The Telegraph Travel Awards are known in the industry as being comprehensive, transparent and trusted due to the fact they are decided by votes by readers. More than 17,000 Telegraph readers took part in the poll this year.
New Zealand edged out finalists Maldives and South Africa to win the 'Favourite Country - Worldwide' category.
Kevin Bowler, Chief Executive Tourism New Zealand said the award is a huge honour.
"We are so pleased and excited to have received this award and would like to thank Telegraph readers for their passion and enthusiasm for New Zealand.
"It's great news for us to know that, even in these tough economic times long haul destinations like New Zealand are obviously still so important and inspiring to Telegraph readers.
"It's been an exciting year for New Zealand - this time last year we were still celebrating a very successful Rugby World Cup and we are now looking forward to the world premiere of The Hobbit: An Unexpected Journey which is coming up in Wellington in just a few short weeks' time."
This latest accolade for New Zealand follows closely behind Tourism New Zealand's recent win for the third year running as Australasia's Leading Tourist Board, and its nominations this week in two categories for the World Travel Awards. The World Travel Awards was founded in 1993 to recognise, acknowledge and reward excellence in the travel, tourism and hospitality industry worldwide.
Tourism New Zealand is in the running to be named the World's Leading Tourist Board. And it's new 100% Middle-earth 100% Pure New Zealand campaign is one of just four finalists for the World's Leading Destination Marketing Campaign. The other finalists are Australia - There's Nothing Like Australia; Morocco - Movement for more summer; and Spain - I need Spain.
The official online voting is now open at www.worldtravelawards.com/vote and closes on 25th November. The winners will be announced in Delhi, India on 12 December.
For more information about the Telegraph Travel Awards, and for the full list of winners go to www.telegraph.co.uk/
In an article published in the Telegraph, Royd Tolkien, great-grandson of the writer, explains why New Zealand is one of his favourite places in the world.