The Department of Conservation says almost a quarter of tourism operators surveyed in the western South Island were found to be breaching conditions or operating illegally.
About $300,000 was spent to check 3500 permits' compliance in the southern and western regions of the South Island from October until April, reports Radio NZ.
One in four checked had breached their conditions or were operating illegally.
Tourism activities in South Westland, Central Otago, Wakatipu and Fiordland were all checked during the campaign.
In Fiordland, 2445 activities were checked. Almost 80 percent of the activities are related to parking, with almost all the rest relating to permits for guiding.
More than 65 percent of guiding activities and 21 percent of parking activities were non-compliant - 605 breaches and 82 operations are accused of operating illegally
Some are now facing further investigation, penalties or court action as the department cracks down on non-compliance.
Southern South Island Director Aaron Fleming said DOC was prepared to terminate concessions if they were breached, although most operators were in
About 4 percent or 154 of all of the checked activities were found to be operating illegally.
"We noticed that later in the season, once word spread that DOC was doing compliance checks, more operators started complying," said Fleming.
"Most operators work hard to ensure they are following the conditions of their permits. When operators don't, it's not only unfair to those following the rules, but poses a risk to our native places and species."
Illegal activities found within conservation land included:
•Whitebaiting illegally
•commercial guides operating without concessions
•Hunting of native wildlife
•Disturbing whales and marine mammals
•Fishing in marine reserves