tourism potential,” Tourism and Hospitality Minister Louise Upston said.
“This trail not only showcases New Zealand’s stunning landscapes but also supports local businesses, creates jobs and offers unforgettable experiences for visitors and locals alike.”
The government is funding stages 2 and 3 of the project, which will extend the trail to Fairfield, Abbotsford, and Green Island. Stages 4 and 5 will continue the trail to Kaikorai Valley and pass through the Caversham Tunnel into Dunedin City.
The project is jointly funded by the Dunedin City Council, with construction of stages 2 and 3 anticipated to be finished by mid-2027.
The trail, when finished, will stretch 15 kilometres between Mosgiel and Dunedin, and will include two historic railway tunnels: the Chain Hills Tunnel at Wingatui and the Caversham Tunnel located at Burnside/Kaikorai.
The Dunedin Tunnels Trail will link to Otago’s extensive Great Rides network, which includes the Otago Central Rail Trail, Clutha Gold Trail, Lake Dunstan Trail, Roxburgh Gorge Trail, and Queenstown Trails.
“We are proud to support projects that deliver real economic impact and can get underway immediately. I’m looking forward to seeing this one take shape,” Upston said.
She noted that the investment comes as part of the government’s major events and tourism package.
“There’s a real sense of momentum building across our cycling network and tourism sector. It’s great to see rising visitor numbers and regional spending, but there’s still more to do to get our tourism sector cranking.”