The park will offer half day passes through to a full year pass for unlimited gondola and downhill mountain bike trail access during opening times.
The programme is scheduled to start in July. Commercial partners are Skyline Rotorua, Multi Day Adventures and Empire of Dirt.
Under the Tourism Growth Partnership, the Government has made $32 million available over four years to support innovative projects that will create new opportunities and overcome barriers to growth in the tourism sector.
The Tourism Growth Partnership is a co-investment programme. For each project approved for investment, the Government will provide up to 50 per cent of the required funding.
"Tourism is one of New Zealand's largest export earners and has a crucial role to grow our economy," Mr Key said.
The Tourism Growth Partnership is part of a $158 million investment Government has made in tourism.
A second round of funding is now open for applications and will close at the end of the month.