The New Zealand Aid Agency, NZAID, is planning to help rebuild tourist facilities on Niue.
After months of negotiation, Niue, with support from NZAID, has reached a deal with Air New Zealand for a weekly flight to the island, following the end of a three year long arrangement with Samoa's national carrier.
The new service could treble the number of visitors to the island, which currently has around just 100 tourist beds.
Air New Zealand and the Niue Government have committed to promoting the island's attractions to boost tourist numbers.
Craig Hawke of NZAID says the agency is aiming to help boost the economic independence of Niue and growing the tourism industry is central to this.
"We will be wanting to work with Niue to ensure that some of the New Zealand aid assistance is aligned to supporting the tourism sector through accommodation and tourist infrastructure on the island so that we can try and ensure the jet service remains profitable and therefore has a long term future."