Name a famous geothermal area in New Zealand.

Rotorua is renowned as a famous geothermal area in New Zealand and is celebrated for its exceptional geothermal features, including geysers, hot springs, and mud pools. The region sits on an active volcanic zone, where geothermal activity is showcased prominently. The iconic Whakarewarewa Valley features geothermal wonders and is a popular tourist destination, offering visitors a chance to experience the unique landscape and cultural significance of the Māori people who have lived in harmony with these natural features for centuries.

In contrast, Queenstown, while known for its stunning landscapes and adventure sports, is not recognized for geothermal activity. Wellington, as the capital, is recognized for its vibrant arts scene and history but lacks significant geothermal features. Auckland, New Zealand's largest city, is more urbanized and primarily known for its attractions such as the Sky Tower, rather than geothermal phenomena. Hence, Rotorua stands out distinctly as the correct answer due to its rich geothermal characteristics and tourism appeal.