The Government will spend $13.2 million to build a continuous cycle trail network across Otago.
One hundred and twenty two kilometres of new bike trail will be built to connect the Clutha Gold Trail, Otago Central Rail Trail, Roxburgh Gorge Trail and Queenstown Trails, and extend the network north to Wanaka.
A further 47km of existing trail will be upgraded.
The project is expected to create 329 fulltime jobs and link 30 communities.
Tourism Minister Kelvin Davis said the new trail will help draw visitors off the beaten track and encourage people to stay in the district.
"Estimates predict the number of people riding the trail will more than double to 174,000 by 2032 and the average length of time that trail users stay in the area will increase by 33 per cent - delivering economic growth and an estimated 329 more full-time jobs across the region."
The total cost of the project is $26.4 million. The Government contribution had been awarded through the Ngā Haerenga, the New Zealand Cycle Trail Enhancement and Extension Fund.
The rest is being matched by local funding.
"The Government wants to see regional New Zealand sharing in the economic success of the country as a whole. As our biggest export earner, tourism is a fundamental part of the New Zealand economic story, and we're committed to spreading those benefits far and wide," Mr Davis said.
Mr Davis also announced a total contribution of $281,313 to the Hauraki Rail Trail, Hawke's Bay Trails and Waikato River Trails through a maintenance fund to help with emergency safety work and damage repair.
Newshub.
