Starting with the good, Skyline Queenstown was a lot of fun and I'd highly recommend it. The gondola up itself is kind of cool but the viewing deck at the top has amazing views of Queenstown and is very spacious. The Luge is a must try.
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The Queenstown gondola takes about 5 minutes to get from bottom to top and the same amount of time to get down again.
Value for money is ok. Yes, I think it's quite expensive, but it's a tourist attraction in a tourist town so you're going to pay over the odds. However, the gondola ride is worth it alone for the gorgeous views over town and Lake Rotorua, and the luge is a great laugh, so worth doing too.
Whisking you 450 metres above Queenstown, the iconic Skyline Gondola is your ticket to unforgettable scenery. A Gondola cabin reaches the top of its journey high above Queenstown.
I would allocate an hour and half to complete all the activities. Arrive at the carpark, buy tickets (use discount vouchers), take the gondola, queue for the luge rides, go downhill and back up again 3 times.
And, given that it's bound to happen, the best time to do it is in the morning, and for many reasons: your gondola pilot will be freshened up after a good night's sleep, the canals won't be so full and you won't have any midday sun beaming down on you as you scramble for shade on a boat that provides nada.
Because gondolas are wildly expensive to build and maintain. They are fully handcrafted boats made out of wood using traditional techniques. There are only a few artisans left to build traditional Venetian boats and only the most skilled build and maintain gondole.