Those disruptions braked the rapid expansion in the region and sliced inflated real estate values.
It has taken a while, but the area again has a head of steam and is prospering. House prices have, finally, edged back close to the 2007 peak, with latest QV figures putting the average value across the district at $676,230, with the Wakatipu's likely to be slightly higher.
This is 6% higher than at August last year, and just 1.7% under those peaks seven years ago.
Fortunately, there is no shortage of sections for development in the meantime, with one estimate putting the potential number in the Wakatipu towards 5000.
The obvious beneficiary of the pick-up is the construction sector.
As well as buoyant house building, it is being boosted and bolstered by a slew of new projects, especially around greater Frankton.
It has become clear this will develop further as the ''big-box'' retail hub and the key for the area's growth.
The list of plans is, by any standards, impressive.
Frankton Flat's Five Mile will soon see a Countdown supermarket, Briscoes and Rebel Sport.
Warehouse Stationery and Number One Shoes are due to follow. Down the road at Shotover Park there are prospects for a Pak'n Save and a Mitre 10 Mega.
Between them, given planning permission, the 23ha of ''Queenstown Central'' is ripe for staged development.
Across at The Landing at Remarkables Park three new retail and commercial buildings are on the books, with the first due to open later this year.
There is a queue of developments at the airport as its passenger numbers soar, while at Remarkables Park itself a ''High Street Precinct'', including a hotel, an office building and retail space is all planned for completion in the next 18 months.
Then, of course, consent has been lodged for a convention centre.
And the Ministry of Education has announced plans to shift Wakatipu High School to a Remarkables Park site, with the major ''Eastern Arterial'' road providing access.
Comparatively, the central business district might seem subdued. But a new commercial and office development on Shotover and Memorial Sts is to begin construction soon and retail and a commercial building is to be put up on Marine Pde.
There is, too, the prospect of the council-backed conference centre and proposals to extend the CBD zoning.
The Remarkables skifield, in particular, has been expanded and the access road is being sealed in stages.
There are also several other developments around the district.
Generally, there is confidence the CBD and the Frankton shopping and other attractions can co-exist successfully.
The CBD can remain the tourist and entertainment focus with most of the bars, restaurants and visitor-focused shops, while residents can be expected to converge on the Frankton area for many of their needs.
While a long-term tug-of-war could arise over office location, it seems likely the lawyers, accountants, planners et al will remain for the foreseeable future clustered primarily in the CBD.
The growth of the two areas are, in fact, complementary and beneficial to each other.
As the district grows, the attractions of proximity and short commutes will lessen.
Frankton's developments, however, including the shifting of the high school, will take some pressure off the overcrowded main road to central Queenstown and the cramped downtown environs.
Given the rapidity of growth, it is no surprise some residents see merit in that easing back and also question the enthusiasm for expansion, new attractions and the spending of ratepayer money on promotional activity or the proposed conference centre.
With undeniable physical beauty and ever-closer links to the east-coast Australian capitals, Queenstown - barring major international economic disturbance - is set for a period of brisk expansion.
While all sorts of issues will continue to arise, there is plenty of scope for both the CBD and greater Frankton to thrive.
