Government Invests $2M to Expand Dunedin Tunnels Trail, Boosting Tourism and Local Economy

The Government is investing $2 million to extend the Dunedin Tunnels Trail and transform Dunedin into a premier cycling destination, Tourism and Hospitality Minister Louise Upston announced today.

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, Louise Upston 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.

The Government is investing in stages 2 and 3 of the project, extending the trail to Fairfield, Abbotsford, and Green Island. Stages 4 and 5 will take the trail to Kaikorai Valley and through the Caversham Tunnel into Dunedin City.

Once complete, the trail will span 15 kilometres between Mosgiel and Dunedin, featuring two historic railway tunnels, the Chain Hills Tunnel at Wingatui and the Caversham Tunnel at Burnside/Kaikorai.

The Dunedin Tunnels Trail will also connect to Otago’s wider network of Great Rides, including the Otago Central Rail Trail, Clutha Gold Trail, Lake Dunstan Trail, Roxburgh Gorge Trail, and Queenstown Trails.

This investment is part of the Government’s recently announced 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, Louise Upston says.

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 and construction of stages 2 and 3 are expected to be completed by mid-2027.