The event organiser said each Winter Pride-branded flag costs $400 to produce.
A long-time resident of the resort town, Coulthard said Queenstown had been an inclusive and lovely place and felt the vandalism was not something the community stood behind.
“For someone to come into town and pull them down... They’ve obviously really got something against us.”
Last year’s Winter Pride festival was also marred by organised vandalism, hate graffiti and threats to council staff.
Coulthard said there was a protest at the final party of last year’s Winter Pride.
As the festival starts today, Coulthard said there would not be time to replace the flags or have new ones printed, and so they would be asking the community to help out with pride in the park.
“For now, we’re just looking to find something that we can do for the festival to make it great and powerful and inclusive and loving.”
A police spokesperson said Queenstown police were investigating after receiving a report of the theft on Wednesday.
Sergeant Steve Watt said the theft was disappointing as it occurred right before Winter Pride kicked off.
“While we can’t know the motive for removing these flags until we have identified those responsible, we know how frustrating it is for the organisers of this vibrant festival that injects a real boost to our city.
“We’re keen to hear from anyone who might have information about this theft, or who knows who is responsible.”
Anyone who can assist police is asked to get in touch through the 105 service.
Ben Tomsett is a Multimedia Journalist for the New Zealand Herald, based in Dunedin.