Must to see! Queenstown is very expensive but it's worth it! You can hike around in Queenstown in the world of Lord of the Rings (go to Paradise, Glenorchy), up the Remarkables which gives you a wonderful view or have some adventures on the rivers and the lake. Queenstown is the basis for all people who want to have some fun and risk: Skydiving, riverrafting, bungyjumping, shotover jets, and much much more. From Queenstown you can also go on to the Fjordland (Milford Sound, Marlborough Sound, lots of nice 3-4days hiking tours) or north to the glaciers. Only disadvantage: very touristic. A cheap joice to sleep are the backpackers, there are heaps of them and the best: The Bumble Bee.