Traffic is busy on all routes into the resort and holiday accommodation is in short supply, Tourism Industry Association's hotel sector regional representative Penny Clark says.
"To get a room online is not going to be possible. I would say in the next four or five days online bookings won't work. However, there are some vacancy signs out there, but who knows if they will stay?''
Ms Clark said some high-end rooms might be available.
She said the trend was similar in other regional hubs, including Cromwell, Lumsden and Wanaka.
"This is normal and it is always pumping this time of year.''
The major attraction is the Queenstown Lakes District Council's New Year's Eve celebrations.
The event promises to be bigger and better this year.
There will be two larger stages, an additional pontoon to launch fireworks from, and a visual projection on to the historic Eichardt's Hotel building.
Making a special appearance this year is Christchurch toddler Grace Austin, who celebrates her first birthday on New Year's Eve.
Her father Leon was the successful bidder in a charity auction and the family will push the button to launch the fireworks display.
Mr Austin told the Otago Daily Times he was excited about the event but concerned Grace could be a "little sleepy'' at midnight.
He has bought Grace earmuffs for the occasion.
Mr Austin's bid of $2050 was the highest in an online auction, and his prize included flights to Queenstown, accommodation and adventure activities.
His wife thought it was a joke when he told her.
"She's been busy planning Grace's birthday party. I don't think she thought I was being serious. But for Grace to spend her first birthday in Queenstown, that is pretty special, too. We just have to rearrange the party for when we get back.''
The fundraiser was organised by Frankton Fire Brigade and money goes towards Leukaemia and Blood Cancer New Zealand.
Before the fireworks, the main stage will feature local bands Fiends, Freefall, Versificator and Mojo, and the second a line-up of DJs, including DJ Dolittle and DJ Cuz.
A new feature this year will be a clock projected on to Eichardt's Hotel allowing people to watch the New Year countdown.
About 12,000 people crammed into the lakefront area last year to see in the New Year, undeterred by miserable weather.
Central Otago's only public New Year's Eve party, a street party at Clyde, was cancelled two years ago.
Promote Dunstan, which ran the event for a decade, cited increasing costs and red tape among reasons for the cancellation.
This year, holidaymakers and locals in Central Otago have the choice of having a night out listening to bands performing at hotels in various towns or hosting their own celebrations.
A fireworks display at the Naseby Recreation Ground starts at 9.30pmon New Year's Eve.
- Louise Scott
