There are discussions around bidders potentially giving Chateau Tongariro a fix-up.

A Government response to a petition confirms the Department of Conservation's been urged to speak with investors and iwi to potentially fund restoration for the heritage-listed hotel.

Demolition still remains an option.

Adrift Tongariro Guiding owner Stewart Barclay told Heather du Plessis-Allan that it's significant for employment - and would pay for itself over time.

He says it's essential for tourism, which brings money in to the local area. 

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