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The Government will invest $2 million to progress the next stages of the Dunedin Tunnels Trail, a move Tourism and Hospitality Minister Louise Upston says will help position Dunedin as a premier cycling destination.
Upston says the funding will support stages two and three of the project, extending the trail to Fairfield, Abbotsford, and Green Island, with later stages set to take the route through Kaikorai Valley and the historic Caversham Tunnel into central Dunedin.
“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,” she says.
“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.”
Once complete, the 15-kilometre trail will run between Mosgiel and Dunedin and feature two historic railway tunnels — Chain Hills Tunnel at Wingatui and Caversham Tunnel at Burnside/Kaikorai. It will also link into Otago’s wider Great Rides network, including the Otago Central Rail Trail, Clutha Gold, Lake Dunstan, Roxburgh Gorge, and Queenstown Trails.
The investment forms part of the Government’s Major Events and Tourism Package.
“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,” says Upston.
“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.”
The project is being co-funded by Dunedin City Council, with construction of stages two and three expected to be completed by mid-2027.
