A major change is coming for Piopiotahi Milford Sound, with Milford Sound Tourism Ltd (MSTL) and Kāi Tahu announcing a new shareholder partnership that begins on 31 March 2026.

Kāi Tahu Holdings Corporation and several Kāi Tahu Papatipu Rūnaka, through a joint venture, will become the third equal shareholder in MSTL, joining Real Group Ltd (RealNZ) and Skeggs Group Ltd.

As part of the agreement, the Southland District Council (SDC) will sell back its 2 percent shareholding, ending 35 years of involvement.

Te Rūnanga o Ngāi Tahu Kaiwhakahaere Justin Tipa and Milford Sound Tourism Limited Chief Executive Haylee Preston welcome the new partnership. Photo: Supplied

MSTL Chief Executive Haylee Preston says discussions over the past six months have created a strong foundation for the future.

“We’re delighted to partner with mana whenua. We share the same goal - protecting, respecting, and valuing this special place for generations to come.

This partnership brings together MSTL’s nearly 40 years of operational experience with Kāi Tahu’s deep connection to Piopiotahi.”

Awarua Rūnaka Limited Chair Barry Bragg says Kāi Tahu values the opportunity to take a larger role in guiding the future of a place with deep cultural significance.

“This investment strengthens our commitment to Piopiotahi’s long-term care.”

Te Rūnanga o Ngāi Tahu Kaiwhakahaere Justin Tipa hopes the partnership will ensure Kāi Tahu stories and heritage are more visible to visitors.

Te Rūnanga o Ngāi Tahu Kaiwhakahaere Justin Tipa and Milford Sound Tourism Limited Chief Executive Haylee Preston. Photo: Supplied

“Our journey in tourism has always been about caring for our takiwā and sharing our history.”

MSTL - currently funded through the visitor levy and other revenue such as parking, rent, and berthage - manages key infrastructure including the harbour, wharves, visitor terminal, wastewater systems, staff accommodation, Knobs Flat Visitor Centre, and more.

The organisation works closely with DOC, tourism operators, and community groups to support outstanding visitor experiences that reflect the Tiaki Promise.

Southland District Mayor Rob Scott says selling the Council’s shares aligns with its long-term responsibility to protect Piopiotahi.

“Our community has benefited from our decades-long involvement. Returning the shares will provide significant funds to SDC while ensuring iwi take on an important stewardship role.”

Ms Preston says more investment will be needed over time to ensure the region is managed sustainably. A formal ceremony to celebrate the new partnership will be held in March 2026 in Piopiotahi Milford Sound.