Kāi Tahu and MSTL partnership opens new chapter for Piopiotahi Milford Sound
12 December 2025
Kāi Tahu and MSTL partnership opens new chapter for Piopiotahi Milford Sound
A new chapter begins next year for the development of Piopiotahi, one of New Zealand’s most precious places, with Milford Sound Tourism Limited (MSTL) and Kāi Tahu announcing a shareholder partnership today.
On 31 March 2026, Ngāi Tahu Holdings Corporation and several Kāi Tahu Papatipu Rūnaka acting through a joint venture entity, will become the third equal shareholder in MSTL, the primary provider of visitor services and developer of key infrastructure in Piopiotahi Milford Sound.
MSTL Chief Executive Haylee Preston says talks between all parties over the past six months have created a strong foundation for the future and delivered the best possible outcome for the world-renowned destination through a combined wealth of experience in environmental, land, and infrastructure management.
“We’re delighted to partner with mana whenua. We all share the same goal – ensuring this special place is respected, protected, and valued by our community and visitors for generations to come.
“Our new partnership brings together nearly 40 years of MSTL’s operational expertise with the enduring connection Kāi Tahu holds to Piopiotahi. We look forward to working together in managing critical infrastructure, and creating opportunities for communities and visitors to learn more about Piopiotahi and its rich history.”
Awarua Rūnaka Limited Chair Barry Bragg represents one of the eight Kāi Tahu Papatipu Rūnaka with interests in Piopiotahi.
“Kāi Tahu welcome the opportunity to become the third equal shareholder and play a greater role in decision-making for a special place that holds deep significance to our people. This is an investment in the future of Piopiotahi and strengthens our commitment to its long-term care.”
Te Rūnanga o Ngāi Tahu Kaiwhakahaere Justin Tipa hopes this investment will see Kāi Tahu reflected more in the landscape of Piopiotahi, enhancing the visitor experience.
“Our journey in tourism began several decades ago as a way for us to invest in our takiwā, tell our own stories, and share our heritage with the world. We look forward to strengthening how Kāi Tahu history is shared and understood by all who visit Piopiotahi.”
MSTL is currently 49 percent owned by Real Group Ltd (RealNZ) and 49 percent owned by Skeggs Group Ltd, with two percent held by Southland District Council (SDC). As part of the new partnership, SDC will sell back its shareholding, and Kāi Tahu will acquire a 33.33 percent shareholding in MSTL by 31 March 2026.
Guided by its Board, MSTL works to protect and enhance Piopiotahi Milford Sound, funded through a levy on visitors’ cruise tickets and other revenue streams such as parking, rent, and berthage. Originally initiated in 1987, the private entity that became the Milford Sound Development Authority, and later MSTL, developed and operates key infrastructure including the harbour, wharves, visitor terminal, parking facilities, staff accommodation, Eglinton Valley Camp, Knobs Flat visitor centre, and the area’s wastewater, rubbish and recycling systems. Working closely with the Department of Conservation, tourism operators, and local organisations, MSTL aims to support outstanding visitor experiences that reflect the Tiaki Promise.
The MSTL Board met with Kāi Tahu and Council representatives on 12 December to formally welcome the iwi and thank the Council for its support in helping facilitate the partnership, as well as its 35 years of service on the board.
“Council’s decision to sell its shareholding reflects our commitment to protecting Piopiotahi for future generations,” says Southland District Mayor Rob Scott. “We’re pleased that Ngāi Tahu Holdings and Papatipu Rūnaka will take over our stewardship role, and that our community has benefited from our long-standing involvement with MSTL. The shares, originally gifted to Council when MSTL was established, will return significant funds* to SDC, and MSTL’s contribution has meant ratepayers haven’t had to fund essential infrastructure over the years. We look forward to continuing to work with iwi, MSTL, the community, and tourism operators to support the future of Piopiotahi.”
Ms Preston notes that further investment will be needed over time to ensure Piopiotahi is managed sustainably. “This agreement reflects our shared commitment to Piopiotahi. The partnership strengthens the stewardship of one of New Zealand’s most precious places, supporting sustainable tourism, protecting natural and cultural resources, and fostering collaboration between Kāi Tahu, tourism operators, DOC, and the community.”
A formal ceremony to celebrate the return of iwi and the new partnership will be held in Piopiotahi Milford Sound at the end of March 2026, with details released closer to the time.
* Note: Southland District Council is unable to disclose the price of its shareholding until the sale process is concluded at the end of March 2026.
Photo caption: Te Rūnanga o Ngāi Tahu Kaiwhakahaere Justin Tipa and Milford Sound Tourism Limited Chief Executive Haylee Preston welcome the new partnership