Last year, Prime Minister John Key announced a $5 million contestable fund had been set aside for Tourism New Zealand to carry out joint-venture work with regional tourism organisations.
Gateway regions - those with direct airlinks to Australia - were invited to apply to the fund, which required organisations to match any funding dollar-for-dollar up to a maximum of $1 million.
Of the $5 million fund, the Otago Daily Times understands Destination Queenstown has secured $1 million and Tourism Dunedin $290,000.
A Tourism New Zealand spokeswoman confirmed the southern bids had been successful, but full details were yet to be released.
Tourism Dunedin chief executive Hamish Saxton said the organisation had applied for $310,000, and early indicators were that they would receive $290,000 in fundingThe money, which would be matched by unnamed industry partners, would go towards marketing initiatives in the Queensland area, coinciding with a new Pacific Blue Brisbane/Dunedin flight beginning on September 17.
The campaign, a partnership between Tourism Dunedin, Venture Southland, Tourism Waitaki and Tourism Central Otago, would promote Dunedin International Airport as the gateway to the city and surrounding area, he said.
Tourism Dunedin confirmed it had closed its office in Sydney.
Mr Saxton, who manned the single-person office from its establishment in 2006 until he became chief executive two years later, confirmed the Australian office was now surplus to requirements.
His replacement in the Sydney office, Heather Mollins, left the position in June.
The office was established to build relationships with airlines, Australian-based travel wholesalers, and the media.
The Dunedin office would now handle all Australian work, barring some public relations projects which would be contracted out to specialist firms.
Money budgeted for the office would go towards additional marketing in Australia, he said.
