Area of New Zealand not initially hosting new dance (5)
I believe the answer is:
tango
'dance' is the definition.
(Tango is a dance)
'area of new zealand not initially hosting new' is the wordplay.
'area of new zealand' becomes 'otago'.
'not initially' means to remove the first letter.
'hosting' means one lot of letters goes inside another (inserted letters are welcomed in or hosted).
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'otago' with its initial letter taken off is 'tago'.
'tago' enclosing 'n' is 'TANGO'.
(Other definitions for tango that I've seen before include "Ballroom dance (for two?)" , "Steps" , "South American dance (for two?)" , "Argentine dance" , "Modern ballroom dance" .)