Queenstown has a lot to be proud of.

Local shops and businesses around the tourist capital of the South are displaying rainbow colours in recognition of this year's Winter Pride festival.

What started off many years ago as "Gay Ski Week QT" was re-branded as "Winter Pride" four years ago.

The festival features a week of parties, skiing and on-mountain events and drag shows.

Winter Pride co-director Martin King said after two years of closed borders due to Covid-19, this year's event is seeing plenty of visitors from across the ditch coming over for the fun.

"The amount of Australians back here, who are delighted to be here, who are blown away by the scenery and the weather - people never been to Queenstown before, it's incredible."

Many locals in Queenstown have accepted the festival and its colourful drag shows.

Mr King said the aim of Winter Pride is that people get together and celebrate their diversity.

"With Pride, people really embrace Queenstown in this really special way, they just feel like it's a super unique opportunity to come together, so I'm really proud."

Winter Pride finishes on Sunday with a Ladies Brunch at 11am and a final party at 3pm.

- By Rudy Adrian