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We will be renting bikes so any suggestions on reputable business is appreciated.
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I used motorent.nz (note: not .co.nz!) and they were excellent to me. Less than 700 euros total for 8 days on a CB500X, including gear rental.
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Sealed roads we can handle 500+ miles a day no problem
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Not in New Zealand you can't. The nature of the country is such that any worthwhile riding/driving at all will be at fairly slow speeds. There are highways on the North Island where you could probably accomplish a 500+ mile day, but you wouldn't want to. Assume maybe a 300km per day limit.
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What we need most is suggestions on routes and places to visit. I know it is not enough time for a complete tour but it is all we have.
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I'll tell you what I got done in my eight days.
Picked up the bike in Christchurch and headed out over Arthur's Pass, stopping at a number of interesting places on the way. By the end of the day got to Franz Josef, stayed in a hostel there.
Next morning visited the two glaciers, rode down the coast to Haast Pass, took that down as far as Queenstown.
Spent a couple of days in Queenstown, including the amazing riding experience that is the Road to Paradise (really the road to Glenorchy, the actual village of Paradise is down a dirt track past the end of the lakeside stretch).
Then looped via Te Anau up to Milford Sound, and took an overnight cruise there (expensive but worth it for sure).
Then down via Te Anau again to Invercargill (see the truck museum, the hardware store with Burt Munroe's World's Fastest Indian and a bunch of other amazing bikes, go to Bluff and take a photo at the end of the world sign, eat a fresh oyster).
East via the Catlins/coastal roads to Dunedin (see a faithful recreation of Edinburgh on the other side of the world; cool student-town atmosphere).
Up to Oamaru (interesting architecture, disappointing steampunk museum, better-than-expected sunset penguin observation, outstanding distillery).
Then via the Inland Scenic Route back to Christchurch.
And finally as the last evening's cherry on top, a ride out to the Akaroa Tourist Road - goes all the way around a volcano crater, without doubt one of the world's greatest riding roads, the equal of anything in the Alps, Norway, Rockies, you name it.
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What I did not do on the bike: anything north of Arthur's Pass. Arrived by ferry from Wellington, but this was when the coastal road to Christchurch had been destroyed by an earthquake, so I had the front seat in a coach on a daytrip via the Lewis Pass - definitely not the worst trip I've had. I'm told that the northwest, Abel Tasman National Park and all the way down to Greymouth, is also worthwhile.
Did not take a helicopter ride or spend any extended time at Mount Cook.
Did not ride on the North Island.
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Pro tips: take more time than you think. If you are limited to 12 days, take 12 days riding around the South Island and come back afterwards to see the rest. Not that the North Island isn't worthwhile - it absolutely is - but the South is the rider's paradise. The country is really magnificent, and you will absolutely be able to fill up every minute you spend there with no regrets (other than maybe Invercargill).
EDIT: Oh yeah: look on bookme.co.nz for discounts on activities, attractions, restaurant vouchers, etc. Legit saved me a ton of money and let me experience things I would not have been able to afford.