Mr Wilson will be among about 45,000 visitors to Queenstown over the next 10 days for an event that is expected to inject $57 million into the Queenstown economy.
According to a Ministry of Economic Development report, benefits come through visitors spending money in cafes, bars and restaurants, accommodation providers and retail outlets, along with multiplier effects.
Despite a slight mishap, when some fireworks were released early, the display over Lake Wakatipu impressed festival-goers who burst into applause at its culmination.
As if on cue, the predicted rain started to fall, causing many to head for shelter.
Queenstown Lakes Mayor Vanessa van Uden told the crowd the festival was the biggest event since the 2011 Rugby World Cup and encouraged residents and visitors to let their hair down.
"I know you're going to have a ball and sing and dance and party ... we are going to show the world how well we can party in Queenstown with all our family," she said before declaring the 2012 festival officially open.
Festival director Simon Green said there was a 50-50 split of domestic and international visitors - up to 90% of the latter coming from Australia, with a large proportion of domestic visitors hailing from Auckland.
Mr Green said the event served "spectacularly well" as a marketing exercise to announce to New Zealand and the world that Queenstown was open for winter, but "first and foremost it's for the community ... for all the people that live here, work here and labour here".
And one man who embraces the spirit of the festival more than most is Mr Wilson (31).
Despite an injury to his ribs, Mr Wilson will compete in at least nine events - wearing very little - and attend most of the other events over the next nine days.
"It started off as something to do to fill in time. As time went on, it became an expectation ...
[but] I like to give the young ones a bit of a run for their money ... I try to keep them honest.
"Where else in the world could you do something like this? There's nowhere else you could dress up like a woman, jump in the water in your Speedos and have a party every night."
On Wednesday, Mr Wilson will compete for the first time in the annual Drag Race at Earnslaw Park.
While he had never been partial to "feminising" himself, a "stiff elbow" from the festival's marketing and sponsorship manager Jono Sutherland changed his mind.
The result: Miss Inappropriate.
The highlight of the week for Mr Wilson comes on Thursday when he competes in the annual Dog Derby and Dog Barking for the eighth year with Jose, a dog he estimates to be 11 years old whom he borrows for one day a year from a friend.
"He's done every Dog Derby - he's pretty famous ... he's the star of the show. He's a good chick magnet up the mountain."
While the pair had never won, last year Mr Wilson was first down the mountain. Unfortunately, Jose was not with him.
The experience had led to a change in tactics this year: "I'm going to carry the dog".
Following the Dog Derby, he and Jose will compete in - and judge - the Dog Barking at Earnslaw Park, before Mr Wilson goes in search of the best stag roarer.
The person who can make the best roar - "a cross between a chainsaw and a pig going in reverse" - will be recorded and used at Southland rugby games.
After acting as MC at Friday's Dodgeball championships, also at Earnslaw Park, Mr Wilson will head back up Coronet Peak next Saturday for the Dash for Cash, Musical Chairs and Suitcase Race, the last of which would see him dressed aerodynamically with a specially-adapted suitcase bought from Habitat for Humanity for $3.
