"It is a unique place in a unique country," Real Journeys chief executive officer Dave Hawkey said after a shortlist of 28 outstanding destinations in the world was released yesterday by the New7Wonders of Nature global campaign.
At the helm of one of Milford Sound's longest running cruise companies, Mr Hawkey said the area had long been recognised as special and it was "fantastic" it was being recognised amid other places of beauty such as Uluru [Ayers Rock], the Grand Canyon and the Amazon.
"Sometimes us Kiwis take what's under our noses for granted. We think we have to go overseas to see something big," he said.
"It [Milford Sound] is a natural wonder and when you look at the other places it is a finalist with, this is fantastic."
The prized destination was announced as a competitor alongside 261 other destinations nominated for the world competition in January - the announcement Milford would compete for a place on the final list was made on Tuesday night by New7Wonders panel of experts president Professor Federico Mayor and the founder and president of the New7Wonders campaign, Bernard Weber.
Mr Weber said the "eyes of the world" would be on the locations.
"We look forward to an exciting and record-breaking final race, with the whole world coming together to choose the Official New7Wonders of Nature, seven locations that will become part of global memory."
The seven winners will be announced in 2011.
Destination Fiordland manager Lisa Sadler said it was a "fair" timeframe for votes to be gathered and for the panel of experts to make an informed contribution.
When first approached by the competition's organisers two years ago to nominate Milford Sound, Ms Sadler was sceptical about the competition's credibility.
"I thought perhaps the rich countries with a lot of resources and money would be able to dominate the voting," she said.
"We certainly have no budget to promote this."
However, she felt the short list demonstrated the integrity of the competition and was glad Destination Fiordland had taken the time to enter.
Ms Sadler did not think the additional publicity from being short-listed nor an inclusion as a natural wonder would cause any overload of Milford Sound or the surrounding area.
"That is one thing the panel has looked at - how well the area is managed," she said.
"Milford Sound is well managed in a national park and as a world heritage area.
She said local tourism operators were very aware of environmental impacts and that Milford Sound's attraction was partially due to its "untouched" atmosphere.
"Any development has been very sensitive."
Having worked at the Milford Sound Lodge for about two years, resident Terry Mieremet, originally of Holland, said he thought Milford Sound had a good chance of getting in to the final seven wonders.
He rated the area well above Germany's Black Forest, which he had visited several times as a child.
However, Mr Mieremet was surprised the Antarctic had not made the final 28.
Voting and assessment
The New7Wonders of Nature campaign will be decided both through internet votes and the assessment of a panel of experts who look at the sustainability plans and protections in place for each area and how much residents care for their environment, Destination Fiordland manager Lisa Sadler said.
"It is a two-pronged thing ... as Milford Sound's nominator we have provided them with a lot of information."
The campaign follows the successful search for the Seven Modern Wonders of the World which ended two years ago.
Ms Sadler said the first campaign had made international headlines and the opportunity for Milford to do the same as a natural wonder was too great to pass up.
The panel is made up of environmentalists, social activists, authors, documentary film-makers, scientists and Rex Weyler, the founder of Greenpeace.
