(Bloomberg) -- New Zealand’s government is investing in a gin distillery and a film studio in the Central Otago region of the nation’s South Island.

It will make a NZ$2.9 million ($1.8 million) loan to help Scapegrace Distilling Co. expand a distillery in the town of Cromwell, Regional Development Minister Kiri Allan said Thursday in Wellington. The government will also underwrite NZ$4.5 million of a project being built by Silverlight Studios in nearby Wanaka. Both investments will be made via regional development funds.

Central Otago is New Zealand’s hub of adventure tourism and alpine skiing centered around the resort town of Queenstown, but the economy’s reliance on international visitors was exposed when the border was closed during the pandemic. 

“The government is continuing to invest in projects in the Central Otago district as part of an ongoing strategy to diversify its economy beyond tourism,” Allan said.

The Scapegrace expansion creates 218 construction roles and 24 permanent jobs, and will add to the region’s international brand reputation, she said. The Silverlight agreement will support operational costs once an initial phase of the project has been constructed.

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