Local businesses in small South Island towns are applauding the Government's investment in tourism infrastructure.

The Government is investing $102 million over the next four years in a combined tourism/conservation approach to help fund carparks, toilets and freedom camping facilities.

DoC will also get $76 million for improving facilities and to fund two yet-to-be-decided great walks.

General Manager of Tekapo stargazing attraction, Earth and Sky, Margaret Munro said it's welcome news.

She told Mike Hosking it wouldn't have been fair for locals to pay for the needs of the millions of tourists flooding through the town.

"Tekapo's only tiny - it's only got 400 people, permanent residents in Tekapo," she said.

Meanwhile, the extra funding for the DoC is being seen as a step in the right direction.

New Zealand National Parks and Conservation Foundation founder Denis Marshall told Mike Hosking increasing tourism has put pressure on DoC.

He said it's very important and helpful to get that money, and is a step in the right direction.

"The tourism pressure is enormous, and there's a lot of resources needed to help support that."

LISTEN ABOVE AS MARGARET MUNRO & DENIS MARSHALL SPEAK WITH MIKE HOSKING