Water and mountains dominate the picture-postcard landscape in Queenstown.

Located in the southwest of New Zealand's South Island, Queenstown is surrounded by snow-capped mountains and embraces the picturesque Lake Wakatipu, the country's third largest lake.

Thanks to its breathtaking scenery, which was immortalized on screen in The Lord of the Rings trilogy, Queenstown offers some of the world's best facilities for thrill seekers, including skydiving, skiing, jet skiing and bungee jumping.

Last year, visitors from China took over Americans and Brits to become New Zealand's second largest tourist contingent, and Queenstown is now welcoming a record number of Chinese travelers.

Water and mountains dominate the picture-postcard landscape in Queenstown.

Mountaintop pleasures

The moment you set foot in Queenstown, it's clear that water and mountains dominate the picture-postcard landscape. With average temperatures below 20 C from October to November, mountain-based activities are popular until water sports become available in the summer months of December to February. Hiking and mountaineering options abound in Queenstown, but for sweeping views without the exertion, a gondola (cable car) service (www.skyline.co.nz) can carry you 450 meters above Queenstown and Lake Wakatipu to the top of Bob's Peak.

If you're an outdoor sports lover, you can attach a mountain bike to your cable car and enjoy the leisurely uphill gondola ride before detaching your bike at the top and taking on the challenge of over 12 world-class mountain biking trails and varying terrain in the Queenstown Bike Park.

The Skyline Queenstown Luge is a great alternative for younger adventure seekers. Kids as young as six can take control of their own Luge cart. There are two Luge tracks: the scenic track and advanced track. The later has a steeper gradient and is a more adventurous ride with the thrill of banked corners, tunnels, dippers and cuttings. A two-seat chairlift will send you back to the start zone and you can enjoy the thrilling ride all over again. The restaurant on the top of Bob's Peak serves a traditional New Zealand buffet, including fresh seafood, salads, roast meats and delicious desserts. While enjoying your meal, you can take in a panoramic view of the whole city.

Built in 1912, the TSS Earnslaw still operates on Lake Wakatipu, offering one of the town's most iconic experiences. Photos: Zhu Jialei/GT

Sailing on a century-old steamship

Built in 1912, the same year the Titanic set sail, the TSS Earnslaw still operates on Lake Wakatipu, offering one of the town's most iconic experiences. A trip aboard the TSS Earnslaw is more than just a lake cruise; it is a journey back in time. To offer tourists an ultra vintage experience, the historic steamship keeps an open engine compartment, where passengers can watch workers in overalls shoveling coal into the engine and a small museum in the bow displays a collection of historical photos.

During the 90-minute cruise on Lake Wakatipu, passengers can admire some of Queenstown's spectacular alpine sceneries or even join a sing-along with the pianist on board. Wine, beer and snacks are available at its on-board Promenade Café and Bar.

Disembarking at Walter Peak High Country Farm, you can choose to get close to the sheep and herding dogs on a farm tour or go on a pleasant horse ride on the plateau's horse trek.

For those who want to spend some quality time on Walter Peak, enjoy a morning or afternoon tea at the Colonel's Homestead restaurant or stay for a lunch barbecue or evening buffet.

TSS Earnslaw makes four round trips on the lake every day but will not be operating from late May to late July 2014. For more information, visit www.realjourneys.co.nz.

Water and mountains dominate the picture-postcard landscape in Queenstown.

Traveling tips:

How to get there:

Air New Zealand (www.airnewzealand.com.cn) offers daily direct flights from Shanghai to Auckland, and you can then transfer to one of the carrier's domestic flights from Auckland to Queenstown. The carrier provides a baggage check-in service at its office downtown. Passengers vacating accommodation in the morning ahead of afternoon flights can drop their baggage at Queenstown's city center and head to the airport just 30 minutes before the boarding time.

Where to stay:

As a major tourist destination on the South Island, Queenstown has a dynamic hospitality industry that offers all sorts of accommodations, including luxury resorts, five-star hotels, boutique inns and budget hostels. Detailed information about accommodation can be found at the city's official website www.queenstownnz.co.nz.

Where to eat:

Though Queenstown is famous for offering a feast for the eyes rather than the stomach, there is one local restaurant you must not skip. Tucked away on a quiet street in the charming city center, Fergburger (www.fergburger.com) is a burger joint that is always packed with diners. Despite being open 21 hours a day, Fergburger's enduring popularity means that you should be prepared to queue and eat your burger standing up.

Fergburger serves face-sized, juicy hamburgers, which have become a Queenstown institution. The patties are all freshly cooked and worth the wait. The extensive menu offers a variety of options ranging from a classic hamburger to more unusual items like the Chief Wiggum, made with pork belly and apricot seeded mustard.