The balloon was carrying seven passengers on the scenic flight but no-one else was injured, according to a preliminary report by the Transport Accident Investigation Commission (TAIC).
The balloon was fitted with a pilot restraint harness but he was not wearing one during the flight.
The report noted a similar accident in Wakatipu Basin near Queenstown last July, when a balloon carrying 10 passengers hit the ground, throwing the unrestrained pilot out of the basket.
The basket came to rest 150 metres away, leaving the pilot with moderate injuries.
Under Civil Aviation Rules, balloon pilots are exempt from wearing restraint harnesses during landings.
The commission recommended the Civil Aviation director take prompt steps to mandate the wearing of harnesses during critical phases of commercial balloon flights.
"In the interests of transport safety, it is important that recommendations are implemented without delay to help prevent similar accidents or incidents occurring in the future," the report said.
The TAIC said balloon owners and operators should consider installing pilot restraint harnesses if they were not already fitted to their baskets.
