Queenstown is the world's 25th best destination, according to TripAdvisor.
The global travel website released its latest survey results yesterday.
Queenstown was ranked first in New Zealand, second in the South Pacific and 25th worldwide.
It was "fantastic" a New Zealand destination ranked so highly, Tourism New Zealand chief executive Kevin Bowler said.
"To receive this sort of third-party endorsement via the TripAdvisor community is incredibly valuable.
"Queenstown itself is an absolute jewel made even more popular by it providing the backdrop to many scenes in The Lord of the Rings trilogy and now The Hobbit," Mr Bowler said.
The world's best destination was Paris, ahead of New York (2), London (3), Rome (4) and Barcelona (5).
Milford Sound was ranked fifth in New Zealand, Wanaka seventh and Dunedin ninth.
In the South Pacific, Milford Sound was 14th, Wanaka 19th and Dunedin 21st.
Ranking were based on reviews and opinions from TripAdvisor travellers.
More than 400 destinations were considered.
The survey is in its fifth year.
TripAdvisor destination rankings
2. New York
7. San Francisco
5. Milford Sound