Tourism and Hospitality Minister Louise Upston said the Otago Rally was one of 22 events nationwide to receive a cut of $4.5 million in the "first tranche" of events that will be funded by either the $10m Events Boost Fund (EBF) or the $40m Events Attraction Package (EAP).
More events to receive funding would be announced early next year, including international and homegrown music acts, sports matches, and arts and cultural events, she said.
Otago Rally organiser Roger Oakley was "ecstatic" the event had received EBF funding.
"We’re heading into the 50th anniversary event for the Otago Rally next year and this funding will help us to bring it to the next level — something this remarkable milestone deserves."
He said the 2025 Otago Rally produced 7200 bed nights in the city and delivered $3 million of direct spending into Dunedin.
Global rally teams and the reach from international broadcasting meant the rally had a significant audience worldwide.
Enterprise Dunedin interim destination manager Teresa Fogarty said the organisation would team up with the rally organisers to take advantage of that global audience, the appeal of the landmark 50th anniversary and the connectivity of direct flights from the Gold Coast to attract as many visitors as possible to Dunedin for the event.
"It’s going to be fantastic seeing it elevated even further thanks to the combined efforts of the event organisers, Enterprise Dunedin events and destination marketing teams and with the help of this Events Boost Fund.
"It has a fantastic international reputation and travels around all our surrounding landscapes, perfectly showcasing our scenery and appeal to the world."
It was hoped the rally would attract more events of international calibre, she said.
The Tussock Country Music Festival, in Gore, also received EBF funding in the first tranche announced yesterday.
Ms Upston said the funding would offer something for hundreds of thousands of fans and visitors, along with a big boost to New Zealand’s economy.
"Among the highlights, American rockers Linkin Park will play in Auckland, Ultra Music Festival brings its Miami-famous electronic dance music to Wellington and I’m personally excited for the collab of local legends Six60 with Synthony in Christchurch.
"There’ll be many more names — including star international acts — announced early in 2026, along with support in our regions."
She said the first round was an integral part of the government’s $70m major events and tourism package, designed to drive economic activity and confidence. It was supporting more than 70 events through the two funds.
"Hotels fill up, restaurants and cafes thrive, tills ring in our shops and local businesses see a surge in customers.
"This is just the beginning. We’ll continue to set the stage for a massive year in 2026."
