The fund, which includes $41.5m already allocated, will provide $100 million over the next four years in partnership with local councils and other community organisations, for projects like new carparks, toilets and freedom camping facilities.
"Tourism is hugely important to New Zealand. It creates jobs and brings in billions of dollars to the economy. That's why it's important that we keep investing so we continue to attract high-value tourists and give them an amazing visitor experience," said Bennett.
"The fund is about helping communities respond to demand and addressing capacity constraints. It will also facilitate future growth in some of our newer tourism regions as well as the main tourist hubs,'' she said in the pre-budget announcement at the Trenz tourism industry sales event in Auckland.
A $76m funding increase for DoC will be allocated to upgrade and develop tourist facilities on conservation land and to expand the great walks network.
A Herald series last week highlighted pressure on tourism infrastructure and on parts of the national park network as the number of international tourists surges to record levels.
In the past year around $17m has been earmarked for infrastructure in small centres during four years which had been seen as a good start. The industry had suggested a $100 fund for infrastructure 18 months ago.
This fund announced today is made up of $60.5 million in new money from this month's budget and $41.5 million in funds which have been reprioritised from the Tourism Growth Partnership and the Regional Mid-sized Tourism Facilities Grant Fund.
Of that, $2m over four years has been provided to manage it.
Bennett said the fund would provide infrastructure such as toilets and carparks, ''but we're also prepared to consider projects like visitor information centres, and feasibility studies for infrastructure projects on a case-by-case basis.''
The industry had told the government that infrastructure is their top priority and the government had responded, she said.
Tourism numbers
• Annual total spend $34.7b, up 12.2 per cent
• Domestic $20.2b, up 7.4 per cent
• International $14.5b, up 19.6 per cent
• Record arrival numbers: 3.5m in 2016, up 12 per cent
''We're moving from a focus of just boosting tourist numbers to also attracting higher-value tourists to all regions. This funding will ensure we have the capacity to do that."
Successful projects would be co-funded by applicants, who would need to show that other funding options have been fully exhausted.
"Government is stepping in to help ensure we have the right infrastructure to support this important industry, especially in areas with high visitor numbers but small ratepayer bases.''
However, local government still has the lead role to play in building and maintaining that infrastructure. The private sector was also playing its part by investing in new and expanded commercial attractions and hotels, she said.
"Government will continue to work with councils and the industry to consider larger tourism projects which will be funded outside of the Tourism Infrastructure Fund. We've done this in the past with the Hundertwasser Art Centre in Northland and we're open to considering other opportunities.
Last year international tourism expenditure reached $14.5 billion, which is more than 20 per cent of New Zealand's total exports of goods and services.
Bennett said it was also a significant employer, generating around 188,000 jobs directly, and a further 144,000 indirectly.
