Queenstown is a small town but full of young people doing ridiculously athletic things, from bungee jumping to skiing. However it’s a nice town to wander around, lots of coffee shops, lots of nice restaurants, lots of hotels and apartments. It’s flat so easy to walk round. You can take a steamboat ride on the water, we didn’t but we only had two days there. Worth taking the car for a ride along the waterfront to Glenorchy, a delightful little place with a village shop, a garage and a couple of cafes! If you fancy a slightly longer drive, 7km further on is Paradise (and the views along the way are simply incredible) which is where they filmed some of the Lord of the Rings forest scenes. We didn’t pay the tour fee but simply drove down there and back again.
Also worth doing in Queenstown is the gondola to the Skyline cafe, restaurant and viewpoint. Spectacular views. If you feel strong (or foolhardy?!) you can do the luge ride too.
We stayed in the Crowne Plaza Hotel, right on the waterfront, with a balcony. The views from here were fab.
Also, the airport isn’t far away! A town well worth a visit for a few days.