Queenstown Lodge (Sainsbury Rd., 03/442-7107, qlodge.co.nz) is a timber lakeview pleaser a three-minute drive from the action; US$12 bunk, US$36 hotel-style room for two to four. In town, Pinewood Lodge (48 Hamilton Rd., 03/442- 8273, pinewood.co.nz), as mismatched as someone's lake house, offers dorm beds for US$8, six-room shared bungalows at US$19 double (bed, kitchen) to US$30 double (with views, TV/VCR lounge). Resort Lodge (6 Henry St., 03/442-4970), a boutique hostel, has soundproof rooms with shared bath; US$10 dorm, US$25 private room.

Eating

Vudu Cafe (23 Beach St., 03/442-5357) serves tart chicken and cashew bowls (US$4.50) or veggies with spicy peanut sauce (US$5). Surreal (7 Rees St., 03/441- 8492), at US$7/entree, is US$5 cheaper than similar menus-try the sweet corn fritters, Persian beef with apricot sauce, and coconut pie. Thai Siam's (43 Beach St., 03/442-4815) 43 entrees cost just US$6 each, so it's packed. For those on the go, Planet 1 (Marine Parade and Church St., no phone) is a busy booth serving "Make Ya Go Like Hell" (spicy beef curry) and "This Squid's for You" (calamari and rice) for US$1.70-US$3.60.

The spectacular five-hour drive south from Queenstown, which threads past ravishing mountain lakes, took me to the southernmost point of my life, in rural Mossburn. Like all profound personal milestones, the spot was just an ordinary fork in the road.

My destination, the sublime Milford Sound, is one of the few places where you want bad weather on your vacation. Nearly 30 feet of rain a year feed thousands of cascades, and when they shoot down the near-vertical walls of the chasm, your knees will wobble. More southerly than all of Australia, more dramatic than the canyons of Manhattan-the only way to experience the unfathomable beauty of these waters (which host whales, dolphins, and sea lions) is by boat. Three-hour cruises on the Milford Wanderer, a family-friendly vessel, cost US$25, but local hotel options are slim, so splurge US$81 for a 17-hour overnight excursion, including bunk, meals, and kayaking among wild penguins, and wake up in the mists (03/442-7500, fiordlandtravel. co.nz). Companies sell one-day bus/boat tours from Queenstown from US$55, but on those, crowds foul the perfect peace.

It pains me (for space reasons) to exclude Wellington, the world's most southerly capital, with its top-flight museums and San Franciscan vibe; arty Nelson and the turquoise inlets of Abel Tasman National Park; Christchurch, with its English panache and dulcet wine lands; and Franz Josef, where you can climb glaciers in your shorts. With such low costs, though, I'll be back. The steepest expense is my limited vacation time.

There's no doubt about it. New Zealand is green. It's money-savin' green.

Going to New Zealand

Arriving

Qantas (800/227-4500) and Air New Zealand (800/262-2468) fly to Auckland from Los Angeles. Companies such as Discover Wholesale Travel (888/768-8472) regularly offer US$900 round trips during New Zealand's mild winter (May to September). The best packages offer airfare and a car so you can roam; try Newmans (800/421-3326) for ten-day deals priced around US$1,200.

Getting Around

InterCity Coachlines (09/913-6100, intercitycoach.co.nz) sells seven days of travel from US$190. Sample prices on Tranz Scenic trains (04/498-3303, tranzscenic.co.nz): US$44 Auckland-Wellington and US$20 Auckland-Rotorua. Youth-oriented Kiwi Experience (09/366-9830, kiwiexperience.com) runs shuttles ranging from US$30 (one-day Bay of Islands trip) to US$500 (the entire country over a month).Car rentals cost about US$15/day from Apex (03/379-2647, apexrentals. co.nz), small camper vans around US$28 from Britz (09/275-9090, britz.com); the major companies (Avis, Budget, etc.) tend to be expensive. Cross the Cook Strait between the North and South Islands on the four-hour Interislander ferry (04/498-3303, tranzrailtravel.co.nz; US$24 on foot, US$84/car).

Lodging

In New Zealand's summer (November to February), book ahead. The AA New Zealand Accommodation Guide lists 1,088 pages of B&Bs, farmstays, and motels (free at aaguides.co.nz). Golden Chain motels (03/358-0821, goldenchain.co.nz) are nationwide and charge around US$30/room.

Learning

General New Zealand info: 310/395-7480, purenz.com; Bay of Islands: northland.org.nz; Auckland: aucklandnz.com; Rotorua: rotoruanz.com; Queenstown: queenstown- nz.co.nz; Maori life: Keri Hulme's The Bone People and Alan Duff's Once Were Warriors. When calling New Zealand numbers from North America, precede with 011-64 and drop the first zero.