During a submission by DQ chief executive Stephen Pahl, Cr Gillian MacLeod asked why the organisation did not get involved in more events throughout the year.
"There are big gaps in the calendar, especially at Easter and Queen's Birthday. I'm really keen for DQ to take up a management role," she said.
Queenstown was too reliant on the short ski season and there should be more events throughout the year to attract visitors, she said.
Mr Pahl said DQ had no resources to run and manage events.
DQ chairwoman Erna Spijkerbosch said DQ did not have a mandate from its members to fund and manage more events.
The only events DQ funded were the winter festival ($20,000) and the Golden Oldies Netball Festival ($30,000), in November.
"We have no mandate to spend more money on events," Ms Spijkerbosch said.
She said event organisers often approached DQ wanting to hold events in Queenstown but demanding up to $100,000 funding.
Ms MacLeod said she was surprised by DQ's response.
"I would have thought Destination Queenstown was interested in encouraging more people to come to the area.
"Creating events is one way to do that," she said.
DQ had a budget of $3 million and some could be allocated for funding and managing events, she said.
Mayor Clive Geddes said the council was almost finished drafting a new events policy.
Part of that was coming up with partnerships with organisations like DQ, he said.
Mr Pahl said DQ was keen to be part of the process.
He appealed to the council to maintain the collection of revenue from commercial ratepayers through tourism promotion, on which DQ depended for operational and marketing funding.
He asked for the levy to stay at the current level through to the 2011-12 financial year.
He said DQ had spent three months consulting the community and had drawn up a business plan.
"We've never before had as strong a mandate to move forward with our business plan," he said.
