Probably one of the most beautiful, magical & picturesque places I've ever been to: Queenstown on the South Island of New Zealand. Of course it didn't hurt that we had our flight cancelled and were "forced" to stay an extra night due to strong snowfall... I couldn't imagine a cooler place to be snowed in! It's impossible to describe the breathtaking landscape - so I'll stop talking and show you some pictures instead.
Sure, it's a bit out of the way but if you make it all the way down to New Zealand you have to go to Queenstown! It's basically a must-see for every self-respecting backpacker.
What's there to do apart from gawking at the beauty of your surroundings? Once you come to terms with the fact that you might as well have found paradise, you can choose from a wide range of activities: skydiving, speed-boating on the lakes, skiing in the mountains, ice-skating in the hockey rink and lots more. Take a ride up to the top with the funicular to get the best view or simply get a hot chocolate and a Cookie Time cookie (an institution in NZ) and sit at the pier and chill. There's even a bird sanctuary where you can spot Kiwis!
No matter what you'll end up doing, this is a destination so utterly beautiful that the memories of it will last forever more... I promise :)