- Global Tourism - Destinations | Oceania - Australasia | New Zealand Stewart Island, South Island, New Zealand, Tourist Information Hotel or Motel Rakiura Retreat Motel - Stewart Island The property has two road frontages and runs from Horseshoe Bay down to the water at Braggs Bay. Location Map The only town is Oban, which is located at Half Moon Bay. A regular passenger ferry service runs between Bluff and Oban. There is an air link with Invercargill Airport. Planes also land on the sand at Mason Bay. Although some tourism, forestry, and farming takes place on Stewart Island/Rakiura, the main industry is fishing. Over 80 per cent of the island is set aside as Rakiura National Park, New Zealand's newest national park.