The Government may decide Chateau Tongariro’s fate for the next six decades, depending on the response to requests for proposals to do up the site.

The heritage-listed Whakapapa Village hotel closed in early 2023 when its lease came to an end following seismic concerns, but last week the Government launched a formal process wanting to hear from operators keen to take over operations.

Two documents, released by Treasury, show Department of Conservation officials saying that once the search for an operator has finished through the tender process, directions will be sought from Cabinet on the next steps, dependent on how well the request for proposals went.

“It is likely that a Cabinet/Ministerial decision will be required on whether the Crown will commit to a long-term lease (60+ years),” documents said.

In a statement, a spokesperson from the office of Minister of Conservation Tama Potaka said there are no preferred options for Chateau Tongariro at this stage.

The site first opened in 1929, and had attracted domestic and international tourists for decades before its closure. Some are suggesting opening the building once again could bolster the Ruapehu district’s tourism sector.

Documents prepared when it closed three years ago – estimate the building needed $10.4 million in maintenance and repairs, even without accounting for the cost of seismic upgrades.

Department of Conservation Asset Management Director Shan Baththana said under the Conservation Act, the minister has the power to grant a lease or lisense for a term not exceeding 30 years - or 60 when there are “exceptional circumstances”.

“There are no preferred options. The RFP invites commercial proposals which may include a request for a long-term lease that exceeds the Minister’s powers,” Baththana said.

A spokesperson for Tama Potaka’s office said proposals will be considered against a number of criteria. “The results of the RFP [request for proposals] will be used to inform advice to the Minister as the next steps and no decisions have been made.”

Speaking to Newstalk ZB after the Government announced a request for tenders on Chateau Tongariro, Minister Potaka expressed his desire for a long-lasting option.

“I want to see an outcome that’s enduring and sustaining, and not a one-hit wonder,” he said at the time.

The Department of Conservation had prepared high-level cost estimates for “potential long-term options” mentioned in Treasury documentation, but were redacted under the Official Information Act.

Treasury was unable to comment on the current level of fiscal risk.

Whanganui MP Carl Bates had also seemingly been in support of restoration, if it is found to be financially viable.

Bates posted to social media saying “restoring the building will help ensure the area continues to attract visitors while supporting local businesses and tourism in the wider region”.

“Finding the right partner to restore and operate the building will help bring visitors back to the area and support local businesses across Whanganui and the Central Plateau,” Bates added.

When the Government first released its request for tenders on the site, Ruapehu District Mayor Weston Kirton reiterated the message that investors were keen on the site.

Potaka backed up Kirton’s words.

“My understanding is that there are several parties that will have strong expressions of interest, and visited the site late last year to get a sense of the seismic implications,” the Conservation Minister added.

Documents attached to the request for proposal note submissions will be evaluated from April 22, and suppliers are expected to be notified of any outcome on April 30.

Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.