That's why Steve and Jeanette Brough bought their property in the historic part of the Wakatipu township and opened the Arrowtown House Boutique Hotel just before Christmas, catering to the mid-to-top-end, self-drive accommodation market.
While some might be reluctant to enter the accommodation industry in the face of a global economic downturn, the Broughs not only have plenty of optimism about their venture, but also lots of experience in Queenstown's boutique hotel sector.
In 1995, they opened Remarkables Lodge in the Kingston Road, winning a Travel and Leisure magazine `World's Best" award in 1999.
After selling it in 2000, they opened their successful Shotover Lodge at Arthurs Point.
Both locations proved popular destinations with the kind of clientele they were aiming at, the discerning, self-motivated visitor who wanted to get away from the hustle and bustle, yet enjoyed meeting the locals, Mr Brough explained.
"We found that from living in other cities, they want to get under the skin of the country they visit."
With Queenstown getting busier, Arrowtown was the obvious choice for a hotel that offered not only the opportunity to mix and mingle with the locals, but also a certain level of sophistication with its selection of cafes, restaurants and even a movie theatre, all of which appealed to the well-heeled, well-travelled visitor, he said.
And Arrowtown House provided the ideal location, Mr Brough said.
Set on 1000sq m in the heart of the historic precinct and situated between two of the town's oldest churches, the five-room hotel was built as a lodge in 1998 before the immediate past owners remodelled it as a private dwelling.
However, knowing the boutique hotel market, the Broughs could see the potential in returning it to a visitor accommodation and, after purchasing the property in May last year, set about re-decorating it for a whole new look inside.
"We wanted the retro '50s look to go with building," Mrs Brough said.
Fifties-style Kovac-designed chairs in retro spot print sit alongside luxurious sofas in the open-plan lounge and breakfast room, which is complete with self-serve wine and cocktail bar.
The spacious room offers guests the opportunity to mix and mingle over the Jeanette's gourmet breakfasts or enjoy a freshly made coffee and cake and pre-dinner drink.
Alternatively, they can enjoy the secluded garden over drinks or, if they prefer, simply relax in their suites, each of which has a private balcony or courtyard.
Providing comfortable and private rooms with facilities for heating food and making tea or coffee and individual laundries was all part of the "home-away-from-home" experience, where guests could relax in their room with take-in food, rather than have to eat out each day, Mr Brough said.
"A lot of these people have been travelling for a while and sometimes they get tired of eating out in restaurants and just want to relax on their own."
And because they have driven five or six hours, often down the West Coast, guests enjoy being able to walk everywhere.
"It's the perfect antidote. They park the car, have a wine and wander into town."
Being able to walk also offers travellers the opportunity to see the real community, to "get under the skin", as Mr Brough puts it.
While some guests, especially the German and English visitors, will go for walks in the nearby hills of Arrowtown, others are happy to relax and read in the garden or watch a DVD in their room.
"Boutique accommodation needs to bring together a number of ingredients to be successful. The art of hospitality is all about making it look seamless for the guests,"Mr Brough said.
"It's a niche business, marketing to a specific niche market, and [making it successful is] knowing how to get those clients."
With plenty of experience and an established track record behind them, the Broughs have a large database of satisfied guests who, if not planning to stay in Arrowtown themselves, happily pass on the suggested destination to their family and friends, Mr Brough added.
Fifty percent of bookings are made directly on the Internet.
"As a business, we tend to attract more direct customers," he said.
Repeat and word-of-mouth custom are a huge bonus when running any kind of accommodation business but make a new business such as Arrowtown House all the more successful, Mrs Brough said.
The attractions of Arrowtown, including the charm of the town's church bells on a Sunday morning, the mountain scenery and historic houses and gardens, added up to a winning combination, Mr Brough said.
"Arrowtown is one of the really attractive aspects to the businesses. If the other threads are pulled together, the location's unbeatable."
