Proposal to demolish Chateau Tongariro being considered by the Government. Video / Herald NOW
Demolition of the derelict Chateau Tongariro remains an option on the Crown’s table as the heritage-listed site is still considered a fiscal risk.
Meanwhile, Ruapehu District Mayor Weston Kirton suggests serious buyers are looking at the heritage-listed hotel with interest, and are potentially keen to put pen to paper ona long-term lease.
The lease on the 100-year-old heritage-listed hotel, nestled within the Tongariro National Park, ended in early 2023. Following the site’s closure amidst concerns about the chateau’s seismic resilience, Malaysian-based company and operator KAH gave responsibility to the Department of Conservation, which had ownership of the land it sits on.
Budget 2025 lists the expenses and capital around the Chateau Tongariro Hotel as a fiscal risk. The Budget states “options are being investigated for the future of the chateau and surrounding facilities, including demolition, but at this stage, there is uncertainty around any future fiscal implications for the Crown”.
It reiterates “responsibility for the building and all improvements on the land” is up to the Government.
Kirton, who had been rallying for support on a petition for the Government to intervene to “save” the hotel, now says the bidding for a potential operator is inching closer each day.
Ruapehu Mayor Weston Kirton has called Chateau Tongariro a 'treasured piece of our heritage', with tourism benefits for the district.
Speaking to Newstalk ZB, Kirton acknowledged there was “some liability” around keeping the chateau open and “putting a lid on some of the leaks”.
It’s estimated the cost to keep the empty hotel in its derelict state is around $2 million annually.
“That’s concerning from a taxpayer point of view, if not our local council and community, because we just want the Government to come to the party in terms of finding ways and means of getting the chateau re-opened over time,” the mayor said. .
Kirton is holding on to a glimmer of hope.
“My understanding is there are a number of people that I know of that are interested in actually rebuilding or refurbishing the Chateau,” he said, adding a Government “roadmap” would help solidify plans.
Unlike the decade-long deals for Mt Ruapehu’s Whakapapa and Tūroa skifields, Kirton is calling for a commitment to a potential century-long concession “for the magnitude of the expenditure that needs to be put to this sort of project”.
We’re talking serious money, we’re talking about serious term here. I think we just need to get the heads around the table to actually understand the dynamics of such a redevelopment of this time.
The Grand Chateau Tongariro is not taking any new bookings. Photo / Supplied
The mayor said there have been talks with potential buyers who would have the budget and capacity to take on a project of this scale.
“We’ve been talking to people that do big high-end hotels for example, and this sort of activity is bread and butter,” Kirton told Newstalk ZB.
“It’s just a matter of the Government understanding that, for [buyers] to actually proceed with this, without taxpayers’ money, we need to respect the fact they need a longer-term tenure.”
Kirton reiterated the importance of consultation with the community, including iwi, to ensure they were comfortable before a potential deal came to fruition.
Last year, Minister of Conservation Tama Potaka confirmed “decomissioning” was a potential option for Chateau Tongariro, though documents obtained under the Official Information Act suggest the option would cause the site to quickly deteriorate.
Budget 2024 also provided a similar option, with the site listed as an unchanged risk. “Options are being investigated for the future of the chateau and surrounding facilities, including demolition, but at this stage, there is uncertainty around any future fiscal implications for the Government.”
Budget 2023 was the first to raise the Chateau as a fiscal risk, but left out the idea of bringing the wrecking ball to the old hotel. “Options are being investigated for the future of the chateau and surrounding facilities, but at this stage, there is uncertainty around any future fiscal implications to the Government.”
For now, it’s unclear whether buyers will take the plunge, or the site will sit barren.
Recently-released property reports, commissioned by the Department of Conservation, said the chateau returned to the Crown with water leaks and issues, leaving it in a “severe state of disrepair”.
A years-long bidding war involving both of Mt Ruapehu’s skifields has recently come to a close, in what’s expected to boost tourism to the central North Island area. The area’s Tūroa ski field, under new ownership, has officially opened.
The Department of Conservation officially granted Pure Tūroa a 10-year concession to run the Tūroa skifield, and the same timeframe for Whakapapa Holdings’ ownership of the Whakapapa skifield, putting the lid on negotiations following the liquidation of Ruapehu Alpine Lifts.
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.
